TOP SECRET ANNEX SOVIET BLOC ECONOMIC POLICY AND DEFENCE Introduction Since the issue recently of a study of Soviet Economic Policy and Defence+ in which Soviet defence and economic policy after the death of Stalin were examined in the light of the budget, the half year results and Malenkov's speech, further information on the subject has become available, covering not only the U.S.S.R. but the European Satellites. This supports the view tentatively expressed in our earlier paper that economic policy was being adjusted to satisfy the more immediate needs of the ordinary consumer, if not by cutting conventional armaments production, then partially at least by limiting its further increase, as well as by other measures of a more general economic nature.