Evening star., 1948-01-18

by two-way trade which now has
81. 400, ,o0o, 600 annually, or nearly on
The traffic operates under II b
day by nearly all governments of
Eastern and Western Europe, in
cluding the Anglo-American and
French occupation zones in Ger
many. These figures are declared
to be approximately correct by
State Department specialists In Eu-
ropean commerce.
Thus is borne out confident
'pronouncement uttered just before
his resignation by William L. Clay
ton, former Undersecretary of State
for Economic Affairs. AT press
conference on october 9 Mr.. Clay
ton asserted that the flow of trade
between Oriental and Occidental
Europe has been so deeply chan
neled by centuries of use as to
amount to a process OF nature,
which men are no more able to dam
forever than they can cancel the
force of gravity. He predicted that
the age-old traffic would be re-
sumed the moment surplus output
arrived on both sides Of the Stettin-
Trieste boundary.
Trade Reaches New Heights
Because the Soviet Union and its
satellites enjoyed surplus production
of foodstuffs in 1947. and because
several of the democratic nations
have achieved degree of industrial
recovery, the east-west trace
reached new heights during the last
three months of the year. Broadly
speaking, Eastern Europe produces
food and raw materials, while the
speciality of Western Europe is man
ufactured goods. Therefore, the
two regions complement each other
and are mutually dependent.
Interregional trade has grown
from trickle to a freshet because
it is Of mutual advantage. AS soon
as It could operate, economic self
interest proved able to bypass
theological animosities. The most
conspicuous example is the recent
trade contract signed by Great
Britain and the Soviet Union, at a
moment when political relations
between the two countries were
sinking to the lowest ebb.
During 1948 Russia is to supply
England with 100000 to 100000
tons Of animal feedstuffs in return
for essential machinery and equip
ment for Soviet lumber, petroleum
and electrical industries. British
Soviet commerce, already so per
cent higher in 1947 than in 1946, is
to rise still further. 1t is estimated
that British imports from Russia
may be quadrupled this year and
mount to nearly half Of prewar vol
ume.
Sign of Cooperation
Such developments are regarded
with satisfaction by administration
spokesman. They are rated as the
first and only sign of that cooper
alton between the "two worlds,
which is the basic goal of Amer
ican craftsmanship. The more
grain that moves westward from
Russia and Hungary, and the more
coal from Poland To Western Ger
many. France and the Low Coun-
tries, the less of these commodi-
ties will have to be supplied from
the United States at the expense
of the American taxpayer. An i'm
portant step is held to have been
taken in the restoration of economic
self -suficiency in Europe.
There Is especial satisfaction in
Washington over the part played by
the Economic Commission for Eu-
rope, an organization of the United
Nations which mas strong Amer
ican backing. 1t was formed by
a consolidation of three previous
bodies, called the Three Els" which
were concerned with transport, coal
and miscellaneous commodities In
all Europe.
Russia is a member of the COM
mission. Delegates or observers
from Soviet subaltern nations reg
ularly attend its sessions in Geneva
While its services are technical and
advisory, the commissions recon-
n1endations frequently are adopted
The United States is a member by
virtue Of it's position as an occupy
ing power in. Germany, Austria and
Trieste.
That commerce across the iron
curtain has revived. even to Its
present degree, is regarded as re-
markable on account of serious OBJ
stacles. Except for such restric-
tions, some Capital spokesmen teno
to argue, the traffic. already would
have approached normality. All OF
the II pacts now in operation were
negotiated not by private business
but by governments, and therefore
are tainted more or less by political
interest,
Barter Basis Necessary
/ To obtain its new contract with
Russia, Great Britain was COM
.pelled to accept what amounted te
a large-scale default on the prin.
cipal and interest owed by the So
Wet Union under the British equiv.
alent of lend-lease. In addition
trade is compelled TO thread g
labyrinth of customs duties and ex.
port and import quotas.
But the deadly handicap is thu
absence Of responsible currencles
in Europe, which compels all traffic
to operate on barter basis. The
dollar has succeeded the poune
sterling as an international none
stary unit, but the dollar resource.
of E,,,rnr,e are near exhaustion Tnf