Evening star., 1947-11-24
Our Trade With Russio


Considerable criticism of the sort raised
by former Governor Stassen is bound to
be directed against President Truman's
statement that he sees no reason to inter-
fere with Soviet purchases of such Amer
ican goods as farm equipment and certain
types of industrial machinery. There are
those among us who would refuse to sell
anything whatever to Russia-an under
standable feeling in view of the Kremlin's
violently dishonest theological and eco
nomic campaign against us. Even so, a
good case can be made for the Presidents
attitude.
To begin with, it is worth noting that
our shipments to the Soviet Union-nearly
all paid for with cash on the barrelhead
through private commercial channels
represent only small fraction of our total
overseas trade. In the first nine months
OF 1947 they added up to dollar value of
only $113,700,0 0,000-little more than a drop
in the bucket when related to the fact that
we are now exporting at an annual rate of
18000,000,000, after a peak rate of $21 ,OOO,-
100000 earlier in the year. 1t is worth
noting, too as the Commerce Department
has pointed out, that money does not buy
as much in these days as in prewar times
and that the present volume of our exports
to Russia is actually below that of the
corresponding period in 1888.
Moreover, our limited trade with the
Soviet Union has not been a one-way
proposition. We have been receiving some
important goods in return. Thus during
the third quarter of this year. while our
exports to them totaled $22,80O,OOO our
imports from the Russians amounted to
$26, 100000. Undressed furs-valued at
SIT 800, ,000-constituted the bulk of what
they shipped to us, but also included were
100000 in cotton linters, for which there
is heavy demand in our industry, ST AGO.
600 in manganese. ore, and $4,00000O in
chrome ore and chromite The last two
items have a special significance; man
ganese and chrome are among the strategic
materials we are stockpiling for national
defense.
AS for the type OF goods we have been
shipping to Russia, the bulk has been in
industrial and agricultural machinery, plus
such items as 145 locomotives and 216
freight cars. The latter were shipped
after they had come under export controls
imposed because of the domestic shortage.
But they had already been built, and since
they were good only for broad-gauge
railroad tracks it would have been point
less to keep them here to gather rust. In
other respects, our trade with Russia has
been anything but free-and easy propo-
sition. Strict regulations have been
clamped down-and are becoming stricter
on the shipment of things with a mill
tary or security significance, fact illus
trated by the Atomic Energy Commissions
recent order relating to equipment useful
in the field of nuclear fisSion.
OF course, it can be argued with some
force that industrial and agricultural ma
chinery is indirectly of military value. But
is it valuable enougn>to warrant complete
shutdown on Russia? After all, though the
tension between us is grave, we still main
tain relations with the Soviet Union and
it is too early as yet to give up hope that
our differences can be reconciled. Refusal
to ship the relatively little we have been
shipping to the U. S. S. r. would serve
only to make matters worse than they are
at time when it is best to keep on trying
for friendship. Further, as far as the
recovery of Europe is concerned, it is well
to remember that the exchange of goods
between East and West is essential. Eco
nomic forces press hard against the iron
curtain and what we are doing now may
help to lift that curtain at least a bit. Mr..
Stassen contends that the trade is a form
of "appeasement" if So it appears to be
offset by our firm course on the political
front-in the United Nations and else
where.
Everything considered, the Presidents
viewpoint thus seems sound. This assumes,
of course, that the things we are sending
to the Soviet Union will not cut across the
needs of the sixteen nations cooperating
with us in the long-range European Recov
cry Program. Apparently the administra-
ton does not propose to let that happen.
At any rate, in connection with the ERP,
the President has asked for stronger export
controls and that indicates that our trade
with Russia will not be allowed to work at
cross purposes with our overall policy.