T"NDAHY 18, 1954
HERALD AMH NEWS. KLAMATH FUXS. ORFr.ON
PASS THREE
TOM WHITNEY
wo.; Foreijo Staff
M"'1 hullabaloo over a
P" J -hasa of surplus butter
ferS vle Unioo under-
"V. fact- Moscow is aauvely
!frka her. economic
m felt to "e w0"a 01 "
g ties of the Soviet govern
S of other Communist gov
are trying- to buy and
Tto non-Communist world.
ononUalst governments
jflcials are Interested.
"I,, Vrdaln. secretary gen-
'ImLlon for Europe, is mak-
"SSfS v territory which
Lke him to Moscow as weu as
;.Ditals of tne wi. -
"'1 iih various European
tuswu . greater
FtVest trade this year.
. British government has given
Kteht to a group of British
n.hn have none to
Moscow Seeking New World Trade Outlet With Non-Red Areas
P- ..arch of orders.
n953 the U.S.S.R. concluded
b. oacts wh the following na
il' Vr... ... t Murium: Tn.
i nutsiae wc r
. Finland. Iran. Sweden
tj.v Denmark, Iceland, Italy,
Art Argenutu,
tr Some of these were new;
E. presented an expansion of
Cluus arrangements. .
ist European uuira
To were active too. For in-
.!, India, ueyiou uiwa-c,
lyNetherlands, Brazil, Argen-
the Par East the Chinese
fcmunists nave Deen mang
t, agreements, including about
Kan with non-Communist coun-
of Europe, A,Htui-ii,w- bw
. . ,1..
st about t r a a e wtt-n w
SB. has been maautg sic,,
nArtlcularlv in Britain .nd in
fctern Europe. Some news items
it been widely publicized
tughout the non - Communist
for instance, when the Russians
Hilly shipped to mgiana nearly
i hundred million dollars worth
told the world's press sat up and
Jc aoiice.
be journey by 30 British busi-
ismen to Moscow nas aiso
jised much interest.
In the other hand, demands by
I McCarthy (R-Wis) for a dras-
I program by the U. S. govern
int against countries trading with
Communists also got great puo-
Itv.
f'hat does the Communist trade
e amount to? How much of it
Bjust sound and fury and how
ich of it is real cash on . the
f relhead, real exchange of goods?
!is Hard to ouua up any com
bensive picture of the trade in
ns of dollars and cents. Iftrough
first nine months of 1953 the
Viet union's trade with the non
inrminist world declined about
third. The statistical office of
United Nations in releasing the
I of the Communist bloc as
hole with the outside world
Id be roughly the same as in
owever, much of what the Rus
ts and their Allies are doing
; ia the field of concluding
reements cannot bear fruit in
Ims of actual trade until later
Is rear, or even until 1955 or
cr.
obolt Bomb May
e Worst Yer
ASfflNGTON W Ears pricked
is the Senate yesterday when
. wiiey (R-Wis), chairman of
Senate Foreign Relations Com-
Ittee, referred in a speech to a
wa iype- ot bomb.
JVIley used the term while speak-
t tor legislation to authorize
(S. participation with Canada in
fistruetion of the St. Lawrence
aaway.
questioned later, Wiley said his
fnark was based on newspaper
fries speculating on "the A-bomb
Id the H-bomb and the other
iere has been sneculntfcm fifcmif
Bible development of a cobalt
mb even more destructive than
fcatomic or hydrogen bombs.
In any case it ia not the volume
of trade between the Soviet bloc
and the outside world percentage
wise it constituted less than 2 per
cent of total world trade in 1052
which makes this an important is
sue now.
Some very important changes
have recently taken place in both
East and West which make it
acute.
In the We3t the international
market has been transformed from
a seller's market into a buyer's
market. No longer are the post
war shortages the order of the day.
Instead all Western countries now
have surpluses of many goods for
exports and are actively seeking
foreign markets. In this situation,
with keen competition developing
within the non-Communist world,
"many sellers are casting willing
eyes in the direction of, the vast
markets controlled by communism
in the East. And their governments
are giving approval.
In the East, with the death of
Stalin and the Inauguration of pro
grams to speed up the increase in
stanaara of living, there has arisen
great demand for non-strategic
.consumer goods and foodstuffs
which the Communist governments
are willing to satisfy in part by
purchases abroad. Deal after deal
with non-Communist nations this
year concluded by the Russians
and their Allies has provided for
supplying to Russia of non-strategic
materials and foods, such as
cloth from Italy or France or
oranges from Israel.
While the war was going on in
Korea, while the markets for all
export, goods in the West were gen
erly brisk, while the Communists
were only interested in buying ma-
cnmery ana raw materials writes
had war potential, the issue was
fairly clear cut. Now it's not.
There are these fundamental
factors: .
The Communists do get advan
tage from trade with the West. In
the 30s Western equipment per
mitted them to industrialize the So
viet Union more rapidly. Right now
the Communists are continuing
their drive to industrialize the Com
munist world including China and
they need capitalist help.
While their interest in consumers
goods and foodstuffs from the West
this year is intense, the Reds con
tinue to set their long term sights
on breaking down completely the
Western restrictions on trade in
strategic goods and equipment.
Their trade drive is not just
"post-Stalin". It began before that.
A year before Stalin's death the
Russians oiganized the Moscow
economic conference to dangle in
front of Western businessmen or
ders for non-restricted commodities
and the prospects for larger orders
"should trade restrictions be
abolished."
The U.S.S.R. can, if It wishes,
have great weight in international
markets both as buyer and seller.
The things it can export in large
quantities make . up a formidable
list, and it can always use almost
anything in lis own economy or in
its satellites which it can get from
abroad.
V I7
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HaW rfafR Tfimcia rwu fn
bought abroad?
The contra) trf mnnnmif 1Aa c
vlet -rulers "make -avaUabte" for
export abroad just a&ut anything
produced in Russia. Coal, petrole
um, machinery, automobiles, opti
cal goods, food and thousands of
other things whether their supply
inside Russia is short or not can
at the TfvHI of the government be
shipped abroad to pay for imports.
RUKlifl oltiOVO a Uirr rrnIA
producer. Her stocks of gold during
wr were juagea oy experts
in the neiahhrn-hnnH nf iwn amft
dollars. There is little reason to
suppose iney are much, it any
less now.
purchase of the export surpluses
t wjiuic acuta 01 couatrtes, irom
Iceland to India, These are things
which cannot be sold elsewhere As
the Russians buy. they furnish em
ployment to workers in certain In
dustries, profits to businessmen,
and benefits to the government
concerned. They pay for their pur
chases frequently in commodities,
even strategic commodities, which
would otherwise have to be pur
chased for hard currency.
As they make such deals they
acquire a certain increased political
and economic Influence with the
country where they purchased.
They've gotten their foot to the
door there. If iney expand this loot
hold considerably they may some
day be in a position to pull the rug
out Irom under whole sectors of the
economies oi foreign nations.
The Russians will have to multi
ply their trade with the West con
siderably is order to reach such ft
position with important Western
European states. But such & pros-
pect is possioUKy is tile long
rao.
Whatever policy the 0. 8. govern
ment adopts, it seems fairly certain
that la Use coming years the
U.S.S.R. wiii be a more important
figure in irorW trade. than ever is
the past.
Ibis means iiiat the batter and
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