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
Let us be perfectly clear on this point. The theme of the early
chapters of this report has been the Soviet "trade offensive" and
its background, just as the theme of the third semiannual Battle Act
report was the enforcement of free-world strategic trade controls.
The selection of the theme, however, should not be taken to mean that
Soviet trading activities are the only factor that free-world nations
must take into account when they consider what economic defense
policies to maintain in the interest of their security.
In 1953 certain other considerations were demanding the careful
attention of the agencies of the United States Government that are
responsible for economic defense.
=The Background=
One of these considerations was the probability that the world faced
a long period of tension short of general war, though with the
ever-present risk of war. In such a period, no matter how long it might
last, it would be essential for the free nations to remain strong and
alert, to move together in whatever steps were necessary for military
or economic defense, and at the same time to keep open the paths that
might lead to a sounder basis for peace.
Another factor of historic significance was the massive upswing in the
strength of the free world. Western Europe, especially, had moved into
a far stronger position, both militarily and economically, than it had
occupied a few years earlier. This gave the West greater bargaining
power and it reduced the dangers of undue economic dependence on
Soviet-bloc trading partners.
As Western Europe grew stronger the need for economic assistance from
the United States declined. Although military aid continued in a big
way, economic aid began to taper off.
Accompanying the increase in Western economic strength was a general
shift in the free world from a "seller's market," in which goods were
scarce and sellers had a relatively easy time finding buyers, to a
"buyer's market," in which buyers generally could pick and choose. Some
of the free countries had produced themselves into surpluses of some
commodities--or had built up surplus capacity and needed additional
markets in order to keep their industries prosperous.
Public-domain text, read in full here on John Shaqi.
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