Evening star., 1926-11-07
i. S.-SOv|ET TRADE
DECLARED GOOD
Department of Commerce
Says Recognition Could
Add Nothing More.

eoVlel government by the Inlte'
States. emphasized in the refusal o
an American visa to Nine AleXa ndY:
kolla ntay. new Russian Minister Il
Mexico. is bound to react as trade
"bugaboo" are minimizcd By Depart
ment OF Commerce officials
Expa nsion Of American trade Will
Russia--alreedy four times the pre-
war volumes MOI dependent on rec
ognition officials fastened to assure
American business men. There is nt
connection between the two questions
they contend. and American business
men have no need TO fear that the
United States Is throwing away q
wonderful trade opportunity. Official
ly. the United States declines 10 have
anything 10 do With the Soviet gov
ernment. but Department Of Com
1efce statistics show that. unofficially
America is Russia s greatest trade
ally.
So long as Russia needs American
ma chinery and equipment for the up
building Of her industries Department;
OF Commerce officials are confident
that the stream of Russian gold will
continue to pour into this country ir
keeping with Soviet purcha sing pow
er. whether the United States extends
recognition or not.
L. S. Leads World.
Claims that America s commercial
rivals hold an advantage over the
United States because of it's refusa
TO recognize the Soviet government
apparently do not hold water. Despite
seven or eight years of non.recog
milton, America leads the world in eX.
porting goods 70 fill Russian needs
The only reason that the United
states does not import more from
RUSSIA than any other nation. ofsicia Is
explained. IL because its needs are
Iess. AT that. the figures for the la IS
nscal year reveal thai. next to Great
Britain, this country buys more from,
Russia than any other.
American trade with European and
Asiatic Russia for the five prewal
years from 1910 TO 1914 averaged an.
proximatsly $23.G00.00O annually in
me volume OF imports and $4,000. .00O
IN exports to Russia. The ledger now
reaos Tor the last fiscal year $4,000,
"oo worth OF goods exported to Russia
ana S24.000,060 purchased.
In other words. the Department of
commerce points out, refusal Of the
! nlted states to recognize the Soviet
government has not stood as bar.
fler to enormously increasing trade
relations. The United states today
supplies PSI per cent of all of Rus.
sla imports. Great Britain. the
nearest competitor. supplies ONLY l5.S
per cent. Germany ranks third. with
14.5 per cent
Ihere can be no commercial treaty
between the United States and Rus.
s!a untll diplomatic relations are re.
sumeo. But i'll the opinion OF. Com,
merce Department officials, while a
commercial treaty undoubtedly would
'aclltate' intercourse by putting gov.
ernment representatives i'm the field.
IL necessarily would not increase Rus.
sias purchasing power Recognition
OF no recognition. the State Depart.
ment IS not likely to sanction private
ioans TO Russia until an aereement
mas been made to fund the Russia n
DEBT to this country. either i'm whole
or In part
Information Is Available.
Despite the protests of many
business firms, Government
omcials claim that the same sources
or information as to Russia's CONNER
claI needs are as readily available to
ne United States as to other coun.
'rles. The chief barrier to Russia n
rade, which applies to all countries
alike. is said to be her difficulty in OBJ.
talnlng credit Manufacturers and
importers stand a risk which many
are reluctant to chance.
Economically, Russia Is confronted
with an enormous increased cost in
0T06NNfinn n I,o
compared with prewar times. due
chiefly to ineficiency and q, scarcity
of skilled workers. But as inefficiencv
IN its Industrial system is eradicated.
omclals say, Rusias needs and buv.
ing capacity are bound to grow.
Russia looks to the United States
TOR the bulk of its raw cotton. an.
proXimately 80 per cent OF it's cotton
imports coming from this country.
To the United States, it also looks fo,.
most OF its Industrial machinery, farm
tractors and prima rily
It's oil field equipment.
Russfa's chief exports in world
trade are grain and grain products
lumber and timber. furs. manganese
ore and oil products Practically 80
per cent Of its exports 10 the United
States are In furs for which there is
4 brisk and growing demand AS vet
there is little or no demand in the
American market for other Russian
products beyond licorice root. sheen
"a asings and caviar. a delicacy that
appeals particularly TO the American
sppetite.
The kollantay incident. which al.
ready has stirred pro Russian circles
In the United States. undoubtedly
will be aired in the coming session uf
Congress by those who share the view
" Senator Borah. Representative of
Idaho, that 1t Is a blow for the move.
nent OF recognition of the Soviet gov
by the United States. 1t will
serve also as means OF assailinE
he somewhat unusual policy Of the
ADMINISTRATION in encouraging, un-
trade relations with a nation
which It refuses to recognize in a
way.
That the United States Is endanger-
Ing its commercial supremacy with
Russia through adherence TO this
policy, is the attitude taken by Sena
or Borah and other champions OF
Russia in and out of Congress. They
point to the enormous increase in
Russian world trade In the last few
Years. as indicating the vast pos.
sjbilities Of the future. Russian ex-
ports to all countries totaled s2s3.300.-
300 for the fiscal year is25-ls26. as
with $4,000 900 for the
: ear lS20-192I. It's imports totaled
; f2S3. .40o, 900. as compared with $3.50,
700 900 for the corresponding period.
Primarily an agricultural people be
lore the war, Russia is beginning now
70 scratch the surface Of it's vast I'M
developed resources and TO develop its
heretofore neglected industries. No
ather country. its champions In Con
rress claim, holds out such trade pos
,:bilities to the United States.
Despite their fears that the United
|tates is jeopardizing the business in
erests Of the country by Withholding
the Department OF Com
nerce takes the position that scarcely
ny more can be done through recog-
lition than is now being accomplished
n q commercial way.
The United States now it is con-