Evening star., 1940-07-31
Negotiations Opened
To Renew Trade PACT
OF i. ). and Soviet
Russio Believed Ready
To Make Purchases .
Exceeding 40 Million
By OLIVER MCKEE.


The annual trade agreement be-
tween the United States and Soviet
Russia come up for extension Au-
gust 6. Under its provisions, the
fifth negotiated since the re-estab-
nshment of diplomatic relations be-
tween the two countries in 1888, the
Soviet Union enjoys most favored
nation treatment in respect to Amer
lean tariff duties, and in turn agreed
to buy at least $40,O0O,O0O worth of
American goods during the 12-month
period. Negotiations for a renewal
of this agreement are now under
way.
Before the war Soviet Russia made
substantial purchases in Italy,
France, Great Britain and several
other European countries. Russia
has now been cut off from many
of her former European sources of
supply, and if satisfactory arrange
ments can be made here, Russia is
believed ready during the next IL
months to buy American goods far
in excess of the S40,000000 worth
stipulated in the present agreement.
Among the American goods which
the Soviet would like to purchase,
in substantial quantities, are ma
chine tools, presses and eXcavating
machinery.
Exports Increase Sharply. 7
During the last three months of
1889 United States exports to Soviet
Russia increased sharply. Soviet
purchases in the United States dur
ing the first four months of 1910
were valued at more than $32 900 900.
Among the principal items on the
list were wheat, refined copper, brass
and bronze manufactures, tin plate,
metal-working machinery, molyb-
denum ore. internal-combustion mo-
tors and dredging machinery. Re-
exports of foreign merchandise to
Russia during this period included
rubber, refined copper and tin in
bars and blocks. These re-exports
were valued at $2.822,000.
During the first four months of
1910 the United States bought goods
from Russia worth about $6,000,000,
according to Commerce Department
figures. Imports included crab meat
sauce and paste, furs, both dressed
and undressed: bristles, licorice root,
peppermint oil, cigarette leaf, flax
noils, cotton linters and manganese
ore.
In May, the latest month for
which figures are available, our eX-
ports to Russia dropped materially,
both in value and in volume. May
exports were valued at less than
$500,000. The decline was chiefly
due to the uncertainties about ex-
port licenses and the shortage of
shipping facilities. Current exports
still are at low level. About two
thirds of Soviet purchases in the
United States fall in the list of
. goods for which export licenses are
required.
Despite the sharp decline in ex-
ports, the United States bought
Soviet goods valued at about So
100000 in May. Purchases included
nearly 130,000000 pounds of man
ganese ore, a strategic defense ma
terial.
Vladivostok Used Chiefly.
Since practically all Europe Is
now a combat area, only Vladivos-
tok and other Russian ports in the
Pacific remain fully open to COM
fierce. Though few American flag
ships In recent months have been
given charters for voyages to Vladi-
vostok, the bulk of our trade with
Russia has moved through this port.
Soviet Russia has a small merchant
marine so it is largely dependent on
foreign vessels as carriers of its
overseas trade.
Under the first two agreements
negotiated with the United States,
Soviet Russia undertook to purchase
$30,000000 worth of American goods.
The last three agreements provided
for the purchase of S40,000,000 worth
of American products. During the
nine months starting August, 1899,
Russian purchases in the United
States totaled nearly s7o,0O0,0OO In
1888, just before the re-establish-
ment of diplomatic relations, Rus
sian purchases in the United States
amounted to less than 100000.
Because of the situation in the Far
East and the increasing tension in
Japanese-A American relations, nego-
tiations for an extension of the trade
agreement between Soviet Russia
and the United States are being
closely watched by diplomatic OBJ
servers