Evening star., 1947-09-07
Russia and Satellites
Must Pay on the Line
Our Economic Relations With Soviets
Now on Purely Business Basis

By Garnett d. Horner
Russia and her satellite nations are having
to pay cash for most of the things they get
from the United States now.
This is the answer to the oft-heard question
of why this country continues economic help to
Russia and the nations whose governments have
lined up with her In open hostility to democratic
aims. Trade with them has shifted to purely
business basis. Relief handouts and easy credit
from America are things of the past for the
Soviet orbit.
Actually, Of course, the Soviet does derive
beneht from commercial trade with this coun-
try. Otherwise it wouldn't be going on. But
there is reciprocal benefit to U.s. We need
some things obtainable in Russia. which We
couldn't expect to get unless we sold her
some OF the things she wants to buy here.
United States policy is to do everything pos
sible to encourage free commerce among all
nations, not to put any barriers in the way Of
such trade purely for political reasons,
Export controls are maintained over strategic
materials and some items In short supply to
protect the domestic economy and help guide
those American products of which there aren't
enough to go around into areas having the
greatest need for them.
At the insistence of Congress. export con-
trolls were put back on petroleum last June dry
ing up shipments of oil from the West Coast
to Russia. The Sovjets had bought $l,9l4534
worth of petroleum here during the first six
months of 1947.
All American goods shipped to Russia during
the first half of the year were valued at approxi-
mately ssl 100000. Nearly half of this, or $45.-
100000, was paid for in cash. Relief shipments
to White Russia and the Ukraine through
UNRRA now wound up, amounted to $31 ,100,-
600. Shipments of lend-lease pipeline" goods,
technically transferred to Russia before dead
line last December 81 but not actually getting
out of the country until this spring, accounted
for nearly s15,OO0OOO.
BY contrast lend-lease accounted for
$152, ,1oo,0 900, UNRRA for $152 400, 900 and cash
purchases for only $50 800 900 OF the s357 900 900
worth of goods shipped from this country to
Russia during 1e46.
Commerce Department statistics for June
1947, the latest month for which it has compiled
the trade figures. illustrate how the lend-lease
and UNRRA shipments are tricknng out
UNRRA shipments, which amounted to $40 lO0,-
600 in May, dropped down to 81 200 600 in June
Only $147 900 worth of lend-lease goods were
shipped In June, compared with So 100000
in May.
Both the lend-lease and UNRRA programs
are officially over-lend-lease as of last Deem
Der 81 and UNRRA as of last March 81. Oflcials
explain that shipments showing up in statistics
for later months involved goods actually trans
ferred through change Of title or such process
before those headlines.
Congress refused to permit the transfer Of
any more lend-lease pipeline" materials to the
Soviet after last December 81, even though
there remained some sl70Oo,0oo worth of
equipment built to Russian specifications and
contracted for Unless Congress changes its
mind, this Government appears stuck with
this equipment. It may eventually be declared
surplus, officials say. Since most of 1t would
find no use outside Russia, it may be that the
Russians will bid it in on a surplus sale for
less than they originally agreed to pay for It,
The lend-lease goods transferred to Russia
between VI day and last December 81
amounted to 233,000,000 These were things
that were contracted form the lend lease
''pipeline'-when the end of hostilities stopped
straight lend-lease shipments. In a special
agreement-apart from a general settlement
of her wartime $11 900 100000 lend-lease ac-
count which Is being negotiated In discussions
making little progress here-the Soviet gov
ernment agreed to pay for the pipeline" goods
over 30-year period, with interest at the
rate Of 23s per cent year. The first 100000
interest payment was made July l.
Against the ss1,ooO,ooO worth Of goods, ap-
proximately half paid for In cash, shipped to
Russia during the first half Of this year. the
United States imported from Russia things
valued at $35 562 900. The biggest import item
was $16 6,569 900 worth of undressed furs. Metals
were next on the list at $12l7l 900. We got
s7,416,000 worth of manganese, $2o07 600 worth
ofc cbr nd Z p, of v,lo&ip
from Russia during this period. Other items
included $3,O5OOOo worth Of tobacco, and 3,oss
tons OF wood pulp valued at $2900o0.
Russias biggest purchases here are OF
machinery and vehicles. Exports to the Soviet
in this classification during the first six months
Of 1947 amounted to $64,17e, 1872. Metals &C
counted for s12s54, ,337.
Trade with the Soviet satellites is on a more
limited basis. Many of the countries in the
Russian orbit have shared up until few
months ago in American relief and loans-but
no more. None had a part in lend-lease.
When Congress was discussing the $3.50, 0,0Oo,-
600 appropriation for general foreign relief last
spring, Poland and Hungary were in line for
share. They have been cut out on economic
grounds-that they don't need the relief, with
no official mention in this connection Of
strained political relations.
The State Department announced on July %
that "it has been decided not to undertake a
relief program for Poland" in view of a survey
indicating that Poland's minimum food needs
can be met without American assistance and
the fact that relief funds ARE insufficient to
meet only the most urgent relief needs"
There has been no official announcement
concerning Hungary, but officials say that
country also does not meet the means test
and none of the American relief funds are
going there.
Yugoslavia tried TO get in on this years relief
program, but was ruled out from the beginning
on the ground that her need was not sufficient.
The recent Communist seizure OF power In
Hungary brought suspension of the unused
half of s3o0oo,ooo credit previously extended