Evening star., 1945-05-27
Russia sPIunsin Europe
Disturb Her Allies
Observer Sees Soviets PRESSING
for Controlled Economy
By OUen L. Scott.

for Controlled Economy
By O,oen L. Scott.
A new Russian economic empire is in
process of being constructed in Eastern,
Europe. Realization of that fact is
dawning gradually upon officials OF this
country and Great Britain to help clear
the mystery Of Russia's actions in that
part Of the world.
In the areas of Europe now under
Russian domination there are about
150,0o0,o0o people and an important pro-
portion of the raw material resources
of the Continent. For the most part,
the region is underdeveloped. Its ties in
the past have been with Western Europe.
Germany supplied the principal market
for exports and contributed the most in
industrial products.
The destruction Of Germany has left
an economic as we'll as a political vac
uum. Russia Is starting out to fill that
vacuum according to definite plan.
Her methods and her objectives def
nitely are disturbing to the British and,
indirectly, to this country fact that
accounts for the agitation In London and
Washington over Russian actions.
AS matters now stand, solid wall is
built around the area of Russian occu-
patton in Europe extending from the
Elbe River in Germany eastward. Be-
hind that wall, Russia is busy with her
plans. New governments are being set
up. Preparations are being exacted in
the form Of forced labor and some trans
fer of machinery. New boundaries are
being established. Big estates are being
broken up in several areas. On the basis
Of reports to this Government, there are
a number of purges going on. A black
out exists so far as concerns any inde-
pendent reporting of what will prove to
be series of historic developments.
Yet there really Is no mystery about
what Is going on. Russia simply is los
ing no time in re-orienting the political
and economic machinery OF big part of
Europe. Germany had made this part Of
Europe economically dependent upon
her. When she put on the pressure she
could force many Of the smaller nations
in Eastern Europe to Jump to her tune.
Where she could not dominate their
political attitude she could count upon
support from powerful economic groups
whose status depended upon continued
German ties.
Russia now Is in the process of
making sure that situation Of this kind
does not occur again. With Germany
gone as market, Eastern Europe must
look elsewhere for markets for it's prod
ucts and for sources Of industrial sup
plies. Normally, nations such as Poland,
Yugoslavia, Rumania, Bulgaria and even
Eastern Germany could look to the West
for outlets for their products and for
supplies. Actually, they are being locked
into closed economic system and are
to be required to look to Russia. The
Russians are in great need Of the prod
ucts and the labor Of the area for
reconstruction. However, they cannot
supply needed industrial products In
return
This means that Russia is forced to
turn to what may appear to be strong
arm methods to force this part of Europe
to orient itself eastward. Everything
suggests that the Russian government
Is determined to force this orientation
regardless OF any opposition. By 50
doing, Russia can draw upon the labor
and resources of the area for help in
reconstruction. Then, after this period
she will have forged enough economic
ties and established relationship that
will be expected to leave these countries
dependent economically upon Russia
over the longer range. In the event
that there should be another military
attack from the west, Russia then would
have a group of buffer states to take
the first shock and to provide manpower
and industrial support for her armies.
That, at least, is the conception Of
Russia's intent as it now is being accept
ed by informed officials. It is not ex-
pected that Russia will alter her intent
in future peace negotiations Some
American officials, however, think that
they can bring a change of Russian
viewpoint by bargaining with American
postwar aid and with the reparations
that could be supplied to Russia by
Western Germany.
Russia is seeking large loans with
which to buy industrial products for
reconstruction. She has sought about
$4,000, 900 900 from Britain and $6,00o,-
100000 from the United States. The
British are unable to supply Russia on
that scale. It now is argued that the
United States by using her ability to
supply Russia with industrial eu,lipment
as bargaining weapon could cause the
Russians to reopen Eastern Europe to
relative free trade. 1t also is suggested
by high officials that Russia be denied
any reparations from the industrial
regions of Western Germany until she
agrees to supply food from the East and
until she agrees to open up that part
Of Europe.
All moves to date suggest that the
Russian government may see more long
range benefits in building what would
amount to Russian economic empire In
Eastern Europe than In trading that
opportunity for American loans and
American industrial products. BY bring
ing Eastern Europe into her closed and
controlled economic system, Russia would
expect within relatively few years to
recover from the effects Of the war
and to push ahead with an added feel
ing Of security.
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