861.51/12–2846: Telegram
The Ambassador in the Soviet Union (Smith) to the Secretary of State
[Received December 28—1:58 p.m.]
4488. Recently released stenographic report of second session Supreme Soviet USSR October 1946 gives hitherto unreleased figures which apparently indicate that budgets of Soviet security organs, Ministry Internal Affairs (MVD) and Ministry State Security (MGB) have risen sharply in 1946 as compared with 1945.
Figures are inferential and partial rather than specified and all-inclusive. Embassy will submit report by pouch in near future explaining these figures and basis for this conclusion. It is sufficient here to point out that that portion of MVD-MGB budget which can be detected on basis of budget figures rose from about 6 billion rubles in 1945 to almost 15 billion in 1946 in other words more than doubled.
Several explanations are possible for this very rapid rise. In first place it may be accounted for in part by possible transfer of MVD army formations from Armed Forces budget in war year 1945 to MVD budget in 1946.
In second place increase probably indicates that number of security personnel has been considerably increased since last year, perhaps in order to permit replacement of regular army troops in occupied areas abroad by MVD formations, and probably in order to enable Party and Govt to carry out drastic measures on home front, such as price-ration measures of September–October 1946 and measures to curtail “capitalist remnants” in collective farm system, without fear of effective protest from population. In addition, of course, increased security personnel have undoubtedly been necessary in order to combat post-war crime wave and widespread speculation.
It has been rumored that Soviet atomic energy development is in jurisdiction of MVD. Embassy considers it improbable that atomic energy development, however, is included in 13 billion rubles of MVD-MGB funds which are identifiable as such in budget, and feels that atomic energy budget, whether under MVD or other jurisdiction, is hidden elsewhere in published budget, if it indeed appears there at all.