East-West Trade Trends: Mutual Defense Assistance Control Act of 1951 (the Battle Act); Fourth Report to Congress, Second Half of 1953 — John Shaqi
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
In March 1945, Soviet manganese ore reemerged. The United States
was the principal buyer, receiving 1,168,000 tons in about 4 years.
In February 1947 the Soviet Foreign Trade Journal pointed out the
importance of the United States to future Soviet plans for the export
of manganese. But late in 1948 the Kremlin suddenly reduced its
shipments to the United States almost to the point of embargo. A few
shipments trickled in during the next 2 years and stopped entirely
in 1951. Meanwhile deliveries to Western Europe did not undergo a
compensating rise; they were little more than 100,000 tons a year.
Came the season of the last half of 1953 and the early part of 1954.
The Kremlin's zeal for exporting manganese bloomed again. Commitments
to ship over 300,000 tons of the ore were written into trade agreements
with Western European countries. Offers of manganese reached the United
States through various channels.
Chrome is usually part of the package when manganese is sold. As could
be expected, Soviet chrome commitments also climbed in late 1953.
There was also a revival of activity in the export of silver, platinum,
and palladium.
=The Emergence of Russian Oil=
But a more interesting commodity which the U.S.S.R. has begun to put on
the market in bigger quantities was oil.
In approximately the last half of 1953 the U.S.S.R. made agreements
to ship to free-world countries about 3.5 million metric tons of
crude petroleum, kerosene, diesel fuel, and other petroleum products.
The countries due to receive the largest amounts--if delivered--were
Finland, France, and Argentina. Other customers were Greece, Italy,
Iceland, Denmark, Sweden, Israel, and the Netherlands. Some deliveries
were made in 1953; more would be made in 1954; there was no certainty
that all the commitments would be fulfilled. But even a two-thirds
fulfillment apparently would be enough to hoist petroleum ahead of
lumber and furs and place it second only to grain among Soviet exports
to the free world.
What would this mean to the free world? What problems would it raise?
Again we can find clues in the past. The present situation is not the
first time that the U.S.S.R. has created a stir by abruptly entering
oil markets. This also happened in the late 1920's, when the U.S.S.R.
began exporting large amounts of oil as a means of obtaining industrial
imports. These exports grew each year and were 6.1 million metric tons
in 1932. This was around 10 percent of the world's oil exports, and
was almost 30 percent of Soviet oil production at the time. The United
Kingdom and Italy were the major customers for this oil, but there
were many others. The marketing was done through various channels. The
Soviet monopoly that controlled all oil exports set up a network of
sales offices abroad. Long-term contracts were made in Spain, Italy,
France, Belgium, and the Netherlands.
Public-domain text, read in full here on John Shaqi.
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