Evening star., 1951-06-11
Behind the Red Economic Facade

- Although our newspapers are Iuu oI StoIAeS
about how the United States and the rest of the
q western world are burdened with problems and
difhculties stemming from the impact of rearma-
ment, infiationary pressures, shortages OF raw
materials, ETC., it is seldom that the headlines
refer to similar stresses and strains in the Soviet
Union and its satellite empire. The contrast is
striking one. 1t gives the impression-at first
glance-that the economies behind the Iron
Curtain are functioning smoothly, without any
trouble worth mentioning, while we and our
Allies are muddling along and suffering all kinds
. OF headaches. lee s{%
But the impression is altogether deceiving.
It is an optical Illusion It exists only because the
Krenalin and its puppet regimes are almost pa
thologically secretive and refuse-on the ground
that it might reveal intelligence harmful to their
security-to make available to the outside world
even the most elementary data on their economic
situation. Despite this, however, enough infor-
nation seeps through the Iron Curtain to make
clear that they are having plenty of difficulty
over there with both agriculture and industry.
In an unguarded moment, for example, high
Communist official at Prague has publicly be-
moaned the fact that Czechoslovakia's livestock
population has sharply decreased. that its coal
and oil output is very disappointing, that its
railroads are being poorly run and that its labor
turnover is much too high for efficiency -condi-
tions that undoubtedly are duplicated, and prob
ably to greater degree, in all the other Soviet
satellite countries in Europe.
As matter of fact-as pointed out the other
day In an address at Geneva by Ambassador
Milton Katz special American representative In
Europe-it can be stated with certainty that the
Kremlin and its European empire "face serious
economic difficulties" What the Iron Curtain
cannot hide, as MIR. Katz has said, are such known
realities as these: Cd That Russia and its satel-
Ites have devoted to military purposes a per-
centage of their resources far greater than that
Of the free world; (2) that this diversion has
contributed to very low level of consumer
goods production; t3) that infiationary pressures
have been created by the failure Of this type of
output to keep pace with purchasing power:
az that the Soviet sphere has reimposed ration
ing, increased prices and appropriated savings in
an effort to cope with these pressures; (5) that
free labor unions have been abolished and drastic
disciplinary measures taken in ruthless attempt
to squeeze more productivity out OF the workers,
and (6) that Slave-labor camps have been eStab-
lished to enable the Communist governments
ito obtain production for pittance from the
millions of their citizens whose freedom they
have suppressed"
In drawing this picture Mr.. Katz has de-
clared that If the Russians wish to challenge its
accuracy they should permit the United Nations
Economic Commission to inspect the economies
behind the Iron Curtain as freely as it can the
non-Communist economies. The Kremln Of
course, will decline to do so. 1t will continue with
its secrecy. It will continue to present facade
suggesting that the agricultural and industrial
situation within its empire is perfectly sound and
smooth and super er-eficient, whereas the "bour-
geois capitalstic, decadent, imperialistic" United
States and its Allies are just limping along in a
confused mess. This is propaganda designed for
babes and ignoramuses. Despite our troubles, the
one thing we can be sure of Is that the massed
economic strength of the Wesern world dwarfs
the Soviet Unions. In that sense, though they
have great power available for aggression, the
Red totalitarians are simply not in the same
class with us, and their headaches, In all prob
ability, are much more severe than ours.