East-West Trade Trends: Mutual Defense Assistance Control Act of 1951 (the Battle Act); Fourth Report to Congress, Second Half of 1953United States. Foreign Operations Administration
History
East-West Trade Trends: Mutual Defense Assistance Control Act of 1951 (the Battle Act); Fourth Report to Congress, Second Half of 1953
United States. Foreign Operations Administration
Military assistance; Mutual security program, 1951-; United States -- Commercial policy
These highly strategic items, of course, are the ones which the
countries of the Soviet empire have wanted most of all. And when not
able to get them legally, they have continued their efforts to get
them illegally. The third semiannual Battle Act report, _World-Wide
Enforcement of Strategic Trade Controls_, contained a detailed account
of the underground trade that violates Western regulations. Since all
foreign trade of a Soviet-bloc country is a state monopoly, it follows
that the state is an active participant in this underground traffic.
With the bloc, circumvention is an official policy.
The Soviet Union, despite its publicized buying of consumer
goods--which have never been restricted by the free world--has
definitely not slackened its efforts to obtain industrial goods whether
strategic or nonstrategic in nature.
=Something Different in Soviet Exports=
As told in chapter I of this report, the economic planners of the
Soviet empire first figure out their import requirements and then
decide what they want to export in order to pay for the imports. They
look upon exports primarily as a means of obtaining goods which are
more advantageous to import than to produce, or which they cannot
produce.
In the present chapter, we have seen what sort of items they are
currently interested in importing. Now we turn the coin over and look
at the export side.
The most noticeable feature is that the U.S.S.R. in the last half of
1953 and the early part of 1954 introduced into free-world markets a
number of mineral products which they had not sold in such quantities
for some years.
These commodities included manganese, petroleum, and gold. All of
them at one time or another have been among the major Soviet exports.
Together with grain, timber, and furs, they make up the principal means
that the U.S.S.R. possesses to procure the imports they want.
Why have the mineral exports been revived at this time? This leads us
to the grain situation.
Grain has long been the Soviet Union's No. 1 export commodity, and
still is. But Soviet grain shipments declined precipitately in 1953.
The United Kingdom, usually the main Western customer for this
commodity, stopped buying grain on a government-to-government basis
and turned the purchasing over to private firms. At the same time
the U.S.S.R. apparently decided to keep more of its grain stores at
home. The efforts to furnish more fodder to livestock, together with
below-average crops and collective-farm headaches in the U.S.S.R. and
satellites, suggest the motivation for this. At any rate the private
British firms were unenthusiastic about signing large contracts at the
high prices set by the U.S.S.R., and grain shipments to the United
Kingdom skidded from $101 million in 1952 to only $10.1 million in 1953.
Public-domain text, read in full here on John Shaqi.
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