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;::.::.:-111.--~ CINTRA 	PRIORITY 
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Intelligence Information Cat/ 
_CZECHOS:JAVAJ9A/POLAND/HUNGARY ••••••• DISTR. • JANUARY 1964
OATE.Of.~ 
INFO. 
----------SUBJECT---------­
IMPENDING ANNOUNCEMENT OF DRASTIC AUSTERITY PROORAM 
PlAC! & 
DATEACQ. 

RiEF••••llN 
SOURCE FIELD REPORT NO. 

AND 
APPRAISAL: 
TQ ARMY· m'AFF COMM: EXCLUSIVE FOR ACSI, GENERAL DOLEMAN; NAVY DNI, ADMIR TAYLOR; AIR FORCE AFCIN, GENERAL THGfAS; TO DIA: EXCLUSIVE FOR GENERAL CARROLL. 
TO m'ATE: NO DISTRIBTJrION EXCEPI' TO MR. THOMAS L. HUGHES. 
TO NSA: EXCLUSIVE FOR fl~BLAKE 
TO -FBI~· FOR MR. S. J. PAPI CH 
THERE WILL BE A "SENSATIONAL 
.. 	. 
DEVELOPMEN.r" IN THE KSC CENrRAL COMMITTEE BEFORE THE END OF JANUARY 1964. IT WILL TAKE THE FORM OF AN ANNOUNCEMENT OF A DRASTIC AUSTERITY PROORAM, WHICH KSC OFFICIALS FEAR MAY AROUSE A VIOLENT PUBLIC REACTION. THE PROORAM WAS CONSIDERED BY THE KSC 
' 	Pm:s!DIUM ON 1 JANUARY 1964 AND wrr.i BE SmMrrTED FOR FINAL ACCEPTANCE TO THE NEXT ··~~cci.n.uTrEE PLENUM ON 21.. JANUARY .1964. THE NEW PARTY COOITSSION ON STANDARD OF 
SANITIZED Authority,kAC• NA..J 111-11 f.,/-II 
~y~N~Date.J.A:J.l·P_/ 
CLASSIFICATION_. DISSEMINATION CONTROLS.
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LIVING HAS S'CJ'lMITTED ALTERNATE PROPOSALS. 
COMMENT: 
A KSC PLENUM IS SCHEDULED FOR JANUARY 1964.1 

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2. UNDER THE PROPOSED PROGRAM, CONSUMER GOODS WILL EE MORE EXPENSIVE, RENTS WILL BE HIGHER, ELECTRICITY WILL COST MORE, AND PENSIONS WILL BE LOWER. THE MAXIMUM PENSION, WHICH IS NOW 1600 CROWNS, WILL PROBABLY EE LOWERED TO 1400 CROWNS. 
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3. THE POPUIAR REACTION TO THIS AUSTERITY PROGRAM IS EXPECTED TO EE VERY SEVERE, AND mMANDS FOR FAR,:REACHING POUTICAL CHANGES ARE EXPECTED TO MOUNT. 
5. WITHIN THE SOVIET . BLOC, ECONOMIC DIFFICULTIES ARE NOi' CONFINED TO CZECHOSLOVAKIA, WHERE THE SUPPLY SITUATION IS FELT TO BE FAIRLY SECURE FOR ABOur SIX 
'..~: .)lORE MOMHS. IN. POLAND AND HUNGARY, ON THE 01'HER HAND, THE SUPPLY SITUATION IS ~,~THBOOOH. THE MONTH OF. FEBRUARY .l.964 • 
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CLASSIRCATION -DISSEMINATION CONTROLS 
c~.. rtNUATtON Of TDCS INFORMATION REPQ\ 
CLASSIFICATION -DISSEMINATION CONTROLS


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6. FIELD DISSEM: NONE. 
END OF MESSAGE 
CLASSIRCATION -DISSEMINATION CONTROLS 
CONTINUATION OF TDCS INFORMATION REPORT