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
Foreign trade is a political as well as an economic weapon in the hands
of the Soviet Communist state. By way of illustration, in 1948 it was
possible for the Kremlin first to reduce and then to cut off all trade
between Eastern Europe and Yugoslavia as a part of the attempt to
bring Marshal Tito to his knees. The attempt failed, but the Yugoslavs
suffered serious economic difficulties before they could readjust.
Even earlier, the world had seen how the Kremlin refused to allow the
Eastern European countries to benefit from the flow of Western goods
that could have been theirs under the Marshall plan--another evidence
of how the state's objectives took precedence over the people's needs.
The Kremlin in its propaganda made much of Western trade restrictions.
But the West's limited controls over the shipment of strategic goods
did not come into existence until long after the Kremlin had begun
using trade as a cold-war weapon. Even then these Western controls,
far from being aggressive actions against peaceful trade or against
the welfare of populations, were common-sense measures of economic
_defense_, designed only to foster Western security by withholding from
aggression-minded governments the important war-building materials that
would make aggression easier.
On the other hand, the Kremlin's long-term objectives in its economic
relations with the free world are far more than defensive. They have
a dual character: strengthening the bloc and weakening the free-world
powers. These objectives can be summarized as follows:
1. To feed the economy, especially the industrial-military base,
with imports that help the bloc become more powerful and less
dependent on the free world.
2. To drive wedges among free-world nations at every opportunity.
3. To increase the reliance of free-world nations on the bloc for
markets or supplies, and thus make the free world more vulnerable
to bloc pressures.
=West Has Never Barred Peaceful Exports=
The Kremlin, while coldly managing the East-West trade of its domain
in the manner described, always had its propagandists and fellow
travelers out beating the drums and making a continual outcry against
the security trade controls of the West. The main line of the
propaganda was that trade was equivalent to peace and prosperity,
and that the Soviet bloc always stood ready for unlimited trade, but
that the Western "economic blockade" barred the way. In each country
the businessmen were constantly handed the false but inflammatory
story that they were being shamefully discriminated against by their
government and that the businessmen of neighboring countries were less
subject to restrictions. Western Europe as a whole was treated to an
alluring picture of a vast prospect of East-West trade, beyond all
factual probability in view of Soviet policies.
Public-domain text, read in full here on John Shaqi.
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