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Carli's third move was stunningly simple. He bolstered his country's balance of payments by replacing Italy's depleted store of monetary reserves with dollars borrowed by state-run and private corporations from private banks in Europe-a step that no one had thought of taking before. Other countries with basically sound currencies can well adopt the same technique when they are faced with temporary capital outflows. Because the government guaranteed repayment of the loans and the country was considered a good risk, Italian firms got a plentiful supply of money at favorable rates. Carli arranged...

Author: /time Magazine | Title: ITALY: The Lira Wins Again | 1/11/1971 | See Source »

There have been tension and trouble ever since 1968, when two state-run enterprises, ENl and IRI, bought a major block of stock in Montecatini-Edison. The state companies want Italy's chemical industry welded into a cartel strong enough to thwart foreign competitors. The government's men have proved to be far more dynamic and adept at grabbing power than the representatives of private shareholders. Now the state's executives are likely to move into the vacuum created by Merzagora's departure. In Italy, the government already has monopoly control over electric power, telephones, railroads...

Author: /time Magazine | Title: Italy: More State Control | 11/2/1970 | See Source »

...year plan for major highway construction between cities. Moscow is working on the development of an electronic traffic-control system. Meanwhile, however, consumer demands for cars are skyrocketing. Russians are so auto-hungry that they will pay twice the list price to those who win new cars in the state-run lottery. A cartoon in the Soviet humor magazine Krokodil shows a swaddled infant in a carriage, howling, "I want a car!" at the sight of the new Zhiguli. Even when the Togliatti plant reaches full production, it is scarcely likely to meet the demand. According to one estimate, even...

Author: /time Magazine | Title: Soviet Union: Into the Auto Age-At Last | 9/21/1970 | See Source »

...were depleting the country's reserves too rapidly. - Algeria, which is against almost all Western countries except France, nationalized the operations of Phillips, Royal Dutch/Shell, West Germany's El-werath and Italy's Ausonia because they refused to turn over 51% of their interests to the state-run oil company. Getty Oil has agreed to Algeria's terms, and Mobil is considering doing the same. El Paso Natural Gas was exempted, evidently because Washington has yet to rule on its application to supply one billion cubic feet of Algerian gas daily to the U.S. East Coast...

Author: /time Magazine | Title: Oil: A Little Throat Cutting | 6/29/1970 | See Source »

...products available in hard-currency shops, attending occasional educational fairs sponsored by the U.S. Information Agency, and thumbing through the cultural exchange magazine Amerika, which is popular despite a limited circulation of 55,000. The vast majority of reports about the U.S. appear in the Soviet Union's state-run press, and whether they involve Pentagon plans or kitchen conveniences, they almost invariably carry at least a tacitly unfavorable comment on capitalism...

Author: /time Magazine | Title: World: Soviet Portrait of America | 2/23/1970 | See Source »

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