SOVIET BLOC EXPANDING TRADE WITH WEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R00890A000100070026-1
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 4
• Document Creation Date: December 15, 2016
• Document Release Date: August 14, 2003
• Sequence Number: 26
• Publication Date: August 4, 1953
• Content Type: LIST

Approved For Rele
890A000100070026-1
4 Rust 1953
25X1
SOVIET BLOC EXPANDING TRADE WITH WEST
A. Factors making for trade expansion.
(1) Limited increase for 1953 reverses downward trend in
East-West trade.
(2) Primary cause is bloc willingness to expand traditional
S3
exports.
(3) Bloc countries, more reasonable and realistic in trade
negotiations, are taking advantage of pressures on Western
governments of influential business groups who are seeking
Eastern markets.
(4) Korean truce increasing Western pressure-for relaxation of
export controls.
B. Goals of bloc in seeking trade expansion.
(1) Exploiting political friction between Western nations.
(2) Obtaining more industrial goods scarce in bloc both by
evading and then weakening Western export controls.
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(3) Im
ortin
p
g more consumer goods to implement "softer"
4 DO ;UNIENT NO.
internal economic policy. 25X1
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RIE?ii#t^JER:
 Approved For Releask 2003/10/01 - CIA-RDP79R0090A000100070026-1 25X1
4 August 1953
SOVIET BLOC EXPANDING TRADE WITH WEST
A. Soviet trade with the West rising.
(1) Soviet bloc increases trade with the West from $1.7 billion
in 1952 to $2.0 billion in 1953.
(2) Some new bloc trade agreements with Western countries for
the first time since the war.
(3) USSR-French trade agreement for 1953 triples trade from
$24 million (1952) to $68 million; Danish trade increases
from $23 million to $42 million; Greece increases trade
from virtually nothing to $20 million; Argentine-USSR
trade agreement, the first since 1947, amounts to $180
million; trade with Latin America rising sharply in 1953.
(4) USSR is making unusual food purchases in addition to those
included in trade agreements, i.e., Dutch and Danish butter,
Australian meat.
(5) imports of strategic goods are rising and will
exceed 1952 level of about $250 million.
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(6) Primary reasons for trade increase with the West is new
Soviet willingness to export large amounts of grains and
basic raw materials.
(7) Soviet willingness to buy large amounts of consumer goods
improves its bargaining position.
(8) Weak economic position of Western countries aids Soviet
trade tactics.
(9) Korean truce increases internal pressure on Western
governments to seek Soviet bloc markets.
(10) British and French firms recently signed trade contracts
with Communist China amounting to $34 million.
(11) Bloc's trade tactics supported by high-powered propaganda
drive directed at US tariff walls.
B. Goals of bloc in seeking trade expansion.
(1) Exploiting political friction between Western countries,
(2) Weakening export controls.
(3) Obtaining more industrial goods of kind still scarce in bloc.
(4) Importing more consumer goods to implement "softer" internal
economic policy.
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(5) Laying groundwork for further trade as tactic to implement
conciliatory policy toward the West.
(6) Using trade as lever to extend political influence in
under-developed countries.
25X1
Approved For Release 2003/10/01 : CIA-RDP79R0089PA000100070026-1