Evening star., 1949-01-26
The KremIin's ERP

1t has additional significance the new
economic council of the Soviet Union and
five of its satellites seems to do little more
than set up~a special apparatus to bolster
the kremlin's opposition to the European
Recovery Program. Apparently, apart from
its propaganda function it is designed to
keep alive that opposition by serving as
a co-ordinating mechanism to cope with
some of the problems that have developed
behind the Iron Curtain as a result of
Russia's decision to boycott the ERP and
do everything possible to wreck it.
Called the Council of Economic Mutual
Assistance" the new organization is made
up of Bulgaria, Hungary, Poland, Romania
Czechoslovakia and the Soviet Union, the
boss member. Significantly missing from
the lineup are Albania, the tatterdemalion
satellite, and Yugoslavia, Tito's rebellious
oalliWick. AS for the countries west of the
Iron Curtain, Moscow has announced that
they can join the council If they are willing
to cooperate on the councils terms, which
means If they are willing to quit the
Marshall Plan for European recovery and
collaborate with the Russian effort to make
the continent Red.
AS explained by the Kremlin, with its
inimitable ability to turn the truth upside
down, the council has been established
because the United States and Britain are
"boycOtting" the six member nations in
reprisal for the latter's failure to partici-
pate in the Marshall Plan. The explana-
tion does not point out, of course, that the
Soviet Union-forcing its vassals to 60
along with it in opposing the ERP-is the
real boycotter of economic cooperation in
Europe; that the United States Is willing
to do business with the countries behind
the Iron Curtain in everything except goods
that could be used by those countries
for military purposes and that Western
nations like Britain have just recently
signed trade agreements with a number
OF MoScow's satellites notably Poland.
Actually, although it's full meaning is
not clear at the moment, the Soviet
controlled council has all the earmarks
Of being primarily a device to deal with
the strains the satellites must be feeling
because OF the barrier Russia has erected
against normal economic relations between
Eastern and Western Europe Because of
the makeup of their geography and nat
ural resources, the two halves of the
continent have been economically COM
Elementary for generations past, with the
predominantly nonindustrial East export
ing foodstuffs and raw materials to the
industrial West In exchange for machinery
and other finished goods. This traditional
now OF trade. though not halted altogether.
has been gravely disrupted by the Krem-
Inns policy, and there can be little doubt
that countries like Romania Poland and
Czechoslovakia are suffering as. a con-
sequence.
All this is plainly suggested In Moscow's
announcement of the new Council of
Economic Mutual Assistance" which is to
meet regularly to discuss ways and means
OF stimulating trade among the six member
nations, exchanging technical aid, and
giving each other hand Gin regard to
raw materials, foodstuffs, machinery and
equipment" In other words, the Soviet
Union seems to be trying to set up
rival ERP within the limits of the world
1t controls.
But 1t is much to be doubted that the
Russians will find 1t easy to make this
project succeed Their own needs create
such a demand on their industrial re-
sources and they are so relatively self
SUFFICIENT in food and raw materials that
1t Is dif1icult to see how they can supply
their satellite empire with an adequate
volume Of finished goods or how they can
absorb great deal of its exports. Polit-
ically, the Iron Curtain may be strong;
economically, however, it has real chinks
In 1t.