GOODS EXCHANGE HELD ADVANTAGEOUS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00149R000100380009-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: November 11, 2016
• Document Release Date: October 27, 1998
• Sequence Number: 9
• Content Type: NSPR

Sanitized - Approved For Release : CIA-RDP75-00149R000100380009-4
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Sanitized - Approved For Release : CIA-RDP75-00149R000100380009-4
 ' ti l^, PCIENCE
M011-4J OR
Sanitized - Approved For Release : CIA-
.4
Uods Exchaiige Held Advantageous
ii' Harry C. Kenney
..rrnpondtni or
7'l,,r .Finn ScIe,o Mnn''n'
v. ith the Sc,c ie: li Iliac
n,? to our advantage, ?i.,
c'r'rly to the advat tage
f: S.S.R.-it it i,'to be to Ihr
.,l advantage of both sides,
I'I,pr,rtant that American
:,m ?,sr,en study how Soviet
The United States could assure
the purchase by the Soviets of
some products they now procure
girl ekl~er eeenirie .
The United States could pre-
vent 'purchase by the Soviets of:
:nine products they now procure
from our exporters' competitors
in other countries.
The United States could prc -
n' :gr, trade' is administered vent purchase by the Soviets of. abundant raw materials for
;,:.,1 operated: by what tech- very small quantities of machin- more profitable world trade.
niilues of contracting and of : ery bought merely . as models to And, finally, Premier Khrush-
tlnancing it is conducted; andbe copied. chev has promised the Soviet
how disputes arising from such'. . Th t b 11 0 l th t h .)A i th -
e ex
ar
a n
o
e
e
r
11,11,? ill U .11:t000.
which the Soviet combines some-
I'he:;e are some of the views
i
t
mes derive from the monoplas
-
i7ressed by Prof. Harald ? T ? tic character could be partially
e,nian of Harvard Law Sch(A
t'
,
,
it research associate in the offset,
H issian Center of Harvard Uni-
?:rrsity, before the American'
4T.uiageu:en+ Association's inter
?
e br
?
,
e
I;, inns
t
trailh th since our could de- Bradley Fisk, Deputy Assts.
i';i-i-'A c : t trade here at t the government co tint Secretary of Commerce
5:+. , I i r,ri Notel. . termine in adavnee which prod-
1 tt,i,ik," Professor zerman it uct. desired by the Soviets it for International, Affairs, told
' we n'-ust recognize that would he willing to license. the AMA executives that:
it i? , mistake to think of Finally, the United States' Soviet al economic activities the effec of
S. '.?II t . col eign trade officials i, could obtain Soviet commit- , up to
s+'. 1y Iinliticians doing busi- menus not to dump. the present has not been of a
at h( same time it is also Problem Underlined character to significantly dam-
a rr:,fai,. ignore the fact that The American chemical indri>._ age the ability of United States
fit iorclc;n trade is part of a try has been faced with a series n buatsiionalnessmen trade, to there engage is in a con inter-
-
n, of total state economic of definite problems in consider- timing threat--one which must
I;,nning, while the foreign ing trade with the U.S.S.R. It has be given the serious considera-
,r.,,le of Western countries is received from the Soviets offers tion of both government and
):.?iuctl d largely by, private i to buy, along with pretty (let!- business."
r,c:.. t:r:ns on the basis of + nite indications as to what they Offensive Began In 1854
rhrt.conditions and the profit are willing to pay. Mr. Fisk said that the'Soviet
According to Cleveland Lane,
Trade Rid Rejection Hit assistant to the president of the economic offensive began in
'lr expressed the view that in Manufacturing Chemists' As.- 1954. Since then the Soviet
tiu+e of last year, Soviet Pre- ciation, in the normal course vt (igion has concluded agreements
Nikita S. Khru. hchcv made, trade, the chemical industry ?ith 18 of the lbsser industrial-
a : erious proposal to President: could have handled these bids by iced or newly Independent coun-
T?'isenhmver that the govern- stating the terms under which tries ot'tside the. Soviet bloc.
n: "its of the?twa count.t4es enter we were willing to sell. Equally important, he said,
o a trade agreement which. "But," he said, "the over-all wa` the extension of Soviet eco-
dr,i;ands attention. relation of Russia with the rest nomic aid which opens the door
--it. was a mistake, in my of the world made it essential for the entry of large numbers,
.fruion," he told the assembly, (or us to consider these bibs in of Soviet technicians and which
tht? ?'resident to reject the the. broadest possible terms." provides a means by-which the
I, ! that contemplated the Mr. Lane said that there is Communists may Infiltrate, sub.
:1,illty, though not the nc- ample evidence to indicate tliat vert, and exert political pies-
-~:ity, of American Long-term the Soviet Union's chemical ea- cures.
lit Khrushchev also indi- pacify has lagged far behind "When wp -1ok at the recent-
I that it N :., pcissiblc tc the rest of Soviet industry. One the nU S~5 e ,s ?VMr-y Fiak 1.`iri,f
it, the r.evelopiilent of corn- of the main targets of the So-
rial. rr ':atians on the basis viet seven-year plan is to build ( eluded, "we can see that bash-
Cady the attention of the bloc is
, il,n-cal deliveries. a modern chemical industry
? . - a mistake," he con- "second to none." It calls for an dill, economically ;;peaking, di-
FOIAb3-b
CPYRGHT
CPYRGHT
? 1 :1 the gr)un t that t investment of $25,000,000,000 in i''t'ted to internal industrial de-
xi-,t Union '.vanr< to de- chemical faciiities. s"1`1s,ment rather than to ex-
larger Palllmt of tra . tcrnai trade.
, Reds Spur Chemical Industry
he rate of capital ivtet
nesmn ?},i, countey it can appruac:l I
etc t,rrus,. , The executive pointed out that ? in the bloc is still at such a
tie Soviets require an eaten- .c%ci as to make it Impossible
Advantage' Cited {ivl modern chemical i
t+,
t
th
d
bl
t
us
r
n
ry
e
oc
o export a large
, 11wr ;udgn,cnt of P"nf' fr,1? 'hcsc reasons: ' ai? ,'lint of capital. In fact, in its
that a trade Su.?h an industry is essential tr.rl.; with the West from which
the Gov et r to at other segments of the total it tl hr.< ;n import large
:
i
n:'.,:
le oar OsI
iid,istry till, Soviet Union is a' capital and teehno-
il i+;tcres. in t'' flying to build. ";+cal Jevcl'+;n .cnls, the Soviets
n? cnu d ass,u-c a supply of means It has of upgrading its' materials," he --
? ,.,,? ~c vie'. p, r,rl'uts which our
:n ~rtrrs ?,.n,+ t i' which are r ?
nrit ac ,i`r.l?I? ? cause the
e h'r+el:, them under
a}:rIcl ient. with other:%
Sanitized - Approved For Release : CIA-RDP75-00149R0
g
p
ta
ng p
wer p
a e wo ra se er
standard of living to the high
est in the world; This he simply
cannot do without a modern
cheirdeal industry.
would be provided against the car industry is believed to have
export of strategic goods than a capacity of one-fourth to one-
third that of the United States.
our present system of controls
D0100380009-4