Evening star., 1948-05-02

causes and effects of ERP have
tended to split the world more
clearly than ever into two separate
blocS.
1t is basic in the economic phase
of this antagonism that one side
the Russian side-goes into world
markets with the trump cards of
the state trade monopoly, which
are:
l. 1t deals, as one unified corpora ,
ton, not as severalcompeting ones.
2. Its own import tariff means
little-from one government pocket
to another.
3. 1t thus gains by but pays noth-
ing for reciprocity and equal treat
ment with other nations.
4. 1t is not under the same pres
sure to show profit, especially If it
is after bigger game.
5, In Moscows case, Mr.. Letiche
says that even If the Russians should
renounce the monopoly advantages
OF state trading. there would be
little, if any, economic meaning to
their figures on costs under their
present accounting practices.
Monopoly Seems a Fixture
Mr.. Letiche says has has been
unable to find any evidence from
the Russian technical economic
literature, either by responsible
Russian economists or by Russian
statesmen, to the effect that their
state-trading monopolies are COM
patible with the kind of freer multi
lateral trade organization which the
United Nations is attempting to
establish"
He notes that as early. as 1922,
and as late as 1888 those Russians
who advocated hberalizing Soviet
trade policy were branded as rene
gades, enemies OF the peace and
counterrevolutionaries.
1T would be entirely unrealistic
to expect Russia to abandon her
foreign trade monopoly" concludes
Mr.. Letiche.
So the way was left open, in the
development of ITO, for Russia to
come in as monopoly trader. 1t Is
still open, but Russia stays out.
Should she decide to Join. the
possible impact of Soviet monopoly
upon the economies Of other men,
bers cannot be determined In ad-
vance, even In view of the supposed
safeguards in the ITO charter.
t Mr.. Letiche notes that Russia
would have to agree to the provision
that state-trading countries, shall
t"be Influenced solely by commercial
considerations" (of profiD. He adds
dryly that Commercial considera-
tions surely are not Incompatible
with maximizing monopoly gains"
Expects Russia to Go On
THE assumption seems to be-"
he continues, that, given good faith
and mutual self respect ar
rangements can be developed to
reconcile trade relations with the
U. S. S. r." But he finds that Eugene
Varga, economic adviser to Stain
and frequent contributor to the So
Wet New Times, recently knocked
this idea in the head by writing
that Soviet Russia had no direct
interest in ITO "in view of the state
monopoly of foreign trade, which Is
a firm element in our economic sys-
tenn"
With all difference to Prime Min
lister Stains statements and to
Pravda's exhortations about the
possibility of economic collabora-
ton, we have yet seen no concrete
willingness on the part of Russia
to participate in any of the inter-
national economic organizations
- =" says Mr.. Letiche.
He expects Russia to go on trading
with other countries, including cap
italist countries, where such trade Is
to mutual advantage.
He remarks that economic conflict
between the two systems, both in
herent and to be expected, Is aggra-
!. waited by the climate of political
hostility. But he says more inn
, mediate problem is adjusting Amer
, ican trading ideas with the mixed
economies" (or partly state and
partly private) of Western Europe
if such efforts as ERP, ITO and the
reciprocal trade program are to
succeed.
No Great Trade Menace
In fact, Russia right now is no
great trade menace, he finds.
Exports from the Soviet bloc OF
nations accounted for only 6 per
cent of the world total for 1946 and
for 7 per cent of the imports,
whereas the countries subscribing
to the American trade agreement
program did 80 per cent of the ex-
porting and 10 per cent of the i'm.
porting.
1T would appear" concludes Mr..
Letiche, that for truly co-opera.
tive and constructive reconciliation
Of United States-Soviet commercial
relations we are at the present tins
beyond advocacy and too early for
history. Yet, we must make every
determined effort on the political
and economic, the historic, lingual
and psychological level TO reach
some understanding of Russia poll
icy of almost total nonco-opera-
ton. For, in effect, cooperation IN
the commercial field has little pros
pect of success unless coupled with
cooperation in other fields. To the
mind of the writer, only a funda-
mental change in the orientation
Of Soviet policy. which would render