Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-12-11
Aid Potential
OfKremIin Is
Quite Flexible
By RICHARD FRYKLUND


the United States? What kind of
an aid program can the Soviet
Union set up If she really tries?
The answer Is complicated by the
fact that no solid statistics are
available on Soviet production and
foreign trade. But 1t is simplifled.
somewhat. by the fact that Russia
is a dictatorship.
Obviously the Soviet Union can
set up just as big foreign aid pro-
gram as 1t wants. simply by depriv-
ing some sector OF the Soviet econ
omy Of what 1t now uses. The sig
nif1cant fact is. however, that any
substantial increase in Russian ex-
ports will force q setback in the one
program that Is the most important
to the Communists-th Industrial
ization Of Russia.
Foreign aid means. as far as the
Russians are concerned. sale of ma
chinery abroad. The underdeveloped
countries want machinery more
than anything else, and Russia
must export it If she is to make good
on her claim to be a greater world
power than the United States.
So the Soviet Union cannot sim
ply deprive the Russian citizen Of
more consumer goods and thus set
up a foreign aid program. She
must, instead, slow down her ma
tional program Of industrializat ton.
How Big o Sacrifice?
The question for the men in the
Kremlin is. then. how much ma
tional strength should they sacrifice
IN order to make . splash abroad1
The answer 90 far has been. mot
much"
Even Red China and the satel-
lites have received little from the
Soviet Union. China. Of course, 10
. bottomless pit for industrial ma
chinery. But as far as American
statisticians can determine. she
has received very little from her
great ally" to the north. Trade
in machinery within the Soviet bloc
may actually show a net Of imports
for the Soviet Union.
Sales of machinery outside the
Communist nations have been tiny
In comparison with normal world
trade, as shown in the adjoining
story by Herbert Bratter.
Could the Soviet Union use its
gold hoard to finance o spectacular
foreign aid program? Russia pro-
duces probably 5000 million worth
Of gold a year and has q reserve
estimated at perhaps 81 billion.
Passed out among the have-not
nations. this gold could make quite
an impression. But Russia has
shown no inclination to dump her
gold. Quite the contrary. The
Communists take the classic atti-
tude Of a producer and try to keep
the value Of gold high. Some gold
has been sent abroad, but strictly as
q loan.
Market Locks Gosh
II Russia is potentially a poor
supplier. then the underdeveloped
nations also are poor customers.
They want machinery. which is the
one thing the Communists least
want to sacrifice, and they cannot
pay cash, which is what the Reds
would most like to have.
What the customers really want
and need. in fact, Is q program of
gifts. The United States has found
that loans and sales don't add UP
to much foreign aid So we have
been giving goods away by the
billions Of dollars.
The Soviet Union so far has de-
clined to match that generosity
Only one gift has been made by
Russia since World War TI-that
was $3.50 million to North Korea
in July. 1858. for reconstruction.
Soviet aid. then, Is strictly a mat
ter Of sales. barter or loans and
likely as not. Russia must send
abroad something she herself is
importing. and receive in a barter
deal something she can't use.
No one knows, Of course. whether
Russia will decide to make the
sacrifice and launch a technical aid
program that will match Americas.
But so far the Communists seem
to be following the pattern set in
dealing with the United Nations
technical assistance program.
First. Russia attacked the q. N.
aid program. criticizing the givers
and receivers alike.
Then, Russia Joined the program,
and in joining. tried to pretend no
one had ever thought Of it until she
came in.
Finally. Russia kept her contri-
button small "a million q year in
the $25-million program, compared
with SIT million given by the United
States but Dragged outrageously
about its size and belittled the con-
tributions Of other nations.
'Brog and BelittIe'
So far that also has been the
story Of the global trade and aid
offensive Of the Russians. Right
now they are in the third, "braE
and belittle." stage.
For instance, . trade agreement
was signed late last month with
Burma. Russia boosted that she
would send IS million worth Of
equipment to Burma In exchange
for rice, that another deal for 1925
million dollars worth Of unspecified
equipment was in the works and
that q vague-but large-transac-
ton for more goods was under
discussion.
The amount Of goods actually in
volved is small, but Burma, which
wanted q fat price for her surplus
rice. had been unable to sell to the
United States, so Russia can claim
to be the real friend of Burma. (The
Communists. incidentally, are
known to accept inflated values on