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 also forced upon the satellites the characteristic Soviet
trading goal of reducing and eventually eliminating all dependence on
the free world. Lenin himself had emphasized that the first goal of the
Soviet Union in its economic relations with the outside world was to
gain "economic independence from the capitalist countries." A prominent
Soviet economist, Mishustin, in a book published in 1941, spelled out
this principle in greater detail:
The main goal of the Soviet import (policy) is to utilize foreign
products, and above all, foreign machinery ... for the technical
and economic independence of the U.S.S.R.... The import (policy)
of the U.S.S.R. is so organized that it aids the speediest
liberation from the need to import.
In 1946 the leading Soviet economist, Vosnosensky, restated the
objective in the Government periodical, _Planned Economy_:
The U.S.S.R. will continue in the future to maintain economic
ties with foreign countries in accordance with the tested line
of the Soviet government directed towards the attainment of the
technical-economic independence of the Soviet Union.
The Kremlin's new Eastern European empire included vast natural
resources and sizeable labor reserves. Nevertheless it was--and still
is--a long way from being self-sufficient, in the sense of being able
to match the production levels of the free world, or even in the sense
of fulfilling its own ambitious production plans, without trade with
the West. Imposing an ultimate goal of self-sufficiency thus could not
eliminate the Soviet bloc's dependence on the free world. Communist
trade planners still found it advantageous to import from the free
world many things the bloc countries needed. The new goal did, however,
affect the composition of the satellites' trade. The planners placed
much greater emphasis on the importation of industrial raw materials
and equipment that would, in the long run, reduce the need to import.
In the U.S.S.R. itself, the Government had always been disinclined to
offer exports in order to import consumer goods, like meat, butter,
textiles, and appliances. Now the same policy was clamped on the
satellites. So the bulk of Soviet-bloc imports from the West consisted
of goods that did not enter the homes of the people.
[Illustration: VOLUME OF TRADE OF OEEC COUNTRIES WITH EUROPEAN SOVIET
BLOC]
The result of all this was a big decline in trade between Western
and Eastern Europe, as compared with prewar years. Before the war,
countries which now make up the Soviet bloc in Europe carried on less
than 10 percent of their foreign trade with one another; now this has
risen to more than 75 percent.
=How the Kremlin Controls Trade=
Public-domain text, read in full here on John Shaqi.
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