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 chapter I, Stalin's Lopsided Economy, we looked at the basic
economic structure of the Soviet Union. Beginning in the 1920's, the
Bolsheviks deliberately concentrated on an industrial-military buildup,
at great cost to their peoples. After the war, the same pattern was
forced upon the European satellite countries. Trade was reoriented away
from the West. That did not mean that the bloc could do without Western
goods, but the goal was to obtain those imports that would help the
bloc become more powerful and less dependent on the free world. The
Kremlin also sought to use trade to divide the Western powers and to
increase the reliance of free-world nations on the bloc. These Soviet
policies--not Western strategic controls--were the main causes of the
low level of East-West trade as compared with prewar. Stalin, shortly
before his death, made it clear that he welcomed the establishment of a
divided trade world--he saw it as a boon to communism and a blow to the
non-Communist nations.
In chapter II, The New Regime and the Consumer, we described the
new economic courses announced by the Soviet bloc governments after
Stalin's death. They made a great fanfare about providing more consumer
goods to the people and improving the neglected agricultural sectors.
But their steps did not go very far, and the purpose was to benefit
the state and not the people. They apparently were trying to ease
internal pressures--especially in the satellites--by opening the
valves a little, as they had done before. But they did not alter the
basic war orientation of their economies and they pressed on with the
industrial-military buildup.
In chapter III, The Kremlin's Recent Trading Activities, we reviewed
the so-called trade offensive--the various Soviet activities of 1953
and the early part of 1954 which seemed to show a livelier interest
in East-West trade. The U.S.S.R. concluded more trade agreements,
ordered consumer goods at a somewhat brisker rate, but also expanded
its efforts to buy ships and showed plainly that its principal
interest was still centered on the kind of materials that would foster
industrial expansion. To help pay for imports, the Communist planners
put manganese, oil and gold on the market in larger quantities than in
recent years, though history showed that they had done the same thing
in the past when it served their purposes. They also tried to increase
their influence in Latin America and Asia.
Public-domain text, read in full here on John Shaqi.
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