4- I - AIR POUCH com-1mm no or TYPE IN THIS once no TV Sec-um Cfamyi alien FOREIGN SERVICE 3' 0' FROM American Logation Bucharest 3W l to T0 THE DEPARTMENT or STATE wnegr w a - ti Av - f'h Foroept Wife-'1 gf-2 If Only l 1 Cr 3'1 mien 4 REF Deopatof' Ho 1 16 of Inner 5 1955 mm ii 13 - - m - - sumac Railroad Ionizer reuction to im'gii'Jf z i 3 11 55 I r eye -r The negati I a public reaction to ie'deretio fritgnm -timym lid 1954 appears to have resulted in open protest m Tao-wt one Harbor group The storyr is circuLeting Ethernet today the the gured 01' the Romanian Railroad Oaile Icrete Rowen or mm are dunn deng to an one-orgie- Gheorghiu-Dej to protest the decree The story ie no widespread that it in hollow-d that that met he soul truth to it - although to that extent it turn teen proton and dietorted in the telling cannot be estimated It is known that the railroad norhrl are at least no discontented so any other group of torture in the and bee-nee or their mobility know more about national condition and are more able to minted oontacte among themselves than any other large occupational group 0 timer on tun-In idi uwo At any rate the version heard most often is that the railroad Iorhrl have asked to see Gheorghiu-Ijgi in order to demand that their salaries be inoreaaed in proportion to the price increases resulting tron dareticning The slight increases granted by the December 26- are not conglfered sufficient They have appealed to Gheorghiu-Dej personally beoause of his part history on a militant Communist railroad worker Bowie version of the alters r mention action by the GER union but since the union in nothing but an arm of the Journal-riot regime there appears to be little truth in this Such requests by ucrloere ror inoreaeed pay could be very embarrassing to the government Dcrationing our in a noose forced on thfregime tenant or its inability to mintain supplies or rationed goods at the lover rationed prices The increases in prions were intended in part to reduoe the purchasing power or the urban papulation in order to bring the situation under control 321' wages and calories can he kept low it might be possible to keep the drift toward in ation de'IIn to or slot r speed But once any large group got an across-tine- board pay increase in ation would quickly get out or oontro1 I'or this reason it is not expected that the railroad Iorkere' demands will result in anything more than silence on the part of the regime - and perhaps a for emote The pressure for wage increases will go on however and ii' the price rises associated with derationing prove a great enough disincentive to adversely 4 Jar-tact production 1 master 2'on REPORTER ACTION COPY DEPARTMENT OF STATE The action once mun return this permanent record copy to men with an endorsement of action taken D 'l Page 1' Pig - EocL No Thil N0 Hum 933 affect production the offal-to of the regime to curb in ation will prove Pressure on industrial memo to minted-n production in the face of these dentudc my oven result in thiir pedaling wages up in how extra-legal way This would accomplish gredm 11 what the region looks to avoid doing suddenly Along with railroad workers-i atom-3r the rim or Dunn-at continue to stories Melting a Emit-'11 fear of mating reform People have Io little fifth in the omniraingc 111m of the they tilt they repeat with credence Mien to the snort trot inhma private cat-v tracts are now being made in term or Huge-3n Thad it if the price at piano of work done in the private lootor 11 1 01 91 I notation in node a ll mould of sugar which could be bougbt for that moat and it in agreed till paymnt will be ado Iafter cm'ronq reform' in tho lmu o the out which will buy the amount or oumr agreed on iboth-r or not thin star it literally two there is a great reluctance to hold on to moi-coo end I now currency reform is expected It seems probable that there will be I new Inn-rune reform at some time in the future but if only because the last one won a rec-It 1952 it is bellowed that the regime will do all in its power to ovoid the moth one Essentially a color-coo r reform is only a formal ccn nution of emcee purchasing power which has contacted in to tho grime bite-om at prcduoed in the 001 th and what goes to t1 populotim in the tom of consumer goods The regime would prefer to keep this con scation informal and covered by the difference between vegan end prices Since it hoe neither the comm over ito i'oreigl trade the cooperation of its people not the skill to manage this indefinitely it my be faced summer or later to repudiate its currency But it 1511 ton' to avoid this ntop to long on possible %onm marge d'Afi oiree hi any JARZ 31955 common at SIATE mem1_u_l