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
Moscow, while shopping for more ships, peddling more gold, and making
other moves in the industrial countries of Western Europe, also reached
outside Europe and tried to fasten closer economic ties with Asia and
Latin America. The trade of the Soviet Union with the non-Communist
areas of Asia, and with Latin America, has never amounted to more than
driblets. That of Czechoslovakia and Poland has been a little bigger.
The U.S.S.R. entered this field in 1953 with a good deal of propaganda
effect. The effect in delivery of goods was still to be seen.
The Soviet trade bosses used a number of devices.
One device was to offer loans and technical assistance. Some of the
loans were connected with trade. Others, related to construction
activities within free-world countries, were more suggestive of
investments and provided opportunity for increased Soviet or Communist
Party economic penetration. There was a marked interest in assisting
in the establishment of storage and supply facilities. So far, few
Soviet offers have been accepted. Possibly this is because they are
disturbingly reminiscent of the penetration techniques that were used
to gain economic leverage inside the Eastern European countries and
China prior to Soviet political domination of these regions. Or it may
be that skepticism has been aroused by the experience with Communist
Party use of commercial enterprises in some Western European countries
to finance the local party and the Kremlin's activities.
Another device has been to build lavish exhibits at "trade fairs."
This activity, though carried on in Western Europe too, was especially
marked in South Asia. On an increasing scale, since 1951, the Soviet
Union and its satellites have been using trade fairs for a double
purpose--to promote the kind of trade the bloc desires and to propagate
Communist ideas.
By elaborate and costly displays the Soviet-bloc governments seek to
dominate the fairs; to overshadow the exhibits of the United States and
other free-world countries; and to create the illusion of an industrial
and commercial superiority over the Western nations, especially the
United States. The U.S.S.R. makes a concerted and determined effort to
discredit and minimize the industrial and technological achievements
of the United States by contrasting the great size of the Communist
nations' participation with the usually modest representation by
United States firms. An important distinction between Soviet and
U.S. exhibits is that the former are developed as a state trade
promotion and propaganda undertaking, and involve the building of
special pavilions, whereas U.S. participation amounts to the sum total
of exhibits of individual U.S. industrial and commercial companies
assembled for the single purpose of promoting the sale of individual
products.
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