Evening star., 1955-11-13
BY PATRICK Z. NIEBURG

BY PATRICK z. NLEBURG
While the political front in
Geneva seems to deteriorate
into trench warfare. an eco
nonic blitzkrieg is being
waged By the Soviet bloc.
Without waiting for technical
experts 10 work out Point
Three Of the Geneva agenda.
East West contacts. 4 com-
munist trade offensive has
been In fun swing from Burma
to Iceland. The Soviet bloc
Il running with the ball kicked
on by the United States,
which coined the phrase and
concept Of competitive CO..
existence
To break out Of stagnart,
military diplomatic positions.
the Communist bloc has been
quick TO exploit every oppor-
tunity for economic penetra-
tion. Since communism con-
siders foreign trade only .
means to achieve political
ends, the Communist trade Of
fensiye u more significant
than the mere exchange Of
goods and services would seem
70 indicate. Communist arms
shipments to Egypt point up
this fact. But. although the
Czechoslovak Egyptian deal Is
the most widely publicized
case, 1t is by no means isolated
nor even representative. In
most other instances, Commu-
mist trade maneuvers have
been less spectacular. though
in the long run, not less ef-
fective.
when Iceland recently
signed q new trade agreement
with the USSR, this de-
velopment received little pub
lic attention. Yet. it ushered
In q new era which sees the
Soviet Union extend its infiu-
ence to the North Atlantic.
Within q few short years. the
USSR climbed from q posi-
tion Of near ohscurity to
that Of Iceland's second larg-
est trading partner. well on
its way to replace the United
States ii the No. ! position.
For the Russians to achieve
this position required neither
great marketing skill, nor q.
drain on her exportable COM
modities. The USSR pro-
] vided market for Ice
Iandic fish 1hard to sen at q
profit on western markets..
and agreed to furnish Ice
lands modest imports.
Volume Small. Impact Big
Though ID terms Of trade.
the volume of goods to be ex-
changed Is small, the political
and propaganda impact is
considerable. Outside Of Fin
land, Iceland has the strong
est Communist Party in Scan
dinavia. FOr the first time
Iceland's Communists can
argue with some justification
that the USER is one Of her
best friends. BY buying Tee
lands principal export prod-
uct, the Russians help to pro-
vide 4 livelihood for the major
ity Of Icelandefs. engaged in
the fishing md canning In
dustriey. And III addition. the
USSR supplies the island ma
tion with some Of her most
needed imports. These are
powerful arguments for D peo-
pie who live BY trading fish
for goods essential to their
daily life.
Trade experts tend to mini-
n1ize the importance Of this
development. because Of the
small volume Of trade. But it
Is q classic example where
much can be achieved with
iittls effort and expense.
When one nation has an eco-
nomic strangielaold over an
other, tllis cannot be shrugged
On easily. It does not require
arms shipments to make It q
dangerous pattern. IN fact, the
absence Cf trade ii arms has
served as q basis for an inten-
siye Communist propaganda
drive to contrast .speaceful'
Communist intentions with the
aggressive designs Of the
West. these tactics have been
s-.s.cloyed = by the Soviet bloc
especially ii It's dealings with
neutral and non-c0mmitted
areas.
The Soviet bloc still has q
long way to go before II can
claim b decisive economic In
fluence in non Communist
areas. However, It's progress
has been remarkable. IN
Singapore, for example, Com
naunist tChinesel investments
are reported to have infiltrated
the city's banking. Industrial
and commercial enterprises.
Millions Of dollars are said to
be placed In strategic positions
BY the Communists.
Red Trade il Leyont
In the Near East. Corninu-
mist trade has made consider
able inroads. This critical
area last year exported sat-
per cent more to the Soviet
bloc than Ia 1853, at the same
time increasing its imports
25.D per cent. Since most Of
these transactions are con-
Quoted Ii local currencies. II
can only b 3 question Of time
before these nations turn to
the Soviet bloc TO redeem their
credits. Tho Soviet smbassa-
dor III Cairo hinted at Uae
way cf doing 1t. he sug-
Ecsted that the UsSR Is pre-
pared To send any tyne OF
assistance mission to the area.
Until recently. most Western
observers scoRed ct Ccnnlh-
mist bloc offers 70 export in-
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