Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-01-24
Don't Expect Too Much Of Red Moves to Expand rode

lion between the first three quar-
tiers Of 1852 and 1853.
Figures like these, Of course, can
never completely counterfeit the tide
Of run1or and wishful thinking
which has swept over Western Eu-
rope since the death of Stain. The
Russians. furthermore. are quite OBJ
viously doing all they can to en-
courage the rlmors.
Economists here are particularly
interested in the fact that Russia
has recently been paying for con-
siderable amount of her imports in
gold. For years, the Soviet has had
the reputation Of an inveterate gold
hoarder. No one will guess how
much Of the stuff they have on
hand, but the fact remains that in
the past few months, more than
5000 million worth has been shipped
to Britain and about half that
amount to France. In Europe. where
to have gold still means something.
this maneuver in itself has created
quite stir.
Even more interesting, the Reds
have now started exporting stra-
tegic materials on their own-a
thing unheard Of since long before
the war. In the last trade agree
nent with France. such items as
chrome, manganese-ande even oil
figure high among the traditional
barter items like coal, wood, furs,
coarse grains and caviar. In re-
turn, the Russians are getting small
ships, steam boilers, textiles and
other manufactured industrial prod
uctS.
These two changes in Soviet
policy taken together. mean just
one thing to the people who make
it their business to figure the
angles on Red policy: The Russians
are trying hard to create the i'm
preston that they represent the
answer to all Of Western Europe's
economic problems. But at the
same time, the idea that Mr.. NAL
enkov. by . machiavellian wave Of
the hand will turn his country into
q vast market for consumer goods
Is open to serious doubt.
The experts believe that Russias
resort to gold and strategic ma
terials as foreign trade items re-
fleets q temporary shortage in the
more traditional commodities, plus
an abrupt drop in the Kremlin's
reserve of pounds sterling with the
United Kingdom. There is little
faith that the new liberality at the
expense of the gold reserve and the
strategic stockpile represents perm
anent policy.
When it comes to Russia as
consumer nation, it is pointed out
that Russia has never abandoned
the ambition of creating a COM
pletely self-sufflcient economy be-
hind the Iron Curtain. For each
order for textiles the Soviet places
abroad, it also buys textile manu-
featuring equipment. In any trade
agreement that Russia makes.
orders for industrial machinery
bulk large.
Political Weapon
With self-suficiency as a goal.
the Kremlin. in the meantime. Is
always willing to use foreign trade
as a political weapon. The orders
placed mean little in terms OF
Russia's population even now
foreign trade is a marginal matter
to the Soviets-but they may be
all-important to the individual ma
tons involved. Observers here have
repeatedly noticed the pressure
brought to bear on Western Euro
pean countries at critical political
periods. At this point. the big
pitch is UNDERSTANDABLE being made
to France-and specifically to the
important textile industry which is
in trouble here, as elsewhere in
Europe.
Just how effective this strategy
may be in the long run. time-and
the effectiveness of American
counter measureS-alone will tell.
Meanwhile, the predlspositlon OF
most Europeans is to make the best
of what seems to them good thing.
That means riding the bandwagon
of East-West trade as far as it goes.