The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-12-11
SOVIET UNION
CALLED GREAT
U. s. MARKET
Given Credit, Russia Can
Buy S5,OO0,OO0,0
Worth, Expert Says.
NEEDS 25-YEAR PERIOD
Potential American Exports
Include Diverse
Products.
BY WILLIAM PHILIP SIMMS
scripps- Howard Foreign Editor


WASHINGTON, Dec. 11-Given
twenty fve-year credit period, Rus
STA can buy $1,000, OOO, 900 worth Of
goods and services from the United
States in the next five years, David
Ostrinsky, economist and authority
on the Soviet union, tod admins
tration officials here today.
While he admitted this figure
represented maximum possibilities,
Mr.. Ostrinsky observed that it
represented a per capita purchase
Of only So a year, or $50 for the en-
tire period
Thus, he said, an analysis Of
Soviet Foreign Commissar Litvin-
offs statement that Russia could
quickly absorb 81 ,OOO, 100000 worth
of goods was, in reality, very con-
sentative.
Among the items cited in a table
prepared by Mr.. Ostrinsky 70 show
possible American exports to Rus
STA we're trucks. tractors, farm i'm
plements and spare parts, 100000
900; structural steel and alloys, $780,
100000; locomotives, cars and other
railway equipment, 500,000,OO0; au-
tomobiles, service station equipment,
etc, S5OO,O0O,OOO; cotton and tex
tiles, $3500O0,0O0; mining, oil ma
chinery, etc, $500, 5000.
Excellent Credit Risks
Electrical equipment, telegraph
and telephones. blast furnace IS,
chemical equipment and so on
represented other huge sums.
Sheer Self-interest." said Mr..
Ostrinsky, makes the Soviet Union
an excellent credit risk for the next
generation. 1t will take Russia at
least that long to industrialize her
self. Meanwhile, even if for no
other reason, she must keep her
credit record spotless."
Mr.. Ostrinsky told officials, how
ever, that unless liberal credit
terms are granted, and an oppor-
tunity offered to meet a major part
of her commitments in goods pay
ment. Russia obviously could open
only a bare fraction of this poten-
tial market to the United States.
Balances Are Stressed
Patiently" he said to the writer,
in the long run a nations imports
and exports must balance. The
soviet union can be no exception to
the rule. 1t is to the interest of the
United States. therefore, to make
a careful study of the goods it can
buy from Russia without injury to
its own economy.
In the second place, it should
seek to work out triangular trade
arrangements as, for example, be-
tween the United States, Russia and
Latin-America.
If possible, the United States
should endeavor to work out a long
view trade plan with the Soviet
Union, a plan looking forward
twenty or twenty-five years. For
reasons already indicated, I regard
Russia as a relatively safe risk for
such period.
Cites Russian Products
Because of the impetus which
such trade would give this country'S
recovery program at this time, an
effort should be made to do the
maximum possible business with
Russia during the next year or so.
AS prosperity returns, the volume
of credit could be reduced. If bust
ness Slackens, it could be increased
a little"
Among Russian products which
the United States might take in
increasing quantities, Mr.. OStrinsky
cited furS, manganese, pulpwood,
caviar and other fish products, silk,
rugs, art objects, precious metals,
asbestos, castings, briStles and so on.
Russia has platinum in abundance
and her output of gold is increas-
ing annually.
Russia, said Mr.. Ostrinsky, plainly
has the capacity to absorb, and, I'M
der given conditions, to pay for
huge purchases. Just how much of
this trade Americans will capture,
he indicated, will depend entirely
upon the terms they are prepared
to offer and the backing given them
by the government.