Evening star., 1946-09-18

I must say that. in my opinion, this
aspect Of the problem is not as
critical as some of the others, and
certainly is far less important than
the question Of atomic energy con-
troll. But successful negotiation in
this field might help considerably
to bridge the chasm that sep
arates US.
The question Of loan should be
approached on economic and COM
mercial grounds and should be dis
associated as much as possible from
the current misunderstanding
which flow from the basic differences
between their system and ours. You
have already clearly disassociated
yourself and the American people
from the expressions of anti-Soviet
support for the British loan. II we
could have followed up your state
ment on signing the British loan bill
with loan to the U. S. S. r. on
commercial basis and on similar
financial terms, I believe that it
would have clearly demonstrated
that this country is not attempting
to use its economic resources in the
game of power politics In the light
OF the present export import bank
situation, it is now of the greatest
Importance that We undertake gen.
eral economic discussions at an early
date.
1t is OF the greatest Importance
| that we should discuss with the Rus
slams III friendly way their long
range economic problems and the
future of our cooperation in mat
ters of trade. The reconstruction
program of the U. S. S. r. and the
plans for the full development of
the Soviet Union offers tremendous
opportunities Tor American goods
and American technicians.
Russia Uses U. S. Equipment.
American products, especially ma
chimes of all kinds, are we'll eStab-
liShed in the Soviet Union. For ex-
ample, American equipment, prac-
tees and methods are standard in
coal mining, iron and steel, oil and
nonferrous metals.
Nor would this trade be one
sided. Although the Soviet Union
has been an excellent credit risk
in the past. eventually the goods
and services exported from this
country must be paid for by the
Russians by exports to us and 10
other countries. Russian products
which are either definitely needed
or which are noncompetitive in this
country are various nonferrous metal
ores, furs, linen products, lumber
products, vegetable drugs, paper and
pulp, and native handicrafts.
I feel that negotiations on the
establishment of active trade might
we'll help to clear away the fog OF
political misunderstanding. Such
discussions might we'll be initiated
while We are endeavoring to reach
common ground on security is
sues, and if conducted in an under
standing manner, could only serve
to make that problem easier.
In the memorandum which I sem
to you in March, and which I sug.
gested should be given to Gen
Smith to take to Moscow, I made
certain suggestions for trade dis,
cussions and trade mission. Ir
preference to proposed discussion!
In this country I want to renew my
original proposal and urge the ap
pointment of mission to Moscow
Such mission might have as it!
objective the drafting of a proposa
involving Russian reconstruction
and collaboration with Russia II
the industrial and economic devel
opment of areas in which we have
joint interests, such as the Middle
East.
AS stated at that time I an
prepared to make suggestions fol
the composition of the mission anc
some of the specific economic ques-
tions to be discussed. The Depart
ment of Commerce has already ar
ranged, with the cooperation Of
the State Department, to send two
representative to Moscow for the
months of July and August TO,
preliminary discussions of much
more limited scope.
I think it is very significant that
most of the more optimistic reports
about the possibilities of getting
along with the Russians have come
from American observers who were
businessmen. I have in mind such
men as Wendell Willkie, Eric John
ston and former Ambassador Joe
Davies. The Russians seem to be
friendly to, and seem to have re-
spect for, capitalist businessmen.
A number Of observers have re-