SURVEY OF EAST-WEST TRADE IN 1955 MUTUAL DEFENSE ASSISTANCE CONTROL ACT OF 1951

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Survey
East-West
Trade
in 1955
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For sale by the Superintendent of Documents, U. S. Government Printing Office
Washington 25, D. 0. - Price 35 cents
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LETTER OF TRANSMITTAL
To the Congress of the United States:
I am submitting herewith, for the period July through December
1955, the eighth semiannual report on operations under the Mutual
Defense Assistance Control Act of 1951 (Battle Act), the administra-
tion of which is one of my responsibilities.
The present report is primarily a factual description of the volume,
commodity composition, and geographic pattern of East-West trade
in 1955, together with a review of the Sino-Soviet bloc's efforts to
expand its economic relations with the less developed countries.
During the preparation of this report, the Permanent Subcommittee
on Investigations of the Senate Committee on Government Operations
held extensive hearings on East-West trade controls and related as-
pects of the Battle Act. The hearings were focused on the revision of
the controls which became effective in August, 1954, and which was
reported in previous Battle Act reports. The Subcommittee's report
was published on July 18, 1956. Its findings and recommendations
are currently being studied and will be the subject of comment in my
next report to Congress.
JoiiN B. HOLLISTER,
Director, International Cooperation Administration.
OCTOBER 10, 1956.
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TABLE OF CONTENTS
CHAPTERS Page
I. Patterns of Trade-------------------------------
Trade Volume
Western European-Bloc Trade
COCOM Trade With the Bloc
Communist China's Trade With the Free World
U. S.-European Soviet Bloc Trade
The U. S. and the Communist China Trade Embargo
Latin American-Bloc Trade
Miscellaneous Trade
Trade Agreements
H. The Period of Trade Contacts and Exchanges- 11
The Geneva Meetings
Farm Delegations Visit U. S.
Soviet Trade and U. S. Senators
ECE Trade Meeting
III. Trade Fairs in Sino-Soviet Foreign Policy---------- 15
Number, Cost, and Areas of Focus
Motives
Sino-Soviet Bloc Participation
Some Representative Trade Fairs
The U. S. Trade Fair Program
IV. Communist Economic Diplomacy in the Less Devel-
oped Areas-------------------------------- 21
Marx and His Apostles
Bases of Trade Drive
Some Aspects of the Trade Push
Trade Agreements and Credits
Trade and Propaganda Themes
Moves in the Near East
Guns-for-Cotton
The "B & K" Tour of South Asia
Rice as a Weapon
Rattling the Ruble
Ruble Rhythms in Latin America
Challenge and Reaction
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APPENDICES
Page
A. Text of the Mutual Defense Assistance Control Act of 1951
37
B. Trade Controls of Free World Countries -----------------
43
C. Presidential Determinations Made During 1955 -----------
63
D. Trade and/or Payments Agreements in Effect Between the
Sino-Soviet Bloc and the Free World During 1955_ _ _ _ _ _
71
E. Statistical Tables -------------------------------------
79
vi
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CHAPTER I
PATTERNS OF TRADE
Trade Volume
Total trade (exports and imports) between the free world and the
Sino-Soviet bloc I amounted to $4.46 billion in 1955, as shown below
and in Figure I, compared with $3.6 billion in 1954, an increase of
24 percent:
TOTAL FREE WORLD TRADE WITH THE VINO-SOVIET BLOC-1954 and 1955
(In millions of United States dollars)
Total Sino-
Soviet Bloc
1955 (preliminary)------------------------------------------
1954-----------------------------------------------------------
4, 461.4
3,599.8
European
Soviet B1oc
3,640.0
2,923.4
Communist
China
805.8
669.4
Exports to the bloc rose from $1.76 billion in 1954 to an estimated
$2.03 billion in 1955, a 15 percent increase (Figure II). Imports from
the bloc moved upward from $1.83 billion in 1954 to an estimated
$2.43 billion in 1955, or by 32 percent. The rise of free world exports
to the bloc was not, therefore, as large as the increase in imports
from the bloc, a reversal of the situation in 1954.
The expansio1 of free world exports to the bloc was due substantially
to increased exports to the European satellite countries, with ship-
ments to Czechoslovakia, Hungary, and Poland providing the largest
gain. Free world imports advanced from almost all the bloc countries,
with imports from the U. S. S. R. showing the greatest absolute in-
crease, followed by Communist China, Czechoslovakia, and Poland.
The progressive rise in free world trade with the bloc was paralleled
by an increase in trade within the free world community. The
sustained growth of economic activity in the United States and
Western Europe, and the continued general improvement in economic
conditions throughout the world, were the principal reasons for the
accelerated trade development. The bloc's share of free world
trade underwent only a fractional percentage change, increasing
from about 2.3 percent in 1954 to approximately 2.6 percent in
1955. Afghanistan, Egypt, Finland, Hong Kong, Iceland, Iran,
I The Sino-Soviet bloc comprises the U. S. S. R., the European satellites, Communist China (including
Inner Mongolia, Manchuria, and Tibet), North Korea, Outer Mongolia, and North Vietnam.
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FIGURE I
TOTAL FREE-WORLD TRADE WITH THE SINO-SONNET BLOC
1954 .and Preliminary 1955
?6 $ 1 billion
........:....................
..............................
.............................
..............................
EUROPEAN
1955(prelim.) $ 4.5 billion
1954 ............. $ 3.6 billion
COMMUNIST CHINA
..................................................
FIGURE II
FREE WORLD EXPORTS TO THE BLOC-1954 AND 1955
[In millions of United States dollars]
European
satellites
Communist
China
1955:
First halt -----------------------------------------
938.0
549.3
242.5
146. 2
Second half (preliminary)--------------------_--
1, 094.7
599.6
328.2
166.9
1954:
First half -----------------------------------------
891.5
417.4
336. 7
137.4
Second half--------------------------------------
872. 7
479.3
236.8
156.6
FREE WORLD IMPORTS FROM THE BLOC-1954 AND 1955
[In millions of United States dollars]
Europe
an
Communist
satellites
China
1955:
First half -----------------------------------------
1, 095.2
595. 7
255. 5
240
4
Second half (preliminary)--------_--------------
1, 333.5
686.9
388.3
.
252.3
643.8
1954:
First half
806.3
433. 7
193. 3
175.4
Second half-------------------------------------
1, 029.3
519. 0
307. 2
200.0
I Outer Mongolia and North Korea are Included In total Soviet bloc, but not in geographic areas. Values
for the years 1954-55, in millions of dollars are: 7.0 and 9.6.
2 Free world imports from Communist China are inflated to some extent by double counting of shipments
reexported from Ilong Kong.
Source: U. S. Department of Commerce.
2
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Turkey, and Yugoslavia, however, in 1955 carried on more than 10
percent of their foreign trade with the bloc.
Sino-Soviet bloc trade in 1955 remained at about the same propor-
tion as in 1954-roughly 80 percent intrabloc and 20 percent with the
free world. Communist China, as a single country of the bloc, had a
similar distribution of trade. The development of Sino-Soviet bloc
trade was reviewed in Chapters I and III of Soviet Deterrents to In-
creased Foreign Trade, the Seventh Semiannual Mutual Defense
Assistance Control Act (Battle Act) Report which covered the first
half of 1955.
At the end of the 1946-55 decade, the total volume of trade con-
ducted among the "centrally planned" or Communist economies was
more than 2.5 times higher than before World War II, while their trade
with the rest of the world was less than half its prewar level, according
to the United Nations World Economic Survey, 1955. The most signi-
ficant expansion in foreign trade was in the Soviet Union, where the
total volume in 1954 was more than four times as large as before the
war. The greatly increased trade among the bloc countries has been
part of a general process of integration within the area as a whole.
The most decisive influence in this integration has been the establish-
ment and development of a separate, virtually self-contained, trading
area.
Western European Bloc Trade
Western Europe was the major nonbloc trading area in the foreign
commerce of the European Soviet bloc during the entire postwar
decade. The most striking postwar development in the commodity
pattern of trade of the Eastern European countries has been the
increase in their exports of machinery and equipment. In contrast,
exports of foodstuffs from most of these countries have declined,
compared with the prewar period.
The trade of the European Soviet bloc with Western Europe con-
tinued to expand in 1955 at approximately the same rate as in 1954.
But in 1955 the actual increase was higher in Western European
imports from Eastern Europe, a movement that was directly con-
trary to the situation the year before when Western European exports
to Eastern Europe were larger. In addition to the traditional com-
modities that the European Soviet bloc exported to Western Europe-
wheat and other foodstuffs, coal, petroleum, and timber-increasing
quantities of manufactured goods, including machinery and equip-
ment, were delivered to a number of Western European markets.
There were also substantial sales of pig iron and cotton to the West.
The exceptionally large imports of butter and meat into the Eastern
European countries from Western Europe which occurred in 1954 were
greatly reduced in 1955. Imports of grain continued, however, and
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in two cases (Communist East Germany and Poland) were expected
to continue in spite of the good 1955 harvest. The total of Eastern
European imports from Western Europe continued to grow rapidly,
partly because of a substantial increase in deliveries of machinery and
equipment. Other major imports were chemicals, crude wool, copper
wire, and rubber.
The Western European countries which showed the biggest gains in
trade turnover with the Sino-Soviet bloc on an absolute basis in 1955
were the Federal Republic of Germany, the United Kingdom, and
France. The Federal Republic of Germany's trade increased by $154
million, the United Kingdom's by $147 million, and France's by $70
million.
Leading commodities by value in the export trade of the Federal
Republic of Germany were the following: chemicals, $44.2 million;
iron and steel products, $17.4 million; ships (marine and coastwise),
$16.3 million; copper wire, $12.7 million; and non-electrical machinery,
$10.7 million. The value of these commodities, which comprised
nonembargoed items, does not, however, include trade with Commu-
nist East Germany.
In the United Kingdom's export trade with the Sino-Soviet bloc,
the principal commodities by value were.: uncovered wire and cables
of copper, $28.8 million; reexports of crude rubber (including synthetic
and reclaimed), $20.5 million; wool tops, $20.1 million; reexports of
sheep and lambs wool (raw), $14 million; and textile machinery and
accessories, $12.9 million (all nonembargoed items).
Principal commodities by value in France's export trade were:
wheat (soft), $29.9 million; iron and steel semis and finished steel
products, $30.4 million; chemicals, $11.5 million; wheat flour, $8.9
million; meat of cattle, $7.4 million; and beet sugar (unrefined),
$5.3 million (all nonembargoed items).
Finland and Austria also showed significant trade increases of $35
million and $37 million, respectively. Yugoslavia's swelled by over
$58 million, a fivefold spurt that was generated by the restoration of
political and economic relations between the U. S. S. R. and Yugo-
slavia, the principles of which were contained in the Belgrade declara-
tion of June 2, 1955. Denmark's trade with the bloc, however,
decreased by $27 million or about 25 percent.
COCOM Trade With the Bloc
The overall trade of the 15 COCOM 2 countries with the Sino-
Soviet bloc (see Appendix E, Table 2) went up from $1.8 billion in
1954 to .nearly $2.3 billion in 1955, or by slightly more than $486
million. COCOM exports to the bloc were about $150 million higher
2 The Coordinating Committee in Paris where the following countries meet to adjust and coordinate their
strategic trade controls: Belgium, Canada, Denmark, Federal Republic of Germany, France, Greece,
Italy, Japan, Luxembourg, The Netherlands, Norway, Portugal, Turkey, the United Kingdom, and the
United States.
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in 1955 than in the previous year, rising rom 88 mil ion in to
above $985 million in 1955.
Communist China's Trade With the Free World
The trade of Communist China with the free world increased in
1955, with transactions totaling $805.8 million compared with $669.4
million in 1954. The 16 countries that constitute the Organization
for European Economic Cooperation (see Appendix E for list of
OEEC members) accounted for 28 percent of this trade, and Japan
for about 14 percent.
Communist China's exports to the non-Communist countries in
1955 were valued at approximately $493 million,' a rise of $117 million
over 1954. Exports from nonbloc countries to Communist China
amounted to about $313 million in 1955, compared with $294 million
in 1954, $287 million in 1953, and $273 million in 1952.
In 1955 the value of direct Western European exports to Commu-
nist China went up by nearly 25 percent over 1954, but this increase
was more than offset by a decline in exports from Hong Kong. Since
exports from Hong Kong consisted largely of transshipments of
Western European products, these statistics reflect primarily changes
in the methods of shipment rather than in levels of trade. Japan's
exports to Communist China, after showing a sharp increase in the
second half of 1954, remained at the same level throughout 1955.
Industrial goods were the major items exported to Communist
China from Western Europe, Japan, and Hong Kong. Chemical
products, including fertilizers, dyes, drugs, and industrial chemicals,
accounted for the largest proportion of the total shipments; exports
of textile fibers and fabrics, metals and manufactures, also composed
significantly large percentages of the total.
Exports to Communist China from Asia (excluding Japan and
Hong Kong), Oceania, and the Near East, on the other hand, con-
sisted largely of agricultural products. Raw cotton constituted the
bulk of exports from Pakistan and Egypt, while exports from Ceylon
consisted chiefly of crude rubber. Rice was Burma's principal export
(see pp 29-30), while Indonesia and Malaya supplied mainly copra and
coconut oil; Australia, wool and wool tops; and India, gunny bags and
raw cotton.
Communist China's exports to the non-Communist countries, in
the order of percentage of total, were foodstuffs (including rice, other
cereals, vegetable oils for food use, eggs, fruits, vegetables, pulses, and
tea) ; oilseeds and other agricultural raw materials (textile fibers,
essential oils, skins and pelts, tung oil, and miscellaneous crude
materials) ; and a variety of miscellaneous goods (mainly ores, minerals,
and products of light industry).
This figure includes Hong Kong Imports of $167 million, much of which was reexported and recorded a
second time as imports from Communist China.
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U. S.-European Soviet Bloc Trade
United States exports to the European Soviet bloc in 1955 were
valued at $7.3 million, a rise of 18 percent compared with the $6.1
million export total in 1954 (see Appendix E, Table 4b). The 1954
and 1955 totals included, however, $4.7 million of food grains, insec-
ticides, and drugs shipped to Hungary, Czechoslovakia, and East
Germany under the President's Flood Relief Program for the Danube
Basin. United States exports to the U. S. S. R. and its European
satellites, exclusive of these gift shipments, had an aggregate value
of $5.7 million for the year 1955, approximately 100 percent more
than the total of $2.9 million for 1954. These export levels were con-
siderably below the 1947 and 1948 totals, when United States ship-
ments to the European bloc totaled, respectively, $339.9 million and
$123.2 million.
Of the principal commodities exported by the United States to the
U. S. S. R. and its European satellites in recent years, wool rags con-
stituted the major export item for the year 1955, representing some
30 percent of total exports. Corn (not seed corn) accounted for
about 20 percent. Hides and skins and inedible tallow followed in
that order.
United States imports from the European Soviet bloc totaled $55.5
million in 1955, increasing 31 percent over 1954 imports of $42.4
million. The major items imported in 1955 included $19.8 million of
canned specialty hams, bacon, and sausage casings; $8.4 million of
furs and manufactures; $6.5 million of benzene; $2.3 million of ferti-
lizers and materials; $2.0 million of photographic goods; $11 million
of glass products; and $1.3 million of bristles.
On November 3, 1955, the Department of Commerce announced
that it was considering establishment of a roster of selected nonstra-
tegic goods which could be exported to the European Soviet bloc
under general license (i. e., not requiring individual validated licenses).,
This proposed relaxation was designed to promote the aim urged by
President Eisenhower at the Summit Conference at Geneva in July:
"To create conditions which will encourage nations to increase the
exchange of peaceful goods throughout the world."
The U. S. and the Communist China Trade Embargo
As outlined in previous Battle Act reports, the United States im-
posed a total embargo on exports to North Korea immediately follow-
ing the invasion of South Korea on June 25, 1950. Exports to Com-
munist China and Manchuria were placed under a total embargo on
December 3, 1950, with the entry of the Chinese Communists into
the Korean War. The embargo has been rigidly enforced and is still
4 The list of some 700 items in over 57 general commodity categories was released on April 26, 1956. This
simplification in licensing procedure in respect to the European soviet bloc only will be discussed in the
Ninth Battle Act Report, which will review East-West trade developments during the first half of 1956.
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in effect. Imports from Communist China and North Korea are also
prohibited unless licensed by the Treasury Department; and no
licenses are issued for imports from these areas.
There have been no United States commercial exports to Com-
munist China or North Korea since the institution of the export ban,
except for shipments of two passenger cars to China with a total value
of $6,000 for the use of a diplomatic mission of a friendly foreign
country, and for the export of $2,530 of magazines and other generally
available publications to China. In the third quarter of 1055, the
Department of Commerce approved export applications to Communist
China for the shipment of a passenger car valued at $1,000 and of
automotive replacement parts valued at $60, both for the use of
diplomatic missions of friendly countries. The shipment of magazines
and other unclassified publications was made in the fourth quarter
of 1955, under a general license system which permits exports of un-
classified scientific and educational information to all destinations.
Latin America's total trade with the Sino-Soviet bloc in 1955
reached a new high level estimated at approximately $340 million, an
increase of about 34 percent over the $254 million reached in 1954.
Aggregate annual trade between the United States and Latin America
is 20 times larger, however, totaling about $7 billion.
Argentina and Brazil continued in 1955 as the main Latin American
trade partners with the bloc countries. Trade between the bloc and
Argentina, which had accumulated a large credit balance with the
Soviet Union, amounted to $193 million in 1955. The value of
Brazil's trade with the bloc was $85 million, an increase of $42 million
or about a 100 percent advance over 1954. Uruguay, which ranked
third in Latin American-bloc trade exchange in 1954, was displaced
in 1955 by Cuba as a result of an increase in U. S. S. R. purchases of
Cuban sugar.
Latin American exports to the bloc in 1955 rose to an estimated
$169 million compared with $142 million in 1954, an increase of 20
percent. Most of this expansion represented the increase in exports
by Cuba and Brazil. The shipment by Cuba of 500,000 tons of sugar
to the U. S. S. R. valued at $37.4 million as well as increased exports
of Brazilian goods, especially coffee, were offset in part by a drop of
$13.3 million in Uruguay's exports to the bloc. This decline of about
50 percent in Uruguay's exports was due to a substantial reduction
in purchases by the Soviet Union.
Latin American imports from the bloc climbed to $171 million, in
1955, an increase of 53 percent above the 1954 level of $112 million.
In 1955 most Latin American countries increased their purchases
within the bloc area. Of particular significance were expanded
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imports by Argentina-$120 million in 1955 as against $83 million
in 1954; and by Brazil-$38 million in 1955 compared with $19 million
in 1954. A large proportion of these imports consisted of manufac-
tured products and industrial raw materials.
Although Latin American trade with the bloc countries in 1955
accounted for only 2 percent of that area's trade with the world, the
same share as in the previous year, the importance of the bloc's trade
rose for individual countries. Such trade in 1955 represented. 9 percent
of Argelttina's and 3 percent of Brazil's, Cuba's, and Uruguay's total
foreign trade, respectively. In 1954 the proportions were Argentina,
8 percent; Brazil, 1.3 percent; and Cuba about 1 percent. Uruguay's
bloc trade, on the other hand, declined from 5 percent of its entire
world trade in 1954 to 3 percent in 1955.
Miscellaneous Trade
Australia did almost $18 million less trade with the Sino-Soviet
bloc in 1955 than in 1954, a decline of 25 percent. This decline was
due mainly to a sag in exports to the U. S. S. R. which followed the
deterioration in political relations between the two countries, pro-
duced by the dramatic disclosure in April, 1954, that the Soviet
Embassy in Canberra was operating a spy network.
Japan's and Turkey's trade with the bloc went up, respectively, by
$56 million and $60 million. Chapter IV of this report surveys bloc
trade with the less developed areas of the world.
Trade Agreements
About 65 percent of the trade of the Sino-Soviet bloc with the free
world in 1955 was carried on with countries with which it had bilateral
trade agreements. A total of 174 trade and payments agreements
were in effect last year between the bloc and the free world (see Ap-
pendix D). In addition, there were five agreements signed in 1955
which were not to become effective until 1956. Of the aggregate
179 agreements,' 29 established a formal basis for trade where only
informal commercial and barter arrangements had existed previously.
Only six of the new pacts were concluded with Western European
countries, most of which have had trade agreements with bloc nations
since the early postwar period. The remainder were concluded with
less developed countries, 13 in the Near East, 8 in Southeast Asia,
and 2 in Latin America.
' The agreements include all East-West government-to-government trade and/or payments agreements,
as well as semiofficial agreements, which covered trade during some part of 1955. The majority of the semi
official agreements were concluded with the East German trade administration by special trading agencies
of free world countries not recognizing the Communist regime; In practice, these agreements do not differ
substantially from government-to-government agreements. Most of the trade agreements establish quan-
tity or value quotas which, while not binding, are indicative of the level of trade In given commodities for
which a government is prepared to issue import or export licenses. The quotas may usually be Increased
or otherwise revised following consultation of the contracting parties.
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On this side of the Iron Curtain, Yugoslavia was very active in the
trade agreement field, concluding a total of eight agreements. It fully
restored its economic ties with all the European Soviet bloc countries,
terminated in 1948 following the break with the Cominform.. The
preliminary $194 million credit agreement concluded between Yugo-
slavia and the U. S. S. R. on September 1, 1955, was Belgrade's most
noteworthy arrangement. Yugoslavia, under this agreement, obtained
credits amounting to an estimated $110 million for the construction of
fertilizer and connected plants, the reconstruction of three small mines,
and other designated projects; $54 million for the purchase of coal, oil,
and cotton in the Soviet Union; and $30 million in gold or equivalent
foreign currency for the Yugoslav National Bank. All credits were
reported to be for 10 years with interest payments of 2 percent. In
November, Poland granted a $20 million credit to Yugoslavia to cover
delivery of food processing and mining equipment, and rolling stock.
Greece concluded 7 agreements with the European Soviet bloc
countries, running Yugoslavia a close second; Turkey, Iceland, and
Argentina each made 6 agreements, and Colombia 1. Burma con-
cluded five new pacts with bloc countries and renewed a 1954 agree-
ment with Communist China. Both the Sudan and Syria signed
four. New agreements concluded by the Sudan and Colombia were
the first that these countries had negotiated with the bloc.
Among the more outstanding agreements reached was that between
the U. S. S. R.. and Austria, following the conclusion of the peace
treaty. Bulgaria signed four new accords, the largest number of any
bloc country. Communist North Vietnam's new agreement with
France was its first official trade arrangement with the free world.
The number and the scope of all these trade agreements show the
intent and advance of the bloc's trade program.
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CHAPTER II
THE PERIOD OF TRADE CONTACTS
AND EXCHANGES
The Geneva Meetings
The Seventh Battle Act Report (pp. 1-2) summarized the un-
successful efforts made by the United States, the United Kingdom,
and France at the Summit Conference in Geneva in July, 1955, and
at the Foreign Ministers' Meeting in the Swiss city during October-
November, to reach an agreement with the U. S. S. R. on the pro-
gressive elimination of barriers which interfered with peaceful trade.
The U. S. S. R. negotiators, as pointed out, expressed a willingness
at the autumn meeting to discuss only the removal of free world
controls on strategic goods. No positive response was made by the
Soviet delegation when the Western representatives offered to con-
sider sympathetically any proposals which the former might present
which would contribute to the mutually beneficial development of
peaceful trade. The United States, the United Kingdom, and France
proposed that the Soviet Union lessen the difficulties for Western
traders to visit and reside in the U. S. S. R.; that the U. S. S. R. give
more adequate protection to Western industrial property rights,
including patents; and that the U. S. S. R. make available more
production and trade statistics. The Western delegates emphasized
that the strategic export controls covered only a small portion of trade,
and that wide opportunities for peaceful commerce were freely avail-
able to the U. S. S. R., provided Moscow discarded its policy of
self-sufficiency.
In a positive and conciliatory move on October 31 to promote
peaceful trade, Secretary of State Dulles announced that the United
States Government would "progressively" simplify certain operating
procedures in exports to the European Soviet bloc (see p. 6). In a
statement made two weeks later, Soviet Foreign Minister V. M.
Molotov refused to address himself to the problem of expanding
peaceful trade and instead called for the elimination of the West's
strategic trade controls. He said :
"* * * lately various measures of discriminative nature have been
and are practised in the trade with the Soviet Union and some other
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states on the part of some Western states and on the part of the
United States of America foremost.
"The removal of this discrimination and of the barriers and obstacles
set up lately on the path of international trade is useful and advan-
tageous for both sides, both for East and West.
"Without the elimination of these barriers the contacts between
East and West cannot normally develop."
Farm Delegations Visit U. S.
Contacts between the free world and the European Soviet bloc
increased during the last half of 1955. The desire expressed at the
Summit Conference for greater contacts between peoples of the East
and West brought about a number of exchanges of delegations. The
Soviet Union also encouraged visits of private citizens, although its
own nationals sent abroad continued to be controlled delegations
rather than individuals exercising the right to travel freely. The
Soviet change in attitude toward the admission of both delegations and
individuals to the U. S. S. R. resulted in an increase in the number of
United States private citizens as well as public officials permitted to
enter the Soviet Union.
The Soviet Government, to a certain extent, used the exchange
program as a vehicle for stimulating trade with the United States.
For example, a 12-man delegation, headed by Acting Agriculture
Minister Vladimir A. Matskevich, visited the United States in August,
studying farming techniques, especially corn-hog production. The
Soviet agriculturists showed a warm interest in buying large self-
propelled wheat harvesters, wheel-type tractors of all sizes, and hay
balers. During its stay in the United States the delegation purchased
15 bulls to improve commercial breeds of cattle in the U. S. S. R.
Late in November a second group of five Soviet agricultural ex-
perts led by ilia Emelianov, Deputy Director of the Scientific and
Technical Operations Department of the Ministry of Agriculture,
came to the United States to purchase a reported $1 million worth
of hybrid seed corn and the machinery to plant, cultivate, and har-
vest it. The president of a midwestern hybrid corn company, who
had visited the Soviet Union and Rumania earlier, extended the
invitation to the Soviet specialists.
Rumania was the first Soviet satellite to send a trade delegation to
the United States. A three-man group, including Deputy Minister
of Agriculture Dr. Virgil Gligor, arrived in New York on November
27 for a month's visit, at the invitation of the same company that
had invited the second Soviet team. The purpose of the Rumanian
mission was precisely that of the second Soviet group-the purchase
of hybrid seed corn and machinery. The delegation announced on
its arrival that Rumania desired to resume trade with the United
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States and was prepared to spend $500,000 to $1 million in cash for
seed corn and 10 sets of farm equipment. Assurances were given
that additional purchases would be made if the seed and machinery
proved satisfactory.
Soviet Trade and U. S. Senators
Nikita S. Khrushchev, First Secretary of the Soviet Communist
Party, in an interview on September 12 with five United States
Senators, said that the U. S. S. R. wanted to import United States
machinery and agricultural products. He implied Moscow would
offer manganese and other strategic materials in exchange for American
goods, and thought an expansion of Soviet-United States trade would
promote better relations between the two countries. With Premier
Nikolai A. Bulganin nodding vigorous approval, Mr. Khrushchev
denounced United States strategic trade controls and urged that they
be abolished. Then he boldly and bluntly asserted: "We value
trade least for economic reasons and most for political purposes as a
means of promoting better relations between our countries." The
political and economic purposes inherent in Soviet trade policy were
described and analyzed in Chapter III of the Seventh Battle Act
Report.
ECE Trade Meeting
From September 26 to October 14, while the "Geneva spirit" of
conciliation was still fresh, representatives of 26 countries met in
Geneva at the fourth session of the Committee on the Development
of Trade of the United Nations Economic Commission for Europe
(ECE) to discuss obstacles to the growth of East-West trade. Eight-
een Western European countries, the U. S. S. R., and its European
satellites sent delegations. The United States and Canada also
participated. In addition to the country delegations, the Council of
Mutual Economic Assistance (CEMA), which was established in
January, 1949, to broaden "economic cooperation" between the
U. S. S. R. and the Eastern European bloc countries, sent its Secretary-
General, A. A. Pavlov of the Soviet Union, to establish an informal
relationship with the ECE Secretariat.
The Committee discussed the items on its agenda in an atmosphere
which was harmonious. In addition to a general discussion of the
magnitude of trade between the East and West, the possibilities of
further expansion in this trade, and trade relationships between par-
ticular countries, the Committee also considered specific problems
affecting the enlargement of trade between East and West, as for
example, arrangements for the settlement of trading accounts.
During the meeting 120 bilateral trade talks took place, but these
were generally restrained and unproductive. At these talks trade
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experts exchanged specific lists of commodities in which they were
prepared to deal.
In the course of the deliberations of the Committee, the Soviet bloc
countries reiterated the charge that the major barrier to trade expan-
sion was discrimination in Western commercial practices. One ex-
ample cited by the bloc countries of a discriminatory practice was the
Western trade liberalization program, which was asserted to be a
violation of the most-favored-nation principle because its benefits
are not extended to all countries. Strategic trade controls were not
mentioned directly, but were referred to by most Eastern European
delegates as "noncommercial" policies which limited exports by West-
ern countries. The bloc countries stated that these policies destroyed
the mutual confidence necessary for world trade and violated the most-
favored-nation principle. However, their expressions of these views
were generally brief and presented in a manner which was in keeping
with the harmonious atmosphere of the conference.
None of the deterrents to increased peaceful trade between the
West and the Soviet bloc: was eliminated as a consequence of the Com-
mittee's deliberations, since the Committee has no power to alter the
trade policies of governments. The major result of the meeting was
possibly an improvement in the psychological climate relating to
East-West trade problems and policies.
The Soviet bloc delegates were generally in favor of a further expan-
sion of trade between the West and the bloc, and stressed the possi-
bilities which they believed existed for an increased exchange of com-
modities. Several Western countries also expressed interest in greater
trade with the Soviet bloc. Gunnar Myrdal, Executive-Secretary
of the ECE, described the results of the meeting as "not spectacular,"
but cautiously predicted a continued slow increase in trade between
the Soviet bloc and the rest of Europe.
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CHAPTER III
TRADE FAIRS IN
SINO-SOVIET FOREIGN POLICY
Number, Cost, and Areas of Focus
For a combination of trade, political, and propaganda reasons, the
Sino-Soviet bloc in 1955 participated in 149 trade fairs and exhibi-
tions in 41 countries, exceeding, as indicated below, its total partici-
pation in the four preceding years:
SUMMARY OF THE PARTICIPATION OF THE SING-SOVIET BLOC IN INTERNATIONAL
TRADE FAIRS AND EXHIBITIONS-1951-55
Number of coun-
tries in which
bloc exhibited
Free
World
1911-----------------------------------------------------------
1952-----------------------------------------------------------
1953-------------------------------------------------------------
1954-----------------------------------------------------------
1955------------------------------------------------------------
Number of
fairs and
exhibitions
in which
bloc par-
ticipated
Number
of indi-
vidual
bloc
exhibits
In 1954 the bloc had displayed its wares at 60 fairs in 26 countries,
at an estimated cost of $10 million. Expenditures in 1955 were about
$38 million, nearly four times the amount spent the previous year.' An
impressive feature of this significant broadening and more systematic
bloc participation in fairs was the substantial increase in the number of
exhibits, from 125 in 1954 to 288 in 1955, or a rise of about 130 per-
cent.
Although Western Europe is the major trading area in the free
world for the bloc, the financial outlays by the bloc in 1955 for trade
fairs in Western Europe were somewhat less than for fairs in the less
developed countries of Asia and the Near East, where the bloc is
expending an ascending proportion of its trade energies and resources
(see Fig. III). To the accompaniment of heavy radio, newspaper,
and magazine publicity, costly and frequently lavish exhibits were
I The $38 million and $10 million estimates are based on equivalent expenditures by the United States
for trade fair participation.
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presented in 16 of the newly developing countries, including India,
Pakistan, Indonesia, Egypt, and Syria. More money was spent by
the bloc on trade fairs in India than in any other non-Communist
country. The bloc also participated extensively in fairs in Yugo-
slavia, Turkey, Greece, Austria, The Netherlands, and Sweden; and
on a smaller but yet noteworthy scale in Argentina, Iceland, and
French Morocco. There were reports in December that the bloc
would expand its participation in trade fairs in 1956, and that its
exhibits would be larger, better planned, and more impressive than
in previous years.
FIGURE III
SING-SOVIET BLOC PARTICIPATION IN TRADE FAIRS, EXHIBITIONS, OR SPECIALTY
SHOWS OUTSIDE THE COMMUNIST BLOC DURING 1955
Location of fairs,
Sino-Soviet bloc participation I
exhibitions or
Num-
specialty shows
her
Czecho-
East
Hun-
Po-
Ru-
Bul-
Corn-
U. S. S. R.
slovakia
Ger-
gary
land
mania
garia
munist
many
China
Argentina----------------
I
x
--- ? ----
--------
--------
--------
------
------
Australiia-----------------
I
-
--------
--------
-----
--
--
--------
Austria-------------------
5
x
x
x
x
---
--------
-------
-- -----
--------
- ---
--------
Belgian Congo------------
I
---
--------
Belgium------------------
7
X
x
x
x
x
x
Bolivia
x
Burma--------------------
I
----------
x
Canada-------------------
I
----------
x
--------
-------
x
Colombia-----------------
I
----------
x
x
---
Cyprus -------------------
I
---------
x
Denmark -------------
2
----
x
x
x
Ecuador__________________
I
R
x
x
x
x
x
Egypt--------------------
3
x
x
Ethiopia------------------
I
----------
x
--------
--------
--------
----
Finland------------------
I
----------
x
--------
------
-
----
--------
--------
Francs--------------------
fl
-
x
--
x
------
X
--------
--------
x
---
x
French Morocco----------
2
----------
X
--------
--------
x
Germany (Federal Re-
public)-----------------
16
X
X
x
x
x
Great Britain-------------
4
---------_
x
x
x
x
------
Greece
x
x
x
------
--
Iceland------------------
India---------------------
16
x
x
x
x
x
--
Indonesia-----------------
2
----------
x
x
x
x
x
x
Italy----------------------
11
x
x
x
x
x
x
Japan---------------------
L
b
2
----------
------
--------
--------
--------
--------
--------
x
e
anon------------------
NetherlaWd---
I
9 9
x
X
x
x
it
x
------
Pakistan
3
X
X
--------
--------
------
--
----
Portugal------------------
1
----------
--------
x
--------
--
--------
--------
--------
--------
Sweden-------------------
2
x
x
X
x
--------
--------
-
--------
--------
Switzerland______________-
4
x
x
x
x
x
-
------
--------
--------
Syria--------------------
2
x
x
x
x
X
x
x
Tibet--------------------
1
----------
--------
--------
x
---
----
-
Tunisia-------------------
1
----------
--
x
x
-
--
-------
--------
Turkey-------------------
1
----------
x
x
x
X
x
United States-------------
I
----------
x
--------
x
--------
--
Yugoslavia---------------
8
x
x
x
x
X
------
x
--------
--------
--------
--------
i Country checked includes participation in at least one trade fair, exhibition, or specialty show, but not
necessarily participation in all fairs held in country.
Motives
Chapter I of the Sixth Battle Act Report describing "Moscow's
Economic Arm," traced the development of the Soviet bloc's use of
trade fairs since 1952, when it first began to use exhibits as a vehicle
in the less developed lands, and concluded that the purposes of this
technique "were far broader than commodity sales promotion.',
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The instrument was, in brief, an all-purpose trade, political, and
propaganda weapon.
As the foreign economic policies and programs of the Sino-Soviet
bloc evolved, and especially with the increase in the U. S. S. R.'s
capabilities and its greater availability of capital goods for export,
trade fairs became an instrument to "normalize and expand" trade
relations. In addition, they became a technique to implement the
overall foreign economic policy of the bloc, and formed an integral
part of an apparent coordinated program that included trade agree-
ments, barter deals for farm surpluses, credits for the purchase of
capital equipment by the less developed countries, and the establish-
ment of resident trade representatives.
There were indications in 1955 that the commercial policy of the
bloc countries at trade fairs was becoming more flexible and that
they were inclined to deviate from earlier trade practices to insure
the business success of their participation. In previous years there
were cases where bloc exhibitors were generally unable or reluctant
to provide information on prices, specifications, delivery schedules,
replacement parts, local agents, and distributors. It was frequently
apparent, moreover, that they were not prepared to manufacture
for export many of the products that were exhibited. In 1955,
however, some substantial contracts and trade agreements were
concluded at trade fairs, and when it was not possible to sign com-
mercial pacts, the foundation was laid for future negotiations. There
were reports that some European satellites prepared sales plans of
exportable goods so that they could take on-the-spot orders. In a
number of instances, items on display were offered to the host coun-
tries either for sale or as a gift.
Propaganda continued to be one of the primary purposes behind
the bloc's sprouting participation in trade fairs in 1955. Pamphlets
were distributed at fairs and speeches were made by bloc officials
urging the Soviet version of "peaceful coexistence," "relaxation of
world tensions," "reunification of East and West Germany," and the
"removal of trade embargoes." The size of the bloc's pavilions, and
the number and variety of the products displayed, were designed to
impress the visitors and to spread before them the technical skills
and the economic strength and progress achieved under Communism;
and thus enhance the attractiveness of Communism and the prestige
of the bloc.
Sino-Soviet Bloc Participation
The U. S. S. R. sent major exhibits of its industrial products to
18 foreign countries in 1955, with some two-thirds of these exhibits
going to countries outside the bloc. The Soviet Union participated
in 11 more trade fairs in 1955 than in 1954. To the surprise of the
host countries the U. S. S. It. withdrew from 11 important fairs last
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year. Although no specific reasons were given, these withdrawals
may have been due to Soviet reluctance to compete with the United
States, which is increasing its trade fair participation, or to the
unwillingness or inability of the sponsors of the fair to allocate
sufficient space for the large, consolidated-type Soviet exhibit.
The Soviet Union had an impressive display at the Geneva atoms-
for-peace conference during the summer. Peaceful uses of atomic
energy exhibits were conspicuous features at trade fairs held in 1955.
Among the prominent trade fair developments in 1955 were the
emergence of Communist China as an important exhibitor and the
leading role of Czechoslovakia and Communist East Germany. The
number of fairs in which Communist China participated rose from 3
in 1954 to 24 in 1955. Czechoslovakia in 1955 was the most active
Soviet bloc exponent of utilizing fairs for trade promotion, participat-
ing in 30 throughout the world. Poland was also an active exhibitor.
Czechoslovakia and the other bloc countries concentrated their efforts
primarily on fairs held in the less developed nations where they
desired to improve their economic and political relations.
Participation in international trade fairs was one of the main pro-
motional activities of the foreign trade policy of East Germany.
During 1955, East Germany exhibited at major trade fairs in 16
countries outside the Communist bloc. East German officials were
loud in their statements about successful exploitation of expositions.
It must be conceded that East Germany made propaganda and com-
mercial gains. Proof of this gain was the gold medal awarded to
East Germany at the Damascus Fair (Syria) for the "excellent layout
of the pavilion" and the reaction of West German manufacturers who
expressed regret that their government was not taking a comparable
advantage of trade fair opportunities.
Some Representative Trade Fairs
The bloc exhibitions that were staged with the most fanfare in the
non-Communist countries in 1955 were those in New Delhi (India)
and Buenos Aires. (Argentina). The Indian Industries Fair in New
Delhi was held in November-December, and drew an estimated at-
tendance of 3 million. At this fair the Soviet Union made a vigorous
effort to promote the sale of its industrial equipment in what it con-
sidered,a high priority market and to show what it was capable of
producing. It exhibited machine tools, textile machinery, trucks,
tractors, bicycles, optical goods, printing machinery, and other
products. Czechoslovakia displayed a variety of engineering products
and oil well drilling equipment. The bloc exhibits were visibly
designed to appeal to government and business executives interested
in sources of supply for their industrial expansion programs. Czecho-
slovak representatives claimed that $7 million in orders were obtained.
The Soviet press also reported that a number of business transactions
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were concluded for the sale of machine tools, tractors, and drilling rigs.
The Soviet pavilion at the New Delhi exhibition occupied 2,000
square meters in addition to an open area covering 2,500 square
meters. To give the display some additional atmosphere and to
attract the general public, the Soviet Union introduced several non-
commercial features, such as an illuminated panel of the Kuibyshev
hydroelectric station, a large plant on the Volga River, then still
under construction; a working model of a blast furnace similar to the
unit to be erected in India by Soviet technicians as part of the well-
publicized Bhilai steel mill project; and a television camera in opera-
tion.
Twelve Czech export organizations displayed over $2 million worth
of goods, with emphasis on engineering products and aircraft, at the
industrial exhibit in Bombay, India, in February. Official Indian
reaction to the Czechoslovak exhibit was very favorable, according
to press reports.
The size and lavishness of Soviet and other bloc country exhibits,
as well as the wide publicity they received, could easily have conveyed
the impression that the bloc was a major factor in India's foreign trade.
But in fact, the entire bloc accounted for only 1.7 percent of India's
imports and 2.1 percent of its exports in 1955.
The Buenos Aires Fair opened on May 21, and lasted 40 days.
The special Soviet display, which was the first exhibit of Russian
products ever presented in Latin America, consisted of a wide variety
of industrial goods. Some 2.3 million persons, including large num-
bers of people from neighboring Latin American countries, reportedly
attended the exhibit. The express purpose of the display, which
occupied 20,000 square meters of space, was to acquaint the Argentine
business community with Soviet industrial equipment available for
import into that country. There was some indication, too, that the
Argentine Government was similarly interested in stimulating confi-
dence and interest in Soviet production machinery. In this manner,
it hoped to support its own formal undertaking made in August, 1953,
to encourage the import of Soviet machinery in its drive to develop
several domestic industries.
The Soviet exhibit at the Zagreb Fair (Yugoslavia) which was shown
following the reconciliation with the Tito Government, was planned
and executed on an elaborate scale. The U. S. S. R. exhibited the
best models of its heavy industrial equipment-turbogenerators,
diesel engines, mining and electrical equipment, trucks, and tractors.
For the benefit of the general public, the Soviet exhibitors displayed
a mobile television installation.
At the Canadian International Trade Fair held in Toronto during
May and June, Czechoslovakia was the only bloc country represented
and was the leading foreign exhibitor, taking more than 10 percent of
the 212,000 square feet rented to foreign participants. The New
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York Times, commenting on the Djakarta Fair (Indonesia) held in
August, observed that the Czechoslovak exhibit was not only impres-
sive but was also three times larger than the United States display.
Although Poland's activity in free world trade fairs was on a sub-
stantially smaller scale than that of Czechoslovakia, the Polish author-
ities effectively used the 1955 Poznan Fair (Poland) to promote trade
with the free world countries. Fifteen free world and eight bloc
countries participated in the fair, which took place from July 3 to July
24. The Polish exhibit was the largest, followed by that of the
U. S. S. R. Polish trade fair officials claimed that the participating
countries had signed trade contracts worth $115 million.
Sparing neither money nor enterprise, East Germany was moder-
ately successful in reestablishing the Leipzig Fair (East Germany) as
the major European international exposition and as a center for trade
between East and West. Each succeeding fair in Leipzig, following
the resumption of the Spring and Fall expositions, attracted more
exhibitors from East and West and more foreign visitors. Elaborate
preparations were made for the 1956 fairs, which exposition officials
hoped would set new attendance records and bring a larger number of
entries, particularly from such less developed countries as India and
Egypt.
It became evident in 1955 that the bloc's trade fair program was
having a positive economic impact, and was contributing to, and
improving the prospects of, bloc trade expansion. The trade fair
device assisted the bloc in. furthering and strengthening its commercial
and political relations with many countries, especially with the less
developed communities. As an important and useful arm of bloc
diplomacy, the technique was employed as a means of attaining world
influence and leadership.
The U. S. Trade Fair Program
The trade fair field was not the bloc's exclusive or even dominant
preserve in 1955. The United States Government's international
trade fair program, which is receiving the cooperation of private
industry, is increasing both in extent and effectiveness. The purpose
of the program, to quote President Eisenhower, is "to tell adequately
the story of our free enterprise system and to provide effective
international trade promotion cooperation."
The first fair in which the United States participated under the
new Government program was the Bangkok Constitutional Fair
(Thailand), held December 7-16, 1954. From the Bangkok Fair to
January 1, 1956, the United States participated in 27 fairs in Asia,
Europe, the Near East, and Latin America.2
7 For additional details about this program, see the first six Quarterly Reports on the President's Emr-
gency Fund for Participation in International Affairs, covering activities from August, 1954-December 31,
1956; and "U. S. Exhibits Win Acclaim at International Trade Fairs." Foreign Commerce Weekly, January
9, 1956.
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CHAPTER IV
COMMUNIST ECONOMIC DIPLOMACY
IN THE LESS DEVELOPED AREAS
Marx and His Apostles
A loss developed country has been defined by Dr. Eugene Staley,
Senior Economist at the Stanford Research Institute, as one "char-
acterized (1) by mass poverty which is chronic and. not the result of
some temporary misfortune, and (2) by obsolete methods of produc-
tion and social organization, which means that the poverty is not
entirely due to poor natural resources and hence could presumably be
lessened by methods already proved in other countries." 1 By this
definition the less developed group includes nearly all the countries of
Asia and Africa, most of Latin America, and some of Europe. The
total population of these less developed nations is approximately 1.6
billion, or about two-thirds of the world's population of 2.4 billion,
according to Dr. Staley. For the purposes of this chapter, however,
the description of the extension of "ruble diplomacy" is confined to the
less developed countries of the Near East, South Asia, and Latin
America?
In his writings, Karl Marx did not give a major role to the less
developed areas in his analysis and prediction of the inevitable,
fateful, and mortal revolutionary conflict between capital and labor.
Marx thought that this crucial struggle would take place in the mature
industrial societies and that the "backward" areas only reflected
the economic evolution of capitalist countries. It remained for
Marx's apostles, Lenin, Stalin, and Mao Tse-tung, to see the immense
importance of the less developed regions and to focus attention on
them both in theory and in action.
Bases of Trade Drive
The Sino-Soviet bloc economic planners apparently believe that
the bloc now possesses the four essential internal conditions which
2 Eugene Staley, The Future of Underdeveloped Countries, published for the Council on Foreign Relations
by Harper & Brothers, New York, 1954, p. 13.
2 For a more detailed account of these activities, see Soviet Technical Assistance, Staff Study No. 7, July 12,
1956, Senate Foreign Relations Subcommittee on Technical Assistance Programs, 84th Congress, 2d session,
United States Government Printing Office, Washington, 1956.
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will enable it successfully to penetrate the vital areas of Asia, the Near
East, Africa, and Latin America, where the drama of world diplomacy
is now unfolding. These conditions are sufficient economic resources,
cultural bases, technical personnel, and internal order and stability.
The U. S. S. R. has gradually been attaining the first condition,
an adequate economic base, and at present its industrial production
is exceeded only by the United States. Industrial output increased
in all Communist countries in 1955, gross production in the Soviet
Union rising by 12 percent, according to the United Nations World
Economic Survey, 1955, and the Economic Survey of Europe in 1955,
the latter report prepared by the U. N. Economic Commission for
Europe (ECE). The composition of industrial production in the
U. S. S. R. showed a 16 percent increase in the output of producer
goods and a 9 percent increase in that of consumer goods. Goals
were exceeded for such producer goods as electrical, transport, and
heavy engineering equipment, as well as oil, electric power, chemicals,
and motor vehicles. The gross output of consumer goods was approx-
imately that planned, but overfulfillments included such important
items as textiles, footwear, dairy products, and vegetable oil. There
were, however, deficiencies in the Soviet economy, with the production
of railroad rolling stock, pig iron, sulphuric acid, and other com-
modities lagging behind announced goals.
Agricultural production recovered significantly in most of the bloc
countries. The 1955 grain. harvest in the Soviet Union as a whole
was 22 percent higher than that of 1954, which was a bad crop year.
Contributing to the, rise in production in the Soviet bloc nations were
improved weather conditions and more favorable policies toward
agriculture, including substantial increases in supply of fertilizers,
farm machinery, equipment and building materials, reduced taxation
and delivery quotas, higher government prices for farm produce, and
an increasing supply of industrial consumer goods to the rural areas.
In addition to enlarging its economic resources, the Soviet Union
increased its skilled manpower supply by expanding its training of
engineers and other technicians who became available for service in
the less developed countries as well as for employment on the home
front. With full and unhampered control over these growing re-
sources, the U. S. S. R. can probably export machinery, raw materials,
and skilled technicians in substantial quantity to the free world with-
out undue strain on the achievement of internal economic investment
targets.
Some Aspects of the Trade Push
Historically, the rulers of Russia have nurtured the hope and dream
of securing a firm foothold in the Near East and South Asia. The
Communist rulers are no exception. Their tactics are to exploit such
domestic conditions in the less developed areas as surging nationalism
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and aspirations for independence, widespread poverty and social dis-
content, and other factors in "the revolution of rising expectations."
These problems and Communist tactics present many, complex, and
formidable issues to the free world.
The broad aim of the bloc in 1955 was to extend, in the less devel-
oped countries, the areas of the Communist bloc's political, economic,
and cultural influence. The ultimate aim remains the same to
bring the entire world under Communist domination and control. An
intensified trade offensive, reinforced by vigorous diplomacy and
propaganda, was the principal feature of this 1955 campaign in the
less developed nations. The process was attraction, penetration, and
attempts to extend the area of bloc domination, using trade, credits,
technical assistance, and trade fairs as weapons. At the same time,
in an effort to sow dissension and division in the West, political
tensions, such as the Arab-Israeli dispute, were exploited, and various
? countries were urged to adopt or adhere to neutral positions.
Primary production accounts for about four-fifths of the total
commodity output of the less developed countries. Rice, rubber,
cotton, sugar, jute, grain, and other raw materials produced by these
countries, were in surplus supply and could not be readily sold in
free world markets. This situation encouraged barter with the
Soviet bloc, with primary commodities from less developed areas being
exchanged for Soviet bloc industrial products, including complete
factories. It remains to be seen whether this pattern of exchange
will be of continuing benefit to the less developed nations.
Although the quantities of commodities involved were usually
small by world standards, they were important to individual countries
like. Burma, Egypt, and Afghanistan. Trade agreements concluded
with these countries and also with India, Indonesia, and Syria called
for deliveries of complete industrial units by the Soviet Union,
Czechoslovakia, East Germany, and Poland. This new development
in bloc trade, which could have a considerable impact on world com-
merce, w8s attributed to general Communist policy considerations,
the bloc nations' growing need for primary commodities and their
expanding output of capital goods, the demand of less developed
countries for capital equipment, and the agricultural surpluses that
were accumulating in exporting countries. These large surpluses,
which caused depressed and fluctuating prices, made these countries
receptive to trade overtures by the bloc. In some cases, the bloc
offered to pay premium prices for the commodities the less developed
countries had difficulty in selling in Western markets.
Trade Agreements and Credits
Trade and payments agreements were principally responsible for
the volume and pattern of trade between the Sino-Soviet bloc and
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countries outside the Communist area, as outlined in Chapter I.
Of the 174 trade agreements in effect at the end of 1955, a total of 67
were between the bloc and the less developed countries in the Near
East, Africa, Asia, and Latin America. Six of these pacts--U. S. S. R.-
Burma; Czechoslovakia-Ceylon; Poland-Burma; Poland-Paraguay;
and Communist China with Egypt, and Syria--were concluded
during the second half of the 'year. During the same six-month
period, Syria signed new agreements with the U. S. S. It., East Ger-
many, and Poland; and Ceylon made an accord with Poland, all of
which were to come into force in 1956. In the Near East, Egypt had
the most trade agreements-7; and in South and Southeast Asia,
India led with 8, followed by Indonesia with 7. The bloc countries
appeared, in general, to have provided goods of acceptable quality
and to have fulfilled the terms of trade contracts.
Perhaps the most dramatic aspect of bloc economic diplomacy has
been its extension of the Soviet version of "economic and technical
assistance" on a substantial and increasing scale. None of the bloc
assistance included grants except for small contributions to the United
Nations technical assistance programs. While some credits were
granted prior to 1955, the U. S. S. R. and Czechoslovakia expanded
their programs materially last year, concentrating their efforts in the
less developed countries. Total credits covered by agreements con-
cluded during 1955 with such countries amounted to nearly $600
million, the preponderant portion of which went to Yugoslavia,
Egypt, Afghanistan, and India. The Soviet Union accounted for
over two-thirds of the total credits, the terms of which involved
interest rates as low. as 22% percent, extended repayment periods,
and in some cases compensation in local currency or products.
The Soviet bloc boycotted the United Nations technical assistance
programs until the summer of 1953, on the grounds that they were
designed to make the less developed countries "raw material ap-
pendages" of the United States and other Western powers. On
July 15, 1953, the Soviet Government announced that it would con-
tribute 4 million rubles (equivalent to $1 million at the official ex-
change rate) to the U. N. technical assistance fund. The contribution
was officially pledged at the technical assistance pledging conference
four months later. At this conference Poland pledged $75,000,
Byelorussia $50,000, and the Ukraine $125,000, while Czechoslovakia
announced that it would participate in 1954.
These actions indicated that the new policy was a concerted move
on the part of the entire Soviet bloc, and coincided significantly with
developing bloc emphasis on trade and technical assistance to the
less developed countries. The motives generally ascribed to this
development included recognition by the U. S. S. R. of the adverse
propaganda effects of its nonparticipation; the intention of using the
United Nations for further extension of Communist influence into
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less developed countries through sending Soviet technicians abroad
and granting scholarships in Soviet universities; and the aim of
making the less developed nations more receptive to the conclusion
of trade agreements and obtaining raw materials from them.
Trade and Propaganda Themes
The bloc's efforts to penetrate the less developed areas were ac-
companied by honeyed declarations by Soviet Communist Party
Chief Khrushchev and his associates that the bloc's relations with
these countries rested on the principles of peaceful coexistence,
equality, respect for the rights of small peoples, noninterference in
the internal affairs of states, nonaggression, and mutual advantage.
The main inducements in these protestations of friendship and com-
mon interest were expanded international economic cooperation,
the prospect of a vast market in the bloc, the lure of rapid industrial-
ization and economic development, and the attainment of national
independence and social progress. Assurances were given that Soviet
technical assistance programs were "disinterested," meaning business-
like with no political strings attached; while the programs of the
United States were, Soviet statements declared, contingent upon
support of American "aggressive militarism." These statements
portrayed "capitalist firms" as trying to flood every market with
their own goods in contrast to the bloc's policy of exporting to them
only the products that were difficult to produce domestically. Bloc
officials emphasized that their loan terms were more favorable than
those of the free world countries and would not subordinate the less
developed areas as would the conditions imposed by the capitalist
countries.
In their trade, technical assistance, and propaganda programs, the
bloc countries concentrated to some extent on "monument" or display
projects (such as paving the streets of Kabul), which had a special
psychological appeal to the recipient countries. The bloc also ex-
pedited the conclusion of agreements, and technicians usually arrived
to start work on a project within a month or so after assistance was
accepted. Technical services not only helped to promote the sales
of bloc equipment but also extended and strengthened the bloc's
influence. To date, evidence suggests that the recipients of bloc
assistance are satisfied with the quality of work and rate of progress,
and the neutral and "uncommitted" nations do not appear to view
the bloc's current economic and technical aid as a serious threat to
their independence.
Moves in the Near East
In 1955 the entire Sino-Soviet bloc focused its efforts on the Near
East. The offensive, which has extended into North Africa, has
embraced trade, military assistance, economic and technical aid, and
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cultural exchanges. With a population of over 100 million, the Near
East produces 20 percent of the world's output of crude oils and
natural gasoline, and its proved crude petroleum reserves are about
two-thirds of the world's total. It is an area in ferment and one of
great and growing economic, political, and strategic importance. The
unsettled political situation and the rising tide of Arab nationalism
present tempting opportunities for Communist exploitation and
maneuvering.
Total trade between the bloc and the Near East and Africa showed
a marked rise of $85 million in 1955, and the upward trend is expected
to continue. There was a conspicuous shift in Near East trade from
the free world to the bloc during 1954-55. Trade between the area
and North America and Western Europe declined during this period.
Difficulties in marketing major staple crops were responsible in some
degree for the shift in trade patterns and the increase in barter agree-
ments (surplus products for machinery) with the Communist world,
according to the U. N. survey, Economic Development in the Middle
East, 1954 and 1955. Unable to find profitable markets for their
products in Western Europe, the United States, and Canada, the
Middle East countries redirected their commerce to the bloc.
Like other Near East countries (with the exception of Israel),
Turkey and Iran, both members of the anti-Communist Baghdad
Pact, steadily developed trade with the bloc. Turkey's trade turn-
over with the bloc went up by $60 million in 1955, a pronounced
increase. Between 1953-55, Turkey's imports from the bloc countries
more than trebled in percentage of its total import trade, rising from
5.5 percent to 18.3 percent. Turkey, whose exports to the bloc are
uncontrolled items (mainly tobacco, cotton, feeding stuff for animals,
and nuts), in 1955 shipped a total of $68.6 million worth of goods to
the bloc compared with $55.1 million in 1954. Exports to the bloc
rose from 16.5 percent of Turkey's total world exports in 1954 to 21.8
percent in 1955.
Israel demonstrated no apparent desire to reorient its trade toward
the bloc, preferring to expand trade with Finland, Yugoslavia, and
Turkey. Syria, on the other hand, showed an eagerness to do busi-
ness with the bloc, concluding a trade agreement with the Soviet
Union in November calling for the delivery of Syrian cotton, dried
fruits, pil-bearing seeds, tobacco, artificial silks, and other products
in return for industrial machinery, farm implements, trucks, and
other items.
Egypt became the focal point of Sino-Soviet bloc interest and ac-
tivity in 1955. The bloc was encouraged in these operations by
Egyptian Premier Gamal Abdel Nasser, who stated on several occa-
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sions that Egypt would accept trade, economic aid, and technical
assistance from Communist countries if it were in the national
interest.
Egypt's trade with the bloc increased by almost $59 million in
1955, the bloc purchasing about 27 percent of Egypt's total exports.
During the period 1953-55, Egypt doubled its percentage of total
exports to the bloc. The seven trade agreements that Egypt had
concluded by the end of 1955 with the bloc countries were partly
responsible for this trade expansion. Communist China shared in-
creasingly in the enlarged trade, a development that reportedly
stemmed from the talks between Premier Nasser and Communist
Chinese Premier Chou En-lai at the Asian-African Conference held
in Bandung, Indonesia, in April, 1955.
Cotton is the mainstay of Egypt's economy. It is by far the
largest source of the country's national income and foreign exchange.
Traditionally, exports of raw cotton account for over 80 percent of
Egypt's total exports. World cotton markets in mid-1955 were
uneasy and depressed by huge surpluses, and there were fears in
Cairo that cotton prices would drop lower. Taking advantage of the
free world's cotton surplus and Egypt's anxieties, and determined to.
establish a bridgehead on the Nile, the bloc countries concluded
agreements with Egypt for cotton and rice in exchange for industrial
products and armaments.
In mid-July, 1955, Egypt signed a trade and payments agreement
with Czechoslovakia. On August 22 a three-year trade pact was con-
cluded with Communist China. A cotton-for-petroleum transaction
was negotiated with the U. S. S. R., and in November a trade agree-
ment was signed with East Germany. As a result of the various
agreements, the bloc's share of Egyptian cotton exports which had
averaged about 13 percent from 1946 to 1954, increased to 21 percent
in the first half of 1955 and to 40 percent in the second half of the
year. Some bloc countries allegedly paid more than world prices for
Egypt's long staple cotton.
In September, Premier Nasser, who a month before had received
an invitation to visit the U. S. S. R., announced that he had accepted a
Soviet-sponsored deal for a reported $100 million to $250 million
worth of Czechoslovak arms, with payment to be made in cotton.
Prior to the official disclosure of the barter arrangement, which had
been rumored for several weeks, Egyptian officials had declared that
if their country could not obtain arms from the West, Egypt had no
alternative but to accept Soviet arms offers. On October 20 the,
Soviet steamship Stalingrad arrived at Alexandria with the first
consignment of arms from Czechoslovakia. The consignment con-
sisted of 133 crates, and was believed to be the first shipment of arms
from any Communist country to an Arab nation.
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The "B & K" Tour of South Asia
In November and December, Premier Bulganin and Mr. Khrush-
chev made a triumphal "goodwill" tour through India, Burma, and
Afghanistan. The month-long journey, which began from Moscow
on November 17, was regarded in the Soviet Union as a massive stride
toward the fulfillment of the ambition of generations of Russian
leaders to establish spheres of influence in South Asia. The ostensible
purpose of the pilgrimage was to return the earlier visits to Moscow
by Indian Prime Minister Jawaharlal Nehru and Burmese Premier
U Nu; but the real aim was to consolidate neutral Asian nations to
offset the Western-sponsored Southeast Asia Treaty Organization
(SEATO), through strengthening "friendship" and promoting trade.
Attempts to link India, Burma, and Afghanistan commercially to the
bloc, such as the agreement to construct a steel mill in Central India
(see Chapter I of the Sixth Battle Act Report), preceded the visit
of the two Soviet officials.
The economic highlight of the two-phase Indian tour was the joint
communique issued on December 13, announcing the conclusion of
a trade agreement calling for the purchase by India of 1 million tons
of Soviet steel and various types of oil drilling, mining, and other
equipment over a three-year period beginning in 1956. In return,
the U. S. S. R. agreed to buy raw materials and manufactured goods
in amounts equal in value to India's purchases in the Soviet Union.
To provide for the expected shipments, steamship lines, using Soviet
and Indian vessels, would be established between the ports of both
countries. India and the U. S. S. R. agreed to exchange delegations
at the earliest possible date to discuss terms and conditions and to
enter into economic agreements to guarantee that the volume of trade
between them would be increased to maximum levels. It was expected
that the actual implementation of the trade agreement would coincide
with the beginning of India's second five-year plan in April, 1956.
The "B & K" visit was the climax of Soviet efforts to cultivate India,
and it yielded the U. S. S. R. considerable propaganda returns. Other
developments that gained support for the Soviet Union were: the Soviet
offer to share experiences in the peaceful uses of atomic power and in
the construction. of industrial enterprises; the arrival of shipments of
equipment for the steel mill, and teams of experts; the offer of assist-
ance in every branch of oil exploration, production, and refining; and
the arrival of equipment for a 30,000-acre state farm which had been
promised to Prime Minister Nehru on his visit to Moscow in June.
Total trade turnover between the Sino-Soviet bloc and South Asia
and the Far East increased by about $120 million in 1955. India's
trade with the bloc increased by over $18 million. By the end of the
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year, India had eight trade agreements with the bloc, but this trade
accounted for only 1.7 percent of India's imports and 2.1 percent of
its exports. The bloc's trade with Indonesia, which had seven agree-
ments, increased by about $50 million in 1955. Ceylon's trade, how-
ever, declined by $36 million.
Rice as a Weapon
Rice is the main crop and staple food in almost all the countries
of Asia. In seeking to influence Burma, the principal Communist
weapon is the purchase of rice, a commodity which Burma has in
substantial surplus and has to export in quantity to remain econom-
ically stable. The rice trade accounts for 70 to 80 percent of Burma's
export earnings, and government revenue depends heavily on this
trade. With Burma experiencing difficulty in disposing of its rice in
its traditional markets, the increasing rice purchases by the Sino-
Soviet bloc in 1955 became the entering wedge by which the bloc
countries could make the Burmese economy more dependent on them.
In 1955, Burma's trade with the bloc rose by over $23 million
(preliminary), exports to the bloc constituting 12 percent of Burma's
total exports as compared with less than 1 percent during the period
1950=54. Burma in 1955 concluded five new trade agreements with
bloc countries and renewed a 1954 agreement with Communist China.
Rice, minerals, rubber, timber, and cotton were exchanged for indus-
trial products and some consumer goods, under these agreements
signed with the U. S. S. R., Czechoslovakia, Communist China, Com-
munist East Germany, Hungary, and Poland. The most important
item was rice. Burmese rice exports increased from 1.5 million tons
in 1954 to 1.7 million in 1955, of which the bloc took 23 percent.
The bloc importers used the rice not only for their own consumption
but also for Northern Vietnam and North Korea, and resold some to
free world countries.
. When Premier U Nu visited Moscow late in October, he praised the
U. S. S. R. for having saved his country from economic crisis by pur-
chasing its surplus rice, and expressed a desire to exchange rice for
Soviet factories, machinery, and technicians. He had announced on
February 22, 1955, that the Soviet Union would soon buy 200,000
tons of Burmese rice and would supply Burma with industrial
equipment in return.
On December 7, "B & K" advanced in their "rice offensive" when
they concluded an economic agreement with Burma, providing for
Soviet assistance in Burma's agricultural development, major irriga-
tion works, and the establishment of industrial plants. The U. S. S. R.
also promised construction and equipment of a technological institute
in Rangoon as a gift to the Burmese people. Under this agreement,
the Soviet Union would be paid in Burmese rice for the agricultural
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and industrial aid or accept deferred payment if there was not sufficient
rice.
Rattling the Ruble
Soviet "technical aid" activities in Afghanistan have followed and
have been related to the drive for expanded trade. The trade offen-
sive would appear to be stimulated by long-range strategic interests
of the U. S. S. R. rather than in any immediate advantage to be
derived from imports from Afghanistan.
By mid-November, 1955, Moscow's economic wooing of Afghanistan
had produced 500 Soviet technicians who were working there helping
to erect oil storage tanks, grain elevators, and other capital projects,
according to press reports. "Spectacular successes" were reported
by news correspondents. Vigorous trade promotion efforts had
pushed the bloc's share in 1955 to probably half of Afghanistan's
total foreign trade. Soviet activities in the country are buttressed
and supplemented by the satellites, especially Czechoslovakia, which
is building a cement factory. In November there were press reports
that Afghanistan was expected to accept.a Czechoslovak offer of
arms, following an announcement by the Afghan radio station that
Afghanistan had accepted an invitation to send a military mission to
Czechoslovakia to inspect the latest types of military equipment.
Premier Bulganin and Mr. Khrushchev ended their tour of South
Asia with a visit to Kabul, the Afghan capital. The capstone of the
visit was the announcement on December 18 that the U. S. S. R.
would extend to Afghanistan a $100 million long-term credit to be
used for the development of agriculture, the construction of hydro-
electric stations, irrigation projects, motor repair workshops, and the
reconstruction of the Kabul airport. The two countries also agreed
to expand friendly political and cultural relations. During the visit
the Soviet leaders presented a 100-bed hospital as a gift to Afghanistan
and 15 buses to the city of Kabul. The large-scale aid was interpreted
as part of a Soviet design to reinforce its position in Afghanistan and
insure continued Afghan neutrality, thereby counterbalancing United
States friendship with Turkey, Iran, and Pakistan.
Ruble Rhythms in Latin America
Only three Latin American Republics---Argentina, Uruguay, and
Mexico--maintain diplomatic relations with the Soviet Union,
although several other countries maintain relations with various of
the other Soviet bloc nations. Latin American trade with the Sino_
Soviet bloc in 1955 represented, as was noted on pp. 7-8, only 2 percent
of that area's trade with the world. Since 1953, however, the efforts
of the bloc to increase its trade with Latin America have met with
some success. United States traders and businessmen do not dis-
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count the significance of the bloc's commercial infiltration, with its
prospects of keener economic competition as well as its usefulness to
Communist parties in the area.
As the "peace offensive" developed during 1954 and 1955, Latin
America felt the Soviet pressures for coexistence and for closer eco-
nomic and cultural relations. No direct offers of technical assistance
were extended, however.
Diligent efforts were made by the bloc in 1955 to increase the num-
ber of bilateral trade agreements with Latin American countries and
to broaden their scope. At the meeting of the United Nations
Economic Commission for Latin America (ECLA) held in Bogota in
August, Polish and Czechoslovak observers appealed for larger trade
between Latin America and the Iron Curtain countries, and stressed
the possibilities of new and stable markets for Latin America's ex-
ports.
As of December 31, 1955, there were 18 trade agreements in effect
between Latin American Republics and European Soviet bloc
countries. The U. S. S. R. followed in the. wake of its satellites in
establishing its own network of direct agreements. The 18 trade
pacts, which contain liberal credit clauses, call for an exchange of
approximately $500 million worth of goods annually, an impressive
figure compared with the $200 million trade volume in 1.954 and the
$70 million in 1953. In general, the Latin American exports under
these agreements are restricted to a relatively few commodities:
Argentina, linseed oil, hides, and m.eat; Brazil, coffee, cotton, cacao,
and wool; Uruguay, frozen meats and wool; and Mexico, coffee.
The bloc countries supply, in exchange, agricultural machinery,
industrial equipment, oil, raw materials, rails, cement, and plate
glass. As mentioned on p. 7, larger bloc purchases of sugar and coffee
in 1955 served to increase Latin American exports to the bloc by
20 percent.
There were reports in the autumn of 1955 that the Soviet bloc
countries were not fulfilling completely their trade commitments with
Argentina, Brazil, Uruguay, Mexico, and other countries, and as a
result substantial credit balances had accumulated for the Latin
American countries. Unofficial estimates revealed that the gap be-
tween the promise and performance of Argentina's trade agreements
with the Soviet bloc in 1954 was about 54 percent, while that of
Brazil was 42 percent. Although both parties to these pacts failed
to deliver according to expectations, fulfillment by the Latin American.
countries was generally better than that by the bloc nations. Deliv-
eries to Argentina not only fell far short of assurances, but the quality
of finished machine tools and similar products was inferior to and
out of date by 5 to 15 years compared with United States goods,
according to complaints.
Argentina and Uruguay were the prime targets of the bloc in its
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1955 economic drive. At the end of the year, during which its trade
with the bloc increased sharply, Argentina was a party to six trade
agreements with the Communist countries. The most important one
in effect was that signed with the U. S. S. R. on August 5, 1953, which
originally provided for $150 million in trade, plus a Soviet credit of
$30 million for the purchase of capital equipment. Under a 1955
trade protocol, the $30 million credit was reduced to $4 million, none
of which was utilized by Argentina.
Late in 1955, the new Argentine Ambassador to Moscow declared
that his country's relations with the Soviet Union would help to
stabilize Argentina's trade so long as Argentina could find outlets
in the vast U. S. S. R. market. He said Argentina, in turn, planned
to purchase Soviet manufactured products for its industry.
In July there were unconfirmed reports that the U. S. S. R. had made
tempting trade proposals to Brazil, whose finances were in a shaky
condition. The offer reportedly included an initial purchase of 1,000
tons of coffee and 20,000 tons of sugar. The amount of coffee in-
volved was negligible, amounting to one-tenth of 1 percent of Brazil's
average crop. Sugar sales would be more important, however, be-
cause Brazil's high prices for sugar were pricing it out of world markets.
During the Brazilian presidential campaign in the late summer and
fall of 1955, the three principal candidates stated their intentions of
establishing at least commercial relations with all countries. The
increasing agitation for trade and diplomatic relations with the
U. S. S. R. and its satellites was motivated by economic rather than
political factors, with Brazil seeking new markets and satisfactory
prices for its products, especially coffee.
In December, the Soviet Ambassador to Mexico visited Ecuador
where he was received by the President and Foreign Minister at an
official luncheon. Since the visit the Ecuadorian Government has
denied published rumors that a technical aid agreement and an offer
to provide Ecuador with arms were discussed.
At the close of 1955 there was growing interest throughout Latin
America in widening trade with the bloc, but Communist blandish-
ments were still viewed with cautious skepticism.
Challenge and Reaction
On January 1, 1956, Western statesmen could look back on a
period during which the Sino-Soviet bloc had intensified its economic
and political offensive in the uncommitted and less developed areas of
the world. A new phase of the cold war had emerged, with the bloc
appearing to rely not so much on military threats, political subversion,
and propaganda invective as on "peaceful competitive coexistence"
embracing "economic and technical aid" to the less developed nations.
Free world officials had watched the evolution of Soviet policy from
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the time it gave only vague impressions of support for the economic
welfare of the newly developing countries, without any actual con-
tribution toward their development, to the adoption of foreign trade as
an "organic part of the Socialist economic system" and an "integral
element of the Soviet foreign policy." 8 An item in the Soviet press
in July, 1955, reporting for the first time a Main Administration for
Economic Relations, an autonomous organization which operates
directly under the U. S. S. R. Council of Ministers and which ap-
parently has responsibility for overall coordination and direction of
Soviet economic and technical assistance policies, did not go unno-
ticed. The setting up of this administration may reflect the new
importance the Soviet Government attaches to economic aid pro-
grams.
The North Atlantic Treaty Organization (NATO) declared in a
communique issued on December 16 after its annual meeting in Paris,
that the Soviet Union's tactics in the Near East and its growing mili-
tary strength offered "a new challenge to the free world." The mutual
security programs of the United States are meeting this challenge by
improving the economic growth and military security of our partners
in the free world. The Ninth Semiannual Report on the Mutual
Security Program, covering operations from July 1, 1955, to December
31, 1955, said:
"Building on past progress, the United States continued to help
free people throughout the world strengthen their individual and
collective efforts to safeguard their independence and at the same time
move ahead with effective measures for economic self-improve-
ment. * * * Mutual security programs for joining our efforts with
the efforts for economic improvement being undertaken by newly
developing countries also went forward during the six-month period."'
3 These quotations from a Soviet foreign trade publication are published in Soviet Technical Assistance,
op. cit., p. 4.
4 Report to Congress on the Mutual Security Program, for the six months ended December 31, 1955, p. 1.
33
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APPENDIX A
Text of Mutual Defense Assistance Control Act
(Battle Act)
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APPENDIX A
Text of the Mutual Defense Assistance
Control Act of 1951 [H. R. 4550], Public
Law 213, 82d Congress, 65 Stat. 644,
Approved October 26, 1951
AN ACT To provide for the control by the United States and cooperating foreign
nations of exports to any nation or combination of nations threatening the
security of the United States, including the Union of Soviet Socialist Republics
and all countries under its domination, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled, That this Act may be cited
as the "Mutual Defense Assistance Control Act of 1951."
TITLE I-WAR MATERIALS
SEC. 101. The Congress of the United States, recognizing that in a
world threatened by aggression the United States can best preserve
and maintain peace by developing maximum national strength and by
utilizing all of its resources in cooperation with other free nations,
hereby declares it to be the policy of the United States to apply an
embargo on the shipment of arms, ammunition, and implements of
war, atomic energy materials, petroleum, transportation materials of
strategic value, and items of primary stragetic significance used in the
production of arms, ammunition, and implements of war to any nation
or combination of nations threatening the security of the United
States, including the Union of Soviet Socialist Republics and all coun-
tries under its domination, in order to (1) increase the national
strength of the United States and of the cooperating nations; (2)
impede the ability of nations threatening the security of the United
States to conduct military operations; and (3) to assist the people
of the nations under the domination of foreign aggressors to reestab-
lish their freedom.
It is further declared to be the policy of the United States that no
military, economic, or financial assistance shall be supplied to any
nation unless it applies an embargo on such shipments to any nation
or combination of nations threatening the security of the United
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States, including the Union of Soviet Socialist Republics and all
countries under its domination.
This Act shall be administered in such a way as to bring about the
fullest support for any resolution of the General Assembly of the
United Nations, supported by the United States, to prevent the ship-
ment of certain commodities to areas under the control of govern-
ments engaged in hostilities in defiance of the United Nations.
SEc. 102. Responsibility for giving effect to the purposes of this
Act shall be vested in the person occupying the senior position author-
ized by subsection (e) of section 406 of the Mutual Defense Assistance
Act of 1949, as amended, or in any person who may hereafter be
charged with principal responsibility for the administration of the
provisions of the Mutual Defense Assistance Act of 1949. Such per-
son is hereinafter referred to as the "Administrator."
SEc. 103. (a) The Administrator is hereby authorized and directed
to determine within thirty days after enactment of this Act after full
and complete consideration of the views of the Departments of State,
Defense, and Commerce; the Economic Cooperation Administration;
and any other appropriate agencies, and notwithstanding the pro-
visions of any other law, which items are, for the purpose of this
Act, arms, ammunition, and implements of war, atomic energy ma-
terials, petroleum, transportation materials of strategic value, and
those items of primary strategic significance used in the production
of arms, ammunition, and implements of war which should be embar-
goed to effectuate the purposes of this Act: Provided, That such deter-
minations shall be continuously adjusted to current conditions on the
basis of investigation and consultation, and that all nations receiving
United States military, economic, or financial assistance shall be kept
informed of such determinations.
(b) All military, economic, or financial assistance to any nation
shall, upon the recommendation of the Administrator, be terminated
forthwith if such nation after sixty days from the date of a deter-
mination under section 103 (a) knowingly permits the shipment to
any nation or combination of nations threatening the security of the
United States, including the Union of Soviet Socialist Republics and
all countries under its domination, of any such item which he has deter-
mined under section 103 (a) after a full and complete investigation
to be included in any of the following categories: Arms, ammunition,
and implements of war, atomic energy materials, petroleum, transpor-
tation materials of strategic value, and items of primary strategic
significance used in the production of arms, ammunition, and imple-
ments of war: Provided, That the President after receiving the advice
of the Administrator and after taking into account the contribution
of such country to the mutual security of the free world, the impor-
tance of such assistance to the security of the United States, the
strategic importance of imports received from countries of the Soviet
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bloc, and the adequacy of such country's controls over the export to
the Soviet bloc of items of strategic importance, may direct the con-
tinuance of such assistance to a country which permits shipments of
items other than arms, ammunition, implements of war, and. atomic
energy materials when unusual circumstances indicate tliat, the cessa-
tion of aid would clearly be detrimental to the security of the United
States: Provided.furifhcr, That the President shall immediately report
any determination made pursuant to the first proviso of this section
with reasons therefor to the Appropriations and Armed Services
Committees of the Senate and of the House of Representatives, the
Committee on Foreign Relations of the Senate, and the Committee
on Foreign Affairs of the House of Representatives, and the President
shall at least once each quarter review all determinations made previ-
ously and shall report his conclusions to the foregoing committees of
the House and Senate, which reports shall contain an analysis of the
trade with the Soviet bloc of countries for which determinations have
been made.
SEC. 104. Whenever military, economic, or financial assistance has
been terminated as provided in this Act, such assistance can be re-
sumed only upon determination by the President that adequate meas-
ures have been taken by the nation concerned to assure full compliance
with the provisions of this Act.
SEC. 105. For the purposes of this Act the term "assistance" does .
not include activities carried on for the purpose of facilitating the
procurement of materials in which the United States is deficient.
TITLE II OTHER MATERIALS
SEC. 201. The Congress of the United States further declares it to
be the policy of the United States to regulate the export of commodi-
ties other than those specified in Title I of this Act to any nation or
combination of nations threatening the security of the United States,
including the Union of Soviet Socialist Republics and all countries
under its domination, in order to strengthen the United States and
other cooperating nations of the free world and to oppose and offset
by nonmilitary action acts which threaten the security of the United
States and the peace of the world.
SEC. 202. The United States shall negotiate with any country re-
ceiving military, economic, or financial assistance arrangements for
the recipient country to undertake a program for controlling exports
of items not subject to embargo under Title I of this Act, but which
in the judgment of the Administrator should be controlled to any
nation or combination of nations threatening the security of the
United States, including the Union of Soviet Socialist Republics and
all countries under its domination.
SEC. 203. All military, economic, and financial assistance shall be
terminated when the President determines that the recipient country
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(1) is not effectively cooperating with the United States pursuant
to this title, or (2) is failing to furnish to the United States infor-
mation sufficient for the President to determine that the recipient
country is effectively cooperating with the United States.
TITLE III-GENERAL PROVISIONS
SEC. 301. All other nations (those not receiving United States
military, economic, or financial assistance) shall be invited by the
President to cooperate jointly in a group or groups or on an individual
basis in controlling the export of the commodities referred to in Title
I and Title II of this Act to any nation or combination of nations
threatening the security of the United States, including the Union
of Soviet Socialist Republics and all countries under its domination.
SEC. 302. The Administrator with regard to all titles of this Act
shall-
(a) coordinate those activities of the various United States
departments and agencies which are concerned with security con-
trols over exports from other countries;
(b) make a continuing study of the administration of export
control measures undertaken by foreign governments in accord-
ance with the provisions of this Act, and shall report to the
Congress from time to time but not less than once every six
months recommending action where appropriate; and
(c) make available technical advice and assistance on export
control procedures to any nation desiring such cooperation.
SEC. 303. The provisions of subsection (a) of section 403, of section
404, and of subsection (c) and (d) of section 406 of the Mutual
Defense Assistance Act of 1949 (Public Law 329, Eighty-first Con-
gress) as amended, insofar as they are consistent with this Act, shall
be applicable to this Act. Funds made available for the Mutual
Defense Assistance Act of 1949, as amended, shall be available for
carrying out this Act in such amounts as the President shall direct.
SEC. 304. In every recipient country where local currency is made
available for local currency expenses of the United States in con-
nection with assistance furnished by the United States, the local
currency administrative and operating expenses incurred in the ad-
ministration of this Act shall be charged to such local currency funds
to the extent available.
SEC. 305. Subsection (d) of section 117 of the Foreign Assistance
Act of 1948 (Public Law 472, Eightieth Congress), as amended, and
subsection (a) of section 1302 of the Third Supplemental Appropria-
tion Act, 1951 (Public Law 45, Eighty-second Congress), are repealed.
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APPENDIX B
Trade Controls of Free World Countries
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APPENDIX B
Trade Controls of Free World Countries
This appendix summarizes the national trade control measures of
the countries cooperating with one another in the multilateral control
system. Descriptions of the trade controls of other friendly countries
have been contained in similar appendices to previous MDAC reports,
and, since their control procedures have in most cases not undergone
substantial revision, they are not repeated in this appendix.
As indicated in previous reports, much of the detailed information
on security trade controls has a security classification. Thus these
descriptions must, in a public report, be presented in somewhat general
terms. The descriptions are concerned primarily with the basic
export license and customs control procedures originally established
for directing foreign trade to particular currency areas, for conserving
goods in short supply, and for other economic or financial reasons.
Security trade controls have been generally exercised through these
basic .procedures, supplemented, to increase their effectiveness, by
import certificate-delivery verification (IC/DV) procedures, shipping
controls, transit trade controls, and transaction or financial controls.
The descriptions which follow describe the main features of these
national control systems as they stood June 30, 1956. The countries
are arranged in alphabetical order.
License Requirements
The basic legislation from which the present import-export control system in
Belgium has developed was a law of June 30, 1931, modified by the law of
July 30, 1934, which authorized in broad general terms the regulation of
Belgium's foreign commerce to promote the general economic well-being of the
country. The convention with the Grand Duchy of Luxembourg on May 23,
1935, amending the economic union convention of 1922, established also a com-
bined Belgo-Luxembourg Administrative Commission (the Commission Ad-
ministrative Mixte Belgo-Luxembourgeoise) and in this way provided a central
agency for coordinating the import and export licensing procedures of Belgium
and Luxembourg. Pursuant to the 1935 convention, when the appropriate agency
of either government desires to modify or expand regulations pertaining to
import and export controls, the recommendation is discussed with the appro-
riate agencies of the other government; their agreement having been reached,
the new policies are communicated to the Mixed Commission which then trans-
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mits identical instructions to the Belgian Central Office of Licenses and Quotas
and the Luxembourg Office of Licenses. This procedure insures close coordina-
tion of the import and export licensing operations of the two governments in
order that the general economic welfare of both may best be served.
A royal decree dated January 17, 1955, provides that the import and export
of all merchandise is subject to licensing control. However, the Ministers
can, within the limits of their authority, suspend this measure as to certain
merchandise designated by them. They can also limit this suspension to
merchandise coming from or destined to countries which they determine.
The control over exports effected by the requirement of export licenses is
reinforced by special controls applied at the time of the actual export of the
licensed merchandise. Submission to these special controls is required as a.
previous condition to the obtaining of certain licenses, these special additional
controls being applied by reason of the special nature of the merchandise to be
exported or to assure the direct delivery of the merchandise to its foreign
destination.
Applicants for export licenses must make a declaration that they are familiar
with the conditions upon which licenses are issued and the regulations relative
to exchange controls, and that they accept these conditions and regulations
without reserve. The applicant also acknowledges that the licenses are not
transferable and that any irregularity in his application or utilization of the
license subjects him to possible refusals of any new export license applications
and may expose him to prosecution for a criminal offense. Exporters of prod-
ucts whose final destination is controlled must sign an undertaking that their
exports are not to be reexported. In such cases, the exporter renounces his
right to obtain any subsequent export licenses in all cases for which nonre-
export declarations are required, if the present undertaking is evaded.
Transit Controls
The royal decree of January 17, 1955, referred to above, authorizes the Minister
of Economic Affairs to impose a transit licensing requirement for certain items
coming from or going to countries he may designate. A second decree of the
same date by the Minister of Economic Affairs requires the production of a
Belgian transit license, or a transit authorization certificate (TAC) issued
by certain countries, for the shipment through Belgium in transit of items
named in the decree coming from the countries participating in the TAC scheme
and destined for any of the Soviet bloc countries. Luxembourg issued similar
decrees January 20 and February 1, 1955.
Financial Controls
Prior authorization is required for all buying and selling transactions abroad
by Belgian and Luxembourg residents. The exchange control is carried out by
the Belgo-Luxembourg Exchange Institute.
Shipping Controls
Belgium has taken action to prevent the carrying of strategic goods in Belgian
ships to Communist Chinese and North Korean destinations.
CANADA
Authority for the control of exports in Canada is derived from the Export and
Import Permits Act, an act of Parliament, which came into effect on June 1, 1954.
Permit Requirements
The Canadian approach to export control is based on two lists: (i) The Export
Control List of strategic commodities for which export permits are required for
practically all commercial exports to any destination, except the United States,
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and (ii) the Area Control List of countries, the shipment to which of any goods
requires an export permit. The Area Control List comprises all Communist
countries plus Hong Kong, Macao, and Indochina. General export permits are
in effect which enable shipments of a list of nonstrategic items to Hong Kong;
shipments of casual gift parcels of trivial value to Communist countries; shipments
to Canadian diplomatic missions; etc.
Transaction Controls
Under the act, Canada has also enacted a form of transaction control whereby
it becomes an offense for a resident of Canada to knowingly cause or assist any
shipment of strategic goods to be made from Canada or any other place, to
Communist countries.
Transit Controls
New regulations were made effective January 16, 1955, respecting transit ship-
ments. These regulations stipulate that no person shall transship or cause or
assist in the transshipment of or accept for transshipment to a country included
in the Area Control Lisu any goods included in the Export Control List, unless a
transit authorization certificate covering such goods and issued by the exporting
country, or by the country of residence of the exporter, has been presented to and
endorsed by a Canadian collector of customs or, in the absence of such certificate,
approval for the transshipment has been given by the Minister of Trade and
Commerce, or by a person authorized by him to do so.
An export permit is required for all goods originating outside Canada when
tendered for export in the same condition as when imported, without further
processing or manufacture in Canada. Goods in transit in bond on a,through
journey on a billing originating outside of Canada, clearly indicating the ultimate
destination of the goods to a third country, do not require a Canadian export
permit. Foreign goods passing through Canada to a third country without a
through bill of lading require a Canadian export permit. (If such goods represent
United States shipments of controlled goods passing through Canada to third
countries, they must be covered by a United States export permit.) All Canadian
goods having an undeclared ultimate destination require export uermits. Ship-
ments of United States goods through Canada must be accompanied by a copy
of the United States export declaration form.
Export controls are administered by the Export and Import Permits Section
of the Canadian Department of Trade and Commerce.
DENMARK
License Requirements
Export licenses are required for all commodities, except certain agricultural
products, if the goods are exported to or intended for end use in countries which
are not members of the European Payments Union or are within the dollar area.
For the goods enumerated in the below-mentioned Commodity Lists A and B,
export licenses are required, irrespective of the country of destination.
List A of the Danish export regulations consists of items of strategic signifi-
cance. For most of these items the licensing authority is the Board of Supply,
but the Ministry of Justice controls exports of arms, munitions, military equip-
ment, and machinery for the production thereof. For the exportation of ships,
the Board of Supply must obtain prior approval from the Ministry of Commerce,
Industry, and Navigation.
List B consists of nonstrategic goods. Export licenses for these are issued by
the Board of Supply, the Board of Health, the Ministry of Public Works, or the
National Bank of Denmark according to the nature of the commodity concerned.
Denmark applies import certificate-delivery verification procedures.
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Exchange Controls
The National Bank of Denmark exercises strict controls over all transactions
in foreign exchange. Earnings in foreign currencies must be repatriated and sold
to the bank unless special exceptions are made.
Transit Controls
The export controls apply to merchandise exported from the Copenhagen free
port, including exports from transit or bonded warehouses and goods from free
port or private warehouses. They also apply to goods in transit through Den-
mark, unless these are transiting on a through bill of lading and there is no change
in ultimate destination. In addition, Denmark has adopted the TAC scheme.
These control measures thus prevent unauthorized diversion of embargo goods in
transit through Denmark.
All transit transactions financed by Denmark are subject to control by the
national bank, regardless of whether the goods in question actually pass through
Denmark or are forwarded directly between the countries of origin and destina-
tion. In its administration of these provisions the bank observes the same rules
as the export control authorities with which the bank cooperates closely in this
field.
Shipping Controls
An arrangement has been made by the Danish Government with Danish ship-
ping companies to prevent the carrying in Danish vessels of strategic goods to
Communist China and North Korea. This arrangement is implemented through
a licensing system operated under a voluntary agreement with Danish shipowners.
License Requirements.
Export licenses are required for over one-half the commodities identified in
the French tariff nomenclature. Governmental authority for this control is
contained in various decrees, the latest dated November 30, 1944. These decrees
also permit addition to or removal from the list of controlled commodities merely
by publication of a notice in the Journal Officiel.
Applications for license to export, as submitted by French, exporters, are
examined by the Ministry of Industry and Energy, by the Office des Changes
(where monetary and financial factors are given consideration), and on occa-
sion by appropriate technical committee and personnel in other agencies. At the
time the application for export license is submitted, the exporter may be in-
structed by the Ministry of Industry and Energy to submit a sample, photograph,
blueprint, drawing, or other detailed description of the commodity in question.
These data are used in determining the advisability of issuing the export license
requested. At the port of exit, random samples of actual exports are extracted
by customs officials and these are compared by competent technicians with the
original data submitted with .the license application. This procedure is designed
to assure in as many instances as practical that the commodity exported is
identical with the commodity for which the export license is issued.
In the event fraudulent action on. the part of the exporter is found and can
be legally established, the exporter is subject to confiscation of the goods in
question and fines ranging upward to four times the value of the shipment plus
penal servitude. The control system in operation in France makes it possible
to block or encourage exports to any destination of commodities requiring export
licenses.
Transit Controls
On December 30, 1954, and January 12, 1955, the French Government published
new regulations effective respectively on the 1st and 15th of January, 1955, con-
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corning the regulation of imports, exports, and reexports of a certain number
of products which enter France under transit status. In essence, these regula-
tions state that the products affected cannot be diverted to certain specified
countries (which comprise the Soviet bloc) if their exportation begins in countries
participating in the transit authorization certificate scheme unless the country
of export so authorizes the change in destination.
Financial Controls
All transactions in foreign exchange engaged in by French residents, par-
ticularly those in which a French resident takes title to foreign merchandise,
require the prior authorization of the French Government.
An "exchange commitment" (guaranteeing the return to the government of
the exchange proceeds of a transaction) is required for all exports and reexports
of merchandise to which a French resident holds. title. Where the products
concerned are subject to export license, the export license suffices for the ex-
change commitment.
Shipping Controls
In order to avoid the transport on French vessels of strategic commodities to
Communist China, the French Government has reached agreement with-the only
French shipping firm operating on the China run that the latter will not transport
commodities of any. description to Communist China unless these are covered
by export license or permit indicating Communist China as the destination and
issued by the French Government or a friendly foreign government maintaining
the same level of controls as concerns strategic items to China as is maintained
in France.
The French Government has also instituted controls to deny bunkering facili-
ties to vessels transporting strategic commodities to Communist China,
GERMANY (FEDERAL REPUBLIC) AND WESTERN BERLIN
License Requirements
No commodity can be exported from the Federal Republic of Germany or
West Berlin unless it is covered by an export declaration (Ausfuhrerklaerung)
which is issued by the interior customs authorities. However, certain types of
exports require a special export declaration (Sonder-Ausfuhrerklaerung) which
is granted by the same customs authorities only after a certificate of approval
(Lieferungsgenehmigung) has been obtained, as appropriate, from the Bundesamt
fuer gewerbliche Wirtschaft (Federal Office for Industrial Economy) or the
Zentrale Genehmigungstelle (Central Licensing Agency) of the West Berlin
Senate. A certificate of approval is required for the following:
(a) Exports to all countries in the free world of all commodities on the
German "restricted list" in excess of DM1,000 (ball and roller bearings are ex-
cluded from this procedure and therefore require a certificate of approval re-
gardless of the value of the shipment).
(b) All exports to the European Soviet bloc except certain nonstrategic com-
modity groups, i. e., foodstuffs, certain types of textiles and consumer goods and
"Small Value Shipments" (DM1,000 or less) of commodities of minor strategic
importance.
(c) All exports to Communist China, North Korea, North Vietnam and Macao
except certain non-strategic commodity groups (See b).
The German "restricted list," which is similar to but smaller than the
United States "positive list," comprises commodities under control for security
and short-supply reasons and includes all items covered by Title I and Title II
of the MDAC Act.
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Exports to numerous Western countries, including peripheral countries, are
subject to one form or another of end-use checks. Import certificate-delivery
verification procedures have been in operation since July, 1951.
In conjunction with the issuance of either the export control document or the
special export control document, the interior customs authorities observe a
definite procedure for physical inspection of commodities being exported. Addi-
tional control over commodities being exported from the Federal Republic is
exercised by the border customs authorities.
Financial Controls
All triangular transactions between residents of Western Germany and West
Berlin and residents of other areas are subject to either a general or a specific
transit trade permit (Allgemeine or Einzel Transit Handels Genehmigung) issued
by the foreign trade banks. A specific transit trade permit is needed for all
transactions where the final destination of the goods is in a Soviet bloc country.
Before the granting of a transit trade permit, the transaction in question is not
only screened with respect to the currency problems but also in regard to the
strategic nature of the goods. The latter screening is done by export control
officials who have the power to prevent the transaction.
Transit Controls
Certain items are prohibitedfor intransit shipments on the grounds of health
and sanitation, but the number of items so prohibited is very small and the
prohibited list has not been changed since 1939. German customs officials may
inspect transit shipments at the border and remove any items prohibited under
German law. They then seal the containers of all other goods and such goods
are permitted to proceed, in accordance with international agreement on transit
traffic, without further inspection or restriction, except to insure at the exit
border that the original customs seals remained unbroken.
Effective January 15, 1955, the Federal Government implemented the transit
authorization certificate scheme (TAC). Under this procedure, transit ship-
ments of listed strategic commodities originating in a COCOM country which
are unloaded in the Federal Republic and destined for the Soviet bloc, but are not
accompanied by a transit authorization certificate, will be detained pending
proper clearance by the exporting country. The same procedure will be followed
for strategic transit shipments which originated in a non-participating country,
but where the principal of the transaction is a resident of a COCOM country.
On January 1, 1956, the TAC scheme was extended to include also exports
from certain non-COCOM countries.
Intransit shipments arriving in the free port of Hamburg are subject to a
customs documentary and physical check before being allowed to enter the
free port. When in the free port, such shipments are under the control of the
free port authorities, and may be loaded, unloaded, or reloaded only with their
approval. The destination of intransit shipments arriving in the free port of
Hamburg traveling under a "through bill of lading" can only be changed upon
instructions of the original shipper, while the destination of intransit goods
traveling under an "ordinary bill of lading" can be determined by the responsible
local forwarding agent.
Intransit shipments consigned to West German firms and remaining in the
free port of Hamburg for shipment to a consignee outside Western Germany,
require an intransit trade permit (Transit Handelsgenchmigung), except when
the goods are returned to country of origin. Such intransit trade permits are
issued by the State Central Banks after careful scrutiny of the West German
firm and in accordance with the same regulations applying to shipments of West
German origin, and approval by the West German Central Export Control Office
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West German firms must be listed in the official trade register in order to qualify
for an intransit trade permit.
A similar procedure is enforced in the free ports of Bremen and Bremerhaven,
with the exception that the functions within the free port are carried out by
federal customs authorities rather than free port authorities. This procedure
also applies to Cuxhaven, Emden, and Kiel, which are free ports of very minor
importance.
License Requirements
Export licenses are required for all strategic commodities and for certain
nonstrategic commodities for which export quotas have been established. For
nonstrategic shipments, licenses are issued by the Bank of Greece in accordance
with directives from the Greek Foreign Trade Administration, Ministry of
Commerce. For strategic shipments, including those to the Soviet bloc countries,
licenses must be obtained from the Foreign Trade Administration. In the case
of countries with which Greece has bilateral trade agreements (which includes
the Soviet bloc countries), such licenses are limited to the quantities specified
in the respective agreements.
Transit Controls
Transit shipments of strategic commodities must be licensed by the Foreign
Trade Administration prior to being reexported.
Financial Controls
Foreign exchange proceeds must be surrendered to the Bank of Greece.
Shipping Controls
Effective March 17, 1953, the Greek Government prohibited Greek-flag vessels
from calling at Communist ports in China and North Korea. This was accom-
plished by the Greek Council of Ministers Act No. 204 of March 17, which was
enacted into law by the Greek Parliament on May 7. Violators are punishable
under the provisions of law No. 2317 of 1953, published in Greek Government
Gazette No. 61 dated March 17.
The Greek foreign investment law (No. 2687 of 1953) provides that foreign
vessels transferred to the Greek flag may only be resold to countries named in
the instrument of approval executed at the time of the transfer of the vessel to
Greek registry. So far, such instruments have not included Soviet bloc countries.
With only minor exceptions, the sale to other countries of Greek-flag ships not
covered by an instrument under law 2687 requires the prior approval of the
Greek Government.
Ship repairs are subject to export licensing under the procedures covering
transit shipments.
Current bunkering controls require licensing by the Bank of Greece with
respect to payment in foreign exchange for the value of fuel and by customs
authorities for removal from customs precincts.
License Requirements
All commodities listed in the new Tabella Esport (the Italian export list) dated
March 29, 1956, require an export license to all destinations, except Somaliland,
which is issued by the Ministry of Foreign Trade. All items internationally
accepted for embargo or quantitative control are included in the Tabella Es port.
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Goods not listed in the Tabetla are exempt from license, but must be exported
in conformity with exchange regulations, which vary according to the country
of destination and clearing or other financial agreements.
All exports to Communist China, Czechoslovakia, and Eastern Germany re-
quire an export license, while licensing of exports for other Soviet bloc countries
is covered by special regulations for each country. Export and import licenses
for trade with Communist China and Eastern Germany are presently granted
only to SPEI, a special entity under the Government agency ARAR, appointed
to administer this and which acts as agent for firms wishing to trade with these
countries.
Exports to the Soviet bloc also require bank validations, as virtually all trade
with the Soviet bloc is conducted under bilateral agreements which specify the
commodities that may be traded and the methods by which payment is to be
made. Normally, shipments to the East comprise only those commodities
specified in a trade agreement with an eastern country. In order to facilitate
checking of eastbound shipments, trade with the Soviet bloc is funnelled through
selected frontier customs points.
The formulation of export control policy and the administration of the export
licensing system are the primary responsibility of the Ministry of Foreign Trade.
This Ministry is advised by a special interministerial committee.
Italy is employing import certificate-delivery verification procedures and car-
ries out end-use checks for shipments to destinations outside the Soviet bloc,
particularly for questionable transactions involving goods of a strategic nature.
The country of origin is notified if an attempt is made to divert a shipment.
Financial Controls
Financial control over all export transactions is maintained through the
licensing system and through implementation of existing exchange control
regulations.
Strict bilateral trade agreements with almost all members of the Soviet bloc
have constituted, in effect, a financial ceiling on exports to Eastern Europe.
Trade with Communist China under a unilateral compensation arrangement is
conducted in sterling or Swiss francs. Italian exchange control regulations
would not normally permit payment for imports from the Soviet bloc in hard
currencies, although sterling is occasionally used in payment for the few items
not included in the trade agreements. In certain instances ship charters are
completed for sterling when circumstances warrant or it is considered convenient.
Transit Controls
In order to implement the international TAC agreement on transit controls,
instructions were issued to Italian customs offices on January 2, 1955, to the
effect that foreign commodities in transit through Italy, in order to be considered
in direct transit, must be covered by commercial or freight documents showing
ultimate destination of the commodities to a specific foreign country, which
destination should be clearly noted in the origin of the shipment. For embargo
items directed to the Soviet bloc, this requirement may be met by the presentation
of a transit authorization certificate. If a shipment of this kind arrives at an
exit customs point without the proper documentation to establish that it is in
direct transit, customs is required to hold the commodities in storage until its
status can be clarified. These regulations should, in conformity with COCOM
agreements, effectively close the loophole previously caused by the lack of control
over shipments in direct transit.
In the case of indirect transit shipments, a check is also made on the regularity
of the transaction from the foreign currency standpoint. Operators contemplat-
ing indirect transit operations must submit an application to the appropriate
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agency (Bank of Italy, directly or through authorized bank; or Ministry of
Foreign Trade, General Directorate for Currencies) when any item listed in
part A of the Tabella Es port (which includes all strategic items except Inter-
national List III) is purchased abroad. To allow a certain flexibility, a transit
operator may purchase the goods abroad and have them shipped to Italy before
making application to the Ministry of Foreign Trade; however, in this case he
must submit to the bank which holds his currency account a written commitment
that the goods will be sent directly to Italy and not diverted. He must also
obtain the clearance of the General Directorate for Currencies before the goods
can be onforwarded through Italy to another country.
The routing of both direct and indirect transit shipments is kept under sur-
veillance to ascertain that it is natural and normal and to avoid routing that
may facilitate diversion.
Shipping Controls
The Ministry of Merchant Marine has drafted a bill which, when enacted into
law, will give the Italian Government the power to exercise control over shipping
traffic with countries of the Soviet bloc. The bill contemplates quite severe
penalties to be imposed upon owners and masters of ships failing to comply
with regulations established by the Ministry of Merchant Marine. Considera-
tion of this bill by Parliament has been delayed for more than two years, however,
and there seems to be no immediate prospect that it will be enacted into law.
Penalties
Penalties that may be imposed under Italian law for violations of export-
control regulations include (1) imprisonment up to 3 months, (2) fines up to
40,000 lire, and (3) confiscation of the merchandise involved. These penalties
have on occasion been supplemented by fines as high as 50 million lire ($80,000)
for crimes committed. in connection with false customs declarations or currency
violations in export transactions. Persons and firms under investigation for
illegal export transactions are denied foreign trading privileges.
Irregularities under the customs law may be punished by fines from 2,000 to
20,000 lire, while other infractions may incur the penalties contemplated by
the penal code.
JAPAN
License Requirements
Licenses from the Japanese Ministry of International Trade and Industry are
required for exports of any commodity on the Japanese export control list. No
exports to North Korea have been permitted since the outbreak of the Korean
War. Exports to Communist China are limited to nonstrategic items. Exports
of strategic items to any other Communist bloc country are strictly controlled.
End-use checks are made also on suspicious exports of strategic items, and
the import certificate-delivery verification procedure has been utilized since
April 1, 1953.
Transit Controls
Intransit cargo is offloaded under customs supervision and is normally kept
in a bonded warehouse or other area under the complete control of customs
officials.
Japan applies transit authorization certificate procedures to certain offloaded
intransit cargo destined for the Soviet bloc exported from any country cooper-
ating in the TAC scheme, or which was exported from any country if the principal
in the transaction is a resident of a COCOM country.
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Financial Controls
For balance-of-payments reasons, Japan closely controls its receipts and ex-
penditures of foreign exchange. These controls are not related to security meas-
ures except indirectly in connection with trade with Communist China and the
Soviet Union. Trade with these areas is largely confined to barter transactions.
Shipping and Bunkering Controls
Japanese shipowners have been notified that Japanese vessels are not author-
ized to carry strategic goods to Communist China from Japan or from any other
country unless shipment has been licensed by a COCOM country.
Administrative measures also have been adopted to prevent foreigners from
chartering or using Japanese vessels to carry contraband goods to Communist
China or North Korea. The Ministry of Transportation has announced that
applications for approval of a bareboat or time charter of a Japanese vessel to a
foreigner must show that the charterer has guaranteed that during the period
of the charter the vessel will not enter any port in Communist China or North
Korea with strategic goods on board the vessel unless the shipment has been
licensed by a COCOM country.
The Ministry of International Trade and Industry furthermore has instructed
Japanese oil companies not to furnish fuel bunkers to any vessel carrying strategic
goods to Communist China or North Korea unless the shipment has been licensed
by a COCOM country.
License Requirements
All exports fromthe Netherlands are subject to export controls.
However, general licenses are granted for transactions involving most industrial
products and for transactions of less than $250 (U. S.) involving items appearing
on the international control lists, provided these transactions are with either
OEEC or dollar area countries. Under those general licenses, an exporter com-
pletes and submits a declaration to the customs, which can then approve the
transaction without prior reference to the licensing authorities.
Individual licenses are required for all other export transactions. Export
licenses for industrial products are issued by the "Contralti Dienst voor Inen
Vitvoer" (Central Import and Export Office) in The Hague. With respect to
the approval of applications for export licenses in cases involving strategic goods,
the IC/DV system is applied extensively. In cases involving the export of strategic
goods to countries not participating in the IC/DV system, the final destination is
often chocked before the export license is granted. Furthermore, the exporter is,
in most cases, afterwards obliged to prove that the goods exported by him have
been imported into the country mentioned in the export license as the country of
final destination. Finally, when a shipment leaves the country, the customs
authorities have the right to satisfy themselves that the goods to be exported are
identical with the description given in the export license, and that the direction
in which the shipment is being sent is not incompatible with the final destination
mentioned in the license.
Financial Controls
All financial transactions by Netherlands residents involving payments to or
received from a party abroad are subject to foreign exchange licenses. Through
the means of these licenses, it is possible to control triangular transactions in
which a Netherlands resident is involved as a middle man. Within the framework
of these controls, the IC/DV system is also applied.
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Shipping Controls
Voyage controls have been instituted which are aimed at preventing the carriage
of certain strategic commodities by Netherlands ships to the People's Republic of
China, North Korea, and North Vietnam except pursuant to special permission.
Transit Controls
Pursuant to royal decree regarding the transit control of strategic coininoditie ,
strategic goods sent from specifically mentioned countries or shipped on the
behalf of resident of some of these countries, which after unloading pass in transit
through the Netherlands, are subject to control over their destination.
License Requirements
All commodities to be exported to any destination require export licenses. The
licensing authorities using existing powers can prevent the export of any item for
security reasons.
Norway applies import certificate-delivery verification procedures.
Transit Controls
Goods which are to pass through the territory of Norway may be reexported
without license only if it is clearly stated by their conveying documents that the
goods are going straight to the foreign destination. If the reexport does not take
place within 90 days, a Norwegian export license must be secured. The destina-
tion listed on the original documents must remain the same, and the goods may
not be transformed in any way during their stay in the country. The customs
authority applies a control to that effect. An export license is required for all
commodities in transit to a Soviet bloc country even though the reexport takes
place within 90 days. There are no free port areas in Norway.
Financial Controls
Strict exchange controls are maintained by the government through the Bank
of Norway. The granting of an export license carries with it the obligation on
the part of the exporter to relinquish the foreign exchange to the Bank of Norway
as soon as received from the foreign buyer; a maximum of 60 days is allowed
between export and remittance, although under certain circumstances the gov-
ernment may grant the exporter an extension of time. Transfers of capital from
Norway require the prior approval of the Bank of Norway.
Shipping Controls
The Norwegian Foreign Office announced publicly in April, 1953, that the
Norwegian war risk insurance group had refused to insure Norwegian vessels
delivering strategic articles to Communist Chinese and North Korean ports.
The Foreign Office also announced that Norwegian ships had not violated the
United Nations Resolution of May 18, 1951, prohibiting the shipment of strategic
material to Communist China and North Korea. Several allegations that they
had done so had been investigated and found to be unjustified.
License Requirements
Exports to all foreign destinations are subject to individual export licensing.
Exports to the Portuguese overseas provinces are free of licensing except in the
case of a few items. Licenses for strategic materials are granted only after assur-
ance has been obtained as to the effective destination of the merchandise. Licenses
are not approved for exports of strategic materials to the Soviet bloc.
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Import and export licensing activities are exercised by the Division of Foreign
Trade of the Ministry of Economy and by delegated other agencies. The finan-
cial aspects of trade control are coordinated with the Ministry of Finance through
the Bank of Portugal. In recent years, Portuguese exports to the Soviet bloc as a
whole, consisting almost entirely of cork and its products, have substantially
exceeded imports, resulting in a net exchange balapceto Portugal.
The Portuguese overseas provinces exercise varying degrees of trade and ex-
change control.
Transit Controls
Portuguese controls over goods in transit have been under study for some time
and are expected to be amended to establish additional safeguards against unde-
sirable diversions of strategic commodities.
Shipping Controls
Portugal does not exercise voyage licensing, but Portuguese vessels plying
between Europe and Macao have been instructed not to accept cargo for Macao
unless it is covered by a Macao import certificate. There have been no Portu-
guese flag shipping services to Soviet bloc ports in recent years.
License Requirements
Export licenses are required for most of the important export commodities,
including all goods considered to be of a strategic nature. The goods which
are subject to export licenses appear on List II attached to the Turkish foreign
trade regulations issued in September, 1953. For the goods appearing on that
list, export licenses are required for shipments to all destinations; the licenses
are issued by the Ministry of Economy and Commerce, with the exception of
some agricultural commodities for which authority to grant export licenses has
been delegated to other organizations. Goods not appearing on List II may
be exported upon the presentation of a customs exit declaration which is based
on the exporter's application. All exports are subject to strict foreign exchange
regulations.
Turkey applies import certificate-delivery verification procedures with respect
to the shipment of strategic commodities.
Transit Controls
Goods which are to pass through the 'territory of Turkey may be reexported
without license only if all shipping documents (including bill of lading and
ship's manifest) and outer containers carry the name of the Turkish port of
transit, the phrase "in transit to" and the name of the city and country of
destination. Goods entered in transit may be reexported without further con-
trol; however, the government reserves the right to inspect transit shipments
in cases of suspicion of irregularity. The reexport of goods covered by "in
transit" bills of lading, without an export license, is contingent on proof that
the goods were not purchased with foreign exchange made available by Turkish
authorities.
The reexportation of all foreign goods cleared through Turkish customs is
subject to the authorization of the Ministry of Economy and Commerce.
The Turkish Government is authorized by law to establish free zones in Turkish
ports, but thus far no such free zone has been established.
Turkey has established transit authorization certificate procedures.
Financial Controls
Strict exchange controls are maintained by the government through the Min-
istry of Finance and the Central Bank. Turkish exporters are required to sell
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to a bank in Turkey the foreign exchange proceeds of exports within 3 months
from the date of exportation and within 15 days of the date of receipt of the
foreign exchange by the exporters. Foreign exchange may be sold to persons
and firms in Turkey only by banks, against permits issued by the Ministry of
Finance. All payments in foreign exchange, from funds available abroad to
persons and firms in Turkey, are subject to the authorization of the Ministry of
Finance. Other capital transactions involving foreign exchange, by persons and
firms in Turkey, are also subject to the authorization of the Ministry of Finance.
License Requirements
The export control system in the United Kingdom is similar to but not identical
with that of the United States. It is administered by the Board of Trade. Al-
though the present system grew out of measures originally promulgated at the
start of World War II, its primary purpose now is the safeguarding of the country's
requirements of strategic and short-supply goods, and the restriction of the flow
of such items to undesirable destinations. The United Kingdom security trade
control program was instituted in 1947.
The United Kingdom export control mechanism operates in the following
manner:
Export control orders which detail the items subject to control are published
documents, and revisions are issued in the Board of Trade Journal (an official
weekly). The current orders provide that (1) all goods are controlled to China,
Macao, North Vietnam, Tibet, and North Korea, (2) certain specified goods are
controlled to all destinations, and (3) certain other specified goods are controlled
to all destinations other than the British Commonwealth, the Irish Republic, and
the United States of America.
The extent of the restriction on individual items is reflected in the admin-
istration of the control. Strict control is maintained over items which are pro-
hibited exportation to certain areas, as, for instance, aircraft, firearms, am-
munition, atomic materials. The exportation of a wide range of goods of stra-
tegic importance, including rubber, to Communist China is prohibited, as is
the exportation to the Soviet bloc in Europe of a somewhat narrower range of
commodities. The export to the Soviet bloc of many other items is subject to
limitations as to quantities permitted to be shipped. In addition, there is the
great bulk of items on which control is achieved through case-by-case scrutiny
of individual license applications.
The United Kingdom has effectively implemented import certificate-delivery
verification procedures.
Transit Controls
The United Kingdom has had in effect since November, 1951, a system whereby
certain items arriving from other countries are subject to transshipment con-
trol. Individual licenses are required for all of the items on the licensing list
before any of the goods, after being landed in the United Kingdom, can be
transshipped to any destination other than the British Commonwealth, Ireland,
and the United States. The present control is operated over all goods embargoed
to the Soviet bloc. In administering the control, the British authorities nor-
mally grant licenses when they are satisfied that the goods will not be diverted
to the Soviet bloc, China, etc., contrary to the wishes of the exporting country.
The United Kingdom also cooperates fully in the implementation of the TAC
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Transaction Controls
As one of the reinforcement measures to strengthen security controls agreed
when the Soviet bloc embargo list was reviewed in 1954, the United Kingdom
introduced a control on merchanting transactions operative from January 7,
1955. This control prohibits the disposal by persons in, or ordinarily resident
in, the United Kingdom of specified strategic goods which are situated outside
the. United Kingdom to any authority of, or person in, the Soviet bloc, China,
Tibet, North Vietnam, or North Korea, or to any other person if the person dis-
posing of the goods has reasonable cause to believe that the goods will be imported
directly or indirectly into the Soviet bloc, China, Tibet, North Vietnam, or
North Korea. The goods covered by the control are those which are subject to
embargo for Soviet bloc countries.
Shipping Controls
In order to restrict further the flow of strategic goods to China and as an
additional measure of control, a statutory order (titled the Control of Trade
by Sea (China and North Korea) Order, 1953) was made on March 13, 1953,
pursuant to which the Ministry of Transport and Civil Aviation is empowered
to control all shipping to China and North Korea. In essence, the order applies
to all British ships having a gross tonnage of 500 tons, limits the type of trade
in which the ships may engage and the voyages which may be undertaken, affects
the class of cargo or passengers which may be carried, and imposes certain con-
ditions on the hiring of ships. Approximately 100 items are listed in a
schedule which is an integral part of the license issued under the order in question.
These items are banned from carriage to China in British-flag vessels.
While formal shipping controls were not adopted until March 17, 1953, British
shipping circles were kept under fairly close scrutiny by the government ever
since the adoption on May 18, 1951, by the Additional Measures Committee of
the United Nations, of the resolution to apply economic sanctions against China
as a result of her aggressive intervention in Korea.
Complementary controls over the bunkering of vessels carrying strategic cargo
(as defined in the Shipping Control Order) to China were adopted at the same
time that the order affecting shipping became operative. These controls are
administered by the Ministry of Fuel and Power on an informal basis, in co-
operation with British oil companies which deny bunkers to ships carrying
strategic cargo to China.
Export Controls in General
The Department of Commerce is responsible for controls over nearly all coin-
mercial exportations from the United States under the Export Control Act of
1949, as amended.
The Department of State is responsible for control over the exportation of
arms, ammunition, and implements of war; the Atomic Energy Commission ad-
ministers controls over the export of major atomic energy items; and the Depart-
ment of Treasury administers controls over the exportation of gold and narcotics.
Administration of Export Controls by Commerce Department
The export control regulations administered by the Department of Commerce
are contained in the Comprehensive Export Schedule published annually by the
Bureau of Foreign Commerce (BFC) of the Department of Commerce. Changes
in these regulations are published once or twice a month in Current Export
Bulletins by BFC. These publications must be consulted to determine the ap-
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plicable requirements for an exportation of any given commodity to a specific
destination.
In accordance with the export control regulations, all commercial exports from
the United States, except to Canada, are controlled by the Department of Com-
merce either through the issuance of a validated export license or the establish-
ment of a general license permitting such shipments.
A validated export license is a formal document issued to an exporter by the
Department of Commerce which authorizes exportation within specific limitations.
Validated licenses are required for shipments of commodities identified in the
Positive List of Controlled Commodities to virtually all destinations. This list
is maintained on a current basis in the Comprehensive Export Schedule.
A general license is a broad authorization issued by the Department of Com-
merce which permits exportation under certain circumstances without the require-
ment of a formal export control document. The authority to export and the
conditions under which each general license may be used are specified in the
Comprehensive Export Schedule.
In addition to the validated license requirements for commodities on the
Positive List, a validated export license is required for the shipment of any
commodity to the following destinations:
(1) Communist China, North Korea, Communist-controlled areas of
Vietnam and of Laos, and the maritime provinces of the U. S. S. R.;
(2) Macao;
(3) Hong Kong, except certain specified commodities which may be
shipped under General License GHK; and
(4) The European Soviet bloc, with the exception of certain specified
commodities which, since April 26, 1956, may be shipped to these areas under
General License GLSA.
Export controls as administered by the Department of Commerce are, in
accordance with the Export Control Act of 1949, as amended, maintained (a)
for short supply or (b) for security reasons. Both export control policies reflect
appropriately established United States foreign policy and international respon-
sibilities. Major policy changes and activities of the Department of Commerce
in carrying out its export control activities are reported in Quarterly Reports
under the Export Control Act made by the Secretary of Commerce to the Presi-
dent and the Congress.
The objective of security controls is to exercise the necessary vigilance over
exports from the standpoint of their significance to the national security. The
controls were designed to deny or restrict the exportation of strategic commodities
to the Soviet bloc in order to impede the buildup and maintenance of the Soviet
war potential. Shipments of all commodities to Communist China and North
Korea are embargoed while shipments to other Soviet bloc destinations are either
denied or restricted. In addition, all proposed shipments of strategic commodities
to all destinations, except Canada, are carefully scrutinized to assure that the
goods will not be transshipped or diverted to unfriendly hands. The Commerce
Department has developed procedures to prevent the frustration of our own
export controls which would result from shipping a strategic item to a country
which (1) ships identical or closely similar items to the Soviet bloc, or (2) would use
the American item directly in the manufacture of strategic items for the Soviet
bloc.
In order to prevent the transshipment abroad of United States commodities,
the Department of Commerce also has regulations covering the unauthorized
movement of United States commodities after they leave United States shores.
These regulations, generally referred to as the "destination control" provisions, are
designed to prohibit the reexportation from the country of ultimate destination
except upon written authorization from BFC. These regulations also restrict
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ships, planes or other carriers from delivering United States origin goods to other
than the destination specified on the export control documents. In addition,
the United States participates in the international IC/DV (import certificate/
delivery verification) system.
In addition to United States export controls for security reasons, it is necessary
to administer export controls for short supply reasons in order to protect the
domestic economy from the excessive drain of scarce materials and to reduce the
inflationary impact of abnormal demand. Such controls are usually exercised
by means of export programs or quotas fixed by the Secretary of Commerce.
The easing of supply programs has led to the lifting of nearly all domestic controls
over materials; such actions havegenerally been followed by the relaxation of related
export controls for short supply reasons. Thus, export controls for short supply
reasons do not play as important a part as before in comparison with security
controls.
Transit Controls
A validated export license is required for the exportation from any seaport,
land frontier, airport, or foreign trade zone in the United States of certain stra-
tegic goods in transit through the United States which originate in and are destined
to a foreign country. The commodities so controlled are the ones which are
identified on the United States Department of Commerce Positive List by the
letter "C". In addition, any commodities in transit through the United States
for Soviet bloc destinations require a validated export license. These procedures
are used to implement United States participation in the TAC scheme.
Shipping Controls
Department of Commerce Transportation Order T-1 denies any United States-
registered. vessel or aircraft authority to carry items listed on the Positive List,
or arms, ammunition, and implements of war, or fissionable material, to any
Soviet bloc destination, Hong Kong, or Macao without a valida~ed license issued
by BFC or other appropriate licensing agencies or the express permission of the
Under Secretary of Commerce for Transportation. This order includes ship-
ments from foreign ports as well as from the United States.
Department of Commerce Transportation Order T-2 prohibits the transporta-
tion of any commodities directly or indirectly to Communist China, North Korea
or areas under their control, by United States-registered vessels or aircraft.. It
also prohibits American ships and aircraft from calling at any port or place in
Communist China.
A validated license is required for delivery in United States ports of specified
types of petroleum and petroleum products to foreign vessels, if the foreign car-
rier has called at any point under Far Eastern Communist control or at Macao
during the 180 days preceding the date on which such commodities are to be laden
aboard the vessel, or will carry commodities of any origin from the United States
destined directly or indirectly for any such point within a period of 120 days in
the case of a vessel, or 30 days in the case of any aircraft. This regulation also
requires that if a carrier is registered in or under charter to a Soviet bloc country
or is under charter to a national of a Soviet bloc country it will be necessary to
apply to BFC for a validated license.
American petroleum companies at certain foreign ports are prohibited without
a Treasury Department authorization from bunkering any vessel bound for a
Communist Far East port or Macao or which is carrying goods destined for Coin-
munist China or North Korea. Similar restrictions apply to the bunkering of
these companies of vessels returning from Communist Far East ports or Macao.
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Financial and Transaction Controls
The Foreign Assets Control Regulations, administered by the Treasury Depart-
ment, block the assets here of Communist China, North Korea and their national
and prohibit unlicensed dealings involving property in which Communist China,
or North Korea, or their nationals, have any interest. The regulations prevent
the use of United States financial facilities by those countries and their nationals.
These regulations also prohibit the unlicensed importation of goods of Chinese
Communist or North Korean origin.
Treasury regulations also prohibit Americans, including foreign subsidiaries of
United States firms, from participating in the purchase or sale of certain important
commodities for ultimate shipment from any country outside the United States
to the countries of the Soviet bloc. Attempts to do the prohibited acts are also
covered. These transactions controls, which are complementary to the United
States export control laws, are administered by the Treasury Department under
Foreign Assets Control Regulations.
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APPENDIX C
Presidential Determinations Made During 1955
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APPENDIX C
Presidential Determinations
Made During 1955
On April 1, 1955, the following letter was sent to the six Congres-
sional Committees named in the Battle Act. At the same time,
public notification of this determination was made through press
release 344.
WASHINGTON 25, D. C., April 1, 1955.
DEAR MR. CHAIRMAN: The President on March 31, 1955, determined, pur-
suant to Section 103(b) of the Mutual Defense, Assistance Control Act of 1951
that United States aid be continued to France, Italy, The Netherlands, and the
United Kingdom because the cessation of such aid would be clearly detrimental
to the security interests of the United States. The President, in his letter to
me directing that aid be continued, has also directed that, in compliance with the
reporting requirement of Section 103(b) of the Mutual Defense Assistance Control
Act of 1951, I inform you of his determination, to which purpose this letter, with
attachments, is sent.
Sincerely yours,-
HAROLD E. STASSEN,
Director of Foreign Operations.
The following letter dated March 29, 1955, which recommended to
the President the continuance of aid to France, Italy, The Netherlands,
and the United Kingdom, was attached to the above transmittal.
FOREIGN OPERATIONS ADMINISTRATION
OFFICE OF THE DIRECTOR
WASHINGTON 25, D. C., March 29, 1955.
THE PRESIDENT OF THE UNITED STATES.
DEAR MR. PRESIDENT: It is my duty to report herewith certain additional
shipments of strategic materials to the Soviet bloc from countries receiving
United States assistance, and to recommend that you continue this assistance to
the countries involved since in each case the cessation of aid would clearly be
detrimental to the security of the United States.
The countries involved are France, Italy, The Netherlands, and the United
Kingdom. On the advice of Vice Admiral Walter S. DeLany, my Deputy
Director for Mutual Defense Assistance Control; concurred in by the Departments
of State, Defense, Commerce, and Treasury; I recommend that you make a
Determination to continue aid to these countries pursuant to Section 103 (b) of
the Mutual Defense Assistance Control Act of 1951 (Battle Act).
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Section 103 (b) forbids all military, economic, and financial assistance to a
country that knowingly permits the shipment of items listed for embargo under
the Act, except that the President "may direct the continuance of such assistance
to a country which permits shipments of items other than arms, ammunition,
implements of war, and atomic energy materials when unusual circumstances
indicate that the cessation of aid would clearly be detrimental to the security of
the United States."
All of the shipments reported in this letter were "prior commitments"-made
prior to January 25, 1952, the effective date of the Battle Act embargo provisions.
The prior-commitment problem has been fully discussed in communications to the
Congress on a number of occasions. Most of the original prior commitments have
been removed from the books, either by deliveries or by cancellation of certain
shipments. The remaining amount is still scheduled for shipment. Although
the Battle Act list revisions of August 25, 1954, haveresulted in the removal of
some of these items from the control lists, the addition of new items to the lists
may also result in the creation of new "prior commitments" with respect to certain
previously uncontrolled items.
As a result of the recent reappraisal of commodities within the U. S. Govern-
ment and by the 15 governments, including the U. S., which cooperate in security
trade controls, some of the items in this letter have been determined no longer to
require embargo treatment, but since they were still on the Battle Act embargo
list at the time of the shipments, they must be dealt with here along with items
whose embargo status was unaffected by the August 25 revisions.
My recommendation that aid be continued in the present cases does not grow
out of the recent revisions of the security trade control program. The circum-
stances of these cases are very similar to previous cases wherein a determination that
aid be continued was made. All of the shipments reported herein went to Poland,
Czechoslovakia, Hungary, and Bulgaria. None of them was arms, ammunition,
implements of war, or atomic energy materials. Following is a summary of the
shipments which were permitted and which have not been covered by any pre-
vious Presidential Determination with respect to these four countries.
The following Battle Act embargo items have been shipped from France to
Poland: boring, drilling, and milling machines valued at $494,878; stainless steel
tanks valued at $91,786; and $254 worth of nickel products. All of these ship-
ments were part of the French backlog of prior commitments.
Prior-commitment items worth $43,419 have been shipped from Italy as follows:
To Poland: $26,649 worth of rolling mill parts.
To Czechoslovakia: $16,770 worth of bearings of types and sizes listed as
embargo items under the Battle Act.
Molybdenum wire, tungsten wire and tungsten wire filaments, of a total value
of $81,981, have been shipped from The Netherlands to Poland.
These shipments were made under a 1947 agreement between a Dutch firm
and the Polish Government, with the approval of TheNetherlands Government,
providing for the Dutch firm to deliver certain electrical products intended-to
be used as component parts for light bulbs and radio tubes.
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THE UNITED KINGDOM
Additional United Kingdom prior-commitment items valued at $1,686,247
have been shipped to Poland, Czechoslovakia, Hungary, and Bulgaria as follows:
To Poland: $654,438 worth of metal-working machinery and electrical and
electronic equipment; $1,008,873 worth of locomotive equipment and spare
parts; and 59 gallons of lubricating oils valued at $41.
To Czechoslovakia: $16,407 worth of radio relay equipment, electronic valves
and wire.
To Hungary: $5,334 worth of locomotive equipment and spare parts.
To Bulgaria: $1,154 worth of locomotive equipment and spare parts.
The above-mentioned locomotive equipment and spare parts shipments were
made during a period of thirteen months. This equipment, though previously
included on the Battle Act Title I List, Category B, is now covered by the Title
II List.
These countries have for almost five years cooperated closely in controlling
strategic shipments to the Soviet bloc. The fact that each country makes an
important contribution to the North Atlantic Treaty Organization and the fact
that U. S. aid to these countries is largely military aid, enabling these countries
to meet their NATO obligations and enhancing the security of the free world,
including the U. S., leads to the conclusion that the U. S., in its own security
interest, should not terminate aid.
Respectfully yours,
HAROLD E. STASSEN,
Director of Foreign Operations.
On June 30, 1955, the following letter was sent to the six Congres-
sional Committees named in the Battle Act. At the same time,
public notification of this determination was made through press
release 397.
FOREIGN OPERATIONS ADMINISTRATION
OFFICE OF THE DIRECTOR
WASHINGTON 25, D. C., June 30, 1955.
DEAR MR. CHAIRMAN: The President on June 28, 1955, determined, pursuant
to Section 103 (b) of the Mutual Defense Assistance Control Act of 1951 that
United States aid be continued to France, Italy, the Federal Republic of Germany,
and the United Kingdom because the cessation of such aid would be' clearly
detrimental to the security interests of the United States. The President, in his
letter to me directing that aid be continued, has also directed that, in compliance
with the reporting requirement of Section 103 (b) of the Mutual Defense Assistance
Control Act of 1951, I inform you of his determination, to which purpose this
letter, with attachments, is sent.
Sincerely yours,
HAROLD E. STASSEN,
Director of Foreign Operations.
The following letter, dated June 28, 1955, which recommended to
the President the continuance of aid to France, Italy, the Federal
Republic of Germany, and the United Kingdom, was attached to the
above transmittal.
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FOREIGN OPERATIONS ADMINISTRATION
OFFICE OF THE DIRECTOR
WASHINGTON 25, D. C., June 28, 1955.
THE PRESIDENT OF TILE UNITED STATES.
DEAR MR. PRESIDENT: It is my duty to report herewith certain additional
shipments of strategic materials to the Soviet bloc from countries receiving
United States assistance, and to recommend that you continue this assistance to
the countries involved since in each case the cessation of aid would clearly be
detrimental to the security of the United States.
The countries involved are France, Italy, the Federal Republic of Germany, and
the United Kingdom. On the advice of Vice Admiral Walter S. DeLany, my
Deputy Director for Mutual Defense Assistance Control, concurred in by the
Depaitments of State, Defense, Commerce, and Treasury, I recommend that you
make a Determination to continue aid to these countries pursuant to Section
103 (b) of the Mutual Defense Assistance Control Act of 1951 (Battle Act).
Section 103 (b) forbids all military, economic, and financial assistance to a
country that knowingly permits the shipment of items listed for embargo under
the Act, except that the President "may direct the continuance of such assistance
to a country which permits shipments of items other than arms, ammunition,
implements of war, and atomic energy materials when unusual circumstances
indicate that the cessation of aid would clearly be detrimental to the security
of the United States."
With the exception of a small quantity of items to service certain non-strategic
equipment previously shipped to a bloc country, all of the shipments reported
in this letter were "prior commitments"-made prior to either January 25, 1952,
the effective date of the Battle Act embargo provisions or August 25, 1954, the
date of revision of the lists. The prior commitment problem has been fully
discussed in communications to the Congress on a number of occasions. Most
of the original prior commitments have been removed from the books, either by
deliveries or by cancellation of certain shipments. The remaining amount is
still scheduled for shipment. The August list revision resulted in the removal
from the control lists of some of these items which fall outside of certain speci-
fications. The addition of new items to the lists have resulted in the creation of
new "prior commitments" with respect to certain previously uncontrolled items.
My recommendation that aid be continued in the present cases does not grow
out of the recent revisions of the security trade control program. The circum-
stances of these cases are very similar to previous cases wherein a determination
that aid be continued was made. None of the cases involved shipments of arms,
ammunition, implements of war, or atomic energy materials. Following is a
summary of the shipments which were permitted and which have not been
covered by any previous Presidential Determination with respect to these four
countries:
Prior-commitment items worth $180,087 have been shipped by France as
follows:
To Poland: $179,680 worth of boring machines, gas liquifying and petroleum
equipment, automotive parts, and tires.
To Czechoslovakia: $407 worth of tires.
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FEDERAL REPUBLIC OF GERMANY
The Federal Republic shipped to Poland as a prior commitment, one measuring
instrument valued at $400.
Prior commitment items worth $298,325 were shipped by the United Kingdom
as follows:
To Poland: $227,556 worth of mercury and vacuum pump equipment.
To Hungary: $66,759 worth of magnets.
To the USSR: $4,010 worth of scientific equipment.
In addition to the prior commitments reported above, the United Kingdom
shipped $443 worth of bearings, lubricants and valves to Communist China for
the servicing of non-embargo equipment previously supplied. These shipments
were made by the United Kingdom-after prior consultation in CHINCOM, the
international committee for the control of strategic trade with Communist China,
in which the U. S. participates.
These countries have for over five years cooperated closely in controlling strate-
gic shipments to the Soviet bloc. The fact that each country makes an important
contribution to the North Atlantic Treaty Organization and the fact that U. S.
aid to these countries is largely military aid, enabling these countries to meet
their NATO obligations and enhancing the security of the free world, including
the U. S., leads to the conclusion that the U. S., in its own security interest, should
not terminate aid.
RESPECTFULLY YOURS,
HAROLD E. STASSEN,
Director of Foreign Operations.
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APPENDIX D
Trade and/or Payments Agreements in Effect Between
the Sino-Soviet Bloc and the Free World During 1955
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APPENDIX D
Trade and /or Payments Agreements in
Effect Between the Sino-Soviet Bloc and
the Free World During 1955
I. USSR
Austria_________________
October 17, 1955-October 16, 1960
Belgium________________
February 18, 1948-Indefinite
Denmark_______________
July 1, 1946-June 30, 1948 (Annual
renewal)
Finland----------------
January 1, 1955-December 31, 1955
France -----------------
1.
July 1, 1954-December 31, 1955
2.
(September 1955) Supplement
Greece_________________
July 28, 1955-December 31, 1956
Iceland_________________
July 1, 1954-December 31, 1955
Italy-------------------
January 1, 1955-December 31, 1955
Netherlands____________
July 2, 1948--Indefinite
Norway----------------
January 1, 1955-December 31, 1955
Sweden_________________
January 1, 1955-December 31, 1955
Switzerland-------------
April 1, 1948-Indefinite
Yugoslavia -------------
1.
January 1, 1955-December 31,
2.
(July 30, 1955) Supplement
3.
(October 1955) Supplement
Argentina______________
January 1, 1955-December 31,
Uruguay---------------
*
July 28, 1954-July 27, 1956
Afghanistan_____________
July 1, 1955-June 30, 1956
Burma-----------------
July 1, 1955-June 30, 1958
Egypt------------------
March 27, 1955-March 26, 1956
India------------------
January 1, 1955-December 31, 1955
Iran-------------------
April 1, 1955-March 31, 1956
Israel__________________
February 18, 1954-Indefinite (Pay-
ments)
Lebanon________________
II. ALBANIA
September 11, 1955-September 10, 1956
Italy -------------------
October 1, 1955-September 30, 1956
Yugoslavia_____________
May 17, 1955-December 31, 1955
III. BULGARIA
Austria -----------------
November 1, 1955-October 31, 1956
Belgium________________
(April 21, 1947)-April 20, 1948 (Annual
tacit renewal)
Data underlined indicate first postwar agreement.
Data in parentheses indicate date of signature.
Data not in parentheses indicate period during which agreement is in force.
Data preceded by (?) indicate that agreement is not government-to-government.
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III. BULGARIA-Continued .
Denmark ---------------
January 28, 1948-January 27, 1949
Finland________________
(Annual tacit renewal)
January 1, 1955-December 31, 1955
France_________________
July 28, 1955-July 27, 1956
W. Germany____________
April 1, 1955-March 31, 1956
Greece_________________
January 1, 1954-December 31, 1954
Italy-------------------
(Annual tacit renewal)
January 1, 1955-December 31, 1955
Netherlands-___________
June 15, 1947-May 31, 1948 (Annual
Norway----------------
tacit renewal)
(December 2, 1955)-May 31, 1957
Sweden_________________
April 1, 1955-March 31, 1956
Switzerland-------------
January 1, 1955-December 31, 1955
Turkey -----------------
March 10, 1955-March 10, 1956
United Kingdom --------
(September 23, 1955)-December 31, 1957
Yugoslavia -------------
April 1, 1955-March 31, 1956
Egypt------------------
April 6, 1950-April 6, 1951 (Annual tacit
India------------------
renewal)
January 1, 1955-December 31, 1955
Indonesia_______________
(December 14, 1954)-one year
Israel__________________
December 20, 1954-December 31, 1955
CZECHOSLOVAKIA
Austria_________________
January 1, 1955-December 31, 1955
Belgium________________
April 1, 1955-March 31, 1956
Denmark_______________
June 1, 1955-May 31, 1956
Finland______________
January 1, 1955-December 31, 1955
France_________________
July 1, 1955-June 30, 1956
W. Germany____________
January 1, 1955-December 31, 1955
Greece_________________
January 1, 1955-December 31, 1955
Iceland_________________
September 1, 1955-August 31, 1956
Italy-------------------
July 2, 1947-December 31, 1947 (Annual
Netherlands____________
tacit renewal)
February 1, 1955-January 31, 1956
Norway----------------
January 1, 1955-December 31, 1955
Sweden_________________
August 1, 1955-October 31, 1956
Switzerland-------------
April 21, 1955-December 31, 1956
Turkey-----------------
July 1, 1949-June 30, 1950 (Annual tacit
Yugoslavia_____________
renewal)
August 19, 1949-August 18, 1953; ex-
tended to August 18, 1956 (Payments)
January 1, 1955-December 31, 1955
Argentina______________
February 11, 1955-February 10, 1956
Brazil__________________
May 17, 1955-May 16, 1956
Mexico_________________
November 9, 1949-December 31, 1954;
Paraguay---------------
extended to December 31, 1955 (Annual
tacit renewal)
*November 15, 1953-November 14, 1954
Uruguay---------------
(Annual tacit renewal)
(September 12, 1955)-three years
Afghanistan-------------
(August 22, 1954)-one year
Burma_________________ 1. February 14, 1955-January 31, 1958
2. (May 26, 1955) Supplement
Ceylon----------------- (December 16, 1955)-one year (Trade)
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IV, CZECHOSLOVAKIA-Continued
Egypt ------------------
India------------------
Indonesia_______________
Iran-------------------
Lebanon________________
Sudan------------------
Syria-------------------
V. EAST GERMANY
Austria -----------------
Belgium________________
Finland__________
France_________________
W. Germany --__________
Greece_________________
Iceland_________________
Italy-------------------
Netherlands____________
Norway----------------
Sweden_________________
Turkey-----------------
Yugoslavia_____________
Argentina--------------
Colombia_______________
Uruguay----------------
Burma-----------------
Egypt------------------
India------------------
Indonesia_______________
Lebanon----------------
Sudan ------------------
VT. HUNGARY
Austria_________________
Belgium________________
Denmark---------------
Finland ---------------- 1.
2.
France_________________
Greece_________________
Iceland_________________
Italy-------------------
Netherlands____________
Norway----------------
Sweden_________________
Switzerland_____________
Turkey------------- ---
July 19, 1955-July 31, 1956 ?
January 1, 1955-December 31, 1955
July 15, 1955-July 14, 1956
1955
November 20, 1954-November 19, 1955
May 20, 1955-Indefinite (Payments)
March 27, 1953-March 26, 1954 (Annual
tacit renewal)
*January 1, 1955-December 31, 1955
*February 1, 1955-January 31, 1956
January 1, 1955-December 31, 1955
*March 1, 1955-February 29, 1956
*January 1, 1955-December 31, 1955
*January 1, 1955-December 31, 1955
*(September 8, 1954)-December 31, 1955
*January 1, 1955-December 31, 1955
*July 1, 1954-June 30, 1955; extended to
December 31, 1955
*January 1, 1955-December 31, 1955
*January 1, 1955-December 31, 1955
*May 1, 1955-June 30, 1956
(August 25, 1954)-June 30, 1955
*January 1, 1955-December 31, 1955
*February 14, 1955-March 31, 1956
*June 29, 1954-June 28, 1955
February 27, 1955-January 31, 1958
November 10, 1955-December 31, 1956
October 16, 1954-October 15, 1955
*June 9, 1954-December 31, 1955
(November 12, 1955)-Five years
June 10, 1955-December 31, 1956 (Pay-
ments)
September 1, 1955-August 31, 1956
February 1, 1955-January 31, 1956
March 1, 1955-February 29, 1956
January 1, 1955-December 31, 1955
(July 18, 1955) Supplemen
June 1, 1954-May 31, 1955; extended to
December 31, 1955
July 1, 1955-June 30, 1956 (Trade)
January 1, 1954-December 31, 1954;
extended to January 31, 1956 (Payments)
June 5, 1954-June 4, 1955
January 1, 1955-December 31, 1955
January 1, 1955-December 31, 1955
January 1, 1955-December 31, 1955
February 1, 1955-April 30, 1956
October 1, 1955-September 30, 1956
October 1, 1955-September 30, 1956
June 1, 1949-May 31, 1950 (Annual tacit
renewal)
September 1, 1954-August 31, 1955
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VI. HUNGARY-Continued
? Yugoslavia -------------
Argentina --------------
Brazil------------------
Paraguay_______________
January 1, 1955-December 31, 1955
September 8, 1953-September 7, 1956
April 26, 1954-April 25, 1955
November 1, 1953-October 31, 1954
(Annual tacit renewal)
Burma ----------------- ? February 21, 1955-February 20, 1956
India ------------------ 1. June 17, 1954-December 31, 1955
2. March 10, 1955-December 31, 1955 (Sup-
plement)
Indonesia_______________ July 1, 1955-June 30, 1956
Iran___________________ (June 4, 1955)-One year
Israel__________________ February 26, 1955-February 25, 1956
Sudan__________________ May 20, 1955-May 19, 1956 (Payments)
VII. POLAND
Austria_________________
Belgium________________
Denmark_______________
Finland----------------
France ----------------- 1.
2.
W. Germany____________
Greece_________________
Iceland_________________
Italy-------------------
Netherlands____________
Norway----------------
Sweden_________________
Switzerland_____________
United Kingdom --------
Yugoslavia -------------
Argentina______________
Brazil__________________
Paraguay_______________
Uruguay---------------
Burma-----------------
Egypt------------------
India------------------
Indonesia_______________
Israel------------------
Sudan ------------------
VIII. RUMANIA
Austria_________________
Belgium________________
Denmark_______________
Finland________________
France_________________
April 1, 1955-March 31, 1956
January 1, 1955-December 31, 1955
January 1, 1955-December 31, 1955
January 1, 1955-December 31, 1955
December 1, 1954-November 30, 1955
(Trade)
January 1, 1955-Indefinite (Payments)
January 1, 1955-June 30, 1956
January 1, 1955-December 31, 1955
January 1, 1955-December 31, 1955
July 1, 1950-Indefinite
August 1, 1955-July 31, 1956
May 1, 1955-April 30, 1956
May 1, 1955-April 30, 1956
July 1, 1949-June 30, 1954 (Annual tacit
renewal)
July 1, 1948-June 30, 1949 (Annual tacit
renewal)
(November 11, 1954)-three years
January 1, 1955-December 31, 1955
January 1, 1955-December 31, 1955
April 1, 1955-April 1, 1956
*(November 23, 1955)-One year
*April 24, 1953-April 23, 1954 (Annual
tacit renewal)
November 1, 1955-October 31, 1958
April 1, 1955-March 31, 1956
January 1, 1955-December 31, 1955
May 1, 1955-April 30, 1956
July 1, 1954-June 30, 1955
May 20, 1955-May 19, 1956 (Payments)
April 1, 1955-March 31, 1956
September 3, 1948-September 2, 1949
(Annual tacit renewal)
April 1, 1954-March 31, 1956
January 1, 1955-December 31, 1955
January 1, 1955-December 31, 1957
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VIII. R UMANIA-Continued
W. Germany ------------
Greece-----------------
Iceland-----------------
Italy-------------------
Norway----------------
Sweden-----------------
Switzerland-------------
Turkey-----------------
Yugoslavia-------------
Argentina--------------
Indonesia---------------
Israel------------------
1X. COMMUNIST CHINA
Burma-----------------
Ceylon-----------------
Egypt------------------
India------------------
Indonesia---------------
Syria-------------------
Finland----------------
X. NORTH VIETNAM
France-----------------
*January 1, 1955-December 31, 1955
July 1, 1955-June 30, 1955
April 13, 1954-December 31. 1955
January 1,,1955-December 31, 1955
June 1, 1955-May 31, 1956
April 1, 1955-March 31, 1956
August 1, 1953-July 31, 1954 (Annual
tacit renewal)
April 15, 1955-April 14, 1956
April 1, 1955-March 31, 1956
July 25, 1951-July 24, 1952 (Annual
tacit renewal)
January 18, 1954-January 17, 1955 (An-
nual tacit renewal)
March 23, 1954-December 31, 1954 (An-
nual tacit Renewal)
July 1, 1955-June 30, 1956
September 9, 1954-December 31, 1955
December 29, 1955-December 28, 1956
January 1, 1955-December 31, 1955
(August 22, 1955)-Three years
October 14, 1954-October 13, 1956
August 1, 1955-July 31, 1956
(November 30, 1955)-One year
May 1, 1955-April 30, 1956
(October 14, 1955)-One year
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APPENDIX E
Statistical Tables
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APPENDIX E
Statistical Tables
TABLE 1. Trade of free world with the Sino-Soviet bloc, annually
1947-55 and semiannually, 1952-55.
TABLE 2. Trade of free -world and COCOM countries with the Sino-
Soviet bloc, 1947-55.
TABLE 3A. Exports of principal free world countries to the Sino-Soviet
bloc, 1938.
B. Imports of principal free world countries from the Sino-
Soviet bloc, 1938.
c. Exports of principal free world countries to the Sino-Soviet
bloc, 1948.
D. Imports of principal free world countries from the Sino-
Soviet bloc, 1948.
E. Exports of principal free world countries to the Sino-Soviet
bloc, 1952.
F. Imports of principal free world countries from the Sino-
Soviet bloc, 1952.
G. Exports of principal free world countries to the Sino-Soviet
bloc, 1953.
H. Imports of principal free world countries from the Sino-
Soviet bloc, 1953.
i. Exports of principal free world countries to the Sino-Soviet
bloc, 1954.
j. Imports of principal free world countries from the Sino-
Soviet bloc, 1954.
K. Exports of principal free world countries to the Sino-Soviet
bloc, 1955.
L. Imports of principal free world countries from the Sino-
Soviet bloc, 1955.
TABLE 4A. United States trade with the Sino-Soviet bloc, 1938, 1948,
1952, 1954 and 1955.
B. United States exports to the Sino-Soviet bloc, by principal
commodities, 1948, 1952, 1954 and 1955.
c. United States imports from the Sino-Soviet bloc, by
principal commodities, 1948, 1952, 1954 and 1955.
TABLE 5.A Free world exports to the Sino-Soviet bloc, by principal
commodity groups, 1952-54.
B. Free world imports from the Sino-Soviet bloc, by principal
commodity groups, 1952-54.
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GENERAL NOTE.-Unless otherwise noted, the Sino-Soviet bloc
comprises the following: Soviet European satellites, which include
Albania, Bulgaria, Czechoslovakia, Soviet Zone of Germany, Hungary,
Poland, and Rumania; U. S. S. R. including Estonia, Latvia, and
Lithuania; Outer Mongolia; North Korea, beginning 1951; and China
for which data since 1949 refer (as far as possible) to mainland China,
Manchuria, Inner Mongolia, and Tibet. No data are available on
trade with North Vietnam.
SOURCE FOR ALL TABLES: International Economic Analysis Division, Bureau of Foreign Commerce
TABLE 1.-TRADE OF FREE WORLD WITH THE SINO-SOVIET BLOC, ANNUALLY
1947-55 AND SEMIANNUALLY 1952-55
[In millions of United States dollars]
Total
Sino-So-
viet bloc
Year 1047 2, 005.7
Year 1948------------------------------------------- 1,968.6
Year 1049-------------------------------------------- 1,666.7
Year 1950-------------------------------------------- 1,544.8
Year 1961-------------------------------------------- 1,688.5
Year 1952-------------------------------------------- 1,438.2
Year 1953-------------------------------------------- 1,388.8
Year 1954-------------------------------------------- 1,764.2
Year 1955 (preliminary) ------------------------------ 2,032.7
1952:
First half---------------------------------------- 730.5
Second half-------------------------------------- 707.7
1953:
First half---------------------------------------- 641.0
Second half-------------------------------------- 747.8
1954:
First half---------------------------------------- 891.5
Second half-------------------------------------- 872.7
1955:
First half---------------------------------------- 938.0
Second half(preliminary) ----------------------- 1,094.7
Year 1947-------------------------------------------- 1,424.7
Year 1948-------------------------------------------- 2,008.0
Year 1949------------------------------------------- 1,796.8
Year 1950-------------------------------------------- 1,727.0
Year 1951-------------------------------------------- 11,883.0
Year 1952-------------------------------------------- 11,633.9
Year 1953-------------------------------------------- 11,631.1
Year 1954 11,835.6
Year 1955 (preliminary) ----------------------------- 1
1952 2,428.7
:
First half----------------
------------------------ 1845.9
Second half-------------------------------------- 1788.0
1953:
First half------------------------------1756.0
Second half------------------------------------' 1875.1
First half---------------------------------------- 1806.3
Second half-------------------------------------- 11, 029.3
1955:
First half------------------------------------- 11, 095.2
Second half (preliminary)----------------------- 11,333.5
Euro-
Euro-
Commu-
ean
pean
nist
Soviet
bloc
satellites
China
1,333.5
856.5
477.0
672.2
1,434.2
900.7
533.5
634.3
1, 342.6
914.2
428.4
324.1
1, 092.7
791.6
301.1
452. 1
1, 242.3
854.8
387. 5
446.2
1:165.7
682.4
483.3
272. 5
1, 101.4
677.9
423.5
287.4
1, 470.2
896.7
573.5
294.0
1,719.6
1,148.9
570.7
313.1
611.0
344.2
266.8
119.5
554.7
338.2
216. 5
153.0
472.8
314.8
158.0
168.2
628.6
383.1
265.5
119.2
754.1
417.4
336.7
137.4
716.1
479.3
236.8
156.6
791.8
649.3
242.5
146.2
927.8
599.6
328.2
166.9
1, 006.8
732.9
273.9
417.9
1, 519.7
1,026.0
493.7
488.3
1,370.6
1, 089.9
280.7
426.2
1,192.3
940.0
252.3
534. 7
1, 358.1
967.5
390.6
524. 7
1, 262.9
794.6
468.3
367.9
1,189.7
807.0
381.8
432.7
1, 453.2
952.7
500.5
375. 4
1, 926.4
1, 282.6
643.8
492. 7
672.4
399.9
272.5
172.9
590.5
394.7
196.8
196.0
525.8
380.2
145.6
226.3
663.9
427.7
236.2
206.4
627.0
433.7
193.3
175.4
826.2
519.0
307.2
200.0
851.2
595.7
255. 5
240.4
1,075.2
686.9
388.3
252.3
1 Outer Mongolia and North Korea are Included in total Soviet bloc, but riot in geographic areas, Values
for the years 1951-56, in millions of dollars, are: 0.2, 3.1, 8.7, 7.0 and 9.6.
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ABLE 2.-TRADE or FREE WORLD AND COUNTRIES ITH THE INO-
SOVIET BLoc, 1947-55
[In millions of United States dollars]
Exports to bloc
Imports from bloc
Free
All 000OM
European
Free
All COCOM
European
world
countries
COCOM
world
countries
COCOM
countries
countries
ear with
Trade b
y y
Per-
Per-
Per-
Per-
Total
Value
cent of
Value
cent of
Total
Value
cent of
Value
cent of
value
total
total
value
total
total
value
value
value
value
SINO-SOVIET BLOC
_____________
_
1947
2,005.7
1,268.5
63.2
404.2
24.6
1,424.7
686.4
48.2
448.3
31.5
___
_
_____________
1948
1,968.5
940.8
47.8
487.8
24.8
2,008.0
1,014.5
50.5
744.0
37.1
_____
________________
1949
1,666.7
772.2
46.8
597.9
35.9
1,796.8
959.6
53.4
736.7
41.0
__
-------
-
1950
1,544.8
636.2
41.2
537.2
34.8
1,727.0
997.9
57.8
716.8
41.6
---------
-
-------
-
1951
1,688.5
543.0
32.2
533.5
31.6
11,883.0
1965.0
61.2
822.5
48.7
-
---------
-------
-
---
1952
1,438.2
545.5
37.9
543.0
37.8
11,633.9
1785.7
47.9
691.8
42.3
-
-----
-
------------
1953
1,388.8
613.2
44.2
606.4
43.7
11,631.1
1 832.8
50.5
743.3
45.6
------
---- ------
-
1954
1,764.2
835.4
47.4
799.2
45.3
11,835.6
1957.2
51.8
1853.7
46.5
-----
-
1965 (preliminary) ----
2, 032.7
984.7
48.4
926.3
45.6
12, 428.7
11, 294.4
53.2
11,132.1
46.6
EUROPEAN SOVIET
BLOC
-----------
1947
1,333.5
785.8
58.9
410.2
30.8
1,006.8
504.4
60.1
390.3
88.8
-------
1948
--------------
1,434.2
576.1
40.2
429.7
30.0
1,519.7
809.8
53.8
688.3
45.3
----
-
-----
1949
342.6
1
644.8
48.0
569.9
42.4
1,370.6
790.6
67.7
700.1
61.1
-
-----------
-------------
-
1950
,
092.7
1,
533.4
48.8
502.4
46.0
1,192.3
732.0
61.4
641.6
53.8
---
-
-----
-
1951
.
242.3
1
511.9
41.2
508.5
40.9
1,358.1
752.1
55.4
679.7
50.0
-----------
-
-
-
-----
1952
,
1
165.7
519.8
44.6
517.9
44.4
1,262.9
695.1
55.0
645.1
51.1
-
-
---------
-----
-
1953
,
101.4
1
642.5
49.3
540.2
49.0
1,189.7
684.0
57.5
634.6
53.3
-----------
-
_________
1954
,
470.2
1
758.5
61.8
741.5
50.4
1,453.2
823.4
56.7
769.6
53.0
_________
1955 (preliminary) _---
,
1, 719.6
883.8
51.4
855.0
49.7
1, 926.4
1, 092.0
56.7
1, 023.3
53.1
EUROPEAN SATEL-
LITES
---
1947
856.5
538.2
62.8
316.7
87.0
732.9
338.4
46.2
303.6
41.4
---------------
-
1948
900.7
447.8
49.7
333.9
87.0
1,026.0
484.5
47.2
452.5
44.1
-----------------
---
1949
914.2
506.5
55.2
445.7
48.8
1,089.9
610.7
56.0
562.2
61.6
---------------
----
1950
791.6
437.5
56.3
407.9
51.6
940.0
546.4
58.1
495.1
62.7
--------------
1951
854
8
382.9
44.8
379.6
44.4
967.5
468.8
48.5
424.4
43.9
------------------
1952
.
682.4
335.5
49.2
333.8
48.9
704.6
396.2
49.9
365.9
46.0
------------------
1953
677.9
383.4
56.6
381.1
56.2
807.9
443.1
54.8
407.5
60.4
------------------
___
1954
896.7
531.6
59.3
519.8
58.0
952.7
620.7
54.7
481.6
60.5
_____________
1955 (preliminary).---
1,148.9
643.1
56.0
619.3
63.9
1,282.6
691.9
53.9
643.8
60.2
U. S. S. R.
1947
477.0
247.6
51.9
93.5
19.6
273.9
166.0
60.6
86.7
31.7
------------------
-
-
1948
533.5
128.3
24.0
95.8
18.0
493.7
326.3
65.9
235.8
47.8
--
------
--------
--
1949
428.4
138.3
32.3
124.2
29'.0
280.7
179.9
64.1
137.9
49.1
-
---------------
1950------------------
301.1
95.9
31.8
94.5
81.4
252.3
185.6
73.6
72
6
146.5
255
3
58.1
65
4
1951------------------
387.5
129.0
83.3
128.9
83.8
300.6
283.3
298
9
.
63
8
.
279
2
.
59
6
1952__________________
1953
483.3
423.5
184.3
159.1
88.1
37.6
184.1
159.1
38.1
37.6
468.3
381.8
.
240.9
.
63.1
.
227.1
.
59.5
------------------
1954__________________
573.5
226.9
39.6
221.7
88.7
500.5
302.7
60.5
62
1
287.9
379
5
57.6
58
9
1955 (preliminary) _ _ __
570.7
240.7
42.2
235.7
41.3
143.8
400.1
.
.
.
COMMUNIST CHINA
-
---
1947
672.2
482.7
71.8
84.0
12.5
417.9
182.0
43.6
58.0
18.9
-
-------------
1948
534.3
364.7
68.6
58.1
10.9
488.3
204.7
41.9
55.7
11.4
------------------
1949------------------
324.1
127.4
39.3
28.0
8.6
7
7
426.2
634
7
160.0
9
265
39.7
49
7
36.6
75
2
8.6
14.1
1950------------------
1951
452.1
446.2
102.8
31.1
22.7
7.0
34.8
25.0
.
6.6
.
524.7
.
212.7
.
40.6
.
142.8
27.2
------------------
1952----- ------------
272.5
25.7
9.4
25.1
2
9.2
0
28
367.9
432
7
87.5
140
1
23.8
32.4
46.7
108.7
12.7
25.1
1953------------------
1954
287.4
294
0
70.7
76.9
24.6
26.2
66.
57.7
.
19.6
.
375.4
.
126.8
33.8
84.1
22.4
------------------
1955 (preliminary)-_-
.
313.1
100.9
32.2
71.3
22.8
492.7
192.8
89.0
108.7
22.0
NoTE.-000OM countries are Belgium, Denmark, France, Federal Republic of Germany, Greece,
Italy, Luxembourg, Netherlands, Norway, Portugal, Turkey, United Kingdom, Canada, Japan and
United States.
I See footnote 1, table 1.
Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
 Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
TABLE 3A.-EXPORTS OF PRINCIPAL FREE WORLD COUNTRIES TO THE SINO-SOVIET
BLOC, 1938
[NOTE.-These data are not comparable with those for later years for many reasons. Most important
are the lack of information about trade with that part of Germany known today as the Soviet Zone and
lack of uniform definitions for "China." No adjustments have been' made in original data except as indi-
cated below. Dollar values are unadjusted for price changes.]
[In millions of United States dollars]
PAR EAST
Ceylon
---------------------
Hong Kong-_------------------
ndiaa_________________________
Indochina
______________________
India Indonesia J
______________________
aPan__________________________
Malaya------------------------
_______________________
Ta1wan________________________
E
ort
t
W
Total Sino-Soviet
European
European
xp
s
o-------------
orld
bloc
bloc
satellites
U.S.S.R.
, China
A
Exporting country
Total
value
Total
value
s per-
centage
of
exports
Total
value
Total
value
Total
value
Total
value
to
world
United States__________________
3,094.4
186.3
6.0
134.6
61.3
73.3
251
7
Canada------------------------
837.5
9.0
1.1
6.2
4.2
2.0
.
2.8
OEEC COUNTRIES, TOTAL-_
9,287.4
836.9
9.0
749.6
524.9
224.7
87.3
Austria------------------------
(5)
(5)
(2)
(2?1
(1)
(8)
($)
Belgium Luxembourg ----------
732.4
46.1
6.3
38.7
21.3
17.4
7
4
Denmark----------------------
France
333.9
9.6
2.9
7.8
6.4
1.4
,
1.8
-------------------------
Germany+---------------------
874.8
47.8
369.7
6.6
16.4
42.3
327.7
34.8
278.5
7.5
49.2
5.5
42
0
Greece -------------------------
90.1
9.1
10.1
9.1
8.7
4
.
Iceland-------------------------
12.9
.1
.8
.1
.1
.
(8)
Ireland-------------------------
118.5
.1
.1
.1
.1
(1)
(5)
Italy and Trieste------------- -
N
h
l
d
552.4
38.1
6.9
37.2
36.2
1.0
.9
et
er
an
s--------------------
590.5
33.5
5.7
32.9
17.0
15.9
.6
Norway------------------------
192.3
9.1
4.7
8.4
5.5
2.9
7
Portugal-----------------------
50.7
1.1
3.2
1.1
.7
.4
.
Sweden------------------------
Switzerland--------------------
463.3
301.1
31.9
34.2
6.9
11
4
29.9
28
0
20.9
22
8
9.0
5
2
2.0
Iurkey_________---------------
U
K
115.0
13.8
.
12.0
.
13.8
.
9.6
.
4.2
(5)
nited
ingdom_______________
2,602.8
192.7
7.4
172.5
62.3
110.2
20.2
OTHER EUROPE
Finland________________________
180.1
5.1
2.8
4.6
1.6
3
0
5
Yugoslavia---------------------
116.2
17.9
15.4
17.9
17.9
.
(5)
.
(5)
NEAR EAST AND AFRICA
EgyPt__________________________
French Morocco_______________
151.0
43.2
14.6
7
9.7
1
6
13.6
7
13.0
7
.6
5)
1.0
5)
Gold Coast _____________________
51.7
.
.4
.
.8
.
.4
.
.4
(5)
(
(5)
ran____________________________
udan
153.0
15.1
9.9
14.9
.2
14.7
.2
Union of South Africa
._________
29.9
158.0
.2
2.2
.7
1.4
.2
2.2
.2
2.2
(5)
(5)
(5)
(5)
103.7
154.8
.9
69.7
.9
46.0
.9
(5)
.9
(5)
(5
(I)
(')69
7
616.7
17.9
2.9
9.0
7.7
1.3
.
8.9
81.3
379.0
2.2
9.8
2.7
2.6
.1
4.4
.1
2.0
(5)
2.4
2.1
5
4
1,113.0
329
329
323.4
30.0
1.8
.4
1.4
.
7331.6
.9
.9
(8)
3.0
(8)
.9
(8)
1.2
5)
1.2
8
(5
8;
1.8
8
(5)
(5
(5)
(5)
)
~5)
(
(5)
)
S
l5)
OCEANIA
ustralia_______________________
ew Zealand
613.9
229
6
16.3
1
0
9.7
13.9
9.4
4.5
2.4
-_?---------------
.
.
.4
.9
.9
(5)
.1
LATIN AMERICA
rgentina______________________
raz
ll
409.2
12.4
3.0
12.3
11.3
1.0
__________________________
rugusy_______________________
289.2
61.8
5.8
3.7
2.0
5.8
4.4
3.7
4.3
3.6
.1
.1
1.4
(5)
NOTE.-Exports include reexports for the following countries: Australia, Ceylon, Gold Coast, Hong
Kong, India, Ireland, Japan (beginning in 1950), Malaya, New Zealand, Pakistan, Sudan, Union of South
Africa, United Kingdom, and the United States.
2 Includes exports to Estonia, Latvia, and Lithu. 5 Not reported in source.
anta. 6 Includes Pakistan.
2 Includes exports to Kwantung. 1 Includes exports to Kwantung and Manchuria.
5 Included with Germany. a Included with India. Includes Austria.
Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
I
S
A
N
A
B
U
 Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
TABLE 3B.-IMPORTS OF PRINCIPAL FREE WORLD COUNTRIES FROM THE SINO-
SOVIET BLOC, 1938
[NOTE.-These data are not comparable with those for later years for many reasons. Most important
are the lack of information about trade with that part of Germany known today as the Soviet Zone and
lack of uniform definitions for "China." No adjustments have been made in original data except as Indi-
cated below. Dollar values are unadjusted for price changes.]
[In millions of United States dollars]
Imports from_______________
World
Total Sino-Soviet
bloc
European
bloc
European
satellites
U.S.S.R.,
China
As per-
centage
Total
Total of
Total
Total
Total
Total
Importing country \
value
value imports
value
value
value
value
N
from
,
world
United States__________________
1,960.4
123.5
6.8
74.7
48.0
26.7
248.8
Canada________________________
677.3
5.6
0.8
3.2
3.0
.2
2.4
OEEC COUNTRIES, TOTAL--
12, 520.9
1,114.8
8.9
1,013.8
703.7
310.1
101.0
Austria-------- --------------
(3)
(8)
(8)
(3)
(3)
(8)
(3)
Belgium-Luxembourg----__---_
779.7
53.2
6.8
52.0
22.1
29.9
1.2
Denmark______________________
353.6
19.0
5.3
16.0
10.0
6.0
3.0
France_________________________
1,317.4
59.7
4.6
52.5
31.4
21.1
7.2
Germany 4---------------------
2,430.3
419.2
17.2
376.4
316.9
59.5
42.8
Greece_________________________
131.0
23.5
17.9
23.5
20.3
3.2
6
Iceland_________________________
11.1
.2
1.8
.2
.2
()
[reland_________________________
202.5
4.6
2.8
4.5
2.3
2.2
.1
[talyandTrieste ---------------
[Netherlands____________________
693.3
802.2
64.4
57.3
10.9
7.1
63.0
54.3
62.2
33.2
.8
21.1
1.4
3.0
[Norway________________________
291.6
19.5
6.6'
18.1
12.8
5.3
1.4
Portugal_______________________
102.2
2.1
2.1
1.9
1.9
(6)
.2
Sweden________________________
523.3
49.3
9.4
41.5
35.4
6.1
7.8
Switzerland____________________
367.5
40.8
10.9
39.2
31.7
7.5
1.6
Turkey________________________
118.9
14.3
12.0
14.3
9.6
4.7
(6)
United Kingdom______________
4,496.3
287.7
6.4
256.4
113.7
142.7
31.3
OTHER EUROPE
Finland________________________
184.6
15.6
8.5
15.5
10.7
4.8
.1
Yugoslavia_____________________
114.5
20.2
17.6
20.2
20.2
(6)
(6)
NEAR EAST AND AFRICA
Egypt--------------------------
185.2
18.0
9.7
17.3
14.9
2.4
.7
French Morocco________________
62.4
6.4
10.3
3.1
2.9
.2
3.3
Gold Coast ---------------------
50.7
.8
1.6
.8
.8.
(6)
6)
[ran____________________________
67.9
21.1
86.4
21.1
2.3
18.8
6)
Iraq____________________________
45.7
1.4
3.1
1.4
1.3
.1
(6)
Sudan------------ -------------
31.5
(6)
(b)
(6)
(6)
(3)
(6)
Union of South Afiica__________
466.0
10.0.
2.1
9.2
7.6
1.6
.8
FAR EAST
Ceylon_________________________
86.0
.6
.7
.4
.2
.2
.2
Hong Kong____________________
187.0
70.4
87.6
(6)
(6)
(?)
70.4
ndia6-------------------------
566.5
13.8
2.4
7.5
6.3
1.2
6.3
[ndochina______________________
55.6
4.2
7.6
.2
.2
(b)
4.0
Indonesia----------------------
267.3
8.5
8.2
4.0
3.7
.3
4.5
Japan__________________________
1,072.1
162.4
15.1
1.9
1.7
.2
7160.5
Ylalaya________________________
315.9
15,3
4.8
1.7
1.7
(6)
13.6
Pakistan-----------------------
(S8)
(8
(8)
(8)
(8)
(8)
8
Taiwan-----------------
l6)
f 8;
(6)
(6)
(b)
8
)
(
8
OCEANIA
Australia_
557.3 557.3
7.6
1.4
4.7
4.0
.7
2.9
New Zealand_
217.9
1.4
.6
1.0
.9
.1
.4
LATIN AMERICA
Argentina______________________
416.0
13.7
3.3
13.5
13.1
.4
.2
Brazil__________________________
294.8
5.2
1.8
6.2
5.2
(a)
(
Uruguay_______________________
48.0
1.6
3.8
1.6
1.6
6)
IIncludes imports from Estonia, Latvia and
Lithuania.
2 Includes imports from Kwantung.
3 Included with Germany.
4 Includes Austria.
6 NotTreported in source.
6 Includes Pakistan.
7 Includes imports from Kwantung and Manchuria.
6 Included with India.
83
Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
 Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
TABLE 3C.-EXPORTS OF PRINCIPAL FREE WORLD COUNTRIES TO THE SING-SOVIET
BLOC, 1948
[In millions of United States dollars]
Exports to ------------
World
Total Sino-Soviet
bloc
European
bloc
European
satellites
)
U.S.S.R.
China
As per-
centage
Exporting country
Total
Total
of
Total
Total
Total
Total
\
value
value
exports
value
value
value
value
to
world
United States__________________
12 653.1
396.6
3.1
123.2
95.2
28.0
273.4
Canada________________________
3,075.4
47.9
1.6
18.8
18.7
. 1
29.1
OEEC COUNTRIES, TOTAL__
16, 824.0
698.1
4.2
617.6
496.4
121.2
80.5
Austria________________________
198.4
30.0
16.1
29.3
29.2
.1
.7
Belgium-Luxembourg----------
1,691.4
70.7
4.2
61.5
41.3
20.2
9.2
Denmark----------------------
569.1
46.6
8.2
46.2
27.6
- 18.6
.4
France_________________________
1,997.5
35.5
1.8
31.9
31.7
.2
3.6
Germany, Bizone--------------
692.0
8.7
1.5
7.8
7.8
(*)
.9
Greece_________________________
94.0
8.4
9.0
8.4
8.4
(1)
($)
Iceland_________________________
61.0
7.2
11.8
7.2
6.2
1.0
(1)
Ireland_________________________
198.8
.5
.3
.3
.3
(*)
.2
Italy and Trieste_______________
N
h
l
d
1,086.3
48.9
4.6
43.6
40.6
3.0
5.3
an
et
er
s____________________
1,010.0
46.6
4.6
46.0
41.8
4.2
.6
Norway________________________
416:3
46.9
11.3
44.0
24.6
19.5
2.9
Portugal_______________________
171.8
1.9
1.1
1.8
.8
1.0
.1
Sweden________________________
1,107.0
102.3
9.2
93.0
76.0
17.0
9.3
Switzerland____________________
799.2
70.2
8.8
58.0
50.3
7.7
12.2
Turkey________________________
196.8
18.6
9.5
18.6
18.4
.2
*
()
United Kingdom_______________
6,635.4
155.1
2.3
120.0
91.5
28.5
35.1
OTHER EUROPE
Finland________________________
501.6
5160.0
31.9
158.4
11.5
$146.9
1.6
Yugoslavia_____________________
303.6
154.0
50.7
154.0
108.5
45.5
(*)
NEAR EAST AND AFRICA
Egypt--------------------------
591.4
71.5
12.1
71.5
21.7
49.8
(1)
French Morocco________________
179.2
1.5
.8
1.5
1.5
(1)
(*)
Gold Coast_____________________
224.4
12.9
5.7
12.9
2.8
10.1
(*)
[ran____________________________
491.0
5.9
1.2
4.0
(1)
4.0
1.9
Iraq-.--------------------------
34.9
(1)
(')
(1)
(*)
))
(*
SS??
1
Israel--------------------------
(5)
(5)
(5)
(5)
(5)
(b
)
5
l
)
Sudan__________________________
98.7
1.6
1.6
1.5
1.5
(*))
1
UnionofSouth Africa__________
529.8
6.3
1.0
4.9
4.9
:4
BAR EAST
Ceylon_________________________
305.6
.5
.5
.5
.3
.2
(1)
Hong Kong____________________
398.7
74.4
18.7
3.7
(5)
3.7
70.7
[ndia___________________________
1,310.4
44.8
3.4
22.9
11.4
11.5
21.9
Indochina ---------------- _-----
Indonesia
91.8
393
9
1.9
3
0
$.1
8
(1)
1
4
(*)
1
4
(*)
*
1.9
______________________
fapan--------------------------
.
258.3
.
8.5
.
8.8
.
4.4
.
(*)
(
)
4.4
1.6
4.1
Malaya________________________
810.7
62.3
7.7
65.7
8.3
47.4
6.6
Pak Istane______________________
1304.9
29.1
9.5
19.2
5.8
13.4
9.9
Taiwan------------------------
17.2
(1)
-(5)
(5)
(5)
(5)
(5)
OCEANIA
Australia_______
1,649.9
49.8
3.0
42.6
16.6
26.0
7.2
New Zealand
495.1
9.8
2.0
9.7
1.2
8.5
.1
LATIN AMERICA
Argentina----------------------
1,650.3
49.5
3.0
49.2
47.5
1.7
.3
Brazil__________________________
1,172.7
23.2
2.0
20.3
20.3
(*)
2.9
Uruguay_______________________
178.9
2.9
1.6
2.9
2.9
(1)
(1)
1 Less than $50,000. 5 Not available.
3 Not reported In source. 5 Data relate to fiscal year ending March 31, 1949.
5 Includes reparations delivered to. U. S. S. R. val- 7 Excludes land trade.
ued at $84,894,000 In 1948. *None.
5 Less than 0.05 percent
84
Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
 Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
TABLE 3D.-IMPORTS OF PRINCIPAL FREE WORLD COUNTRIES FROM THE SINO-
SOVIET BLOC, 1948
[In millions of United States dollars]
Total Sino-Soviet
European
European
Com-
Importsfrom -----------
World
bloc
bloc
satellites
U.S.S.R.
munist
China
per-
tage
centage
Total
Total of
Total
Total
Total
Total
Importing country \
value
value imports
value
value
value
value
from
world
----------------
United States
7,123.8
233.5
3.3
113.2
26.4
86.8
120.3
--
Canada________________________
2,636.9
8.9
.3
5.0
4.9
.1
3.9
OEEC COUNTRIES, TOTAL.-
24, 836.3
1,035.5
4.3
966.0
712.4
253.6
69.5
-------------------
Austria
390.0
56.6
14.5
56.4
56.4
(1)
.2
-----
Belgium-Luxembourg-----_____
1,997.2
85.8
4.3
83.8
33.6
50.2
2.0
------------------
Denmark
713.5
84.3
11.8
83.3
54.5
28.8
1.0
----
--------------------
Frans
3,448.3
75.4
3.3
87.6
56.5
11.1
7.8
-----
Germany, Bizone------ _-------
1,314.2
25.5
1.9
22.1
7
6
20.6
7
6
1.5
(1)
3.4
(2)
Greece________________________
364.5
7.6
6
0
3.1
6
.
6
0
.
5
9
1
(*)
Iceland-------------------------
_______________
Ireland
70.6
549.4
.
3.1
8.
.6
.
2.7
.
2.7
.
(1)
.4
__________
Italy and Trieste_______________
1,576.9
859
5
1
49.i
79
5
3.3
3
4
48.0
77.0
43.8
73.5
4.2
3.5
1.9
2.5
Netherlands--------------------
----------------------
Norway
.
,
749.8
.
67.8
.
9.0
65.1
37.8
27.3
2.7
--
Portugal-----------------------
414.0
1
375
7
1.5
153
3
.4
11.1
1.3
149.6
1.3
137.0
(1)
12.6
.2
3.7
Sweden________________________
Switzerland____________________
,
.
1,163.2
.
72.4
6.2
62.8
57.8
5.0
1
9.6
1
1
Turkey - ------------------
kE
275.0
5
374
24.0
242
8
8.7
9
3
22.9
209
8
22.9
100.5
(
)
109.3
.
33.0
g --------------
United
.
8,
.
.
.
OTHER EUROPE
Finland________________________
488.0
92.8
19.0
92.6
41.4
1
9
1
51.2
34
1
.2
(*)
Yugoslavia_____________________
314.2
143.2
45.6
143.2
.
0
.
NEAR EAST AND AFRICA
Egypt--------------------------
714.5
63.9
8.9
63.1
16.9
46.2
3
.8
9
2
French Morocco_______________
389.3
10.7
2
8
3.7
8
1
1.5
2
8
1.2
2
8
.
(*)
.
(')
Gold Coast_____________________
___________________
Iran
170.2
167.1
.
5.9
.
3.6
.
5.4
.
3.6
1.8
_________
Iraq----------------------------
183.5
10.0
5.4
4.8
6
0
4.7
9
5
.1
1
5.2
(1)
Israel__________________________
96.2
6.0
4
6.3
6
.
5
.
5
.
Sudan--------------------------
Union of South Africa ----------
91.6
1,334.9
1.
8.0
1.
.6
.
6.9
.
6.8
.1
1.1
PAR EAST
Ceylon-------------------------
297.3
1.2
.4
6
8
.3
3
.3
(*)
(*)
. 3
9
.5
108.
Hong Kong____________________
___________
India
523.3
474.6
1
108.8
22.0
.
3
1.5
.
16.9
5.8
11.1
*
5.1
________________
Indochina______________________
,
188.1
9.0
4.8
.1
4
0
.1
4
0
(
)
(*)
8. 9
11
7
Indonesia----------------------
463.7
684
2
15.7
2
28
3.4
4.1
.
3.4
.
.7
2.7
.
24.
Japan__________________________
Malaya------------------------
.
839.7
.
56.1
6.7
6.0
6.0
1
0
(1)
2
7
50.
20
Pakistan 6_____________________
+357.8
(6)
24.5
(6)
.7
(6)
3.7
(6)
.
(6)
.
(1)
.
(6)
Taiwan______________ .________
OCEANIA
--------------
Australia
- 1,232.0
21.3
1.7
13.1
13.0
.1
-
-------
New Zealand___________
436.0
2.5
.6
1.7
1.6
.1
LATIN AMERICA
-------------------
Argentina
- 1,513.4
18.9
1.3
18.0
17.4
.6
*
--
Brazil-------------------------
- 1,134.2
12.1
1.1
11.9
11.9
1
6
(
)
(')
(I)
Uruguay----------------------
- 200.4
1.6
.8
1.6
.
I Less than $50, 000. 4 Excludes land trade.
I Not reported in source. 6 Not available.
6 Data relate to fiscal year ending March 31, 1949. * None.
8
1
8
85
Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
 Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
NEAR EAST AND AFRICA
Egypt___________________
French Morocco_______________
(fold Coast--
__________________
Iran_________________________ _
Iraq
----------------------------
Israel
srael__________________________
Sudan
Union of South Africa
__________
Ceylon
_________________________
Hong Kong____________________
__________________________
India I
ndochina----------------------
I
ndonesia______________________
7
--------------------------
span
Malaya__.._____________________
Pakistan--------------------
___
Taiwan
LATIN AMERICA
Argentina______________________
B
razil-------------?----_---_--
Uruguay- ------------------
OF PRINCIPAL FREE WORLD COUNTRIES TO THE SING
SOVIET BLOC, 1952
[In millions of United States dollars]
Total Sino-Soviet
European
European
Com-
\ Exports to____________
_ World
bloc
bloc
satellites
U.S.S.R.
munist
China
\
per-
centage
Total
Total
of
Total
Total
Total
Total
Exporting country \
value
value
exports
value.
value
value
value
to
world
United States__________________
15,200.7
1.1
(1)
1.1
1.1
(1)
(*)
Canada------------------------
4,396.4
.6
(1)
.6
6
(2)
(*
OEEC COUNTRIES, TOTAL--
27,185.5
788.8
2. 9
744.8
513.4
231.4
44.0
Austria________________________
506.9
64.5
12.7
64.2
63.9
.3
3
Belgium-Luxembourg -------- -_
2,451.0
60.1
2.5
59.5
44.6
14
9
.
6
Denmark______________________
840.1
35.2
4.2
35.0
21.2
.
13
8
.
2
France____________ ____________
3,889.4
42.0
1.1
38.8
32.3
.
6.5
.
3
2
Germany, Federal Republic- - _
4,077.0
92.9
2.3
90.1
89.0
2
.
2
8
Greece-------------------------
Iceland______________________
112 9
39.4
.4
2.8
.3
7.1
.4
2.8
.4
2.8
.
(2)
(*)
.
*)
Ireland------------------------
284.1
(2)
(1)
(2)
(2)
(*)
*)
Italy and Trieste_______________
h
1,386.5
69.4
4.3
55.7
35.3
20.4
3.7
Net
erlands___________________
2,113.4
36.4
1.7
36.4
31.5
4.9
(2)
Norway________________________
565.3
29.9
5.3
28.2
17.9
10.3
1.7
Portugal_______________________
236.9
7.2
3.0
7.2
1.3
5.9
(2)
Sweden________________________
1,571.4
118.2
7.6
117.6
73
1
44
5
6
Switzerland____________________
1,100.1
60.4
5.6
42.4
.
40.0
.
2.4
.
18
0
rurkey________________________
362.9
20.3
5.6
20.2
17.8
2.4
.
1
United Kingdom______________
7,632.2
159.1
2.1
146.3
41.4
104.9
.
12.8
OTHER EUROPE
Finland
____________________
717.6
2 183.8
25.6
177.2
21,9
2155.3
6
6
Yugoslavia---------------------
246.5
(*)
(*)
(*)
(*)
N
.
(*)
416.8
73.0
17.6
64.1
35.3
28
8
8
9
273.8
241.6
1.5
12.0
.5
5.0
1.5
12.0
1.5
(1)
.
(*)
12
0
.
(2)
(
151.1
24.3
16.1
24.3
1.0
.
23.3
*)
((
55.9
1
.2
.1
(2)
.1
4)
42.6
122
8
2.6
8
6.1
2.6
1.4
1.2
2)
.
922.5
.
2.1
.6
.2
.8
2.1
.8
2.1
(2)
4
2)
FAR EAST
315.5
607.3
28.9
91.0
' 9.2
17.9
2.9
(4)
2.4
(4)
.5
(*)
26.0
91.0
1,303.3
16.4
1.8
6.2
2.0
4.2
10.2
116.7
907.6
.1
9.8
.1
1.1
(4)
9.8
(4)
9.8
4)
(4)
.1
(2)
1,272.9
1,239.7
.8
30.3
.1
2.4
.2
30.3
(2)
20.9
.2
9.4
6
(2)
532.5
119.6
4
22.5
35.7
20.3
15.4
83,9
116.5
)
(
(4)
(4)
(4)
(4)
(4)
OCEANIA
ustralia ______
ew Zealand-------
-
1,716.2
673
6
8.9
10
0
.5
1
5
8.3
1
8.3
(2)
*
.6
*
-
-
________
.
.
.
0.0
10.0
(
)
(
)
709.5
12.9
1.8
12.9
12.9
a
2)
1,408.8
6.5
.5
6.5
6.5
(4
(2)
208.9
1.3
,6
1.3
1.3
(*
(*)
I Less than 0.05 percent.
2 Less than $50,000.
2 Includes reparations delivered to U. S. S. R. valued at $35,719,000 from January to September 1952 when
reparations deliveries were terminated.
4 Not reported in source.
*None.
86
Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
A
N
 Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
TABLE 3F.-IMPORTS OF PRINCIPAL FREE WORLD COUNTRIES FROM THE SINO-
SOVIET BLOC, 1952
[in millions of United States dollars]
Total Sino-Soviet
European
European
Coin-
Imports from -----------
World
bloc
bloc
satellites
U.S.S.R.
munist
China
As per-
centage
Total
Total of
Total
Total
Total
Total
Importing country
value
value imports
value
value
value
value
from
world
United States__________________
10,716.8
167,3
0.6
39.6
22.8
16.8
24.6
Canada________________________
4,120.3
8.7
.2
7.4
5.0
2.4
1.3
oEEC ConNTRIES, TOTAL__
32,322.1
925.4
2.9
867.7
565.4
302.3
57.7
Austria- -------------
653.6
73.6
11.5
73.6
73.5
.1
(2)
Belgium-L uxembourg__________
B
2,460.5
6
37.4
1.5
32.7
21.1
11.6
4.7
Denmark
9
2.2
39.2
4.1
39.2
28.1
11.1
(2)
France _________________________
4,432.1
63.0
1.4
1
57.4
38.7
18.7
5.6
Germany, Federal Republic--__
3,884.8
105.5
. 7
87.9
83.9
4.0
17.6
Greece_________________________
346.2
.6
.2
.6
.6
(2)
(2)
Iceland________________________
55.9
3.7
6.7
3.7
3.7
(2)
(*)
Ireland_________________________
482.2
2.3
.5
2.0
1.8
.2
.3
Italy and Trieste_______________
2,335.6
86.8
8.7
84.6
50.5
34.1
2.2
Netherlands ___________________
2,257.2
59.3
2.6
64.4
28.8
25.6
4.9
Norway ________________________
873.5
35.5
4.1
32.3
20.9
11.4
3.2
Portugal_________________
347.4
.8
.2
.7
.7
(2)
.1
widen________________________
1,728.6
108.4
6.5
107.6
87.6
20.0
.8
Switzed___________________
1,205.1
45.4
5.8
35.5
32.7
2.8
9.9
Turkey _______________________
555.9
20.6
8.7
20.6
20.6
(*)
(2)
United Kingdom_______________
9,741.3
243.3
2.5
234.9
72.2
162.7
8.4
OTHER EUROPE
Finland________________________
791.7
153.5
19.4
163.2
71.6
81.6
.3
Yugoslavia---------------------
_
373.0
(*)
(*)
(*)
(*)
(*)
(*)
NEAR EAST AND AFRICA
Egypt------------------------
-
628.3
46.3
7.4
45.6
14.5
31.1
7
French Mor
occo
515.8
8.6
1.7
3.1
3.1
(2)
5.5
Gold Coast____________________
186.4
1.6
.9
1.6
1.6
(2)
(2)
Iran____________________________
165.2
27.4
16.6
27.3
3.4
23.9
.1
Iraq----------------------------
173.2
4.0
2.8
4.0
4.0
(2)
(2)
Israel__________________________
321.1
5.0
1.6
4.9
4.9
(2)
.1
Sudan_________________________
177.2
5.5
8.1
5.4
5.3
.1
.1
Union of South Africa
1,172.9
4.7
.4
4.6
4.5
.1
.1
FAR EAST
Ceylon_________________________
367.5
8.0
2.2
1.1
.8
.3
6.1
Hong Kong____________________
661.4.
146.6
22.2
1.3
1.0
.3
145.3
India__________________________
1,688.0
40.4
2.4
6.4
4.6
1.8
34.(
Indochina----------------------
448.4
8.2
1.8
.8
.8
(8)
7.`
Indonesia______________________
924.0
5.3
.6
3.4
3.4
(3)
1.1
Japan--------------------------
2,028.8
17.9
.9
3.0
2.5
.6
14.1
Malaya ------------------------
1,256.0
42.5
8.4
3.0
3.0
(2)
39.:
Pakistan
---------------
609.7
8.6
1.4
6.0
5.6
.4
2.(
--------
Taiwan ------------------------
187.2
9.7
6.2
(2)
(2)
(*)
4 9.
OCEANIA
Australia_______________________
1,734 ' 8
14.0
.8
10.5
9.4
1.1
New Zealand__________________
644.2
2.3
.4
1.6
1.4
.2
LATIN AMERICA
Argentina______________________
1,177.3
17.1
1.5
16.8
16.8
(*)
Brazil _________________________
2,009.5
5.9
.3
5.9
5.9
(*)
a
Uruguay -----------------------
257.3
1.1
.4
1.1
1.1
M
M
1 Includes Imports from Outer Mongolia of $3,100,000.
2 Less than $50,000.
3 Not reported in source.
4 Represents goods of Communist Chinese origin imported from Hong Kong.
*None.
Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
 Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
TABLE 3G.-EXPORTS OF PRINCIPAL FREE WORLD COUNTRIES TO THE SINO-SOVIET
BLOC, 1953
[In millions of United States dollars]
Argentina___________-------- ___
Brazil
__________________________
-----------------------
Uruguay
Total Sino-Soviet
European
European
Com-
\ Exports to ______-_____
World
bloc
bloc
satellites
U.S.S.R.
munist
China
As per-
Eaportingcountry
Total
value
centage
Total of
value exports
Total
value
Total
value
Total
value
Total
value
\
to
world
United States ------------------
Canada________________________
15,766.8
4,184.8
1.8
.5
I)
(1)
1.8
.5
1.8
.5
(a)
(a)
(*)
(*)
OEEC COUNTRIES, TOTAL__
27, 602.6
804.4
2.9
709.0
518.2
190.8
95. 4
Austria________________________
Belgium-Luxembourg----------
Denmark______________________
France____________ _____ ______
Germany, Federal Republic-
Greece_________________________
Iceland-------------------------
Ireland_________________________
Italy and Trieste_______________
Netherlands____________________
Norway________________________
Portugal_______________________
Sweden________________________
Switzerland____________________
Turkey____
United Kingdom_______________
537.6
2,259.3
803.9
3,987.8
4, 483.2
132.0
43.3
319.2
1,488.1
2,129.0
508.6
218.5
1,477.0
1,204.4
396.0
7,524.7
58.5
66.1
44.3
63.3
140.3
8.3
8.6
.4
62.7
60.9
32.9
5.6
69.7
60.8
29.3
92.7
10.9
2.9
5.0
1.6
3.1
6.3
19.8
.1
4.2
2.9
6.5
2.6
4.7
5.0
7.4
1.2
58.5
64.7
44.0
50.9
115.3
8.3
8.6
.4
68.0
66.9
32.0
5.6
67.0
34.3
29.3
76.2
67.0
48.2
23.1
34.9
113.6
6.6
3.1
.4
34.9
34.2
16.9
1.0
45.2
31.4
26.9
40.9
1.5
16.6
20.9
16.0
1.7
1.8
5.5
(*
23.1
22.7
15.1
4.6
21.8
2.9
2.4
34.3
(a)
1.4
.3
12.4
25.0
(a)
(a)
a)
( 4.7
4.0
.9
(a)
2.7
26.5
(*)
17.5
OTHER EUROPE
Finland______________________
Yugoslavia---------------------
572.0
186.0
179.3
(*)
81.4
N
173.9
(*)
28.4
(*)
145.5
(*)
5.4
(*)
NEAR EAST AND AFRICA
Egypt--------------------------
French Morocco________________
Gold Coast____________________
[ran________________________ ___
Iraq----------------------------
Israel--------------------------
Sudan--------------------------
Union of South Africa__________
394.5
269.4
251.4
89.6
55.5
57.5
127.5
, 920.7
48.2
1.9
10.1
11.2
1.4
2.0
.1
2.0
12.2
.7
4.0
12.5
2.5
8.4
.1
.2
37.8
1.9
10.1
11.2
1.4
2.0
(3)
1.9
25.9
1.9
(a)
2.3
1.3
.9
(a)
1.9
11.9
(*)
10.1
8.9
.1
1.1
(*)
(3)
10.4
(a)
(*)
(3)
(*)
.1
.1
FAR EAST
Ceylon-------------------------
Hong Kong____________________
India___________________________
Indochina---------------------
ndonesla______________________
Japan--------------------------
Mlalaya________________________
Pakistan_______________________
Taiwan------------------------
329.3
478.4
1,114.3
95.4
810.6
1,274.8
951.2
438.9
127.6
51.5
94.6
14.6
(8)
4.5
4.6
15.5
19.8
(3)
15.6
19.8
1.3
--------
.5
.4
1.6
4.5
__________
O.6
*
7.3
(2)
4.5
.1
13.6
12.5
(3)
O.6
*
6.5
(3)
4.5
.1
13.6
5.1
(3)
(*)
(*)
.8
(3)
(3)
2)
(*)
7.4
(3)
50.9
94.6
7.3
(3)
(a)
4.5
1.9
7.3
(3)
OCEANIA
Australia _______________________
New
Zealand___________________
2,021.5
659.7
62.2
11.1
5.1
1.7
56.9
11.1
23.8
11.1
33.1
N
5.3
(*)
LATIN AMERICA
1,147.8
1,539.3
269.8
24.4
11.3
1.2
.6.1
.7
.4
24.4
10.4
1.2
13.1
10.4
.9
11.3
(3)
.3
(8)
.9
(3)
I Less than 0.05 percent.
8 Less than $50,000.
8 Not reported in source.
* None.
88
Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
 Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
TABLE 3H.-IMPORTS OF PRINCIPAL FREE WORLD COUNTRIES FROM THE
SINO-SOVIET BLOC, 1953
[In millions of United States dollars]
Imports from ---- _------
World
Total Sine-Soviet
bloc
European
bloc
European
satellites
U.S.S.R.
Com-
munist
China
As per-
centage
Importing country
Total
Total of
Total
Total
Total
Total
value
value imports
value
value
value
value
from
world
United States__________________
10,873.8
145.7
0.4
36.4
25.6
10.8
0.6
Canada________________________
4,449.4
6.0
.1
4.0
4.0
.9
1.1
OEEC COUNTRIES, TOTAL--
31,379.2
924.1
2.9
795.9
552.0
243.0
128.2
___________________
Austria
545.7
60.1
11.0
59.1
59.0
.1
1.0
_____
Belgium-Luxembourg---_______
2,422.6
47.4
$.0
40.1
23.4
16.7
7.3
__________________
Denmark
1,000.3
40.6
4.1
38.5
30.1
8.4
2.1
____
______________________
France
4,006.7
51.4
1.3
40.4
23.5
16.9
11.0
___
Federal Republic----
Germany
3:877.8
167.9
4.3
134.7
119.1
15.6
33.2
,
_______________________
Greece
294.3
3.8
1.3
3.8
3.6
.2
(2
__
________________________
Iceland
67.8
5.8
8.6
5.8
4.2
1.6
(*
_
___________________
Ireland
513.8
2.7
.6
1.9
1.0
.9
.8
______
Italy and Trieste_______________
2,395.1
354
2
3
53.8
68
6
2.3
9
#
46.4
53
5
37.1
22.2
9.3
31.3
7.4
15.1
Netherlands____________________
Norway________________________
.
,
912.0
.
43.9
.
4.8
.
40.3
23.3
17.0
3.6
Portugal_______________________
330.9
.9
.3
.7
.7
(2)
.2
_____________________
Sweden
1,577.0
61.4
8.9
59.8
49.7
10.1
1.6
___
Switzerland___________________
1,182.8
50.7
4.3
34.6
300.5
*) 4.1
(')16.1
Turkel,,,,,,,,--------------
Unite_______________
632.6
9,385.7
29.5
235.6
6.5
2.5
29.5
208.8
95.1
(
111.7
28.8
OTHER EUROPE
______________
Finland
529.8
182.3
34.4
180.7
91.1
89.6
1.6
__________
Yugoslavia---------------------
395.3
(')
O
(")
(`)
(*)
(")
NEAR EAST AND AFRICA
Eigypt__________________________
503.2
38.6
7.7
37.9
23.8
14.1
`
.7
French Morocco_______________
488.9
13.2
2.7
6.0
1
6.0
2
1
)
(
(a)
7.2
(e)
Gold Coast_____________________
------------------
Iran
200.8
168.2
2.1
16.4
1.1
9.7
2.
14.5
.
5.3
9.2
1.9
----------
Iraq----------------------------
192.3
3.0
1.6
3.0
3.0
)
______________________
Israel
286.9
2.4
.8
2.4
2.4
8)
____
___________________
Sudan
145.5
3.6
3.4
3.6
3.2
4
8
_______
Union of South Africa ----------
1,191.0
4.9
4.4
4.4
(2)
FAR EAST
Ceylon-------------------------
337.6
45.5
150
0
13.5
1
22
1.6
(8)
1.6
(8)
(2)
(a)
43.9
150. 0
Hong Kong--------------------
______________
India
677.7
1,186.0
.
7.9
.
.7
4.4
3.5
.9
3.5
_____________
Indochina______________________
394.3
753
0
6.0
7.0
1.5
9
(3)
4.9
(a)
4.8
(a)
.1
6.
2.
Indonesia______________________
Japan__________________________
.
2,409.6
37.8
.
1.6
8.1
6.0
2.1
29.
Malaya________________________
1,057.9
40.3
3.8
5.9
1
2
6.9
1
2
(8
(2
34.
3
Pakistan-----------------------
350.2
4.2
5
8
1.2
3
0
.
(%)
.
(')
(a
.
45.
Taiwan------------------------
191.7
.
.
OCEANIA
_______
Australia
1,289.3
10.7
.8
6.5
4.8
1.7
4.
_________
New Zealand___________________
457.8
1.9
.4
1.3
1.2
.1
LATIN AMERICA
-
Argentina______________________
861.6
15.3
1.8
15.3
15.3
(e)
(e)
__________________
Brazil
_ 1,319.9
9.9
.8
9.9
9.9
(
)
a
_______
Uruguay----------------------
- 195.2
.8
.4
.8
.8
(8)
I Includes imports from outer Mongolia of $8,700,000.
a Less than $50,000.
8 Not reported in source.
4 Represents goods of Communist Chinese origin imported from Hong Kong,
'None.
0
1
7
4
0
8
2
6
Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
 Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
TABLE 31.-ExPORTS OF PRINCIPAL FREE WORLD COUNTRIES TO THE SINO-SOVIET
BLOC, 1954
[In millions of United States dollars]
\ Exports to_-__________
Total Sino-Soviet
bloc
European
bloc
European
satellites
Com-
munist
China
Exporting country \
Total
value
Total
value
As per-
centage
of
exports
to
world
Total
value
Total
value
Total
value
Total
value
United States-----------------
- 15, 076.8
(1)
(2)
Canada -----------------------
- 3,982.5
0.2
0.1
OEEC COUNTRIES, TOTAL-
-
Austria ------------------------
609.6
58.8
9.6
57.5
56.0
1.5
1
3
Belgium-Luxembourg ----_ _ _ _ _ _
2,303,5
66.8
2.9
66.3
42.0
24.3
.
.5
Denmark------`---------------
948.3
61.9
6.5
61.5
43.2
18.3
4
France-------------------------
4, 320.7
82.8
1.9
74.1
43.2
30.9
.
8.7
Germany, Federal Republic ----
6,354.1
206.8
8.9
185.3
172.7
12.6
21
5
Greece -- ----------------------
151.9
10
8
7.1
10
8
1
7
3
7
.
(3
Iceland-------------------------
51.9
.
12.9
24.9
.
12.9
.
5.0
.
7
9
)
Ireland-------------------------
Italy and Trieste_______________
322.3
1,636.0
.3
62.8
.1
3.8
.3
56.6
3
31.3
(i)
.
25.3
(i)
6
2
Netherlands___________________
2,393.0
85.8
3.6
84.8
52.0
32.8
.
1.0
Norway----------------
582.8
45.1
7.7
45.1
20.8
24.3
)
Portugal --------------------
253.5
6.1
2.4
6.1
1.3
4.8
~4)
Sweden-----------------------
1, 587.6
67.4
4.2
66.7
43.9
22.8
7
Switzerland__________________
1, 229.8
59.1
4.8
35.9
32.3
3. 6
.
23
2
Turkey------------------------
334.9
55.1
16.5
55. 1
49.9
5.2
(1)
.
United Kingdom_______________
7,767.8
115.2
1.5
95.8
56.3
39.5
19.4
Finland------------------------
681.0
190.1
27.9
183.5
37.1
146.4
Yugoslavia---------------------
240.4
6.2
2.6
6.2
4.7
1.5
Egypt -------------------------
399.4
56.3
14.1
44.9
39. 5
5.4
French Morocco______________
285.4
3.0
1.0
3.0
2.3
.7
Gold Coast____________________
322.1
20.4
6.8
20.4
(4)
20.4
Iran----------------------------
111.0
20.3
18.8
20.3
1.7
18.6
Ira4----------------------------
53.5
.1
.2
.1
(4)
.1
Israel---------------------------
85.0
4.4
5.2
4.4
1.3
3.1
Sudan----------------- --------
116.2
.9
.8
.7
.7
(a)
Union of South Africa ----------
890.2
7.4
.8
6.7
1.8
4.9
FAR EAST
Ceylon_________________________
380.0
46.9
12.8
46
5
Hong Kong --------------------
423.0
68.4
16.2
w
)
.
68.4
India---------------------------
1,180.0
19.3
1.6
10.7
5.4
5.3
8
6
Indochina______________________
96.5
.2
.2
(a
3
(3)
.
2
Indonesia----------------------
856.1
9.1
1.1
6.8
6.4
4
2.3
Japan--------------------------
1, 629.3
24.1
1.5
5.0
5.0
19.1
Malaya------------------------
975.4
16.7
1.7
10.3
10.3
4)
6.4
Pakistan-----------------------
358.9
33.6
9.4
7.5
3.9
3
6
26
1
Taiwan ---------------- -------
93.3
(3)
(3)
(3)
.
.
(B)
OCEANIA
Australia_______________________
1,688.1
57.4
8.4
54.2
21
9
32
3
New Zealand___________________
684.4
15.8
2.8
15.8
.
7.6
.
8.2
LATIN AMERICA
Argentina_____________________
1,073,1
84.1
7.8
84.1
47. 7
36.4
(3)
Brazil_________________________
1, 561.8
24.0
1.6
21.4
21.4
(*)
2.6
Uruguay-----------------------
249.0
23.7
9.6
23.7
3.7
20.0
1 Less than 0.05 percent.
2 $6,000 only, representing shipments for the use of a diplomatic mission of a friendly foreign country
.
I Not reported in source.
4 Less than $50,000.
'January-October data only.
.None.
Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
 Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
TABLE 3J.-IMPORTS OF PRINCIPAL FREE WORLD COUNTRIES FROM THE SINO-
SOVIET BLOC, 1954
[In millions of United States dollars]
Corn-
World
Total Sino-Soviet
European
European
U.S.S.R.
munist
Chi
Imports from -----------
bloc
bloc
satellites
na
As per-
tentage
Total
Total
of
Total
Total
Total
Total
Importing country
value
value
imports
value
value
value
value
from
world
United States__________________
10,206.7
149.3
0.5
42.3
30.5
11.8
2 0.2
Canada________________________
4,221.4
6.6
.1
3.0
3.2
.7
1.7
OEEC COUNTRIES, TOTAL__
33, 823.5
1,050.3
3.1
952.6
622.1
330.5
97.7
_________ ______________
Austria
653.3
60.3
9.2
59.5
58.1
1.4
.8
_
Belgium-Luxembourg--________
2,549.9
51.3
3.0
49.1
21.1
28.0
2.2
__________________
Denmark
1,161.9
44.6
8.8
44.3
28.6
15.7
.3
____
______ ______ _____
France
4,215.3
76.2
1.8
66.8
26.6
40.2
9.4
______
Federal Republic----
Germany
4, 708.8
226.4
4.8
190.3
168.1
22.2
36.1
,
Greece_________________________
330.0
69
4
9.3
7
12
3.8
18
8
9.3
12
7
7.8
4.6
1.5
8.1
(3)
(3)
Iceland_________________________
_____________________
Ireland___
.
503.8
.
2.1
.
.4
.
1.9
1.3
.6
.2
_
Italy and Trieste_______________
2,401.0
65.1
1
59
3.7
1
3
63.0
52
9
39.3
29
9
23.7
23
0
2.1
6
2
Netherlands____________________
2,840.3
.
.
.
.
.
.
4
Norway------------------------
1,018.6
44.2
4.3
41.8
28.5
13.3
2.
Portugal-----------------------
350.4
1
777
0
1.0
72
0
.3
4
1
.8
70.4
.8
43.4
(')
27.0
.2
1.6
Sweden________________________
------------- ___-
Switzerland
,
.
1,304.5
.
49.3
.
3.8
38.3
32.8
5.5
11.0
---
Turkey __________
478.3
45.0
9.4
45.0
41.6
3.4
(')
United Kingdom_____________
9,461.0
231.7
3.4
206.5
89.6
116.9
25.2
OTHER EUROPE
Finland________________________
656.5
185.0
28.2
182.2
98.8
2
9
83.4
1
1
2.E
(*)
Yugoslavia---------------------
339.4
4.0
1.2
4.0
.
.
NEAR EAST AND AFRICA
Egypt__________________________
458.9
26.9
6.9
26.1
3
0
19.4
2
7
6.7
3
.E
11
1
French Morocco_______________
479.8
200
6
14.1
2
9
2.9
6
1
.
2
9
.
2.8
.
.1
.
(3)
Gold Coast_____________________
_______
Iran
.
223.0
.
21.2
.
9.6
.
21.2
7.7
13.5
(*)
_____________________
Iraq____________________________
207.6
3.7
1.8
3.7
3.7
(')
6
5
(1)
(')
_________________________
Israel
289.7
11.8
4.1
11.8
5.3
.
_
Sudan
-
-
-------------------
139.3
11.2
8.0
11.1
10.9
.2
..
---
-
-
Union of South Africa__________
1,241.1
6.1
.5
5.2
5.0
.2
FAR EAST
______________________
Ceylon__
293.4
33.1
11.3
1.1
.7
.4
32.
_
Hong Kong--------------------
601.2
121.1
30.1
(3)
4
(4)
4
0
(1)
4
2
121.
4
India___________________________
1,231.3
351
4
11.2
9
3
.9
2
6
6.
.4
.
.4
.
(')
.
8.
Indochina______________________
Indonesia______________________
.
629.1
.
15.3
.
2.4
11.8
11.2
.6
3.
40
Japan__________________________
2,339.4
48.4
2.0
7.6
4
2
5.3
4
2
2.3
(')
.
28
Malaya _______________________
'
1,025.6
324
7
32.7
5
6
3.3
0
3
.
2.8
.
2.6
.2
.
3.
______________________
Pakistan
Taiwan----------------------
.
211.4
.
3.4
.
1.6
(3)
(8)
(*)
63.
__ OCEANIA ____________
Australia
--
1,692.3
13.0
.8
9.0
7.5
1.5
4.
___ ____
----------
New Zoalandf ------
597.2
2.3
.4
1.7
1.3
.4
LATIN AMERICA
Argentina----------------------
1,081.8
76.7
7.1
76.7
40.0
18
8
6.7
36.7
O
(4)
Brazil__________________________
1,633.5
18.8
1.1
18.8
2
6
.
2
6
(3)
(4)
Uruguay-----------------------
274.5
2.6
.9
.
.
I Imports from outer Mongolia of $6,839,000 included in total value but not in geographic areas.
2 Imports from China were $179,000 in January-December 1954.
3 Less than $50,000.
4 Not reported in source.
5 Includes Government account imports.
' Represents goods of Communist Chinese origin Imported from Hong Kong.
*None.
0
6
91
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0
1
8
9
5
8
5
7
 Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
TABLE 3K,-EXPORTS OF PRINCIPAL FREE WORLD COUNTRIES TO THE SINO-SOVIET
BLOC, 1955
[In millions of United States dollars]
OEEC COUNTRIES,
TOTAL__________
Austria-------- ------
Belgium-Luxembourg--
Denmark______________
France_________________
Germany, Federal Re-
public ---------------- Iceland------------
(3reece_________________
Ireland _____
________
Italy and Trieste-__
Netherlands____________
Norway________________
Portugal_______________
Sweden________________
9witzerland_.....
Turkey__________Kingdom __
United _____
__
NEAR EAST AND AFRICA
Egypt__________________
French Morocce______
NEAR Gold Coast _____________
I ran____________________
raq
I
srael
Sudan___________ _____
I Union of South Africa__
OCEANIA
Australia ----------
New Zealand__________
LATIN AMERICA
Argentina ______________
B
raztl__________________
Uruguay_______________
\ Exports to_____________________
World
Total bino-Soviet
Euro-
pean
Euro-
ean
U
S
S
R
Com-
\
bloc
bloc
p
satel-
cites
.
.
.
.
munist
China
January
through-
E
Total
value
As per-
Total centago o
value exports to
f Total
value
Total
value
Total
value
Total
value
xporting country
world
United States__________
Canada
December____
15,518.1
7.3
(1)
7.3
7.0
0.3
(4)
________________
December----
4,322.8
11.7
0.3
10.7
&0
2.7
1.0
_______________
33,387.0
1,139.1
3.4
1,040.5
770.6
269.9
98.6
December____
December----
698.8
2
779.2
71.2
70
5
10.2
3
1
69.4
63
5
63.8
48
6
5.6
1.8
December-___
,
1,041.6
.
35.7
.
3.4
.
35.6
.
25.7
16.9
9.9
7.0
.1
December----
4,800.7
133.6
2.8
126.4
90.4
36.0
7.2
December----
December
6,243.9
182
8
275.0
8
5
4.4
248.8
222.1
26.7
26.2
----
December-_-_
.
62.1
.
14.4
4.6
27.8
8.5
14.4
6.3
4.8
2.2
9.6
(*)
(*
December
----
December____
308.7
1,857.1
.1
64.0
(1)
3.4
.1
58.3
.1
42.3
(*)
16
0
2
(4
5
7
December----
December
2,687.5
634
0
62.2
37
1
2.3
50.3
43.7
.
15.6
.
2.9
__-_
December----
.
283.2
.
6.7
5.9
2.4
37.1
6.7
22.5
3.5
14.6
3
2
(8)
(4)
December----
December_
1,728.2
1
308
3
62.8
64
3
3.6
4
61.0
40
6
46.4
.
14.6
1.8
___
December----
D
,
.
313.3
.
68.6
.9
21.8
.
68.6
36.3
63.4
4.3
5.2
23.7
(
ecember ---_
8,467.6
164.4
.9
1
142.2
52.7
89.5
22
.2
OTHER EUROPE
Finland
Yugoslavia
December-___
Decemb
788.1
203.0
25.8
190.5
52.7
137.8
12.5
_____________
er
256.6
35.5
13.8
35.5
17.6
17.9
(*)
December----
December
397.4
312
1
106.1
9
6
26.7
81.6
61.4
20.2
24.5
--__
December----
December
.
270.2
136
2
.
11,5
20
7
3.1
4.2
9.6
11.5
7.9
(8)
1.7
11.5
(*)
(*,
----
September...
.
375.5
.
2
15.2
(1)
20.7
1
3.6
1
17.1
*
December----
88.2
.
3.4
3.8
.
3.4
.
1.7
(
)
1.7
(?)
October___-__
November-
122.5
928
1
3.7
7
3
3.0
2.9
2.9
(*)
.8
--_
.
.
.8
6.3
1.6
4.7
1.0
FAR EAST
eylon_________________
ong Kong __________
December----
December----
407.4
443.4
25.8
31.8
6.3
2
7
.3
(*)
.3
(*)
(*)
25.5
ndonesia____________
December--__
December
1,260.4
931
4
26.6
33
9
.
2.1
8.6
3.4
N
5.2
31.8
18.0
span__________________
----
December----
.
2,010.6
.
39.5
3.6
2.0
27.7
11.0
27.7
8.9
(1)
2.1
6.2
28.5
akistan_______________
December----
December
1,357.9
400
7
16.1
37
0
1.2
11.9
11.5
.4
4.2
ietnam_______________
i
----
November----
.
61.6
.
(4)
9.2
-
5.3
5.3
(8)
31.7
wan
a
December----
123.3
(4)
(4)
S
(4)
(4)
December---_
December
1,797.0
724
8
38.5
18
7
2.1
32.2
31.9
.3
6.3
----
.
.
2.6
18.3
12.2
6.1
.4
August_______
December
673.9
1
423
2
49.6
46
6
7.4
3
3
48.4
4
34.9
13.5
1.2
----
December----
,
,
183.7
.
10.5
.
5.7
2.0
10.6
41.3
5.9
.7
4.6
4.6
(*)
1 Less than 0.05 percent.
1 $3,000 only representing shipments for the use of a diplomatic mission of a friendly foreign country.
8 Less than 50,000.
4 Not reported in source.
(*) None.
92
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C
H
P
V
T
 Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
TABLE 3L.-IMPORTS OF PRINCIPAL FREE WORLD COUNTRIES FROM THE 'SINO-
SOVIET BLOC, 1955
[In millions of United States dollars
Imports from ---------------------
Euro-
Euro-
Com-
world
Total Sino-Soviet
bloc
pean
bloc
peen
satel-
U.S.S.R.
munist
China
--- --
-
- As per-
lites
January
Total
Total tentage of imports
Total
Total
Total
Total
through-
value
value from
value
value
value
value
Importing country
world
United States ----------
December ----
11,382.1
165.2
0.6
55.6
38.7
16.9
0.2
3
2
Canada-----------------
December-___
4,773.7
8.0
.2
4.8
4.2
.6
.
OEEC COUNTRIES,
TOTAL__________
_______________
38,849.5
31,388.7
3.6
1,260.4
825.1
435.3
128.2
Austria_________________
December-___
885.1
84.6
9.6
83.4
79.3
4.1
4
1.2
9
1
Belgium-Luxembourg..
December.---
2,844.1
54.4
1.9
52.6
23.1
29.
4
.
2
Denmark______________
December---_
1,173.0
43.8
3.7
43.6
35.2
35
0
8.
48
9
.
11
8
France _________________
December....
4,688.1
95.7
2.0
83.9
.
.
.
Germany, Federal Re-
____________
public
December----
5,966.4
3 312.0
5.2
266.0
230.2
36. S
45.9
____
Greece_________________
December----
382.2
13.2
3.5
13.1
11.2
6
7
1.9
10
6
.1
(3)
Iceland_________________
-------
Ireland
December____
December----
77.6
572.1
17.3
4.9
22.2
.8
17.3
4.7
.
3.9
.
.8
.2
----------
Italy and Trieste -------
December--__
D
ember
2, 705.9
1
3
208
71.1
78.9
2.6
2.5
87.0
70.8
43.9
40.6
23.1
30.2
4.1
8.1
Netherlands ------------
Norway ----------
.---
ec
December--__
,
.
1,089.5
41.0
3.8
39.1
21.5
17.6
1.9
Portugal_______________
December----
December
398.1
991
1
0
1.6
87.5
.4
4.4
1.6
85.2
1.4
53.3
.1
31.9
.1
2.3
Sweden________________
Switzerland ------------
.-.-
December.---
.
,
1,489.6
62.2
4.2
46.4
38.0
8.4
8
3
15.8
(')
Turk' y ----------
-___
-
UnitedKingdom
December----
December----
497.6
10,881.1
91.3
329.2
18.3
2.9
91.3
294.6
- 83.0
118.8
.
175.8
34.6
_
_
OTHER EUROPE
Finland________________
December.--_
769.4
208.1
27.0
204.0
117.0
87.0
14
4
4.1
(1)
Yugoslavia_____________
December----
440.9
33.0
7.5
33.0
18.6
.
NEAR EAST AND AFRICA
Egypt_________________
December____
523.5
35.8
6.8
34.9
9
28.3
7
3
6.6
2
.9
19.0
French Morocco --------
December__-_
469.6
22.9
5
1
4.9
3.
5
0
.
5
0
.
(a)
.1
Gold Coast_____________
December----
December
246.0
9
272
.
25.8
2.1
9.4
.
25.8
.
5.5
20.3
(`)
Iran--------------------
Iraq____________________
----
September----
ember
De
.
188.3
324
4
5.2
49.2
2.8
2.8
3.7
39.2
3.6
45.7
.1
43.5
1.5
(a)
Israel___________________
Sudan__________________
__--
c
October ------
.
115.2
3.6
3.1
3.5
3.4
5
6
.1
(a)
.1
8
Union of South Africa-
November-._.
1,244.6
6.4
.5
5.6
.
FAR EAST
Ceylon_________________
December.___
306.5
18.4
157
6
6.0
24
2
1.6
5
1.5
(3)
.1
5
16.8
157.1
Hong Kong__-_________
December----
December
650.8
353.2
41
.
4 22.4
.
1.7
.
1b.1
9.1
.
6.0
4 7.
India___________________
Indonesia_______________
_---
December----
,
604.2
40.4
6.8
30.5
30.3
5
2
.2
3
1
9.1
80
E
Japan_________________
December-___
December
2,471.4
248
6
1
89.1
41.9
3.6
3.4
8.3
4.1
.
4.1
.
(a)
.
37.1
Malaya______________
Pakistan
----
December-___
.
,
289.6
3.4
1.2
3.0
3
2.9
6'
.1
3)
.4
8.i
Vietnam___
November----
236.9
8.5
9
1
3.6
1
0
(
)
(a)
(5)
(I)
71.1
Taiwan______________
December_---
201.0
.
.
OCEANIA
Australia---------------
December__-_
1, 937.9
14.1
.7
9.6
7.5
1
2
2.1
1
4.1
1
New Zealand -----------
December.-__
703.4
2.1
.3
1.3
.
.
.
LATIN AMERICA
Argentina_____________
_ July ---------
December
- ?770.9
308
8
1
63.7
38.1
8.2
2.9
63.7
38.1
38.3
38.1
25.4
(3)
(3)
(3)
Brazil_________________
Uruguay______________
.--
_
_ December__-
.
_
,
_ 226.0
2.5
1.1
2.5
2.4
.1
(3)
I Imports from Outer Mongolia of $9,439,000 included in total value but not in geographic areas.
2 Imports from Outer Mongolia of $134,000 included in total value, but not in geographic areas.
3 Less than $50,000.
4 Incomplete.
3 Not reported in source.
3 Includes Government account imports.
7 Represents goods of Communist Chinese origin imported from Hong Kong.
'None.
93
Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
 S
Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
TABLE 4A.-UNITED STATES TRADE WITH THE SINO-SOVIET.BLOC, 1938, 1948,
1952, 1954, AND 1955
[In thousands of dollars]
Total Sino-Soviet Bloc______
U. S. S. R ----------------
European satellites__________
Albania--------
Bulgaria--------------------------
Czechoslovakia____________________
Estonia
Germany, Soviet Zone __________--
HungarY----------------------
Latvia
Lithuania Poland and Danzig_______________
Rumania
Bloc in Asia_________________
China (including Manchuria) -----
Outer Mongolia 3_______
North Korea----------------------
186,331
69,691
396,641
27, 879
1,097
20
6,126
216
7, 251
252
275 344 (2)
760 2,086 24
26,526 21, 563 75
1,573 7 (*)
(3) (3) 622
2, 731 8, 029 69
1,342 1
669 115 (*)
24,695 55,675 286
6, 315 7, 542 _(*)
51, 724 273, 400 (*)
151,724
(3)
273,400
(3)
(*)
5
1, 005
(*)
765
2,476
+
(*)
1, 588
46
(*)
(*)
125
2, 177
(*)
407
788
(*)
3, 307
33
(*)
123, 546
24, 034
150
2, 214
26,174
1, 244
(3)
3, 544
558
922
13, 417
2,474
{48, 815
(3)
233,'483
86, 825
(*)
831
22, 125
(a)
(3)
1, 613
6
10
1, 249
480
120, 345
(3)
67,311
16, 818
52
275
1, 477
(*)
7,118
2,913
(*) 1
10, 247
24,605
3, 120
(*)
49,425
11, 928
8
311
3,074
(*)
3, 794
1, 339
(*) 1
21, 570
382
168
6 849
65,166
16, 875
80
402
3,819
(*)
5, 439
2, 017
(*) 5
26,624
270
195
9, 439
(*)
NOTE,-Columns may not add exactly due to rounding.
I Data represent direct shipments only which in prewar years greatly understated the trade with Contra I
European countries.
3 Less than $500.
3 Not shown separately.
4 Represents a shipment for the use of a diplomatic mission of a friendly foreign country.
4 Represents shipment of printed matter under general export license.
9 United States does not consider Outer Mongolia as a part of Communist China; although traditionally,
for statistical purposes, Outer Mongolia has been conditionally included with China; Separate figures
for this area have been complied by the Bureau of the Census only since January 1953. The 1952 breakdown
is estimated.
*None.
94
Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
 Approved For Release 2001/08/30: CIA-RDP61S00527A000100180118-8
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Approved For Release 2001/08/30: CIA-RDP61S00527A000100180118-8
 Approved For Release 2001/08/30 : CIA-RDP61S00527A000100180118-8
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