The Farmville herald. (Farmville, Va.) 1957-current, 1963-03-12
The Allen-Scott Report
Kremlin Acquires S25 Million in us. Gold Reserves
Since August, Plus IS Million Profit On Deal
BY Robert S. Allen and Paul Scott

in New Delhi in payment for
Soviet Colds sold to the Indian
government to help stabilize its
currency.
This financial wheeling and
dealing is paying off handsome
" for the SovietS.
BY selling its gold at the
world price which is consider
ably above the $35-an-ounce the
U. s. pays, the Kremlin makes a
fat windfall profit by selling ru-
PEGS for dollars in the U. S.
and then exchanging the dol
lars for gold at the lower U. S.
profit.
Significantly. these undercover
gold Vaccinations first began
to show up last fall following the
18th session of the International
Banking School. which was held
in Moscow for the first time.
BANKERS IN MOSCOW = At
tending this high-level meeting
were $50 bankers from 48 coun-
tries. including an 18-member
U. S. delegation headed by Paul
Gekker of the Federal Reserve
and including a number of 9TH
er U. S. officials.
The Soviet bloc was represent
ed by delegates from Russia and
all the Eastern European sat
elites except Albania. Mon
golia and Cuba. Representa-
tives Of Russia overseas banks
Bank Commercials du Nord,
Paris, and Narodny Bank. Ltd,
London also were on hand.
Largest Western delegation
came from Britain.
An intelligence report "for Of
fetal eyes only reveals that the
Soviet hosts used the meeting to
10 obtain information about U.
S. gold problems, and (2) to
build up an image of respectable
ity in international banking cir
cleS.
The opening days of the two
weeks meeting indicate that the
Soviet delegates are striving
for an image of responsibility
in international banking Cir
cles. the report states. Day
lime lectures and meetings have
been dull, pro-forna exposition
On the Soviet system with lit
tie new information given. Off
the-record evening discussion
groups include question and
answer exchanges which stray
from the channel set by the mod
orator Main Soviet interest in
wolves Y. S. gold problems and
the effect the chronic outflow Of
gold is having on the economy. :
AS a Sidelight on decorum, the
report notes that when the
American delegation was excus
ed to attend reception al
Spaso Russian resort, the dele
cation received warm applause
from other delegations, includ
ing the CubanS.
This incident occurred at the
same t m that Premier
Kmlshchev and Raul Castro
Cuban Defense chief were meet
ing in the Kremlin putting the
finishing touches on the plot tt
secretly ship medium-range nu
clear-ar1ned missiles to Cuba
The Cuban delegation to the
bankers meeting accompanied
Raul to Moscow.
PROBING THE DEAL Two
congressional committees alt
are quietly looking into the So
Wet gold purchases, including
the Americans who are hand
ling the rupee-to- dollars-to- golC
manipulations.
The Senate Internal Security
Subcommittee, which has the
names o. these individuals, plans
to quiz them soon.
The House Foreign Aid Ap
preparation Subcommittee. head
ed by Representative Otto Pass
man, Ola, is scruNninzins
these deals as part Of an over
all inquiry into how the foreign
aid program affects the chronic
loss Of U. S. gold reserves.
Latest Treasury report turned
over to the Passman committee
shows U. S. gold stocks or
March l had dropped to SIS,
877 .833.5l3 = the lowest leve
since 1889.
Representative Passman is