CIA COMMENTS ON SECTION D OF COMMERCE PAPER ' BARRIERS AND DISCRIMINATIONS AGAINST EXPANDED TRADE WITH THE WEST INHERENT IN THE SOVIET BLOC SYSTEM OF STATE TRADING'

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64-00014A000100050010-6
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: November 9, 2016
• Document Release Date: July 13, 1998
• Sequence Number: 10
• Publication Date: August 30, 1955
• Content Type: REPORT

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Approved For Release : CIA-RDP64-00014AO00100050010-6
the two countries to non-discrimination in trade with their C unist neigh-
bors. If western countries should cut off ex}orts of strategic goods to
Austria and Yugoslavia because the. goods might be transat~ir jed to the floc,
diesention would undoubtedly be created between these two c=~untries and
CUCO~ participants.
4. The following are illustrations of outstanding discriminatory tr..de
practices of the Soviet Bloc which should be indluded or elabrr.ted upon
in the study. In the interests of establishing more amicable political and
economic relations with the :soviet Bloc, these practices should be discussed
at the Foreign fin inters Conference and their elimination form;al.ized if asibie by
incorpor>st ron in a a{?t of regulations or reersenta:
i. aximiaing `Ter of Trade and the i uid fro :s o s-ririci ale.
a. Insistence on strategic tie-in sales.
b. ''axirsdsing ratio of hard goods for soft roods.
c. Increasing soviet deesg,nds and pressure.
d. Strategic or essential goods a= conditions for urchase of
hard-to-srket ~*oods.
a. Premium prices rrtid for strategic and other goods.
b. Pr iw prices ~ ,id as an inducement to trade.
c. Bloc offers at low prices, including dwiping and price
slashing. ?'.B. 11 a, b, and c should take into account
western indu-triali- ed countries and all=,o underdeve toped
are .,s. The *vi. t, o not -eesd to be concerned Ath .skim
profits or .etir production costs ?.d thus can undercut
4estern bids in underdevelor-ed countries.
d. Artificial exchange rate
Ili. Unreliability of Bloc
a. )elays In delivery or 5igning of agreements.
b. Heavy penalty clauses in trade a,rree' tints for delays
or non-fulfilment of order; by the =rest.
c. Threats of termination of trade agreements.
d. Quality of goods not alw ,,.ye up to a:!ecificr Lions.
e. Cancellation of orders.
Ui$cr .r;inatory Practices
a. The US, +. has copied numerous tented industrial products
and copyrighted s terials of the t_ and other western
countries and is continually attempting to obtain prototypes
for this Tlurpose. For cx .tple, Caterpillar tractorza t}-7 were
Approved For Release : CIA-RDP64-00014AO00100050010-6
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delivered to the OS::ii under tend Lease and have been re-
produced in the Soviet union as Soviet tractor: Bloc
countries should be urged to sign the international agree-
ment for protection of pat ent2 and co ',yriights.
b. Illegal procurement activities, e.g. clandestine trade,
blacks rceteering, smuggling, undeertmmi.ning national laar,
all. of which are ;soviet governrre.t policy.
c. Veil of secrecy which makes inaccessible necessary cozner-
cial information, advertising media, and statistics on
production and tr: ds. Is this connection there should be
insistence upon i-ablic4ation of full trade st::tistice.
d. Activities of Soviet expediters (contract Inspection in
tree-world ahit.yards, loading supervisors in j orts, etc.'
in western industrial and ce ercial centers; it is difficu _t
to distinguish expediting activities from espionage efforts.
e. Reinsurance pt-acticen.
f. "ort },r=..ctices which often result in additional :ic=rrage
expenses.
h. ",hforee ment of twelve wile zone.
5. Addi.t Lonal suggestions for discriminatory practices may be gleaned
from the suggested ch; rteer for an Intern4tianal Trade Organi-ation of the
United Nations and from the charter of (IATT.
6. In order to ascertain the experience of US business er in actual
trade transactions s