Evening star., 1932-05-01
Russian Trade and Recognition.

Senator Borah, no doubt encouraged
by effective recruits like Senator Rob-
inson of Arkansas. Senator Johnson of
California and Representative Rainey
of Illinois, is on the warpath again In
favor of recognition of Russia. The
chairman of the Foreign Relations
Committee justifies his new crusade on
the ground that the United States Is
losing valuable trade advantages by its
continued diplomatic boycott of the
Communist government at Moscow. Mr..
Borah told the Senate on Friday that
he had been unable to find a single
default on the part of the Soviet in
meeting its obligations for goods bought
in this country. That is less tribute
to Bolshevist business integrity than 1t
is to the sagacity Of American export
ers, who insist upon uncon1monly rigid
credit and payment terms in dealing
with the proponents of world revolu-
ton"
The able gentleman from Idaho is, of
course, aware that even though the
United States does not recognize the
Soviet government, there is no sort OF
embargo whatever on American trade
with Russia. The volume Of commerce
between them during the past two or
three years has, as matter OF fact,
attained record proportions. Nothing
approaching such import and export
figures in both directions was ever
known in pre-Bolshevist days. 1t is
thus clear that non-recognition is no
barrier to o-American trade. Trade
is going on regardless of the absence
of diplomatic relations. If it is slowed
up by the reluctance of our exporters
to gamble on Russia except under air
tight credit conditions, that is a nor
NAL development.
The presumption is that if recognition
we're to ensue, as Senator Borah pro-
poses, it would be followed by some kind
of a commercial treaty which would in
crease our exports to Russia. Russia,
| on the other hand, would naturally ex-
peet some reciprocal advantages which
would facilitate her sales in the United
States. What the Soviet Graves, Of
course, is the opportunity to dump her
low-cost or no-cost wares in the Ameri-
can market in competition with our do
mestic high-cost products, The dam
ages to American industry and labor
that would flow from such a situation
would be immediate and vast.
1t is a suggestive coincidence that
at the very moment American states
men are pleading for diplomatic recog-
milton of the Soviet Great Britain is
considering the abrogation of her Rus
sian trade treaty. She has found it a
very one-sided affair, the advantages
being Overwhelmingly on Russia's side
In 1880 British exports to Russia
amounted to s30,o0o,O 900, while Russia's
sales in Great Britain totaled sl7000o,-
600. I'VE are impressed by the fact"
Minister of Trade Runciman has just
told the House Of Commons that
there is very large preponderance of
Russian business in this country in re-
turn for the comparatively small busi-
ness Russia does with US" Many a
British industry, Mr.. Runciman might
have added, has found it utterly i'm
possible to meet the competition of
cheap Russian imports.
Our recognition advocates might do
well to inquire into what might hap
pen if Uncle Sam makes it easier for
the Soviet to disport itself in the
American market. Britain's experience
in particular, should furnish valuable
guidance.