748.00(W)/11–653: Telegram
No. 50
The Ambassador in Poland (Flack) to the Department of State1
145. Joint Weeka No. 45 (Section II). Economic.
1. Ninth Plenum United Workers Party, October 29 and 30, points to launching Poland’s “new economic course” in 1954–1955, following trend other satellite states. Main theme Beirut’s report “a more rapid rise in living standards of working masses”, with special attention to increasing agricultural production. Press says heavy industry has reached levels where larger percentages investment outlays may now be allocated agriculture, consumer goods industries and housing, without endangering fulfillment present industrial goals under six year plan. During period 1950–1953 industrial [Page 110] production increased by 115 percent and exceeded plan, while agricultural production increased only 9 percent and fulfilled only 82 percent plan (regime’s first admission extent of failure). Excessive lag in agricultural production blamed for hampering development national economy and as result living standards did not improve to extent planned. While pushing ahead with collectivization, more aid is to be given individual farmers in farm machinery, implements, fertilizers, supply consumer goods, increased credit, greater prospects for profit, etc., and compulsory delivery requirements to be eased for smallest farms. State agricultural agencies said to require radical improvement. Agricultural production to be increased by 10 percent in 1954–1955, including grain by 600,000 tons, potatoes by 5–7 percent, cattle by 7–10 percent, and pigs by 10–15 percent. Income of peasants and real wages of workers to increase 15 percent during same period.
Regime apparently feels time has come to ease somewhat conditions of hard pressed population and attempt curry favor especially with peasants. Industrial production success will apparently now permit greater attention to interests of consumer without jeopardizing basic industrial goals.
[Here follow sections speculating on the revaluation of the Polish zloty and an announcement of a new flight scheduled by the Polish airline.]
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