The daily worker., 1935-02-04
Soviet Foreign
Trade Climbs:
Hit I. S. Move
Despite Diplomatic Relations With U. S., John.
son Act Hinders Trade With Soviet; Credit
and Currency Best in the World
lExclusiye % the paiIy worker.l

MOSCOW, Feb. l (By Wireless) -
Details of the achievements of the
U.S.S.R. in the sphere of foreign
trade were given by Peoples Com
rnissar Rosenholtz in the course Of
the discussion of Premier Molotovs
report at the All-Union Congress Of
Soviets.
These achievements were con-
ceIned with the industrialization of
the Soviet Union, primarily the de-
velopment of Socialist heavy indus
try.
Rise in Industry
That the Soviet Union has
achieved economic independence in
technique from capitalist nations,
said Rosenholtz, is not only found
in the stoppage of the import of
very complicated types of machine
which in revolutionary Russia
and during the first period of the
existence of the Soviet Union had
to be imported in considerable guam
titles. Now they are produced in
domestic factories In addition, this
accomplishment is to be seen in
another fact - "We began" said
Rosenholtz, "to export number of
industrial commodities which pre-
viously were imported.
For example, in 1918 Russia i'm
ported coal to an amount valued at
over 100000 gold rubles, whereas
twenty years later, in 1888. the So
Wet Union not only had stopped
importing coal, but had exported
an amount valued at over 100000
gold rubles. Tsarist Russia imported
dressed furs valued at 100000
rubles, but the U.S.SR. has devel-
oped its own fur industry, and ma
turally no longer imports dressed
furs. Moreover, the extremely high
development of the Soviet fur in
dustry made it possible to export
dressed furs valued at many mil
lion gold rubles, while from some
countries, for example, Australia,
capitalist countries are beginning to
send raw pelts into the Soviet Union
for dressing and treatment. Tsarist
Russia imported cement valued at
22,000,000 rubles, whereas at the
present time the U.S.SR. exports
cement to Persia, Turkey, and other
countries.
Above Capitalism
"The economic independence from
the capitalist world which we have
achieved" continued Rosenholtz,
''makes possible the present new
demands regarding the conditions
under which we make purchases
abroad. If, during the first Five
Year Plan, particularly during the
first three years, 1929 to 1881, we
were compelled when purchasing
abroad to make large sacrifices,
frequently having to pay consider
ably in excess on our purchases,
conditions in regard to our economic
relations with the capitalist world
are now completely different. We
can agree to increase our imports,
but only if conditions are consider
ably changed.
Firstly, some governments did
not believe that we had actually
achieved this economic indepen-
dence. They often supposed that
our statements regarding the pos
sibility of reducing imports were
tactical maneuvers, and waited
until we were forced to return to
the old system of making large pur-
chases. But that was long time
ago, and as time passes they are
becoming convinced more and more
that our statements were not ma
neuvers. They are beginning to be
convinced that it is necessary to
alter conditions if their economic
contacts with the Soviet Union are
to be enlarged"
Commercial Relations
Making a detailed review of the
commercial relations of the US.S.R.
with various capitalist countries,
Rosenholtz spoke of the special
situation involved in the case of the
eastern countries = Turkey, Persia,
Afghanistan, West China, Mongolia
and Tannu Tuvin Peoples Repub
lies. TN accordance with the basic
principles of our foreign policy"
said Rosenholtz, "the Soviet Union
In it's commercial and economic
relations with Eastern countries has
determinedly and irrevoeably re-
jected the unequal treaties between
these governments and Tsarist Rus
sia. We have repudiated the adj
vantages, the capitulations, the other
privileges usually arising from un-
equal treaties. The strengthening
and deepening of our economic con-
facts with eastern countries pro-
ceeds on basic differing in prin-
ciple from that on which Tsarism
built its commercial policy.
THE Soviet Union is the most
effective market these countries
have for the sale of their exports.
which are mainly raw material. The
economic relations they have had
with us have assisted in the weak
ening of the crisis in these coun-
tries. This was particularly true
In the case of the national economy
OF MOllSO1ld anu 1diillu 1uViH.
Difficulties With u. S.
Despite the restoration of diplo-
matte relations with the United
States" Rosenholtz declared, as he
went on to discuss commercial
transactions with America, 1--WE have
met difficulties, and some unex-
pected handicaps regarding the de-
velopment of our commodity turn
over. Among such handicaps we
must include the unjustif1ed appli-
cation to the Soviet Union of the
johnson Law, which was aimed at
all countries not paying their debts.
\ Our orders in the U.SA,, all told,
comprised 820,O0O,O00 gold rubles,
-oo am nnn .--tt-