WORLD ECONOMIC CONFERENCE INFORMATION BULLETINS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00415R012000020001-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 37
• Document Creation Date: December 14, 2016
• Document Release Date: July 3, 2001
• Sequence Number: 1
• Publication Date: June 20, 1952
• Content Type: REPORT

.
FORM 'N0. 5 1 . 6 1
Appre Iir D}e se 2001/ SECRE CIA-RDP 35~JP 15R012000 0 0(
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CENTR IECI T LI F F QqICY REPORT NO.
INFORMATION REPORT CD NO.
SUBJECT World Economic Conference Information Bulletins NO., OF PAGES
25X1A
REPORT NO. 25X1X
The attached Information Bulletins Nos. 5-7 on the World Economic Conference held
in Moscow, 3-12 April 1952, are being sent to you on loan in the belief that they
may be of interest. Please return within three weeks,
25X1A
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-rum it RI nicU UAE TO
INTERNATIONAL
EcoNoMIc
CONFERENCE
INFORMATION BULLETIN
Conference Diary
The Plenary Session of the International Economic
Conference on April 9 was opened by M. Paul Bastid
(France). Ile informed the Session that there is
an opinion current that the Business Contacts
Bureau should be broadened to include representatives
of all countries. The Chairman further announced that
the Soviet Arrangements Committee has invited Deputy
Minister of Foreign Trade of the U.S.S.R. A. Zakharov
to take part in the work of the Contacts Bureau. Similar
invitations were addressed by the Chinese delegation
to Mr. Lei Jen-min, Deputy Minister of Trade
of the Chinese People's Republic, and by the British
delegation--to Mr. J. Perry, Director of the Combrian
Dress Products, Ltd. It would be desirable, he said, that
representatives of other countries should also be
delegated to the Contacts Bureau.
The floor was then granted to M-me Torni Kora,
professor and member of the Chamber of Councillors
of the Japanese Parliament, who was followed by
Herr Heinrich Krumm, owner of a leather goods factory
at Offenbach (Western Germany).
The Plenary Session heard the reports of repre-
sentatives of the Working Groups.
Professor ?. Lange, Chairman of the International
Trade Group, declared in his report that the speakers
at the meeting of this Group called attention to the low
volume of international trade today, which is largely
due to the decline in trade between the countries of the
West and East. At the same time, there are wide
possibilities for a considerable increase in the volume
of trade between West and East, and proof of this
is contained in particular in the. important transactions
concluded in the course of the Conference.
Summing up the results of the discussion held in the
Group, Mr. Lange briefly formulated the recommenda-
tions of this Group. The Group went on record
in favour of the abolition of all restrictions in
international trade which are based on non-eco-
nomic considerations. It recommended the conclusion of
long-term agreements between countries, including mul-
tilateral agreements; the conclusion of credit and
payment agreements, and, in particular, on payment for
The Information Bulletin is published in the English,
Russian, French and German languages.
imports in national currencies; and steps to bring about
the simplification of customs, transit and othe}-
formalities. Speakers at the meeting of the Group
expressed the hope that the work initiated by this Con-
ference will be continued, and proposed to set up at
International Committee for the preparation of another
International Economic Conference and for conducting
other activities designated to promote international
trade.
The report on the results of the work of the Interna
tional Economic Cooperation for the Solution of Social
Problems Group was delivered by M. Pierre Lebrun
(France). He informed the Session that this Group had
given thorough consideration to the problems of food,
housing and employment from the viewpoint of their
connection with the state of international trade. The
Group submitted to the Plenary Session the following
recommendations: 1) under the existing political and
economic conditions, business circles should do every-
thing within their power to facilitate the exchange in
goods; 2) all governments should give every assistance
to businessmen and commercial organizations in the
expansion of international trade; 3) governments should
take joint steps, through the specialized agencies of
U.N.O., for the gradual elimination of the handicaps to
international trade; 4) as a first step, the United Na-
tions General Assembly should be recommended to
convene at the earliest date a conference of repre-
sentatives of all governments together ' with repre-
sentatives of business circles; 5) the Conference consid-
ers the existing international tension one of the main
obstacles to the development of international trade; the
Conference expresses the fervent hope that as a result
of wise action this tension will be relieved and the way
will be cleared for cooperation, for raising the living
standards of mankind.
Mr. Gyan Chand (India), Chairman of the Under-
developed Countries Group, declared in his report that
the majority in this Group were unanimously of the
opinion that the peoples in the underdeveloped countries
are prey to poverty and disease owing to the economic
backwardness of their countries. Concerted efforts .. on
the part of all states of the world are necessary to help
the underdeveloped countries. The speakers in the dis-
cussion held in this Group denounced the methods of
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In the Session Hall
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trade which undermine the independence of the under-
developed countries, and encroach upon their sover-
eignty, emphasizing that the interests of the under-
developed countries dictate the need for doing away
with all discriminations and all restrictions in trade.
Trade should become a means of strengthening their
economies.
Mr. Chand went on to state the views shared by the
majority in his Group on the ways of finding capital
for the economic development in the underdeveloped
countries, on technical assistance and services to these
countries and aid in training technical specialists.
After a brief recess, the Plenary Session was
resumed with Senator Ahmad Matin Daftari, Professor
of Teheran University, in the chair. Ile granted the floor
to Professor O. Lange who informed the Session of the
future procedure recommended by the Presiding Com-
mnittee of the Conference.
"There are three basic proposals submitted to our
Conference," said O. Lange. "One is the establishment
of a Committee for Promotion of International Trade.
The second is an Address to the United Nations, and
the third is a Communique indicating the main results
of the Conference, such as the number of persons who
attended, the countries from which they came, the contents
of the reports of the Working Groups and an account of
the results of the business contacts which we have
established at this Conference. All other proposals
should, in the opinion of the Presiding Committee, be
transmitted to the Committee for Promotion of Interna-
tional Trade, which we propose to elect, for considera-
tion and possible further action."
Mr. Lange recommended that the Conference should
entrust the Presiding Committee with the preparation
of a draft project of the above proposals.
In their brief speeches, M. Bernard de Plas (France),
director of the National Publicity Corporation, and All
Wekili .(Iran), a businessman, seconded the proposals
moved by Professor O. Lange.
These proposals having been unanimously approved,
the Session was addressed by M. Robert Chambeiron,
Secretary General of the International Economic Con-
ference, who stated his considerations with regard to
the date of the closing meeting of the Conference. He
proposed to call the last Plenary Session on April 12
and cited the reasons for modifying the original pro-
cedure of the Conference.
The first reason is that many businessmen attending
this Conference have asked to be given the possibility
to meet representatives of Soviet economic organiza-
tions and other delegates in order to continue the com-
mercial negotiations begun on the first clay of the Con-
ference. Secondly, the participants of the Conference
should be given time to examine the reports of the
Groups submitted for the consideration of the Plenary
Session. Thirdly, and lastly, the Presiding Committee
should be given the opportunity to prepare a careful
draft of the proposals to be presented for the con-
sideration of the Plenary Session, so that these pro-
posals should reflect the general opinions of the
participants of the Conference.
The proposal of M. Robert Chambeiron was adopted
unanimously.
The closing Plenary Session of the International
Economic Conference will take place in the hall of
Columns of the House of Trade Unions, at 10 a.m. on
Saturday, April 12.
Five hundred twenty-one persons representing
49 countries are taking part in the labours of the Inter-
national Economic Conference.
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INTERNATIONAL ECONOMIC CONFERENCE 3
Mme. Tomi Kota
The people of Japan are determined to
have peace; Japan's economy must serve the
interests of world peace, Mme. Kora said.
We have learned some lessons from the
past. Our people are determined to advance
along the path of poace, but no small nation
can proceed along that path alone. No nation,
however small and secluded, can afford to
lead the hermit life that we have led in the
past. We must frankly and honestly state
that our dense and growing population of
nearly 84,000,000, living on four small islands,
requires -assistance.
Though Japan's. industrial output has at-
tained the prewar level, her export trade is
encountering many difficulties.
.Compared with prewar, food prices have
advanced 437 per cent, and textiles 444 per.
cent. Imported raw materials cost more, with
the result that export goods-machines,
metalwares, rolling stock, ships, sewing nia-
chines, etc.-must be sold at higher prices.
The textile industry has been hard hit,
Cotton mills producing for export to Pakistan,
Africa and other areas are curtailing opera-
tions. Their women workers are either being
dismissed or are employed only half time. Yet
textile exports could supply Japan with for-
eign exchange to purchase food in Burma,
Thailand and other countries. And it is our
ardent wish, the speaker said, to be able in
(JAPAN)
O 8
the near future to buy food in China and
the Soviet Union.
Japan could export silk and silk goods,
porcelain, handicraft products, and China
and the U.S.S.R. would be rendering us an
important service by buying these goods.
Japan's import requirements cover a wide
range of food products: rye, wheat, sugar,
soybeans, and such raw
materials as wool,
cotton, coal, oil and oil products, timber ores,
metals and hides.
We sincerely hope, Mme. Kora said, that
the day is not distant when Japan. will be
able to resume trade with her neighbours
instead of having to import the goods she
needs from the United States -and South
America by way of the Panama Canal and
the Pacific.
The speaker then described living condi-
tions in Japan. She said that as against the
required caloric content of 2,500, the aver-
age Japanese diet in 1947 amounted to
only 1,535 calories, in July 1951 to 1,089,
and this. January to only 806. Statistical re-
turns indicate that the conditions of the
people are deteriorating.
Unemployment is bound to grow in the
next few years. We mothers are often re-
proached for having brought too:, many
children into the world. But they have -been
born, they have survived the war, and it is
our duty to find employment for them.
Unemployment is widespread and is in-
creasing all the time, the speaker said. What
can be done to give these people a decent
life?- How can their living standards be
raised and their earnings increased?
Wages are around 81-85 per cent of pre-'
war, though food prices have advanced . 437:
per cent and manufactured goods nearly
150 per cent. -
Half of our students; Mme. Kora con-
tinued, have to work. their . way' through.
college, working in the daytime.-and -at-,
tending classes in the evenings. Some, even.
sell their blood to blood-banks.
We must bring the joys of labour to al
the peoples of the earth, Mme. Kora said
in conclusion. She suggested that tech-.
nicians be encouraged to visit other coon-,
tries and share their- experience,- if nece$-,
sary becoming citizens of these countries,
living there and sharing the life of their
peoples. That is one -lesson we could learn:
from ancient Asian wisdom, for it was. in
this way that Chinese and Korean artisans
taught us various arts and crafts, and we
know that Oriental art add science have
had a profound impact on the whole world.:
(Applause.)
Herr Heinrich Krumm
Mr. Chairman, Ladies and Gentlemen,
The Conference is drawing to a close. We
want to express our sincere thanks to our
hosts for the cordial reception and hospi-
tality extended in line with the traditions of
their country. They have afforded us the
opportunity of gathering excellent impres-
sions.
We would also like to thank the rep-
resentatives of all other nations who in the
individual negotations have met us, West
Germans, with such great understanding.
Mr. Krumm stated that the Conference
participants from West Germany deemed it
necessary to refrain from nominating a rep-
resentative for the Presiding Committee of
the Conference. He declared explicitly that
the Group from West Germany did not con-
stitute a delegation but consisted rather of
The speeches are given in abridged form.
(WEST GERMANY)
0
private individuals and businessmen who
were neither authorized by the government
of the German Federal Republic nor had
received any instructions from that govern-
ment. "For these reasons my present speech,"
he continued, "cannot be binding upon our
government."
He then went on to say.
"In their statements at this Conference all
participants have repeatedly stressed their
readiness for close economic cooperation. This
as well as the talks and negotiations that
were conducted here by individual economists
with participants in the Conference led us
to the conviction that useful work has been
done here. We confidently hope that the
economic ties initiated here will on our
return home be developed, and we believe
that they will exercise a beneficial influence
on trade between our country and all other
peoples. .
"Our very special interest in-the removal
of all trade restrictions springs from the
difficulties which commodity exchange still
encounters today within our country.
"We cannot believe that the work of this
Conference is to be considered finished.
."We therefore join in the proposal that a
permanent Information Centre be established.
We suggest that its headquarters should be
in Berlin. The particularly favourable location
of this city, situated as it is halfway be-
tween East and West, requires no demon-
stration.
"We are moreover of the opinion that
relations should be established with all in-
stitutions in the world which likewise aim
to promote trade and universal peace."
(Applause.)
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4 INTERNATIONAL ECONOMIC CONFERENCE
the next two or three years to increase its
trade with Western Europe, the Americas,
Southeast Asia, the Middle East and Austra-
lia to the value of 10,000-15,000 million rubles
annually, which is two or three times the
maximum postwar level, which was achieved
in 1948. At the meetings of the Working
Group it was estimated that, taken together,
the Soviet Union, China, Poland, Czecho-
slovakia, Rumania, Hungary, Bulgaria, Albania
and the German Democratic Republic are able
to increase their trade with other countries
to two and a half and three times its present
level, and this over the short space of two
or three years.
Participants from the countries of Eastern
Europe and China drew attention to the fact
that these possibilities of increasing foreign
trade run parallel to the constantly increas-
ing volume of trade and expansion of
economic relations among themselves. They
also indicated that the systematic increase in
the volume of trade among themselves is
founded on long-term trade agreements and
that their trade relations are based on the
principle of equality and mutual advantage.
They further indicated that their system of
trade agreements is such that problems of
payment or currency difficulties do not arise.
The possibility of expanding trade relations
between the countries mentioned shows that
similarly satisfactory trade arrangements
based on equality and mutual advantage can
be made with other countries.
In turn, speakers from countries of
Western Europe, Asia, the Americas and
other parts of the world have indicated their
willingness to develop their trade relations
with the Soviet Union, China and the coun-
tries of Eastern Europe.
Thus the discussion has established both
the willingness for and the possibility of a
substantial increase in international trade
which may well contribute towards the solu-
tion of the difficulties in which many coun-
tries find themselves, and which may he of
mutual advantage to all parties concerned.
Since the obstacles which prevent taking
full advantage of trade possibilities are of
an artificial and non-economic character, it is
possible by removing them to create condi-
tions allowing for the full development of
these possibilities. Consequently, the discus-
sion in the Working Group shows that there
is no need to accept the present unsatis-
factory situation of world trade as inevitable
and that ways and means may be found to
overcome it and to develop international
trade to the mutual benefit of all countries
and their populations.
Report by Mr. Oskar Lange
Mr. Chairman, Ladies and Gentlemen,
The Working Group on the Development
of International Trade met on April 5, 7 and
8, discussing the present situation of world
trade, the possibilities of increasing and ex-
panding international trade and the means to
achieve such expansion.
As a result of the discussion certain
proposals were made. It is the purpose of
this report to give a summarized account of
the conclusions of the discussion and of the
main proposals resulting therefrom.
The participants in the discussion indicated
the low level of present international trade.
It was pointed out that the present volume
of international trade is only very slightly in
excess of that of 1928, and if the increase in
population is taken into account the per
capita level turns out to be lower in many
countries.
Delegates from many countries expressed
their anxiety concerning this state of affairs
and pointed to the disruption and shrinkage
of economic relations between nations. This
disruption, many speakers said, is a conse-
quence-of the artificial obstacles to foreign
trade resulting from discriminatory restrictions
based upon non-economic considerations.
As the majority of the speakers who took
part in the discussion stated, the decrease in
trade between the countries of the West and
the countries of the East is a main factor in
the present abnormal situation of international
trade.
A number of delegates from Latin America,
Asia and Western Europe mentioned the ad-
verse effects these 'restrictions have for the
national economics of their countries. They
pointed out that the disruption of many tra-
ditional channels of trade had led to difficul-
ties in the export of many commodities,
which in turn makes it impossible to purchase
the imports necessary for the development of
the national economies and the provision of
the needs of their populations. In many
countries this has caused a recurrent and
even more or less permanent crisis in their
balance of payments. One of the symptoms
of this crisis is the well-known dollar shortage
experienced by a great number of countries.
It was stated that the attempts ' to meet
the crisis of balance of payments by means
of import restrictions lead to a lowering of
the living standards of the populations of
these countries, to a rise in prices, and
unemployment. Speakers from West-European
countries mentioned that these attempts have
failed conspicuously to solve the problem of.
balance of payments and that the only per-
manent solution can be found in an extension
of the geographical area of the foreign trade
of these countries, which at present appears
to be too narrow. Similar views were expressed
by speakers from Canada, Latin America
and the countries of Asia. These views are
in harmony with that expressed at the
(Chairman, Development of
International Trade Group)
Plenary Session by a participant from the
U.S.A. indicating the desirability of an all-
round and free development of trade relations
between all countries.
Participants from Asia and Latin America
indicated that the artificial obstacles imposed
on foreign trade are a serious handicap for
the economies of the underdeveloped coun-
tries. They prevent these countries from
purchasing the materials and equipment neces-
sary for the industrial and general economic
development of their countries from accessible
sources with the foreign currency they might
have at their disposal if they could develop
fully their exports to all countries of the
world. Thus, the present disruption of inter-
national trade relations weighs heavily upon
underdeveloped countries.
However, the analysis of the present state
of international trade, of the causes of its
inadequate volume, and of its adverse conse-
quences upon the national economics of
various countries did not lead the participants
of the Working Group to pessimistic con-
clusions.
The most remarkable conclusion of the
discussions in the Working Group was the
establishment of the existence of great pos-
sibilities of increasing the volume of interna-
tional trade, of expanding its geographical
area and of extending the list of commodities
exchanged.
During the discussion tine representatives
of business circles of various countries ex-
pressed their willingness to develop trade
relations with other countries and they made
concrete proposals concerning their ability to
increase foreign trade during the next few
years.
Thus, for instance, the delegate from China
declared that his country is able during the
next two or three years to increase its for-
eign trade with countries of private enter-
prise to the value of 15,000-19,000 million
rubles.
The delegates from Poland, Czechoslovakia,
Rumania, Hungary, Bulgaria and Albania
presented concrete proposals for the increase
of their trade with West-European, American
and Asian countries. These countries are able
to increase their foreign trade to the value
of 25,000-30,000 million rubles during the
next two or three years.
From the declaration of the delegate from
the German Democratic Republic it follows
that her foreign trade with Western countries
can be increased during the next two or
three years to the value of 10,000-12,000 mil-
lion rubles.
To this it may be added that according to
the statements Mr. Nesterov made at the
Plenary Session, the Soviet Union is able in
April 10, 1952, No. 7
The Working Group did not limit itself to
a discussion of the possibilities of increasing
international trade in general terms. Concrete
statements were made by participants from
various countries concerning the products
they might export and the commodities they
wish to import.
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In order to provide facilities for more
detailed and concrete discussions on trade
possibilities in particular commodities, six
groups were formed to discuss the export
possibilities as regards the following cate-
gories of commodities: engineering products,
chemicals, minerals, foodstuffs, grains and
textiles. Special rooms were set aside in
which persons interested in these commodi-
ties-as potential buyers or sellers-could
exchange their views and information. These
discussions on particular groups of com-
modities went on in addition to the regular
sessions of the Working Group and lasted for
many hours.
I am happy to be able to inform this Con-
ference that as a result of such discussions
a number of really important transactions
were concluded and an even larger number
were initiated. This successful conclusion of
discussions on particular commodities in-
dicates clearly that an increase in interna-
tional trade and establishment of new trade
channels, as well as reestablishment of old
ones, is not merely a theoretical possibility
but a practical reality. The practical results
of the meetings between representatives of
business firms and business organizations of
various countries at this Conference show
clearly that there exists a large number of
businessmen who are ready to take advantage
of increased trade possibilities and that an
increase in trade relations is feasible practi-
cally. If one considers that at this Conference
there are only about 450 participants, and
that not all of them are businessmen, this
small sample of the practical possibilities of
extending international trade relations fore-
shadows the great upswing in international
trade which maybe expected once the artificial
obstacles hampering such trade are removed.
IV
The discussion which took place in the
Working Group on the development of in-
ternational trade resulted in a number of
proposals. Some of them were of a more
general and fundamental character, others
referred to questions of detail. I do not think
it is useful to present to you these pro-
posals in all their details. They are contained
in the speeches of the various participants
in the discussion and they can be easily
found in the Information Bulletin of the
Conference. Here I shall concentrate on
those proposals which are of a fundamental
character.
First of all I should like to mention a
proposal which was made by speakers com-
ing from different parts of the world. This
is the proposal that this Conference ad-
dress its findings and conclusions, as well
as its recommendations, to the United Na-
tions, and that it invite the United Nations
to take due cognizance of the facts . and
conclusions established at our Conference
and take measures conducive to the in-
crease and development of international
trade relations. This would, in the opinion
of many participants, be an important step
towards putting into effect the conclusions
and recommendations of our Conference.
With regard to suggestions for recom-
mendations to be made by this Conference,
the following were submitted.
The removal of all restrictions on foreign
trade based on non-economic considerations.
Other suggestions refer to the conclusion
of long-term agreements between countries,
including multilateral agreements, the devel-
opment of technical measures to facilitate
international trade, credit and payment ar-
rangements, particularly the payment of im-
ports in national currency, the simplification
of customs, transit and other formalities,
and others. Suggestions were also made con-
cerning the organization of means of mu-
tual information on export possibilities and
import requirements; there were sugges-
tions for Information Centres or bulletins,
or similar means of achieving this end.
A great many speakers raised the ques-
tion of continuing the -work initiated
by our Conference. Suggestions on this
subject were 'made by speakers from
France, Great Britain, Finland, Albania, Pa-
kistan, the German Democratic Republic,
Austria, Belgium and other countries. The
suggestion that the work undertaken by
this Conference should be continued seems
to be widespread among the participants,
though the exact means by which this
should be carried out and the form it should
take were not fully crystallized and there
was considerable divergence in the details
of the suggestions made on this subject.
However, there is one point which seems
to find general acceptance. This is that it
is desirable to hold another International
Economic Conference like the present one.
It may be too early to discuss now the
date and place of this Conference, but the
idea that another International Conference
should be held in the not too distant future
seems to be widely shared. It also seems to
be pretty generally accepted among the par-
ticipants of the Working Group that some
kind of International Committee should be
established to prepare for such a conference
and possibly to carry on some other activi-
ties for the promotion of international trade.
Among further proposals which have
been made I should like to mention that of
calling national conferences of representa-
tives of all business and economic circles
to consider new markets for the traditional
exports of each country, new sources of
purchases of commodities needed by. each
country and reestablishment of old markets
and sources of materials, on the basis of
mutual advantage and national sovereignty.
Another proposal suggests international
economic meetings on. specific trading and
economic questions. There is also a proposal
to organize international fairs in various
parts of the world.
Mr. Chairman, Ladies and Gentlemen, on
behalf of the Working Group on International
Trade I have presented to you an account of
the discussions which took place in that
group, of the conclusions which result there-
from, and of the suggestions and proposals
which were made. Now I should like to go
one step further and, already in my personal
capacity, draw certain logical conclusions
from the proposals which were suggested,
and also put the most important of them in
a concrete form.
The proposal to address the United Nations
seems to me very appropriate. It is widely
accepted among the participants of this Con-
ference. However, it needs some precision.
What organ of the United Nations should we
address? We must address the United Nations
as a whole through its most fundamental
organ, which is the General Assembly.
Furthermore, it is not sufficient to submit the
findings and conclusions of our Conference.
We must suggest definite steps to be under-
taken towards the betterment of internation-
al economic relations and the development of
international trade. Our Conference is a non-
governmental meeting and lacks executive
power to carry through its recommendations.
Nor does it aspire to substitute itself in any
way for existing governmental or inter-
governmental organizations. We therefore
should suggest to the General Assembly of
the United Nations to call an Intergovern-
mental Conference for the Promotion of
World Trade. Only such a Conference of
government representatives held under the
auspices of the United Nations will command
the power and authority to take effective
steps to remove the obstacles which today
obstruct international trade and to promote
the resumption and development of healthy
trade relations throughout the world.
There is widespread agreement among par-
ticipants of the Working Group that a new
nongovernmental International Economic
Conference like our present one should be
called, and that an International Committee
to prepare it and possibly engage in other
activities for the promotion of international
trade should be established.
Here again I should like to make a concrete
and precise proposal. The proposal is to
establish a Committee for the Promotion of
International Trade. This committee should
study the findings and suggestions made at
our Conference with a view to making them
known to the widest possible circles of busi-
ness and economic opinion. It should also
issue a Bulletin continuing the exchange of
information so successfully begun at our
present Conference, And, finally, the Com-
mittee should be charged with determining
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6 INTERNATIONAL ECONOMIC CONFERENCE
the date and venue of a new International
Economic Conference and doing the prepara-
tory work for it.
Finally, before finishing our Conference we
have to issue a communique indicating the
I findings and results of our Conference and
its main suggestions.
These, Ladies and Gentlemen, are the
concrete proposals which I should like to
make in conclusion of the debates and sugges-
tions of the Working Group. I hope that you
will consider them and adopt them as further
steps on the road of international cooperation
for the development of international trade.
(Applause.)
Report by M. Pierre Lebrun
Mr. Chairman, Ladies and Gentlemen,
The second Working Group discussed the
problem of what part international economic
cooperation could play in the solution of
social problems.
Nearly one hundred delegates attended
each of our four meetings; all of thdm
displayed a deep interest in the prob-
lem under discussion and took an active
part in the work of the group. Most of the
delegates are trade union leaders from the
countries represented at this Conference.
The first part of our discussion has been
reported in the Conference bulletin, and I
shall endeavour to supplement this informa-
tion with a general survey of the debate, or
at any rate of the principal questions that
emerged.
1. The group unanimously supported the
suggestion of its distinguished chairman
that special attention. be paid to problems of
nutrition, or rather to malnutrition, which is
having such a disastrous effect on a large
segment of the world's population.
2. Most of the speakers dealt also with
unemployment, the spread of which is caus-
ing justified concern among trade unionists
and in economic circles throughout the
world.
A significant contribution to our discus-
sion of this and other problems was made
(International Economic
Cooperation for the Solution
of Social Problems Group)
by Mr. Kuznetsov, Chairman of the Central
Council of Trade Unions of the U.S.S.R.
Mr. Kuznetsov reaffirmed Mr. Nesterov's
proposals for promoting trade relations be-
tween the Soviet Union and capitalist and
underdeveloped countries. He described their
immense social implications for the solution
of the problem of full employment in the
capitalist world. He demonstrated that the
adoption of the Soviet proposals would
mean jobs for 1.5-2 million people for the
next three years. They would provide work
for over 100,000 in Italy, over 100,000 in
France, over 200,000 in Britain, over 100,000
in Western Germany, for tens of thousands
in Holland, etc. And this apart from the
opportunities created by trade with China,
the People's Democracies and the German
Democratic Republic, which were so vividly
described here by Mr. Lange. His figures
fully justify the prediction that in a country
like France, for example, normalization and
development of trade with the East could
completely eliminate unemployment and
produce a much healthier atmosphere on the
labour market.
Report by Mr. Gyan
Mr. President and fellow delegates,
It is proposed to give a general review
of the important points which emerged in
the course of the discussion of the problems
of the underdeveloped countries in relation
to world trade. Recommendations made by
individuals and delegations, jointly or sepa-
rately, are transmitted to the Plenary Ses-
sion appendices to this Report.
The masses, particularly in underdeveloped
countries, are suffering acutely from poverty
and disease, and their position, besides being
a source of political and economic instability
and insecurity, is a challenge to the social
conscience of the world and calls for concert-
ed action on the part of underdeveloped
countries and the more developed countries.
This ac lion, however, can be promoted and
become fruitful if all nations-specially those
(Chairman, Underdeveloped
Countries Group)
O O
which count in international affairs-follow a
policy of peace and utilize their surplus
resources, higher technique and experience in
the interest of peace rather than preparation
for war and contribute materially to the
rapid development of the underdeveloped
countries. This is essential in the interests of
peace, prosperity and the future well-being of
mankind as a whole.
Basically, conditions and problems of the
underdeveloped countries, broadly speaking,
are about the same.
They are mainly agricultural countries
whose agrarian economy has a repressiveeffect
3. Much was said in the debate about the
social repercussions of rearmament. Essen-
tially, it is difficult to distinguish then from
the consequences of the curtailment of
trade, for rearmament and reduction of
trade are closely linked. It would, however,
be correct to say that contraction of trade
preceded the present international tensions
and, perhaps, helped to aggravate them. It
is also indisputable that international fric-
tions are, in turn, helping to cut down
world trade. Hence, normalization of world
trade would definitely ease international ten-
sions. This is one of the conclusions we ar-
rived at. ,
The recommendations formulated by our
group have been submitted to the Confer-
ence. They faithfully reflect urgent and
pressing problems which were so vividly
discussed at the Conference. In drawing up
the recommendations, we were guided by
a desire to extend the area of agreement
not only in our own group and at the Con-
ference generally, but among economic and
public circles throughout the world. We re-
quest that you consider these recommenda-
tions and instruct the Presiding Committee
to integrate them in the decisions and rec-
ommendations that will be adopted by the
Conference. (Applause.)
C hand
on their economic advance. Closely related to
the agrarian system of these countries is
their backward agricultural technique which is
a common feature of their economic life.
A fundamental prerequisite of sound and
rapid economic development of these countries
is modernization of their agrarian economy
and rationalization of agriculture. Fulfilment
of this need is necessarily more a matter of
national policy than of international action;
but in view of its fundamental importance, it.
is very necessary that nothing should be done
internationally to retard basic economic trans-
formation in this respect and international
experience as far as possible be fully utilized
to contribute to and accelerate this process.
Development of agriculture and industry on
these lines carries with it the necessity of
trade without discrimination.
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April 10, 1952, No. 7 INTERNATIONAL ECONOMIC CONFERENCE
At present the trade of the underdeveloped
countries both in its direction and composition
is the result of historical circumstances, eco-
nomic dominance of the stronger countries and
restrictive trade practices, which have grown
in volume and intensity owing to the growing
international economic tension. It is in the
interest of the underdeveloped countries that
the latter should be eased.
Restrictive practices which are distorting
their entire economic life should be abandoned.
The trade of these countries has to be organ-
ized primarily in the interest of the people of
these countries and has to be related to their
basic economic and social needs and long-
term interests. The paramountcy of price
differentials and economic ascendancy of the
more advanced countries need to be con-
sciously counteracted by due regard for [lie
social purpose of all trade, which must be
made reciprocally advantageous and mutually
beneficial.
Trade has to be organized as an instru-
ment of mutual aid; and if this object is to
be realized, the trade of the underdeveloped
countries should be diversified and its basis
broadened.
The more advanced countries have a clear
duty and obligation in this respect and it is
necessary that they should discharge it well
in the interest of world harmony and
therefore their own long-term interest. Any
trade practices which impair the economic
independence of the underdeveloped coun-
(ries are essentially baneful and it is of the
highest importance that the economic auton-
omy and integrity of these countries should
be fully preserved.
At present the underdeveloped countries
are labouring under serious disadvantages
owing to the control of the strategic centres
of their economic life by foreign interests.
This control is due to:
a) the ownership and control of their
basic natural resources and major industries
by foreigners,
b) their external trade and the co-related
banking agencies being almost entirely in the
hands of foreigners, and
c) shipping being controlled by a few
countries and international cartels.
This control inhibits the natural economic
progress of these countries, necessarily in-
volves disregard of their vital interests and
creates a state of dependence incompatible
with their true economic freedom. This state
of things has to be changed and each nation
has to be placed in a position to shape its
own economic destiny.
These countries have pressing needs for
capital, goods which either are not satisfied
at all at present or are partially satisfied at
the cost of their economic independence.
Though private foreign investments may,
if they can be subjected to rigorous condi-
tions in the interest of underdeveloped
countries, contribute to their development
within certain limits, in connection with the
present world situation these countries have
to rely mainly upon the mobilization of their
own capital resources through the evolution
of new techniques of social investment, the
utilization of their idle human resources, and
to obtain short- and long-term credit with-
out incurring onerous obligations and also,
within the limits of the resources of the
advanced countries, unilateral aid.
New organs for the discharge of these
functions have to be created and developed;
and, if possible, the existing international
agencies have to be used for the purpose.
Urgent as the capital. requirements of
these countries are-this is a point, gentle-
men, which I would specially emphasize-the
disposition to regard them as the most im-
portant limiting factor in the development
of backward countries has to be deprecated.
If these countries can bring into play new
social incentives and set free creative forces
inherent in the existing situation, the need
for capital formation would not be the for-
midable problem it is often made out to be.
Contemporary experience of a number of
countries bears out the conclusion that,
given the social will to action, capital re-
quirements of the underdeveloped countries
are capable of being satisfied through their
own initiative within a very large measure.
The economic life of these countries ac-
quires a specially precarious quality owing
to their being particularly sensitive to fluc-
tuations of prices and demands originating
too often in international speculation. This
is due to their dependence upon a few
markets for their exports and imports, their
weak bargaining position and staying power
and limited financial resources.
Trade without discrimination would reduce
their disadvantage in this respect, and
probably coordinated action on a regional
basis would go some way to give them a
position of equality in relation to their more
powerful customers.
Terms of trade are fairly often very un-
favourable for these countries and cannot be
improved without concerted action. It is nec-
essary to create for the trade of these
countries conditions of relative stability and
security, and they have to be placed ins a
position to take defensive measures against
adverse forces and circumstances. At pres-
ent they have no insurance against these
risks and are in no position to provide it.
They have to act with a clear understand-
ing of the nature of the risks to which
they are exposed and devise measures for
mutual insurance.
International action in this field is ob-
viously called for and has to be promoted.
Provision of technical experts and tech..
nical training of the personnel of the back
ward countries is another condition which ai;
present is being exploited to their disadvan-
tage. . It is necessary to create a 'common
pool of technical experience which can be
drawn upon according to the relative needs
of the underdeveloped -countries and in in-
ternational schedule of priorities.
Expert experience and knowledge are
available in a number of countries and it is
in the interests of world, solidarity that it
should be fully drawn upon from all sources
and allocated on a rational basis.
For training of the youth of the back-
ward countries it is necessary that the
needs of these countries should be given
their due weight and they should have
access to the most advanced knowledge and
.practice of the developed countries. The
atmosphere of secrecy in which the avail-
able technique, knowledge and experience
are at present enveloped is due to economic
parochialism, which is inconsistent with the
essential requirements of genuine interna-
tional cooperation and should be dis-
sipated.
The developed countries owe an impera-
tive duty to the underdeveloped countries;
but the underdeveloped countries owe even
a greater duty to themselves. They have to
awaken to the reality of their situation, pool
their resources, experience and capacity for
action for common needs and common ends.
They are to proceed on the basis of com-
plementarity rather than competition and
realize that in the last analysis their
economic salvation lies in their own hands.
What they can do for themselves is of far
greater importance than what the-developed
countries can do for them.
This for them is and should be a call to
cooperative action and a basis for the faith
that they can and will make their own fu-
ture.
Thank you, gentlemen. (Applause.)
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INTERNATIONAL ECONOMIC CONFERENCE
In the Conference Lobby
that approximately 170 firms were represent-
ed at the Conference, and Soviet com.-nercial
organizations were already negotiating with
95 of them with a view to concluding
transactions. They were desirous of contact-
ing the representatives of all the other firms.
The Soviet spokesman indicated that two
types of transactions had emerged from
these talks--deals between individual firms
and group transactions involving several
firms. Experience has shown that the latter
type is preferable since it simplifies pay-
ments arrangements, especially in view of
the fact that many of the transactions cover
both exports and imports.
It was suggested that business talks con-
Meeting of the Contacts Bureau
A meeting of the Contacts Bureau, set up
at the suggestion of many of the Conference
delegations, was held in the afternoon of
April 9.
Mr. Jack Perry (Britain), who was in the
chair, suggested that the Bureau consider
how it could facilitate the conclusion of
transactions between representatives from
different countries.
Opinions were expressed by Mr. Edmund
von Henke, President of the American Electric
Welding Corporation, Chicago; Mr. Gerrit
Husslage, director of a Netherlands export
firm; A. Zakharov, Deputy Minister of For-
eign Trade of the U.S.S.R.; Mr. Otakar Pohl,
Director-General of the Czechoslovak State
Bank; Mr. Jamal Shirinlou, director of the
TSA Company (Iran); Herr Kurt Gregor,
Deputy Minister of Foreign Trade of the
German Democratic Republic; Mr. Michael
M. Freeman, director of a confectionery firm,
Canada, and others.
At the suggestion of the Chairman, Bureau
members reported transactions concluded to
date and gave their views on what could be
done to facilitate- trade negotiations. This was
discussed, among others, by Messrs. Husslage,
von Henke, Shirinlou, A. Zakharov (Soviet
Union) and Otakar Pohl (Czechoslovakia).
A. Zakharov told the meeting that in-
formation received by the Secretariat showed
ANNOUNCEMENT
The Business Transactions Bureau
hereby informs all participants in the
International Economic Conference
that business transactions may be
concluded at the Conference head-
quarters on April 10 and 11 from
10 a.m. to I p.m. and from 3 p.m. to
7 p.m. (Moscow time).
All Soviet trade organizations will
have their representatives at the
Bureau.
April 10, 1952, No. 7
This mat ribl procuxe.i by
as.ka' In, al ia9noe AvenCV
tinue throughout April 10 and 11 from 10
a.m. to 7 p.m. in the Trade Union House
rooms which could be designated for this
purpose by the Conference Secretariat.
A. Zakharov said that representatives of all
Soviet foreign trade organizations would be
available at Trade Union House during these
hours.
The proposal was seconded by Otakar
Pohl, who told the meeting that Czecho-
slovak business representatives were at
present negotiating with representatives of
West-European, Latin American and South-
east Asian firms and that they had agreed
to continue negotiations in Trade Union
House, an arrangement convenient to all
delegations.
The proposal was also supported by
Mr. Shirinlou (Iran) and Herr K. Gregor
(G.D.R.), and it was agreed that the talks
would be resumed at 10 am. on April 10
in Trade Union House.
The Bureau agreed to Mr. Jack Perry's
suggestion to appoint a subcommittee of
representatives from the U.S.S.R., the
Chinese People's Republic, Great Britain,
India and Brazil to scan up all trade trans-
actions concluded and to draft a statement
on the subject for the Plenary Session of
the International Economic Conference.
PUBLISHED BY THE SECRETARIAT
OF THE INTERNATIONAL ECONOMIC CONFERENCE
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INTERNATIONAL
EcoNoMIc
CONFERENCE
INFORMATION BULLETIN
Conference Diary
The Working Groups of the International Economic
Conference continued their work in the afternoon of
April 7.
The speakers. at the afternoon meetings of the Interna-
tional Trade. Group were. Mr A. Wolynski, Director of
a Department in the. Polish Ministry. of Foreign Trade;
J. Dobretsberger, Professor of Economics at the Law
School.'of the University of Gratz (Austria); the econo-
mist T. Vladi,gerov (Bulgaria); S. Rozen, a member of
the Central Committee of the Agricultural Workers'
Union of Israel; M. Haroun, director of Haroun & Sons;
M. Silverman, a member of the Executive Committee of
the Carpenters' Union in Philadelphia (U.S.A.), and
Hitendra Narayan Chaudhury, a representative of Dia-
mond Pictures, Ltd. (India).
The speakers in the discussion disclosed new pos-
sibilities for expanding world trade. Thus, the Polish
delegate, Mr. Wolynski, declared that Poland can now
easily satisfy the coal demand of almost the whole of
Northern Europe. Poland could increase her volume of
trade with Sweden and Finland by 50 per cent and
double her volume of trade with Denmark. The Bulga-
rian representative, Mr. Vladigerov, spoke of the real
possibilities for expanding trade with Austria, Italy,
Switzerland, France, Germany and other countries.
Mr. Chaudhury of India said that business circles in
his country are highly interested in wider trade with
the Soviet Union.
At the same time many speakers mentioned the fact
that the policy of discriminations in international trade
hinders the development of commercial relations between
countries. The Austrian representative, Mr. Dobretsberger,
made special reference to the fact that the pressure ex-
erted upon his country deprives Austria of freedom of
economic development and reduces her to the position
of a supplier of raw materials and semimanufactures.
At its afternoon session, the Group elected a Com-
mittee for examining the results of its work and prepar-
ing proposals for the Plenary Session of the Interna-
tional Economic Conference. The Committee includes, in
addition to the Chairman and Vice-Chairman of the
Group, also Mr. Perry (Great Britain), Herr Dobrets-
berger (Austria), Mr. Lalchand Hirachand (India) and
Mr. Ricardo Emilio Olivari (Argentina).
The afternoon session of the International Economic
Cooperation Group for the Solution of Social Problems
opened with the speech of Mr. G. Wynn, a British trade
union leader. The next to speak were Mr. Iscaro (Ar-
gentina); General Secretary of the United Progressive
Unions of Holland Mr. Bertus Brandsen; the Austrian
manufacturer Herr J. Schachner; Mr. Ben-Dori, a
member of the executive committee of the Histadrut
Union (Israel); Mr. M. Chaudhury, a landlord. and Mem-
ber of Parliament (Pakistan) ; Mr. D. D m'tt v,. director
general of ``Chemical. Imports" '(B'ulgaria); Mr. Prem
.Sagar Gupta, Secretary of the All-India Trade Union
Congress; Mr. F. Runturambi, Indonesian trade union
leader; -Herr Otto Proksch, director of a flat glass factory
at Rottingen (West Germany), and the well-known econ-
omist Mr. Jurgen Kuczynski (German Democratic
Republic).
The speeches of the trade. unionists and of the busi-
nessmen contained convincing proof to the effect.that the
burning social problems confronting a number of
countries-employment, housing and food supply-can
be solved, provided everything is done to promote the
development of international trade and to raise produc-
tion on this basis.
The Group elected an editorial committee for prepar.
ing recommendations to be laid before the Plenary
Session of the International Economic Conference.
The afternoon meeting of the Underdeveloped Coun-
tries Group was addressed by Professor Stefan Ignar of
the Higher School of Agriculture (Poland) ; the economist
J. Fuchs (Argentina) ; J. H. Bouchaud, representative of
the General Confederation of Labour (CGT) of France;
T. Ahmed Khan, editor of the "Imroz" (Pakistan);
U Kyaw Min, director of the Central Bank of Com-
coerce (Burma); the economist K. Economides (Cyprus),
and Messrs. M. Miller and M. Hancock of Canada.
The most essential condition for the economic advance-
ment of the underdeveloped countries is the development
of their national industries and reorganization of ag-
riculture-this was the idea emphasized by almost all the
speakers. The speakers at the meeting of the Group
analyzed problems of international trade from this point
of view and declared that the more advanced industrial
countries should render substantial assistance to the
underdeveloped countries through deliveries of equip-
ment on acceptable terms.
The last at the afternoon meeting, Mr. Gyan Chand,
Chairman of the Group, briefly summed up some of the
results of the discussion and asked the delegates to give
their consideration to the questions which should he in
cluded in the recommendations to the Plenary Session
of the International Economic Conference.
CONFERENCE DIARY
The Information Bulletin is published in the English,
Russian, French, and German languages.
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INTERNATIONAL ECONOMIC CONFERENCE
DEVELOPMENT OF INTERNATIONAL
TRADE GROUP
Mr. A. Wolynski
(POLAND)
At the present time Poland is in a posi-
tion, said Mr. Wolynski to satisfy the coal
requirements of almost all countries of
Northern Europe, which would have the
opportunity of covering such imports, in
part or as a whole, by supplying Poland
with the goods she needs.
The countries of Northern Europe would
have the additional advantage of using
Polish ports for transit shipments to Cze-
choslovakia, Hungary and Rumania, since
ships sent for coal cargoes could be fully
utilized for carrying iron ores and other
cargoes consigned to Poland or in transit
to other countries.
Between 1946 and 1949 Poland placed
orders in Sweden for machines and other in-
dustrial equipment amounting to approxi-
mately 500 million Swedish crowns. If
Sweden had increased her deliveries of corn-
modities that Poland needs, Poland could
have enlarged her coal deliveries to Sweden
tip to four million tons a year and could
have raised other commodity exports 50 per
cent above the present level.
The current volume of trade with Den-
mark could be doubled. Poland could let
Denmark have 2.5 million tons of her coal,
calcined and caustic soda, zinc white and
products of her cement works in an amount
tip to 20 million Danish crowns a year, also
fodder grain and other goods, importing
from Denmark chemicals and pharmaceutical
goods, woollen rags, fatty acids and a num-
ber of transit goods. Poland could use Dan-
ish wharfs for building and repairing sea-
going vessels representing a value of 50
million crowns a year.
Poland is eager to utilize Danish marine
transport services, which makes it easier for
Denmark to balance her payments account.
Mr. Wolynski then noted that Poland's
trade with Norway experienced a consider-
able drop in 1950-51 as against 1949, and
that in exchange for barite, aluminium, iron
ore, cod liver oil and other goods, Poland
might deliver to Norway during the period
of 1953-55 about one million tons of coal,
chemicals, sugar, grain and other goods re-
presenting a value of 80-100 million Nor-
wegian crowns a year.
The volume of trade between Poland and
Finland is growing and is to exceed 60 mil-
lion dollars in the current year. Nevertheless
EVENING SITTING, APRIL. 7
there are possibilities of still further increas-
ing this volume.
Trade with Great Britain could be ex-
panded at least 50 per cent during the next
three years. Poland could raise annual de-
liveries of bacon to 60,000 tons, hams to
5,000 tons, killed poultry to 10,000 tons,
tinned meat to 6,000 tons. Poland could supply
England with 400 million eggs, considerable
amounts of timber, sugar, fodder and other
goods, at the same time increasing imports
from England of industrial and transport
equipment to 10-15 million pounds sterling a
year, of such traditional raw materials as
rubber, wool and tin as well as of tin plate,
dyes and tyres.
Poland could increase her coal shipments
to France up to 2.5 or 3 million tons a year.
She could supply as much as 50,000 tons of
fodder; also timber, chemicals and other
goods, importing from France industrial
equipment and transport equipment amount-
ing to 20-25 million dollars a year, alumi-
nium, rolled iron, phosphorite, wool and
woollen rags, pharmaceutical goods and some
foodstuffs.
The present volume of trade with Italy could
be trebled by increasing shipments of coal to
that country up to 2.5-3 million tons a year,
as well as of grain, sugar, meat, eggs, chem-
icals and other goods, importing from Italy
equipment for the engineering and shipbuild-
ing industries, and using Italian wharfs for
the building of new ships and for repairs.
Poland is interested in obtaining from Italy
artificial fibre, ball bearings, automobile tyres,
dyes, zinc concentrates and other commodi-
ties.
Mr. Wolynski went on to say that trade
between Poland and Western Germany,
Austria, Belgium, the Netherlands and Switz-
erland could be increased two or three times
over provided deliveries are increased by both
sides.
The development of Poland's shipping, lie
said, facilitates her trade with non-European
countries. Poland has already established
trade with Indonesia, Pakistan, India, Egypt,
Turkey and Israel. At the present time nego-
tiations are going on with Iran and through
various firms she trades with other countries
of Asia and also with Africa. These ties can
be extended and strengthened since Poland is
interested in importing cotton from Egypt,
Pakistan, India, Syria and Arabia; jute from
Pakistan, rubber, tea and tin from Indonesia;
petroleum from Iran, hides from Pakistan,
India and Iran; copper from Turkey, and
other raw materials and foodstuffs produced
in this zone, such as tobacco, coffee, tea,
southern fruits, etc.
On the other hand, Poland can export to
these countries steam locomotives and rail-
way cars, machinery, agricultural equipment,
various equipment for light industry, particu-
larly looms, metal- and woodworking lathes,
tools, metal products as well as coal, timber,
glass, technical and household crockery, a
large assortment of chemicals and other com-
modities.
In conclusion Mr. Wolynski expressed his
conviction that the negotiations which the
Polish delegation has begun with many coun-
tries will lead to brisker trade with these
countries, a guarantee of which lie saw in
the fact that during the course of this Con-
ference Poland had already transacted much
business. (Applause.)
Herr J. Dobretsberger
(AUSTRIA)
Among the many obstacles now hindering
the development of the international trade,
said Herr Dobretsbcrger, I would like to
point to one of particular concern to the small
countries of West and Central Europe. The
mechanism of the U.S.A. aid has led to the
economic structure of these countries being
diverted from its natural basis and being
completely switched over to satisfying the
requirements of the great Western powers
and their armaments programs. In this way
the small countries are losing their economic
and commercial freedom.
This also refers to Austria, a country that
formerly exported manufactured goods and
imported raw materials, but which now has
been reduced to the position of supplying the
Western countries with raw materials and
semimanufactured goods, whereas its own in-
dustries are not working at full pressure.
This has led to a steady decline in real
incomes, while output figures are on the
increase.
This development entails such paradoxical
phenomena as that iron is being exported
from Austria, while we ourselves must buy
it abroad at double the price. Our forests are
being ruthlessly cut down and our timber
exported, while our fields are being turned
into deserts and our sawmills are id'e. This
switching of our economy to the export of
raw materials has also changed the direction
of our foreign trade. Austria now has no
trade agreement with the Soviet Union,
though previously the Eastern countries were
our traditional trading partners.
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Working Group for. the Development of International Trade in Session
.................................. ..........................................................................................................
This one-sided switching of our foreign
trade to the West is giving rise in the small
countries to all the phenomena now typical
of the West-European powers, namely: ad-
verse balance of dollar payments, which can
only be eliminated by further aid deliveries;
inflationary increase of prices on the home
market, which hinders exports; steady reduc-
tion of capital formation and even the flight
of capital to solid currency countries, and as
a consequence, the steady reduction of living
standards connected with. growing unemploy-
ment.
In face of these harmful consequences of
the now existing economic blocs the Austrian
delegation submits the following resolution
to this Section in the hope that it will meet
with the support of those European delega-
tions whose countries are in an analogous
situation:
"Where commercial, credit, and currency
agreements are concluded between big and
small countries, steps must be taken to en-
sure that the small nations fully retain objec-
tive freedom of action in economic matters,
and that no commitments are introduced
which compel them to sell only to certain
definite countries. They must be free to dis-
pose of their wares to the countries that
yield them the most favourable results."
I ask that this proposal be included in the
record of our Working Group. (Applause.)
Mr. Todor Vladigerovv
7\1
(BULGARIA)
The extreme disruption of world trade, Mr.
Vladigerov said, is manifested in a sharp
decline in foreign trade per capita of the
population as compared with the prewar
the export index behind the production in-
dex.
Bulgaria's economic progress as a result
of reconstruction of the national economy
on socialist, planned principles. has brought
about an improvement in the living standard
of the population and made possible an ex-
pansion of foreign trade. In 1951 Bulgaria's
imports registered an increase of 81 per
cent as compared with 1947; moreover, the
main import items were such commodities
as machines, equipment, spare parts and raw
materials.
Big changes have also taken place in
Bulgaria's export trade. The assortment of
export commodities has become wider, with
an increase in exports of processed as well
as crude agricultural produce, products of
the woodworking industry, as well as raw
and dressed hides. Bulgaria's main export
items are grain and industrial crops, in-
cluding tobacco, for which there is a big
demand, Bulgarian fresh fruit and vegetables
also have a good market abroad.
At the present time Bulgaria is interested
in foreign trade with those countries which
can assure mutually-advantageous terms and
can best satisfy her import requirements.
First place in this respect is held by the
U.S.S.R., which has displayed a deep under-
standing of Bulgaria's economic problems and
is rendering her fraternal aid.
Since the end of the Second World War
the Bulgarian People's Republic has worked
not only to restore her international trade
which was disrupted by the war but also to
expand it as much as possible. Since 1946
Bulgaria has signed trade agreements
with Austria, Italy, Switzerland, France, Bel-
gium, Holland, Western Germany, Sweden,
Denmark, Finland, Argentina and other coun-
period, as well as in the increasing lag of ( tries. Her trade with Britain, Israel, Iran,
Syria and Malta is based on private transac-
tions unregulated by overall agreements:
However, these agreements have not justi-
fied themselves, the main reason being the
discriminatory policy in foreign trade which
is pursued by a nuhiber of West-European'
countries under pressure from the United
States.
In its discriminatory policy in the sphere
of foreign trade the United States has en-
deavoured in every way to stop West-
European exports both of strategic commodi-
ties and raw materials as well as of all other
types of goods, including civilian consumer
goods.
Between 1949 and 1952 there have been
more than 50 cases of discrimination against
Bulgaria.
These discriminatory practices created a
number of difficulties for Bulgaria, but they
were of a temporary nature and did not halt
the country's economic development. In
1951 the five-year plan was fulfilled 100 per
cent. The inviolable economic ties with the
Soviet Union, the People's Democracies and
the German Democratic Republic helped
Bulgaria to overcome her difficulties.
We consider it necessary, Mr. Vladigerov
said, to restore traditional trade first and
foremost with such countries as Austria,
China, Switzerland and Britain; moreover,
not merely to regain the previous level, but
to exceed it. There are possibilities for in-
creasing Bulgaria's trade with Western
Germany, which would be advantageous to
both sides.
Between 1953 and 1955 Bulgaria could
import from the countries of Western
Europe, namely, from Austria, Italy, Western
Germany, Sweden, Denmark and others,
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various goods averaging 200 million rubles
a year, of which about 70 million rubles
would be accounted for by machinery, equip-
ment, spare parts, medicaments and other
commodities. In 1952 Bulgaria could import
105 million rubles' worth of the above-men-
tioned commodities.
Speaking of what Bulgaria could offer her
partners in return for these goods, Mr. Vla-
digerov listed her superior agricultural pro-
duce. Bulgarian grain, fodder, fruit, veg-
etables, tobacco and poultry were in big
demand before the war in Austria, Italy,
Germany and Switzerland; rose oil was in
demand in France, etc. Today the quality
of these goods is even higher than it was
before.
This year Bulgaria could export grain,
fodder, tobacco, fresh fruit, vegetables, eggs
and other produce to the West-European
countries. Between 1953 and 1955 the
average annual export of grains could com-
prise 150,000 tons; of fruit and vegetables,
70-80,000 tons; tobacco, 50,000 tons; 70 mil-
lion eggs, and so on.
Bulgaria is in a position to export and
import various manufactured articles as well.
Her planned economy is a guarantee that
she can carry on a steady trade in a wide
range of goods. Bulgaria is prepared to
maintain constant trade relations with all
countries provided these relations are based
on equality and recognition of mutual in-
terests.
The Bulgarian
following:
Restoration
of normal economic relations
among all countries. The conduct of trade
regardless of the political structure of coun-
tries and on a basis of equality and respect
for sovereignty. Abolition of discriminatory
practices in foreign trade.
World-wide distribution of raw materials
in conformity with each country's needs.
Removal of all existing obstacles to achieve-
ment of this aim.
Creation of normal
conclusion of treaties
conditions for the
between commercial
and manufacturing enterprises of various
countries, with a view to guaranteeing
fulfilment of commitments.
Facilitation of transportation
modities through the introduction
tory uniform railway rates or the
of bilateral and tripartite
without infringing upon the
other countries.
of com-
of obliga-
conclusicn
agreements
Guarantee of unrestricted transit shipments,
with a reduction in transportation costs for
this purpose. (Applause.)
Mr. S. Rozen
(ISRAEL)
Rozen began by thanking the Soviet
Union and the People's Democracies for the
assistance they had given Israel in her early
years. A friend in need is a friend indeed,
and the broad masses of Israel would keep
ever fresh in their minds and hearts the
memory of the help they had received from
the Soviet Union and People's Democracies.
Mr. Rozen described Israel as an econom-
ically weak country. Her balance of payments
is sharply adverse. In order to feed her
growing population and ensure a high stand-
ard of living she must irrigate her semiarid
areas and develop the production of potash,
bromine, peat, oil, various ores and other
resources.
Israel stands in need of various foodstuffs
and industrial goods, of industrial raw mate-
rials and fuel. She is suffering from an acute
shortage of foreign currencies and this is
forcing down the exchange rate of her own
currency, lowering the living standards of
her working people, increasing her economic
and political dependence upon the dollar area
countries.
We cannot, Mr. Rozen continued, go on
receiving 96-97 per cent of our imports from
the West, from the countries where private
initiative prevails. The Soviet Union and the
People's Democracies lie nearer to us and
there is no reason why we should continue
to import grain and timber from Canada or
oil from Venezuela when we can obtain these
products from nearer sources.
Ever since the beginning of the war in
Korea and the armaments drive in the West
we have been finding it harder and harder to
buy agricultural and industrial machinery,
irrigation pipes, and industrial raw materials.
Because of this, part of our industries are
paralyzed; we are drawing on only approxi-
mately half of our production potential.
Mr. Rozen said that it was vital to Israel
to increase her export trade. At present she
exports bananas, oranges and other citrus
fruit, wine, extracts for the perfume industry,
diamonds, woollen and other textile goods,
footwear and leather goods, drills, surgical
instruments and pharmaceutical products.
With their large population and steadily rising
standard of living, the Soviet Union and the
People's Democracies could make good mar-
ket for our growing export trade and help
to vitalize our economy. Equally, they could
satisfy our need for foodstuffs, raw materials
and machinery.
Development of normal business and trade
with the Soviet Union and the People's
Democracies is of vital importance to Israel.
The state of Israel, which must as yet be
classed among the underdeveloped countries,
stands in need of healthy commercial inter-
course and additional capital for
development.
In conclusion Mr. Rozen
wish that the present Conference would set
up bodies to facilitate the, further develop-
ment of commercial relations for the well-
being and happiness of the people and the
preservation of peace. (Applause.)
Mr. M. Haroun
(PAKISTAN)
Mr. Haroun spoke of Pakistan's export
potentialities and import requirements. Pa-
kistan's mineral resources are still insuf-
ficiently developed nor can they be properly
exploited without the
effort.
Pakistan has considerable reserves of coal.
Her chromium deposits are the second larg-
est in the world, but they cannot be ex-
ploited because the country is without the
technicians, industrialists and capital required.
I am appealing, Mr. Haroun said, to the
more developed countries for assistance in
promoting this branch of industry which is
so imperative for the technical progress of
the entire world. I am ready to discuss ways
of achieving the best solution with all in-
terested parties.
In this connection I would like to refer to
a statement by our Government about for-
eign investments. This statement proves that
Pakistan wants to develop her industry in
friendly cooperation with the more advanced
countries.
Briefly my proposals can be summed up
as follows:
Foreign capital investments on a basis of
equality; 50 per cent of the industrial output
will for 10 years go to the country invest-
ing capital in exchange for technical
ance and the capital investments.
We consider that these conditions
governments agree to the above
(Applause.)
Mr. M. Silverman
(U.S.A.)
I am an American worker participating in
this Conference to bring the view of the
American working class into our discussion,
Mr. Silverman said.
Unemployment in the United States is in-
creasing. In 1951 there were mass layoffs in
the textile industry. Less funds are available
for housing construction and the number of
houses being built has been cut drastically.
The construction of new schools and more
hospitals is being postponed in connection
with the rearmament program. Many build-
ing workers are without jobs and the posi-
tion is getting worse all the time.
In the automobile industry, production in
January this year was 43 per cent lower
than in January 1951, and during the same
period 111,000 auto workers lost their jobs.
The cost of living, according to official
government figures, has gone up 10 per
cent last year. Rearmament has led to
higher direct and indirect taxes and has cut
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the purchasing capacity of the American
worker; his living standards are being re-
duced all the time.
We are working for a cut in armaments
expenditures and for using the money thus
released for peace purposes-to raise the liv-
ing standards of the American and all other
peoples.
We want to see free trade revived
throughout the world so that American
goods can be supplied to all who need them.
The present state of affairs is leading to
mass bankruptcies. Many American business
firms are feeling the effects of curtailed in-
ternational trade, and if this goes on we
may find ourselves in a new economic crisis
with all the hardships it will entail for the
American and other peoples.
East-West trade must be resumed, there
must be a free flow of trade in the world.
This will help to consolidate peace.
Let our two systems compete on a peace-
ful basis. This will help to increase living
standards. (Applause.)
Mr. Hitendra Narayan
Chaudhury
(INDIA)
As a spokesman of the Indian business
community, I wish to enumerate some of
the difficulties that business people in our
country are encountering.
Roughly 70 per cent of India's foreign
trade is with the United Kingdom and the
United States. India relies for her supplies
on these two countries, but we are deter-
mined to pursue an independent policy and
promote cooperation between the two camps.
Of the Eastern countries I will mention
only the Soviet Union because neither in the
past nor in the present has our trade with
it been extensive.
India has launched on a broad construc-
tion program. We are building power plants
and we hope to receive equipment from
other countries. Deliveries from Britain are
comparatively slow, and I know that the
Soviet Union could let us have the required
equipment sooner.
The main thing, however, is for the coun-
tries in a position to sell us equipment to
take the initiative. Britain and America
have been doing business with India for
many years and they are never slow to show
initiative, make proposals and set up trade
organizations. The Soviet Union has not
been doing that so far, but I believe that it
should be possible in the future. It is impor-
tant to establish confidence between our two
countries.
We require long-term credits to enliven
our trade. India has a surplus of certain
INTERNATIONAL ECONOMIC COOPERATION FOR
THE SOLUTION OF SOCIAL PROBLEMS GROUP
EVENING SITTING, APRIL 7
Mr. H. W. Wynn
(GREAT BRITAIN)
Mr. Wynn began his speech by saying that
he wished to dwell on the problem of unem-
ployment. It is this question, said the speaker,
that brings fear into the hearts of millions of
working men and women in my country as
it does in other countries.
In the opinion of Mr. Wynn, the chief causes
of unemployment are: wrong economic
policies pursued by governments, such as ab-
normal restriction upon international trade
arising from political reasons; restricted eco-
nomic activities arising out of rising production
of war materials; the unequal economic de-
velopment of countries causing permanently
low standards of living, thereby restricting
the purchasing capacity of millions of people
in the so-called backward countries of the
world; and constantly rising prices in certain
countries which bring about exchange diffi-
culties and tend to unbalance trade relation-
ship between nations.
The speaker went on to say that the ques-
tion of political restriction of trade be-
tween nations is a very serious one., and its
effect on employment has now reached seri-
ous levels. East-West trade is restricted to a
lower volume than before the war. But we
are told by the Soviet Representative that the
trade possibilities are now enormously greater.
.The Chinese Representative also tells us of
distinct possibilities of increased trade with
them. It will be a crime on the British work-
ers if any opportunity is lost to increase our
trade with these countries.
It is for these reasons that I propose that
this Working Group call upon all govern-
ments to remove all political restrictions upon
trade between nations, and also that all na-
tions set themselves the task of increasing
trade between each other by 50 per cent in
the next years.
It is also necessary to work for restriction
of war production. I am sure we all agree,
said the speaker, that if increases in war
commodities, for example, manganese, but
most of it is exported to the United States.
The Soviet Union may not require man-
ganese, but it does require other commodi-
ties, and I could name a long list of things
that could be exported to the U.S.S.R.
India has next to no mercantile marine,
and in many cases this prevents us from
selling our goods to other countries, because
shipping is monopolized by a few nations.
This Conference could work out measures to
help the underdeveloped countries obtain
shipping facilities for their exports.
Before the war India did a good deal of
business with Czechoslovakia, and it was re-
sumed after the war. We are not trading
with Eastern Germany but I am sure that as
soon as the G.D.R. is able to establish con-
tact with India we will be prepared to buy
her goods.
An industrial exhibition was held in India
recently and many Soviet manufactures
were on display. Our people could see that
the Soviet Union produces a very wide
range of high-quality industrial machinery.
If new attempts are made by countries in
a position to buy, if they show some initia-
tive in doing business with us, much more
could be accomplished and they will find us
ready to sell our goods. (Applause.)
production continue they will have a very
harmful effect upon the standard of living of
all workers in all countries.
I will give one example. Because of the di-
vergence of steel to armament production, my
country is having to restrict the supply of
steel to consumer goods industries such as
the motor car and bicycle industry. This, he
said, is causing unemployment in many parts
of Britain.
If every nation would reduce the amount
spent on armaments by one third and devote
the money to raising the workers' standard
of living, it could remove the possibilities of
unemployment for a long time.
As regards' the economically backward
countries, it is sufficient to say that the solu-
tion of this problem can have a marked effect
upon expanding world trade and can there-
fore be of considerable assistance in creating
full employment.
The question of rising prices in individual
countries and its effect upon trade and em-
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ployment is a complex one and I hope the
economists present will throw some light upon
it. But we trade unionists are very con-
corned when governments do not worry about
rising prices and only call upon the workers
to forego their proper wage .claims.
The speaker concluded by suggesting that
the proposals put forward by him be consid-
ered, and expressed the hope that these pro-
posals will help in eliminating unemployment.
(Applause.)
Mr. G. Iscaro
(ARGENTINA)
Mr. Iscaro began his speech by saying
that as soon as the working people of
Argentina learn of the aims and conclusions
arrived at by the International Economic
Conference, they will express their ardent
support, especially now that the economic
crisis becomes particularly telling. The work-
ing class of Argentina has been hard hit by
the consequences of the discriminations and
restrictions in world trade. Discrimination in
trade is imposed by the reactionary forces-
by the national and foreign monopolies which
impede the economic development of the
country. It is a matter of general knowledge
that the results of this policy affect the liv-
ing conditions of the working people and
lead to a drop in wages, housing shortages,
unemployment, malnutrition and restrictions
of social legislation.
Malnutrition is a chronic evil which preys
upon a large section of the population in
our country. The result is constant disease
which reduces the span of human life and
makes people unfit for the process of pro-
duction.
The speaker cited numerous facts and
figures to illustrate the decline in production
as a result of the shrinking volume of world
trade, and, in particular, the decline in out-
put in the textile, meat packing, metal-
working, garment and other industries. For
example, if the metallurgical industry is to
be saved from the paralysis which has been
developing since the beginning of 1952, the
country must receive raw materials, and,
chiefly, pig iron, sheet iron, zinc, copper and
aluniniium. Big steel mills have discontinued
the production of tubes owing to the short-
age of pig iron and they are dismissing
large numbers of workers. It is proposed to
solve this problem by compelling the jobless
workers of peasant origin to return to the
villages where unemployment is still more
widespread owing to the marked decline in
agricultural production. Although Argentina
has rich deposits of fuel and ore which could
meet all her demands, she cannot raise the
production of ore and fuels because she
lacks an adequate amount of equipment.
How can production be raised? asked the
speaker. There is an opinion current that
production can be stepped up by speeding
tit) the workers.
But it has been proved that this inhuman
and unprogressive method does not solve
the problem of increasing production. Pro-
duction can be increased on a large scale
only by acquiring machines and equipment,
by building new factories, by raising the
living standard of the working people and
improving the working conditions.
The International Economic Conference has
brought out the fact that our country could
receive machines, tractors, equipment and
other necessities for developing industry and
raising output, as the Soviet, Czechoslovak
and other delegates told us. And, what is
especially important to our country, all this
can be received without payment in dollars
or other foreign currency, because the ma-
chines would be paid for in our national cur-
rency and exchanged for deliveries of our
wool, leather and many other products.
Concretizing all the above-said, I suggest
that our Group should ask the Plenary Ses-
sion of the International Economic Confer-
ence to declare that the problems of raising
output, promoting the development of na-
tional industry and reducing unemployment
can be solved on the basis of wide interna-
tional trade which would make it possible to
acquire machines, equipment and raw ma-
terials.
Another problem agitating the minds of
the Argentine working people is that of rais-
ing wages and cutting the cost of living.
Precisely in Argentina can we witness the
steadily rising cost of living and decline in
real wages. This may be seen from the fact
that while prices have grown by more than
150- per cent, wages have increased only by
20-30 per cent. In January 1952, an average
working class family with two children
needed 1,850 pesos a month to cover the
cost of the bare necessities, whereas the
wage of a skilled worker was no more than
800 pesos a month.
Lastly, on behalf of the Argentine delega-
tion, I propose that our Group should sub-
mit for the approval of the Conference the
four points advanced by the representative of
the World Federation of Trade Unions,
Louis Saitlant: abolition of discriminations in
world trade; development of peaceful produc-
tion; reduction of military expenditures; the
proposal to ask UNO to facilitate the devel-
opment of peaceful trade and improvements
in living standards of the working people.
(Applause.)
Mr. Bertus Brandsen
(NETHERLANDS)
After referring to the economic difficulties
being experienced by a number of countries,
Mr. Brandsen stated that the cause of such
difficulties in Holland is undoubtedly the ar-
maments race, to which the interests of the
working people are being sacrificed, and
which is resulting in the complete disorgan-
ization of civilian economy.
The speaker declares that this is proven by
a statement of the Netherlands Government
made in 1960 in which we read, among
other things, that "the total defence ex-
penditure of 900 million gulden is the maxi-
mum the country can bear without financial
difficulty: Since then, however, war ex-
penditures have increased to 2,000 million
gulden. So that at the present time, every
Dutch citizen, whether child, adult or aged
person, must contribute an average of 4
gulden per week to meet war needs.
The price increases and enhanced taxation
have resulted in a rise in the cost of living
since the year 1948, when the Marshall Plan
began to operate, by 28 per cent for a family
of 4 persons, while wages have only in-
creased by 15 per cent. In the same period
there has been a decline in the consumption
of food of over 10 per cent, while purchases
of textiles, footwear and other consumer
goods have dropped by not less than 24
per cent. Since 1948, more than 6,028 small
peasant farms and commercial under-
takings have gone bankrupt. This is in-
disputable proof that rearmament means
poverty for the working people.
Rearmament, however, means not only
reduced living standards, but also less
housing. At the present time there are more
than 300,000 families in Holland without
dwellings.
In Holland, continues Mr. Brandsen, the
number of unemployed is steadily increas-
ing, and is now in the region of 250,000.
Unemployment is mostly rife among agricul-
tural labourers, and also among tailoring,
textile, furnishing, leather, and rubber
workers. Despite the housing shortage, tens
of thousands of building workers are idle.
Trade with other countries would be
decisive in creating full employment and
improving living standards in our country.
The almost entire absence of trade rela-
tions with the Soviet Union, the People's
Democracies, the German Democratic Re-
public and China, aggravates the situation,
considerably increases unemployment and is
seriously undermining the well-being of the
working class. The Netherlands Government
is pursuing a foreign trade policy which
very much reminds one of the newspaper
cartoon showing a salesman who sells globes
with a tremendous hole in them specially
made for those clients who refuse to rec-
ognize the existence of the Socialist part
of the earth. That is how the Netherlands
Government is behaving, too. As a result,
Netherlands' exports to the East-European
countries in the first half of 1951 amounted
in all to 1.5 per cent of the total, while im-
ports from these countries constituted only
2.3 per cent of our total imports. These un-
satisfactory trading relations between
Holland and the East-European countries are
the direct results of the U.S.A. pressure. A
graphic example of this is the decision
depriving the Rotterdam Transport Company
of Van Juden of the right to engage for
one year in any trade whatsoever with
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America, for the sole reason that this firm
delivered to Hungary-and did so quite
legally-machines of U.S.A. origin.
Trade with East Europe is, however, of
vital importance for our people. This. economic
Conference has shown that profitable deals
can quite well be concluded. In this connec-
tion I would like to propose that the already
established national initiating committees be
retained, if they are not already so, in one
form or another, so as to serve as centres
for those who desire to engage in trade with
East Europe and China on the basis of mutual
advantage.
Secondly, it has been proved at this Con-
ference that by improving commercial rela-
tions, the conditions can be created for increased
employment. To confirm this, I refer to
the speech of Mr. Nesterov, the chairman of
the Soviet Chamber of Commerce, who stated
among other things that the Soviet Union is
ready to purchase radio wares and rubber and
to order ships from Holland. This would mean
that 5,000 workers employed by the firm of
Philips, now threatened with dismissal could,
if normal trading relations existed, continue
in employment. It also means that the threat
of unemployment in the engineering industry
could be eliminated. If we bear in mind that
trading relations between Holland and China
are nonexistent, we can clearly see what
considerable sources of well-being now lie
untapped.
In my opinion this Conference has supplied
us with a vast amount of practical material
that convincingly proves the tremendous im-
portance of trade among all countries.
This Conference teaches us that armament
expenditures must be reduced, while interna-
tional trade must be extended.
This Conference will lay the basis for a
broad front of all those who stand for the
following principle: don't shoot, but shake
hands and do business! (Applause.)
Herr Julius Schachner
(AUSTRIA)
This morning we hear many proposals on
ways and means to improve the living
standards of the working people. True, the
question of the situation in agriculture re-
ceived considerably less attention. The
speakers have all agreed on one point, name-
ly, that trade without restrictions can
liquidate all existing defects. Not a single
speaker, however, said what a guarantee
for unrestricted trade should consist of. We,
the small nations, cannot be these guaran-
tors and that is why we must look for
guarantors until we find them.
In Austria we have a splendid social
structure, but we lost economic equilibrium
because of intensive industrialization. We
must export industrial goods to be able to
import foodstuffs. We would willingly have
retained our political freedDm, but this is
extraordinarily difficult for a small country.
We should have been rendered substantial
assistance if we signed a trade agreement
for 10 years without any political restric-
tions. This would allow us to increase our
grain areas to provide ourselves the quan-
tity of agricultural products which we are
able to produce.
If we could find a guarantor who could
ensure us with unrestricted trade we would
be extremely pleased. I would be very hap-
py if on leaving Moscow I would be con-
fident that my hopes are being realized.
(Applause.)
Mr. F. Ben-Dori
(ISR?AEL)
Elimination of the war psychosis, of the
atmosphere of an impending great clash of
vN orlds, is at present the pre-requisite of
social progress and an advance in the living
standard of the masses. If the peoples fail
to make their governments stop the arma-
ments drive and regear to peace, we will be
faced with a deterioration in and curtailment
of the social gains of the working class, with
years of regress.
I speak in the name of a small country, a
new state not quite four years old. In the
kingdom of death and destruction into which
mankind was hurled during the Second
World War, in this ocean of misfortune, the
burden borne by our people was compara-
tively great.
Israel is faced with a dual problem: to raise
the living standaard of the Jews and Arabs
who are the old inhabitants of the country,
and to provide sources of work and suste-
nance for the mass of immigrants that have
arrived and continue arriving. In the last
four years alone more than three-quarters
of a million of them have arrived in the
country.
We do not regard it our duty at this Con-
ference to express well-meaning wishes or
give advice to other nations. We consider it
our duty to bring back to our country from
this Conference the atmosphere of social re-
sponsibility for mankind and its destiny which
demands peace, the end of the armaments
drive, the establishment of friendship and
economic and cultural ties among nations and
states.
Constructive labour is the main thing. It is
the source of the wealth of the nation and
the earnest of its future. We in our country
?
will not be threatened by unemployment and
a drop in the living standard if we follow
the path of social responsibility and progress.
The Jews and the Arab minority and the new
immigrants-all can comprise a constructive
labour collective. Lands untouched by the
plough for centuries await us. Bare moun-
tains await forests and orchards. For this
we need tractors, combines and agricultural
implements. Our land contains oil and metals.
Our so-called Dead Sea, with its potash,
phosphates, sodium and bromine, can become
a source of life for many. The opportunities
of industry and trade can grow if the stake
of certain powers on war schemes is replaced
by a peaceful atmosphere and sound relations
among states, irrespective of their political
aims.
Our Conference must strengthen the
atmosphere of peace, normal international
relations, economic progress and free trade.
(Applause.)
Mr. M. Chaudhury
.(PAKISTAN)
The speaker deals with the refugee prob-
lem. Under the then existing political situa-
tion, millions of people left their homes in
India to settle in Pakistan, and vice versa.
Never, says Mr. Chaudhury, in the history
of my country has anything like this taken
place.
The Pakistan Government is endeavouring
to settle the refugees from India. It has
succeeded in doing so within the bounds of
existing possibilities, but complete success
depends to a considerable degree on the re-
sults of the International Economic Confer-
ence.
Even now millions of people are without
shelter or living in miserable hovels, due to
the housing crisis in Pakistan's big cities.
The endless stream of immigrants has
brought about such an increase in the pop-
ulation that new house building cannot satis-
fy their needs. Entire families are compelled
to live in single rooms, with serious social and
moral consequences. There is an acute short-
age of such building materials as timber,
brick, cement, corrugated iron, steel, and
so on. -
That is why Pakistan has to buy these
materials in countries which sell them at
moderate prices.
But the problem of settling the refugees
is not only a matter of providing them with
dwellings, it is also one of finding them
work.
Several million of the refugees are skilled
handicraftsmen but they have been unable
in Pakistan to engage in useful activity, be-
cause they have neither tools nor other im-
plements, having had to leave them behind,.
to abandon their homes under rather unu-
sual circumstances.
The Pakistan Government has drawn up
plans for settling the immigrant handicrafts-
men and workers, but these plans-can only
be carried into effect when we have the
tools, raw materials and machinery above-
mentioned and if this machinery is acquired
at moderate prices, but this requires the as-
sistance of the industrially-developed coun-
tries.
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8 INTERNATIONAL ECONOMIC CONFERENCE
The majority of the refugees, however,
are peasants, and to settle them land must
be reclaimed, Mr. Chaudhury went on
to say. There are large tracts of virgin soil
in West Pakistan and Punjab. But the ref-
ugees can only be settled if we get the req-
uisite agricultural machinery, build electric
power stations for irrigation purposes, and
for developing a power supply. The equip-
ment for such power stations is not pro-
duced in Pakistan; we have to import it
from the countries that produce it.
Here is. another sphere where we need
international economic cooperation. (Applause.)
Mr. D. Din av
(B.ULGARIA)
At the beginning of his speech Mr. Dimit-
rov noted the changes that have taken.place
in the national economy of Bulgaria during
the last seven years. Both agricultural and
industrial production have greatly in-
creased.
The material and cultural level of the
people of Bulgaria is constantly rising, said
Mr. Dimitrov. There is no unemployment in
the land; wages and . sales are increasing.
Extensive housing projects have been un-
dertaken, the network of health institutions
is being expanded, and the number of
students is growing.
All of this would be impossible, said Mr.
Dimitrov, had Bulgaria isolated herself within
her borders.
The experience of Bulgaria has confirmed
the fact that economic growth is impossible
without international cooperation. We co-
operate with the Soviet Union, Poland,
Czechoslovakia, Hungary, Rumania, Albania,
the German Democratic Republic, and other
countries. Following the principle of equality
and mutual respect, our country wishes to
establish and extend trade with other coun-
tries, as for example, with Austria, West
Germany, Italy, France, Switzerland, Belgium,
Holland, Denmark, the Scandinavian coun-
tries, and those of the Near East.
We can export wheat, corn, fodder, oil-
seeds, fruit, vegetables, wine, poultry, and
eggs in exchange for ferrous and nonferrous
metals, machines, electrical equipment, chem-
icals, medicaments, and other commodities,
to the sum of approximately 100 million
rubles.
Mr. Dimitrov made a number of suggestions.
He would have the Conference recommend:
that all discriminatory measures be abolished,
assuring normal conditions of trade by
unfettered buying and selling; that condi-
tions favourable for the development of
trade between countries be created; that
there be a transition to civilian pro-
duction and construction, especially the
construction of dwellings, at the expense of
war industries; that a just distribution of
basic raw materials be made in order to
fully satisfy the demands of civilian pro-
duction and peaceful construction in all
lands. (Applause.)
Mr. Prem Sagar Gupta
(INDIA)
Mr. Gupta began his speech vY ith an analy-
sis of the economic situation in India. The na-
tional economy is faced with severe difficul-
ties. The country continues to be agrarian;
there is no heavy industry in India in
general, no machine-tool industries in partic-
ular.
Most of the peasants in India, said
Mr. Gupta, are born in debt, live in debt,
and pass on the burden to their children. The
basic wage in the textile industry is 25 rupees
a month and in the ruining industry 11 to 12
rupees a month. Employees in banks, insurance
companies, and other offices, receive a monthly
wage of from 15 to 55 rupees, while school
teachers receive 15 to 25 rupees. Workers on
tea and coffee plantations are paid 6 rupees
a month, on rubber plantations only 4. The
standard of living is steadily dropping.
The housing situation is also very bad. In
Bombay more than 300,000 people have no
shelter, and are forced to s'.eep in the street.
Ten or twenty workers and even several
families often live in one room.
Unemployment is chronic in India, said
Mr. Gupta. The rural population is rarely
employed more than 150 days a year. The
number of unemployed is increasing. Until
the beginning of 1952 there was no social
insurance whatever in India. This year it was
introduced in Delhi and one other city, but it
involves only part of the workers.
India has become a country of perpetual
food shortage and famine. She imports more
than 5 million tons of grain yearly.
Undernourishment is common among the
entire working population, and the average
diet in terms of calories comes to only 1200
to 1800 a day, instead of the required 3700.
The death rate is very high, especially
among children.
Such are the lamentable conditions prevail-
ing in India.
Mr. Gupta then made an analysis of the
foreign trade of his country.
The Indian working class, said -he, is inter-
ested in the promotion of trade with the
Soviet Union, Czechoslovakia, China and
other countries.
He said that his people firmly believed that
the growth in trade with all countries would
help raise the standard of living of the
working class of India; for that reason they
were striving to conclude long-term trade
agreements with the U.S.S.R., China, and
other countries. (Applause.)
Mr. F. Runturambi
(INDONESIA)
Mr. Runturambi spoke of the hard times
Indonesia is now going through. Enterprises
which were started in the years from 1945
to 1949 are closing down. Unemployment
is increasing. At present there are 253,000
registered unemployed, in addition to 200,000
who are not registered. Wages are pre-
posterously low. The country's production is
insufficient to support its population of
75?,000,000.
There is a lack of rice, the population's
basic food. People are eating rice only
once in two, or even three days.
The development of national industry is
hindered by large concerns owned by for-
eign capitalists. Foreigners control the
country's tin, oil, and other raw materials.
We believe, said Mr. Runturambi, that
trade relations will be established with the
Soviet Union and the People's Democracies,
and that this trade will lay the foundation
of lasting peace. (Applause.)
Herr 0. Proksch
(WESTERN GERMANY)
Herr Proksch is of the opinion that sys-
tematic economic relations can effect a solution
of social problems, whereas complications of
all kinds in the international situation may
hinder such a solution. Foreign trade can also
help to bring about an effective and proper
solution of social problems, if the participants -
intend to pursue a planned social policy.
Wherever social policy is in the hands of in-
dividuals, there can be no serious solution of
the social problem. The various plans being
drawn up in our Ministries, says Herr
Proksch, can only serve to increase the chaos.
The same sort of chaos is to be observed
in social problems. An effort must be made
consciously to coordinate foreign trade and
social policy, priority being given to the latter.
I ask my Western friends, says Herr
Proksch, not to be scared by the word "plan,"
since there is no system in a nonplanned
economy.
Everyone of us, continues Herr Proksch,
is aware of the destructive consequences of
economic crises, and of the fact that such
chaos can be averted where extensive eco-
nomic ties exist. The same is true of the rela-
tions between different countries.
Herr Proksch goes on to say that in our
relations with the East we must remember
that it may sooner or later refuse to have
anything to do with us, rather than vice versa.
This is a source of great danger for the
Western countries. If we slam the doors that
we should fling wide open, we shall be tak-
ing a step that it will be impossible to rectify
later.
The speaker recommends that the experi-
ence of the Soviet Union and the countries
friendly to it be borne in mind and that con-
crete proposals be made to establish genuine
trade with them.
He is of the opinion that countries with
surplus population can use it to intensity their
industrialization, and, if ready to make
the necessary concessions, can secure the
requisite capital on the world market in suffi-
cient quantities. There is some point in the
idea of cultivating the small industries so as
to help increase employment.
Herr Proksch proposes the establishment of
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At the Session of the International Economic Cooperation for the Solution of Social Protlems Group
a permanent bureau to which countries so
desirous may address themselves for informa-
tion and advice.
Herr Proksch says that social policy can
be assisted not only by foreign trade, but
also by the export of technical ideas and pro-
posals naturally in those areas where there is
no need for secrets, patents and so on.
In conclusion Herr Proksch says: Without
peace there can be no long-term solution of
social problems. That is why proposals should
be made to replace the policy of power and
violence by a social policy and by the expan-
sion of social and economic relations between
countries. (Applause.)
Mr. J. Kuczynski
(GERMAN DEMOCRATIC
REPUBLIC)
The agenda, said Mr. Kuczynski, actually
has only one main item: to find ways for
improving the living conditions of people
through cooperation among different countries
based on the expansion of their economic
relations.
The 1951 economic survey for European
countries published by the U.N.O., as well as
speeches by various representatives at the
Conference, show the exceptional importance
of this item.
unemployment grew in every European
country mentioned above, as well as in the
U.S.A. Statements currently circulated in
Western countries that militarization is bound
to result in the reduction of unemployment
have proved false.
In Lancashire, centre of British textile in-
dustry, there are, according to official British
figures, 10 times as many unemployed as
there were a year ago. Over one third of all
workers in the Lancashire cotton mills are
now either unemp'oyed or working a shorter
week.
In Detroit, centre of the American auto-
mobile industry, the unemployed total 200,000.
We have not witnessed such a number of
unemployed since the terrible economic crisis
1929-32.
Unemployment has increased in Western
Germany. In Belgium the number of unem-
ployed grew in one year by 20 per cent.
On the other hand, Mr. Kuczynski said,
there is no unemployment in the Soviet
Union, in the Chinese People's Republic, in
the People's Democracies and in the German
Democratic Republic, and the living standard
in these countries is rising.
And it is namely these countries which
display the greatest readiness to expand and
revive trade.
Mr. Kuczynski then cited some facts
showing how important foreign trade is for
increasing employment.
West-German firms received art order from
the German Democratic Republic for one
million pairs of shoes, but the Bonn govern-
ment did not permit them to fulfill the order.
Had the order been fulfilled, the number of
unemployed in the footwear industry of
Western Germany would not have increased
by 15,000 as was actually the case. The refusal
to deliver several million marks worth of
In the third quarter of 1951, the popula-
tion of Europe had less food than it had in
the third quarter of 1950: in Switzerland by
4 per cent, in Britain by 5 per cent, in Den-
mark by 6 per cent, in Norway by 7 per
cent, in Austria by 9 per cent, in Western
Germany by 12 per cent, in Sweden by 13 per
cent, in Belgium by 16 per cent.
This reduction is, to a considerable extent,
due to the growth of full or partial unem-
ployment.
Mr. Kuczynski noted that the growth of
unemployment is connected with the reduc-
wine led to the bankruptcy of a number of
wine-producers.
The refusal to undertake the delivery of
piping valued at 7.5 million marks brought
great difficulties for the largest and most
specialized West-German firm and increased
the number of unemployed.
Speeches delivered by representatives of
the U.S.S.R., the Chinese People's Republic,
Poland and Czechoslovakia at the Conference,
said Mr. Kuczynski, showed that there are
tremendous potentialities for expanding world
trade.
Orders from these countries could give
jobs to many millions of people in the U.S.A.,
Britain, France, Italy and other countries.
Speeches by participants from' the U.S.A.,
Britain, France, Pakistan, Argentina and other
countries have shown that striving for peace-
ful cooperation among different countries
and systems, and expansion of international
economic relations, is a universal striving
supported by all strata of the population: by
manufacturers and businessmen, scientists and
technicians.
Mr. Kuczynski considered that the partic-
ipants of the Conference were unanimous in
understanding the importance of international
trade. He urged everyone to show the great-
est possible number of persons, in his own
circle, that our path is the right one.
In case the Conference conducts some
organized activities alter the Conference,
Professor Kuczynski recommended the popu-
larization in scientific treatises, with the help
of statistical diagrams and graphs, popular
articles and lectures, speeches at board meet-
ings of industrial concerns and export organ-
izations, trade union meetings and schools
of the importance that development of for-
eign trade among all countries, irrespective
of their economic systems, has for increasing
employment and raising the living standard,
prosperity and happiness of people. (Applause.)
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April 8, 1952, No. 5
UNDERDEVELOPED COUNTRIES GROUP
Evening sitting presided over
by Mr. Gyan Chand
Mr. Stefan Ignar
(POLAND)
The problems connected with the develop-
ment of underdeveloped countries are the
basic economic questions at the present mo-
ment. We may boldly affirm, the speaker
said, that it is impossible to have a serious
international economic conference which did
not include these problems in its agenda and
did not attempt to find the ways and means
for their solution. These problems concern a
huge part of the globe, more than half of
mankind. It is characteristic that they con-
cern countries possessing tremendous natural
and land resources while the --populations of
these countries do not utilize wealth in the land
and live in dire poverty. Agriculture predom-
inates in these countries. Their industries are
occupied only with the production of raw mate-
rials, while in the majority of cases these raw
materials are worked beyond their borders. They
are completely dependent on the industrial coun-
tries and are exposed to the slightest fluctua-
tions in the world market. Furthermore, it is
impossible to normalize international economy
without finding the means for improving the
situation in the economically backward coun-
tries.
The main problem is that of industrializing
these countries and creating national indus-
tries in them. The development of a national
industry, power centres and transportation
facilities will open new possibilities for
providing the population with increased em-
ployment and raising its standard of living.
This, in its turn, will expand national markets
thus giving an added stimulus for industrial
growth.
Agriculture also is in crying need of an
extensive and fundamental reform that would
conform with the interests and requirements
of these countries. Such reforms must lead
to a better and fuller utilization of land, to
an increase in agricultural production and to
the ensurance of a reasonable standard of
living for the peasantry.
Problems connected with the economic
development of economically backward coun-
tries cannot be solved by capital investments
by circles interested in preserving these coun-
tries as their raw material bases. The prin-
cipal way to solve these problems is to utilize
local resources to the utmost.
Pointing out the great importance that ex-
pansion of international trade has for the im-
provement of the economic condition of back-
ward countries, Mr. Ignar stated that Poland
was ready to expand trade with these coun-
tries with a strict observance of respect for
EVENING SITTING, APRIL 7
their requirements and national interests and
by opening for them possibilities to import
Polish goods as well as a profitable Polish
market for their goods.
Broad trade between economically backward
countries and Poland is especially advantage-
ous to the parties concerned. Economically
backward countries will receive the necessary
industrial goods both for capital constructions
and for their daily needs and will, at the
same time, find a market for those goods
which they usually export. This trade can be
conducted on a clearing basis which would
facilitate the solution of their payment and
currency problems.
Only a program which is free of all exploi-
tation and political stipulations as well as
economic dependence can ensure the under-
developed countries a permanent and systemat-
ic economic development and a rise in the
living standard of their populations.
Mr. Jaime Fuchs
(ARGENTINA)
Agricultural production, said Mr. Fuchs,
constitutes the basis of Argentine economy.
Argentina had no heavy, chemical or oil
industry,- which shows her dependence upon
trade with foreign countries.
Argentine economy requires a great
number of agricultural machines. At present
there are 27,000 tractors and 40,000 combine-
harvesters in Argentina. Yet she needs
another 100,000 tractors,- 15,000-20,000 com-
bine-harvesters, and 10,000-15,000 maize com-
bines.
What should be done to get those machines
and thus increase agricultural produc-
tion? asked the speaker. Answering his own
question, he said: Countries producing such
machinery should sell them to Argentina on
trade terms based on respect for the sover-
eignty of other countries and on mutual
advantage.
The speaker then dealt with a problem
that interests countries producing raw
materials, the problem of discrimination
both with regard to prices for their export
goods and to prices they have to pay for
goods they import. In this connection Mr.
Fuchs moved a concrete proposal: that the
Plenary Session should consider the problem
of buying and selling machinery and raw
materials without any discrimination
whatever. According to him it is necessary
to establish equivalent international prices
for imports and exports. In other words,
prices for raw materials produced by ag-
ricultural countries should be brought into
line with prices for machinery they import.
In the opinion of Mr. Fuchs, exchange of
information on technical improvements and
scientific discoveries should be conducted
between countries on the basis of equality,
mutual respect and peaceful coexistence.
The speaker stressed the. importance of
the Soviet representative's statement that
the U.S.S.R. could sell industrial goods to
other countries accepting payment in their
own currencies. He also suggested that
multilateral treaties should be entered into
by different countries for long periods, such
treaties being essential for the development
of foreign trade and for the carrying out
of long-term plans of industrial develop-
. ment. Lastly, discrimination with regard to
transportation of goods in which the great
powers usually indulged, should be done
away with and equality established for all
countries in need of transportation facilities.
Mr. Fuchs's concluding remarks to the effect
that the economies of underdeveloped coun-
tries should expand along peaceful lines and
not be transformed into appendages of the
war economies of foreign powers, were
greeted with general applause.
M. J. Bouchaud
(FRANCE)
M. Bouchaud, who represents the French
General Confederation of Labour, stressed the
need to combat poverty, unemployment and
malnutrition in the underdeveloped areas. The
French General Confederation of Labour is
working in this direction. Above all the pro-
duction of food and prime necessities must
be increased. How is this to be achieved? the
speaker asked. The rapid development in the
colonial countries is possible only if they re-
ceive comprehensive assistance from other
countries.- Industry must be developed, for
upon it, among other things, depend hygienic
conditions in the underdeveloped areas.
Natural resources of all countries must be
preserved. The worker must be ensured a
fair share. Foreign capital must be invested
and technical assistance rendered. Industrial
development will also promote exports of raw
materials. Local industries must be encour-
aged to process raw materials. But above all
power development should be boosted in
e~,ery way. All this requires a, high degree
and wider scope of vocational training.
M. Bouchaud emphasized that economic
progress entailed capital investments and he
suggested that a single body be established
in which contributions from all countries
could be deposited.
In conclusion M. Bouchaud remarked that
international trade is a highly-important fac-
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INTERNATIONAL ECONOMIC CONFERENCE
tor in the economic advancement of under-
developed areas and in promoting world
cooperation. Every type of discrimination,
blockade, and in particular the blockade of
China, must be abandoned. Militarization of
the economy must stop, for only a peace econ-
omy can promote the peaceful branches of
industry.
Our goal must be cooperation in world
trade. Very many countries, China among
them, had been excluded from world trade,
and quite unjustly. All of us, M. Bouchaud
said, must do our duty to the underdeveloped
-countries. (Applause.)
Mr. Tufail Ahmed Khan
(PAKISTAN)
Economic planning, the speaker said, is
of great importance for industrialization, a
prime necessity for underdeveloped coun-
tries. The beginning for such economic
planning has already been entered upon in
Pakistan; we have a two-year government
plan for the development of mining and
other branches of the industry as well as
an extensive irrigation plan. However, these
plans are carried out very slowly, the
major part of them being shelved chiefly
'tor reasons of an international character.
The growth of the war industry in the
West is having an adverse effect on the
development of our country. We are short
of machines and equipment but the prices
have become forbidding to us. Furthermore,
supply of equipment to our country depends
upon the dictate of more developed coun-
tries.
Actually, efforts are made to convert our
-countries into markets for consumer goods.
We are denied supplies of machines and
equipment. Certain more developed countries
want to reduce prices for agricultural
produce artificially, stating that this is being
done in the name of civilization, but ac-
tually for profits, as the prices for machines
and equipment are not being reduced. Thus,
our countries have no opportunity to ex-
change raw materials for much needed
capital goods in developed countries and
are virtually deprived of the possibility to
industrialize. The major portion of exports
and imports in the underdeveloped countries
is controlled and dominated by the more
economically developed countries.
These are the principal reasons why un-
derdeveloped countries cannot develop their
industries or are developing them very
slowly. Our countries can be led out of a
difficult economic situation by the elimina-
-.tion of these obstacles.
The underdeveloped countries are ex-
periencing grave economic consequences
from militarization and the development of
war industries abroad. Foreign investments,
as well as control of capital investments,
banks and industry by the more developed
countries, actually hinder the economic
growth of the underdeveloped countries.
They could develop - better and more rapidly
if these obstacles and this control were
removed. (Applause.)
Mr. K. Kamenov
(BULGARIA)
Bulgaria, said Mr. Kamenov, is in a posi-
tion to extend its trade with all the coun-
tries she used to do a lively trade with in
the past, namely: Turkey, Egypt, Israel, the
countries of the East, etc.
These countries produce various items of
interest to us and this creates the conditions
for a greater exchange of goods. The fact
that Bulgaria lies at no great distance from
the East is also an important factor.
Bulgaria has altered the nature of her
agriculture which she is developing into a
large-scale, mechanized branch of produc-
tion. Agricultural output in 1950 was 42.2
per cent greater than in 1939. Mechanization
of agriculture has shown an almost three
times increase in the same period.
Although light industries at present pre-
dominate in the country, Bulgaria is gradual-
ly beginning to produce more electric power,
ores, coal, chemicals, machinery, building
materials and metals. Industrial output in
1951 was triple the 1939 figure.
We owe this rapid industrialization to the
generous assistance of the Soviet Union and
the People's Democracies.
Our exchange of goods with the countries
of the Middle and Near East has increased.
We export glass, cement, charcoal, and
other items. We can supply Turkey with
textiles, machinery, different kinds of equip-
ment, pressed glass, glassware, timber, ply-
wood, porcelain, clay, glycerine, seed,
grapevines, and alcoholic beverages, in ex-
change for copper, oils, tanning substances
and other goods. If trade is developed on
an equal footing a large exchange of goods
can be expected.
To Egypt Bulgaria can export tobacco,
glass, machinery, nitrogen fertilizers, joiner's
glue, cement,. tinned vegetables, glassware,
furniture, rubber and other industrial items.
We are interested in receiving from her cot-
ton, lemons, oranges, bananas, etc. Not only
is an import and export trade between Egypt
and Bulgaria possible, it is also essential to
the interests of both countries.
However, Bulgaria's contractual relations
with the Near East preclude any steady ex-
change of goods. We have made attempts to
conclude new agreements but with no results.
The People's Republic of Bulgaria, with its
rapidly developing economy, cannot base its
trade on change agreements because that
interferes with its planned economy. Co-
operation on a basis of . equality will make it
possible to conclude long-term agreements.
Given sincere mutual cooperation present
obstacles and the isolation of the Central
European countries from the Near East_ can
be eliminated. This is the sole means of
maintaining world peace and raising the cul-
tural level of all peoples. (Applause.)
Mr. U Kyaw Mtn
(BURMA)
Mr. U Kyaw Min, a Burmese - barrister,
Member of Parliament and director of the
Central Commercial Bank, said that Burma
was a good example of an underdeveloped
country. This country, rich in natural -re-
sources, has a very low standard of living. Its
economy is basically agricultural, with about
80 per cent of the population working the
land.
Burma suffered greatly during the Second
World War. It was twice occupied, and most
of its towns were almost completely ruined.
We desire peace, he said, in order to rehabili-
tate our devastated country.
Next Mr. U Kyaw Min pointed out that
the economy of Burma was lopsided, that the
country needed to build up industries which
could process its mineral wealth, timber, and
bamboo. It is also necessary to build sugar
mills and to develop other industries. Burma
is especially interested in establishing small
hydro-electric power plants. However, said
the speaker, at present our people have very
little money and can buy machinery only at
low prices. We know, he added, that the New
Democracies are in a position to offer us fixed
prices.
Prior to the Second World War Burma trad-
ed with China, Czechoslovakia, Poland and
Rumania. Unfortunately, after the war, the .
speaker noted, there has been practically no
trade with these countries. It is hoped, how-
ever, that Burma's trade with these coun-
tries and the Soviet Union will grow in the
near future.
In conclusion Mr. U Kyaw Min thanked
the Initiating Committee for convening the
International Economic Conference, and the
Soviet people for their hospitality. (Applause.)
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Mr. K. Economides
(CYPRUS)
Mr. Economides informed the gathering
that he was the only representative of Cyp-
rus; a consulting economist of the Federa-
tion of Trade Unions and of the Peasants
Union of Cyprus, he is also president of an
import corporation.
In my country, said Mr. Economides, more
than half the population is employed in agri-
culture. The rich farmers and landlords, who
comprise only two per cent of the rural pop-
ulation, own approximately 20 per cent of
the land.
Despite its tremendous natural wealth, said
Mr. Economides, Cyprus is a poor and un-
derdeveloped area, because its agriculture is
not based on advanced modern methods. Fur-
thermore, the mining companies pay very low
wages. The peasants and workers of Cyprus
are therefore living in poverty which drives
about 4,000 inhabitants of Cyprus to emigrate
annually to Australia and other countries.
One of the principal problems confronting
Cyprus is that of combating the tragic con-
sequences of drought which visits the country
at intervals of several years. This could be
achieved primarily by building irrigation sys-
tems; secondly,- by digging wells, and lastly
by improving the methods of cultivation and
seed selection. As regards irrigation, I have
heard here, and was very pleased to hear
Nesterov, the President of the Chamber of
Commerce of the U.S.S.R., declare that the
Soviet Union with its very rich experience in
this field is prepared to assist the underdevel-
oped countries in building irrigation systems.
I am convinced that thanks to the achieve-
ments of its scientists the Soviet Union is in
a far better position than, any other country
to render technical assistance to the under-
developed countries not only in building irri-
gation systems, but also in advancing agri-
culture in these countries to a modern level.
It would be extremely desirable in this con-
nection if arrangements were made enabling
delegations from the underdeveloped countries
to pay frequent visits to the Soviet Union in
order to study the work of the collective and
state farms of the U.S.S.R., and for Soviet
agronomists and other scientists to come to
our country to assist us with their advice in
the solution of technical problems confronting
our agriculture.
Our second most important problem in
agriculture is that of the expropriation of
the land from the estate owners for distribu-
tion among the poor and landless peasants.
This problem cannot of course be solved by
any direct aid from the' more advanced coun-
tries. Nevertheless the solution of this prob-
lem could have been accelerated if a coordi-
nated world-wide campaign were launched
in favour of the expropriation of the land-
lords and the transfer of their holdings to
the poor and landless peasants.
The next problem-which confronts not
only Cyprus but also other underdeveloped
countries-is that of the exploitation of their
natural wealth for the. benefit of the peoples
of these countries, and not in the interest of
foreign shareholders as is the case today.
This can be achieved only through nationali-
zation.
Last but not least there is the problem of
industrialization which confronts Cyprus along
with many other underdeveloped countries.
With the aid of the more advanced countries,
and, especially, with the aid of the Soviet
Union and Czechoslovakia, Cyprus would be
able to industrialize its economy. Thus, for
example, we -need equipment and technical
assistance for the organization of canneries,
let us say, for' processing fruit and vegetables,
for processing our raw materials, and for
other branches of the light industry.
Mr. Economides concluded by saying that
with the aid of the more advanced countries,
and primarily, with the aid of the Union of
Soviet Socialist Republics, Cyprus, just as
the other underdeveloped countries, would be
able to develop its economy and raise the
living standard of its population. (Applause.)
Mr. M. Miller
(CANADA)
Mr. Miller stated that backward countries
should be industrialized if they wish to raise
per capita consumption.
One way of industrializing a country is by
reorganizing its entire economic system, as
was done in the Soviet Union. Another is by
using foreign capital.
No one could object to the principle of
offering aid, said Mr. Miller. The thing we
do object to is attaching strings to this aid.
Capital investments may indeed be an
effective means of helping backward coun-
tries. This raises a very important question.
If capitalists make these investments, they are
interested in getting profits.
Mr. Miller further said that the Soviet
Union placed no conditions whatever when it
invested capital in Soviet Republics. Can we
effect this same principle to hold in respect
to countries outside the borders of the Soviet
Union? (Applause.)
Mr. M. Hancock
(CANADA)
At the beginning of his speech Mr. Hancock
described Canada's economy. Canada, he said,
is primarily an exporting country, the third
largest in the world. Our traditional exports
are wheat, timber and paper. But we also ex-
port large quantities of nickel and iron ore,.
asbestos. .
A large part of our Canadian exports, he
continued, go to Britain and the United States.
At one time Britain was chief consumer of
Canada's exports, but now the United States
is taking 65 per cent of them. But even at
that Canada has a chronic adverse balance of
trade with the United States. At the same
time it must be pointed out that there are
huge foreign investments in Canada. Much
foreign capital has always been invested in
the country. It has been a characteristic fea-
ture of its economy. By 1949 the value of
foreign investments in Canada had reached
8 billion dollars of which 6 billion dollars was
owned by United States investors. This shows
that Canada in common with some other
countries finds her economic sovereignty se-
verely compromised.
The keynote of this Conference has been
the recognition of the equality principle in in-
ternational trade relations. Trade agreement&
must be mutually beneficial to all participat-
ing countries. If underdeveloped countries are
to be permanently assisted their products.
must be given equal opportunity for disposal
on the world market, and an end should be
called to the practice of making loans osten-
sibly for purposes of financing sales but ac-
tually crippling the economy of the receiving
country.
In my opinion countries which find them-
selves unable to pay in currency should be
enabled to settle their accounts in goods and'
services.
I consider that it is not only countries..
with a low per capita income which can be
considered underdeveloped. In the broadest
sense of the term Canada also is underdeveloped, that is, its economy is lopsided, un-
balanced. We are too dependent on the United
States whose industrialists largely control:
our development.
We are still cutting down our forests, and
do this for the United States, which has vast
timber resources of its own.
On the ways and means of developing un-
derdeveloped countries we shall try to make
some special contribution. We welcome the
opinion that it is necessary to establish a bank.
which will be under the control of the un-
derdeveloped countries. In order to change.
the picture rapidly in those countries there
must be loans of capital for their development,.
but these must be made in the spirit of as-
sistance and restitution. There must be co-
operation, not coercion. (Applause.)
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OF THE INTERNATIONAL ECONOMIC CONFERENCE
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INTERNATIONAL
No. 6
C 0 N. 0 M I C April 9
1952
INFORMATION BULLETIN
Co nf e r enc e Diary
At 10 a.m. on April 8, the respective Working Groups
of the International Economic Conference assembled in
the Column, Round and October Halls of the House of
Trade Unions.
The speakers in the International Trade Development
Group were: M. Sahiu, economist (Albania); M. Haroun,
president, IIaroun Co., Ltd. (Pakistan); F. Adamek,
director general, Tsentrotoks (Czechoslovakia); N. Orlov,'
director, Foreign Trade Research Institute (U.S.S.R.);
Professor Cazi Muhammed Farheed (Pakistan); S. Tedja-
sukmana, president, Jokyarta Chamber of Commerce
(Indonesia).
N. Orlov made a comprehensive analysis of the state
of world trade, and demonstrated that the unadjusted
trade balances of the West-European countries were in
a large measure due to the fact that the United States
was forcing its own exports with total disregard to the
principle of mutuality. He presented in contrast the
economic relations between the U.S.S.R., the Chinese
People's Republic and the European People's Democra-
cies, which were based on the principle of the equality
of parties. The Soviet delegate referred to the concrete
proposals being discussed by Soviet foreign trade organ-
izations and representatives of British and French firms
present at the Conference.
A notable feature of the discussion in this Group was
its businesslike and concrete character. Many of the
speakers did not confine themselves to general problems
but made specific recommendations. Mr. Spahiu (Alba-
nia) suggested that the International Ecofio ?riiic Con-
ference should establish a permanent international body
for the promotion of trade between all countries. Mr.
Haroun (Pakistan) proposed that all governments should
be recommended to make no difficulties in issuing to
businessmen visas to the countries with which they
desired to develop trade relations.
The committee appointed by the Group to draft its
report met in the evening. The report will be presented
-to the plenary session of the Conference today, April 9.
The first speaker at the sitting of the International
Economic Relations for the Solution of Social Problems
Croup was Mr. H. Acosta, secretary general of the
Labour Union/ of Paraguay. He was followed by:
V. Kuznetsov; chairman of the Central Council of Trade
Unions of the U.S.S.R.; R. Amaduzzi, director, economic
division, Italian General Confederation of- Labour;
A. Deutsch, of the Printers' Union, .American Federation
of Labour; S. Moraru, executive member,` Rumanian
General Confederation of Labour; F. Bozsoki, Hunga-
rian trade unionist; D. Stanley, Constructional Workers'
Union Secretary (Britain); J. Vii, trade unionist (Alba-
nia); Dr. S. Taghi Razawi (Iran); D. Musa (Israel); C. Riffo
Blest, (Chile); Amir Hussein Shah Sayed (Pakistan);
A. Cuneo (Argentina); Thakin Lu Aye (Burma); Mobarak
Saghar (Pakistan); M. Acosta (Uruguay); H. Schlimme
(German Democratic Republic), and C. Mubrey (U.S.A.).
Many of the trade union members of the, Group
stressed the close connection between the state of em-
ployment and the state of foreign trade. V. Kuznetsov
made an interesting statement on this point, in which
he noted that the Soviet orders to which the President
of the U.S.S.R. Chamber of Commerce had referred
could provide employment over a period of three years
for at least one and a half to two million people in
various countries.
R. Amaduzzi, A. Deutsch, M. Acosta and others said
that the trade unions, whose' function it was to protect
the interests of the workers, could be, of material
assistance in securing an expansion of world trade.'
The speakers at. the meeting of the Underdeveloped
Countries Group' were: Youn Hen Chjoun, economist
(Korean People's Democratic Republic); H. Dariuche,
merchant (Iran); D. Borisenko, vice president, U.S.S.R.
Chamber of Commerce; B. Manzocchi, economist (Italy);
B. Szilagyi, trade adviser (Hungary); Q.' Harito, financier
(Albania).
D. Borisenko said that the- best way to assist the
underdeveloped countries was to trade with them, on a
footing of equality and without interfering in their
internal affairs. B. Szilagyi, the Hungarian delegate,
made specific proposals for trade between his country
and the Near East and Latin American countries.
The Group appointed a recommendations drafting
committee, composed of representatives of India, Argen-
tina, Iran, the Chinese People's Republic, Pakistan, the
U.S.S.R., Great Britain, France, Canada, Chile, Brazil,
The Information Bulletin is published in the English,
Russian, French and German languages.
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DEVELOPMENT OF INTERNATIONAL
TRADE GROUP
Mr. Muhamer S ahiu
(ALBANIA)
Albania, said Mr. Spahiu, is a small
country. Although it was economically back-
ward before the Second World War, it has
made great progress since. Before the war
Albania was exploited by many imperialist
countries, Italy in particular,' and that was
the primary reason why she had no trade
tics with any other country but Italy. Since
the war Albania has established economic
relations with the U.S.S.R., Czechoslovakia,
Rumania, Hungary, Poland, German Dem-
ocratic Republic, Bulgaria. This has enabled
its to set about industrializing the country
and has led to rapid economic development.
Albania's industries are growing rapidly.
The output of its mining industry, for in-
stance, was 3.7 times greater in 1951 than
in 1938; output of its. food and light indus-
tries and its building materials industry in-
creased 4.7 times in the same period. Agri-
culture has also made marked progress.
Substantial changes have also taken place
in Albania's foreign trade. Her exports are
now double the prewar figure. As for im-
ports, not only have these increased im-
measurably, they have also changed in nature.
Whereas consumer goods used to make up
the greater part of Albania's imports before,
now capital equipment accounts for nearly
60 per cent of it. In addition we import raw
and building materials-cement, nails, glass,
rolled goods, sheet iron, chemical fertilizer,
rubber, etc. Our chief export items arc min-
eral products, raw oil, bitumen. They account
for nearly 70 per cent of the total exports.
Growth of our imports will go hand in
hand with the growth of our exports.
Albania's primary requirements are capital
equipment, industrial raw materials and
-building materials. In the period of 1953-55
we shall be in the market for rolled goods,.
rubber, paper, 'various kinds Of engines, irla-
chinery for the mechanization of building
work and mining and equipment for machine
shops totalling approximately 5,000,000 rubles
in value; farming machinery to the value of
about 7,000,000 rubles; rolling stock and
transport vehicles to the value of nearly
10,000,000. rubles; different kinds of machin-
cry and spare parts to the approximate value
of 17,000,000 rubles-which adds up to
about 40,000,000 rubles'for the whole.
The speeches are given in abridged form.
In conclusion Mr. Spahiu proposed that the
Group submit a recommendation to the
Plenary Session to set up an organization
to continue the work begun by the Ar-
rangements Commission and the present
Conference. (Applause.)
Mr. Mahmoud Haroun
(PAKISTAN)
An important factor which today is a
great handicap to the development of inter-
national trade is the restrictions and the
various formalities placed by various coun-
tries on free travel. Some countries refuse
permission to their nationals to visit certain
countries, while others lay down complicated
formalities to be complied with before visas
are given. The result of this is that many
a trader, or businessman and industrialist
has to miss markets where he can often
reasonably expect his requirements to be
fulfilled with great advantages.
Expansion of international trade can only
take place where there is easy and quick
access for businessmen to the respective
commodity markets. Any restrictions in this
respect become disturbances in the way of
trade.
For example, in my country some of the
East-European countries have not established
their missions, and where missions do exist
the formalities for obtaining visas take up
so much time that many businessmen have
often dropped the idea to visit these coun-
tries and transferred their business proposi-
tions to other countries. I, therefore, urge
that this Conference should make a recom-
mendation to all governments to facilitate
easy and quick movement of bona-fide
traders and businessmen to and from their
countries.
Mr. Haroun concluded by submitting for
the consideration of the Conference the
following proposal:
"Whereas trade and commerce flow more
easily in directions in which easy movement
for traders and businessmen is possible, it
is necessary for multilateral extension of
trade and commerce that bona-fide traders,
businessmen and industrialists should be
readily granted passports and visas for
travelling to all countries where the interests
of international trade may take them.
"This Conference accordingly orders all
governments to grant passports and visa
facilities to all bona-fide businessmen without
de'ay or hindrance." (Applause.)
Mr. Frantisek Adamek
(CZECHOSLOVAKIA)
The speeches by the participants of the
International Economic Conference, said
Mr. Adarnek, clearly prove that the de-
terioration of international economic ties
due to discrimination adversely affects the
economic development of the countries that
operate this discrimination. Mr. Nesterov's
speech at the Plenary Session and the
speeches of representatives of the People's
Democracies have shown how favourably
the elimination of discrimination would in-
fluence the development of international
trade and thereby that of the economies of
all countries. It would be narked by a tre-
mendous flow of goods, by a broad ex-
change of goods between the planned
economy and the private-enterprise countries.
This exchange would guarantee economic
progress in many countries and clear the
way for an improvement in the living
standards of millions of people throughout
the world.
In conclusion, Mr. Adamek introduced the
following proposals on behalf of the Czech-
oslovakian delegation:
With a view to advancing the living
standards of the people and lessening in-
ternational tensions, the participants of the
International Economic Conference should
find ways of achieving the nondiscriminatory
expansion of international trade, aimed at a
constant development of international
economic ties, regardless of economic and
social systems. The participants of the In-
ternational Economic Conference should ap-
proach industrial, agricultural, commercial,
cooperative and trade union leaders, men of
science and all working people, and also the
governments of all countries with a view to
securing support for and the implementation
of the recommendations adopted at this
Conference.
The members of the Czechoslovakian del-
egation propose the establishment of a cony
mittee that would address to the United
Nations Organization the suggestions that
the results of the Conference be discussed
at a special conference convened by the U.N.
To secure the development of economic
ties, the Conference recommends the em-
ployment of all possible methods including
long-term and multilateral commercial
agreements.
We are convinced that the fulfilment of
these recommendations would considerabil
facilitate the fulfilment of the aims of o Conference. (Applause.)
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April 9, 1952, No. 6 INTERNATIONAL ECONOMIC CONFERENCE
Nikolai Orlov
(U. S. S. R.)
N. Orlov, Director of the U.S.S.R.
Economic Research Institute, which studies
world markets and international trade
trends, discussed the present state
commerce.
One of the most salient features
national trade today, he said, is
of inter-
its low
level. Indeed, no appreciable progress has
been made in this sphere in the last quarter
of a century. Figures issued by the U.N.
Statistical Bureau indicate that, on the
whole, world trade in 1950 was only
slightly above 1928, generally considered a
favourable business year. In the case of
such countries as Britain, France, Italy,
Austria, India, Argentina and Japan the
figure is even below 1928. In the same
period, the U.N. figures show, the world's
population increased approximately by 25
per cent, so making allowance for this pop-
ulation growth, world trade is approximate-
ly 12 per cent below the 1928 level.
A certain increase in international trade
was registered last year. It does not, how-
ever, alter the above conclusion. Foreign
trade expansion in most Western countries
was of an unsound nature; it was tem-
porary and unstable, since most of it was
based on deliveries of armanents and war
supplies.
World trade in peacetime products has
not yet climbed back to the prewar level-
a direct result of economic militarization in
certain Western countries in recent years.
Customs returns and data published by
the United Nations and international
economic agencies show that last year's
international trade in a considerable number
mass consumption
war. Specifically, the shortfall was 10 per
cent in meat, 21 per cent in animal fats,
54 per cent in rice, 21 per cent in cotton
goods.
International trade in a number of raw
materials in 1950 was' likewise below pre-
war, the shortfall being 14 per cent for
cotton, 30 per cent for sawn timber and coal,
28 per cent for iron ore and 25 per cent
for pig iron.
The recession of international trade in
consumer goods means less supplies for the
population of many countries. In its report
for 1950-51, the FAO admitted that most
people who went hungry before , the war
were hungrier today. This is due not only
to the fact that food production inmost defi-
cient areas lags behind population increases,
but also to a nearly one-third drop in the
world food trade, compared with prewar.
The. present dislocation of international
trade is bound up with the rupture of
normal economic cooperation among nations,
discriminatory practices and the expansion
of armaments production in certain Western
countries. Trade discrimination out of
political considerations is part and parcel of
a policy aimed at preventing the reestab-
lishment and . development of " 'East-West
economic relations.
At this Conference Lord Boyd-Orr sided
with the supporters of international trade. But
there appears to be a contradiction- in his
stand on the matter, inasmuch as he advo-
cated developing trade within the framework
of existing restrictions. His proposal could, of
course, be productive of some good, but by
following the path he suggests we are hardly
likely to achieve the substantial expansion of
international trade which this Conference
desires.
In this connection mention should be made
of the anxiety expressed by representatives
of France, Italy, Brazil, Argentina, India and
Pakistan over the adverse consequences dis-
crimination in international trade is having on
.the economic interests of their countries,
I would like to draw attention to the re-
mark of the Indian delegate who said that
if trade was to be employed as a means of
mutual assistance and not as an instrument
in the struggle of the powers for domina-
tion, we would have to eliminate all trade
barriers, restrictions, and harmful trade prac-
tices.
The dislocation of normal international busi-
ness relations has caused chronic unfavour.
able trade balances, depletion of gold and
foreign exchange reserves,. and aggravation
of the currency crisis in many countries,
these, in turn, intensify the dislocation of
international trade. Thus, West-Europe's un-
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favourable balance of trade for 1946-50 ex-
ceeded 34,000 million dollars, and grew to
even more menacing proportions in 1951.
The unadjusted state of .West-European
trade balances is largely due to the fact that
the United States, while stepping up its own
exports, disregards the principle of two-way
trade; which, as everyone knows, is an in-
dispensable condition for the sound develop-
ment of foreign trade.
Some were inclined to regard dollar aid as
a means for moderating the acute postwar
economic difficulties caused by the derange-
ment of payment balances. But four years
have passed and the question arises: what
are the results of dollar aid? Has the situa-
tion improved? Have the difficulties been
moderated?
Statements of a number of delegates show
that these difficulties remain and in some
cases have been aggravated.
The foreign trade of the Western countries
is encountering mounting difficulties, their
economic ties are being narrowed down. An
entirely different picture is presented by re-
lations among the U.S.S.R., the great Chinese
'People's Republic, Poland, Czechoslovakia,
Hungary, Rumania, Bulgaria, Albania, the
Mongolian People's Republic, the Korean
People's Democratic Republic, and the Ger-
man Democratic Republic.
The economic relations among these coun-
tries are constantly expanding. They have
organized economic cooperation and mutual
assistance founded on a sincere desire to
help one another, and they are making steady
economic progress. Their close economic
cooperation finds expression in the high
rate of development of trade in postwar
years. Trade between these countries more
than doubled from 1948 to 1950. Future
prospects are undoubtedly favourable.
Trade between the above countries is
developing on the stable foundation of long-
term economic agreements which assures
.stable markets for the sale of their goods
and reliable sources of necessary supplies.
The Soviet Union, China and the European
People's Democracies experience no foreign
exchange difficulties in trade transactions
among themselves.
Soviet foreign trade organizations have
extensive potentialities for developing busi-
ness with other countries as well. Business
circles desirous of expanding trade relations
with the U.S.S.R. will always find support on
our part. One example is afforded by the
developing trade ties with a number of
countries-Finland, Sweden and others.
There can be no doubt that contacts
established at this Conference between rep-
resentatives of business interests of various
countries will lay a foundation for mutual
understanding and broader commercial rela-
tions.
As for Soviet trade organizations, they are
already conducting lively commercial nego-
tiations with many Conference members.
British firms, for example, are negotiat-
ing with us for the purchase of crude oil,
diesel fuel, oilcake.
French firms are interested in buying
wheat, maize, furs, especially Persian lamb,
and offer velvet, woollen fabrics, rayon
yarn, cocoa beans, soda, lacquers, paints,
medical supplies, rolled metal and a number
of other commodities.
Business men from Belgium have offered
Soviet trade organizations artificial fibre,
mirror plate, and knitted goods, and, on
their part, are interested in buying motor
vehicles of Soviet make.
Soviet foreign trade organizations are
also negotiating with firms in Italy, Holland,
Switzerland, Denmark, Greece, India, Ceylon,
Egypt, Iran, Lebanon, and a number of
other countries.
The contacts established here between
representatives of firms from many coun-
tries have enabled them to start negotiations
for business transactions.
All this, as well as the statements made
at this Conference by representatives from
many countries, is evidence of the readiness
of the wide public support for the develop-
ment of world trade.
The resources available in the world and
the potentialities for the production of con-
sumer goods make it possible to expand in-
ternational trade on a large scale, provided
broad business ties are established between
countries.
Soviet economists have analyzed the pos-
sibilities for increasing international commerce
in the coming 2-3 years.
It is our opinion that with the reestablish-
ment and development of business relations
between countries trade could be substantial-
ly expanded. If per capita world trade was
to rise at least 10 per cent above the 1928
level, this would add up to an annual increase
in world exports of not less than 15 bil-
lion dollars, or 25 per cent above 1950, (in
comparable prices). Of course, what is meant
is the development of trade by increasing the
exchange of food and manufactured goods,
raw materials and equipment for the peace
industries.
That such an increase is feasible is proved
by the concrete programs of foreign trade
development presented at the Conference in
the speeches of business representatives from
the Soviet Union, the Chinese People's Repub-
lic, Poland, Czechoslovakia, Rumania, Hun-
gary, Bulgaria, and the German Democratic
Republic.
It will be seen from the speech of M. V.
Nesterov, President of the U.S.S.R. Chamber
of Commerce, that trade of the Soviet Union
with Western Europe, the Americas, the
Middle East, Africa, Southeast Asia and
Australia, could, given proper conditions,
amount to 30-40 billion rubles in the next
2-3 years.
The representative of the Chinese People's
Republic stated that if artificial barriers were
eliminated, China's trade with the same coun-
tries could amount to 15-19 billion rubles in
the next 2-3 years, according to Incomplete
figures.
Statements made by the delegates from
Poland, Czechoslovakia, Hungary, Rumania
and Bulgaria on the prospects for increasing
their foreign trade indicate that the aggre-
gate volume of business they can do with
Western Europe, the Americas, Southeast
Asia, the Middle East, Africa and Australia,
could amount, given proper conditions, to
25-30 billion rubles in the next 2-3 years.
The German Democratic Republic delegate
has made it known that his country's trade
with these areas could be brought up to
10-12 billion rubles in 2-3 years.
Soviet economists have made a summary
of the above statements on the expansion
of trade, and have arrived at the conclusion
that the combined average annual trade of
the U.S.S.R., China, Poland, Czechoslovakia,
Hungary, Rumania, Bulgaria, and the Ger-
man Democratic Republic with Western
Europe, the Americas, Southeast Asia, the
Middle East, Africa and Australia could in-
crease two and even two and a half times
as against the present volume.
The expansion of international trade
would, doubtlessly, contribute to an allevia-
tion of the economic difficulties experienced
by the Western countries and would help
to raise living standards in many countries.
This would ensure Western Europe an in-
flux of necessary foods and materials and
higher operation of industry; it would ease
the dollar problem.
Those countries defeated in the last war,
whose economic development is -being re-
tarded and who are deprived of independ-
ence in their foreign trade, could have a
proper share in the development of interna-
tional commerce.
Latin American countries could relieve
their economic difficulties.
The expansion of the foreign trade of In-
dia, Pakistan and other countries in Asia
and Africa, could facilitate the development
of their national economy. They could ob-
tain machinery, equipment and industrial
raw materials in exchange for the goods
they produce.
All of this indicates, N. Orlov said in
conclusion, that substantial expansion of
world trade, coupled with normal economic
cooperation among the nations, could
moderate the economic difficulties now en-
countered by many countries and create the
'conditions necessary for raising living
standards and improving relations between
countries. (Applause.)
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April 9,; 1952, No. 6 INTERNATIONAL ECONOMIC CONFERENCE 5
Mr. Cazi Muhammed ,Farheed
(PAKISTAN)
For the backward countries to develop
economically, said Mr. Farheed, they must
have the good will of the industrial coun-
tries. In our day this good will can take
the form of direct financial assistance or
long-term credits. It can also take the form
of exports to countries that need assistance
or the financing of trade.
In all cases this would increase the
volume of international trade. And this as-
sistance should not be spontaneous; it
should be rendered on planned lines.. Seeing
that in many countries economic develop-
ment is planned, there is no reason why
planning should not he applied to interna-
tional trade as well.
Mr. Farheed proposed setting up an inter-
national trade planning commission to
regulate the export of materials and goods
to countries requiring them. Payments
should be settled in a manner allowing the
exporting countries to make their own
purchases in any country and not only in
those they export to.
Import-export gaps should be regulated
by this commission which would pe forni
the important function of granting loans
and rendering direct financial assistance to
countries in need of it.
Touching on the economic development of
Pakistan, Mr. Farheed stated that since
1951 his country had been carrying out
two-year and six-year programs. of econom-
ic development as part of what is called
the Colombo plan. To succeed with these
programs Pakistan required- the assistance
of the industrial countries of the East. Only
then would it be able to increase its agri-
cultural and industrial production, increase
its exports of jute, cotton, wool, pelts, and
tobacco, and import consumer goods, coal,
iron, steel, textiles, chemicals and other
items from other countries. ' (Applause.)
Mr. Suchjar Tedja-Sukmana
(INDONESIA)
Mr. Tedja-Sukmana, Chairman of the
Chamber of Commerce of Indonesia, stated
that world market prices in 1950-51 were
favourable for Indonesia, since there was a
big demand for rubber, tin, copra and to-
bacco. However, the efforts to import the
capital equipment needed for Indonesia's
economic development encountered great
difficulties, notwithstanding the fact that the
country's balance of payments rendered such
imports possible. It was to expand trade and
consolidate business relations that the Indo-
nesian delegation came to this Conference.
At present Indonesia has trade agreements
with approximately 20 . countries including
Poland, Czechoslovakia and Hungary. Under
these agreements Indonesia exports ; rubber;
tin, oil, salt, coffee, black pepper, tobacco,
tea, etc. These agreements, however, have
not been fully implemented, mainly because
exports from these countries to Indonesia
are lagging due, particularly, to lack of
agreement on prices or delivery dates.
The Indonesian delegation is anxious to
straighten out such difficulties through direct
negotiations with the delegations from, the
respective countries.
Besides, Mr. Tedja-Sukinana said, we are
also anxious to explore possibilities for trade
with the U.S.S.R., China and the -German
Democratic Republic. In this connection it
should be stressed that while Indonesia, is
prepared to sell her products she ' at' the same
time is in need of capital goods from other
countries.
In conclusion, the speaker said, we want
your trade, we want economic relations with
the countries of Eastern Europe and ' Chiha;
we want trade relations with all countries
without exception. (Applause.)
INTERNATIONAL ECONOMIC COOPERATION FOR
THE SOLUTION ' OF SOCIAL PROBLEMS GROUP
Mr. Juan Acosta
(PARAGUAY)
After stating that the idea of convening the
International Economic Conference had
aroused lively interest in Paraguay,
Mr. Acosta presented an analysis of his
country's economy.
The principal occupations in my country;
lie said, are farming, stock breeding and
forestry. As an economically backward land
it has unfortunately fal'en victim to the
policy of foreign monopoly capital, much to
the detriment of our national sovereignty. It
has reduced the working class to a condi-
tion of poverty and hunger.
Sixteen months ago, on Dece,riber 1, 1950,
Paraguay signed an agreement with the
U.S.A. accepting Truman's Point-4 program
of so-called American assistance. The result
has been dislocation of the country's econ-
omy.
American firms now predominate in our
industries. Two big American companies
have the monopoly of the production of
cottonseed and oil. The Americans want to
use our oil for war purposes; they want to
establish a transcontinental air base on our
territory.
It has been announced in Washington that
the policy. applied to Paraguay ought to be
extended to other countries as well. We who
live in Paraguay know just what this
means. We know that this is a policy de-
signed to convert the country into a semi-
colony. And, white imposing this policy upon
us, the United States is forcing us to expend
our foreign exchange on goods we are
qui+e capable of producing ourselves.
The speaker cited data illustrating the
difficult position of the working people of
Paraguay. He said that Paraguay with its
`1,400,000 inhabitants was cultivating no more
than 30,000 hectares of its land. The people
are going hungry and wages are fluctuating
between 14 and 16 guarani, falling as low
as 7 guarani in rural areas, while the
minimum living wage is estimated at
33 guarani. The people are suffering from an
acute housing crisis. Very often 20 persons
have to live crowded in one room. Ninety
per cent of the people can neither read nor
write.
My country, Mr. Acosta continued, is rich
in raw materials-in timber, cotton, tobacco,
vegetable oils and oil. We can export all
these things abroad in exchange for agricul-
tural and industrial machinery. Paraguay
stands in need of free trade with all coun-
tries.
The problems under discussion at this
Conference, including that of trade with the
Soviet Union and the People's Democracies,
will go a long way towards resolving our
difficulties and ensuring the well-being of
the working people. We trust that the goal
the International Economic Conference has
set itself, the goal of expanding and
strengthening international commercial inter-
course, will be achieved. (Applause.)
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6 INTERNATIONAL ECONOMIC CONFERENCE
Vasili Kuznetsov
(U.S.S.R.)
The trade unions of the, U.S.S.R., in com-
mon with those in many other countries,
displayed a keen interest in the convocation
of the International Economic Conference.
The broad and free exchange of opinions
at the Plenary Sessions and in the Working
Groups should help, and undoubtedly will
help, to find ways and means of expanding
trade relations and, on this basis, raising
national living standards. Naturally, trade
expansion cannot in itself solve all the social
and economic problems in which the work-
ing people have a vital interest. Nevertheless,
we fully share the opinion, voiced both at
the Plenary Sessions and in our Working
Group, that the development of trade rela-
tions can exert a beneficial influence on na-
tional economies of cooperating countries
and promote higher living standards.
The Soviet trade unions wholeheartedly
support the policy of expanding economic
and commercial relations, the policy of
peaceful business relations betv,een the
U.S.S.R. and other countries, as a means of
improving living conditions.
As the President of the U.S.S.R. Chamber
of Commerce, M. Nesterov, pointed out in
his speech, our country possesses steady in-
creasing possib hties for increasing foreign
trade.
The high rate of the national economic
progress, the steady improvement in the
living standards of the Soviet people and the
growth of their purchasing power, create the
prerequisites for an expansion both of the
home market and of our exports and imports.
The Soviet working people are eager to de-
velop international commerce. Imports of raw
materials, fabrics, citrus fruits and other
consumer goods, as well as of certain types
of machinery, will undoubtedly make for
continued economic progress of the country
and still fuller satisfaction of the increasing
requirements of the population. At the same
time, the U.S.S.R., as has already been
noted, is in a position to export goods, raw
materials and equipment which other coun-
iW'es need for their economic development
and for meeting the requirements of their
populations.
The Conference debate has shown that
other countries, too, possess extensive poten-
tialities for developing mutually advantageous
business ties. Hence, the development of
normal trade is possible were it not for the
artificial barriers in the shape of discrimina-
tion, which certain countries are practising
in an effort to reduce and worsen trade and
economic relations generally.
Businessmen and trade unionists from
Britain, Italy, Argentina, Pakistan and other
countries have noted that international trade
curtailment and war preparations are having
a disastrous effect on the economies of their
countries and on the conditions of the
masses. The curtailment of civilian industries
and the expansion of war production go hand
in hand with lower output of civilian goods,
rising prices and taxes, mounting unem-
ployment and poverty.
In considering the influence of internation-
al trade on living standards, the problem that
deserves greatest attention is undoubtedly
that of unemployment. I should like to note
in this connection that in our country unem-
ployment has been abolished completely and
for all time. Every Soviet citizen is guar-
anteed the right to work, as well as the
free choice of vocation, and industrial train-
ing at the expense of his factory or mill.
This is ensured by the constant growth of
civilian production, the broad scope of peace-
ful construction, and by the conditions which
have been created for a systematic advance
in the people's material welfare.
In many countries, however, unemployment
continues to be a horrible scourge and is
disastrously affecting all working people.
Several trade union leaders-Louis Saillant,
Jourdain, Roveda, Iscaro and many others---
have cited figures here showing that unem-
ployment has grown to menacing proportions:
more than seven million are without work
in Western Europe, tens of millions are fully
o- partly unemployed in the United States,
Latin America, Japan and India.
The restoration and expansion of interna-
tional trade and economic relations would go
a long way towards cutting down unem-
ployment and easing the lot of millions of
people. What tangible benefit to the working
people the development of trade can bring
may be judged from the fact that the So-
viet orders alone, which the President of
the U.S.S.R. Chamber of Commerce described
at the Conference, would provide jobs to at
least one and a half to two million people
for three years. If to this we add the mem-
bers of their families, it will mean an
opportunity to assure a livelihood to about
six million people.
Professor Steve, speaking for Italian busi-
ness circles, and Mr. Roveda, the trade
union leader, have told us that such key
industries as shipbuilding, engineering, etc.,
were operating only at a fraction of their
capacity, and that there were two million
totally unemployed in Italy. Yet the U.S.S.R.
could place orders with Italian firms that
would keep tens of enterprises going and
thereby help to bring clown unemployment.
Tentative estimates made by Soviet econo
mists show that these orders would ensure
work to more than 100,000 unemployed, in-
cluding all the unemployed shipbuilders. The
removal of dseriminatory measures and
April 9, 1952, No. 6
further development of trade between itaiy,
on the one hand, and the U.S.S.R. and the
People's Democracies, on the other, would
guarantee work and a livelihood to addition-
al hundreds of thousands of unemployed.
Similar estimates fw- other countries afford
approximately the following picture: orders
placed by our country alone would make
jobs for over 100,000 persons a year in France,
nearly 200,000 in Britain, over 100,000 in
Western Germany and the same number in
Japan, tens of thousands in Holland, etc.
Development of mutually advantageous trade
with the Soviet Union alone would thus reduce
unemployment and mean better living for
hundreds of thousands of workers and their
families.
If to this is added extensive trade with
China, the People's Democracies and
the German Democratic Republic, the pros-
pects for increasing employment and rais-
ing living standards become still more
favourable.
Gentlemen,
Every speaker at this Conference has
pronounced in favour of ending the arma-
ments drive and reducing military expendi-
tures, which are a severe burden on the
mass of working people.
The trade unions of our country fully
support this proposal.
The funds made available by curtailing
military allocations could go to satisfy the
vital needs of the working people-to build
homes, hospitals and schools. And this, in
turn, would make for a substantial decrease
in unemployment.
And so, the benefits and expediency of
normal economic relations among nations
are perfectly obvious, The rupture of inter-
national economic ties is due to the artificial
barriers which can be overcome by the
joint efforts of the people. For their part,
the trade unions, whose function it is to
safeguard the workers' interests, can do
much to eliminate these barriers. And it is
not fortuitous that trade unionists from
many countries are present at this Confer-
ence.
However, certain trade union leaders have
refused to attend the Conference, the aini
and purpose of which is to explore ways
and means of improving living standards
through the development of international
trade. Yet, these trade union leaders admit
that the position of the working people in
their countries is deteriorating-inflation is
on the increase, prices and taxes are rising,
real wages are falling. The result is that
they openly support the policy of torpedoing
economic cooperation among countries to the
detriment of the working people's interests.
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INTERNATIONAL ECONOMIC CONFERENCE
In discussing the question of international
cooperation We cannot but deal with the
role of the United Nations, and, in particular,
its Economic and Social Council. The United
Nations Charter, as we know, states that its
function is to promote better living stand-
aids, full employment, economic and social
progress, and extension of international co-
operation. Unfortunately, the Economic and
Social Council is not seeking effective ways
and means of improving the life of the peo-
ple, though major social and economic prob-
lems still await their solution. It would be
useful if the Economic and Social Council
lent an attentive ear to the proposals and
recommendations made by the participants in
this Conference and took steps to restore
and expand economic cooperation among
countries and raise living standards.
In conclusion, I wish to say that quite
a few valuable proposals were advanced in
the debate and that they should, in our
opinion, be included in the recommendations
which will be presented for consideration
by a full meeting of the Conference.
Adoption by the Conference of construc-
tive recommendations to improve living
standards, and our joint efforts to put them
into effect, will be a contribution to coopera-
tion among the nations, irrespective of their
social systems. This will make for economic
and social progress and preservation and
consolidation of peace, in which all work-
ing mankind, all honest men and women are
vitally interested. (Applause.)
Mr. R. Araduzzi
(ITALY)
The most serious problem facing Italy,
says Mr. Amaduzzi, is unemployment.
Fifteen per cent of our able-bodied popula-
tion are without work. This is the highest
percentage among all industrially developed
countries. The wages of our employed
workers are very low, those of the indus-
trial worker averaging 25000 fire, or
3K dollars per month. Two-thirds of the
worker's wages go in food, so that there
h very litt?e left for other expenditures.
And, indeed, the per capita purchase of wool
and cotton goods, tobacco, etc., in Italy is
the lowest in Europe. The consumption of
food products in Italy is also very low.
Housing conditions are very bad. Over
3 mil:ion people live in huts, caves and in
premises absolutely unfit or unadapted for
human habitation. The overcrowding is
awful. It has been estimated that to restore
the prewar situation, it will be necessary to
build at least 7 million rooms or. two and a
half minion flats.
These problems can only be solved by an
increase in the national income. Italy must
increase her level of consumption and also
her capital investments. The Italian General
Federation of Labour has always demanded
a policy of increased capital investments and
of the expansion of production.
But we are often told that such a policy
is impossible since it presupposes increased
imports, whereas Italy, it is said, cannot
increase its imports, since it is unable to
increase its exports. It is also asserted that
it is impossible in Italy to utilize our idle
production capacities.
Many speakers at this session, particularly
Nesterov, President of the Chamber of Com-
merce of the U.S.S.R., have shown that
many countries are in a position to supply
Italy with the raw materials and manufac-
tured goods she requires. They have also
shown that there are countries desirous of
purchasing my country's agricultural and
industrial products.
We would like to believe that Italian
businessmen will accept the proposals of
businessmen. in other countries and of busi-
ness executives of the Soviet Union and of
the People's Democracies.
We consider that the extension and devel-
opment of international economic exchange
unhindered by all discrimination is so, vitally
urgent a matter that the United Nations
cannot be unconcerned about it. That is why
we suggest that our Conference approaches
the UNO with the proposal that, in ac-
cordance with the principles recorded in its
Charter, this problem be examined in the
Economic and Social Council. All nations
must be urged to conclude an agreement the
purpose of which is to eliminate all artificial
obstacles to the establishment of broad com-
n;ercial exchange between the different coun-
tries. (Applause.)
Mr. A. Deutsch
(U.S.A.)
"I," said Mr. Deutsch, "am a member of
the Typograph'cal Union of the American
Federation of Labour. I am part of a delega-
tion of trade unionists visiting the Soviet
Union as guests of the Soviet trade unions.
Among our union delegation are members of
the Carpenters' Union (A.F. of L.), I-Iodcar-
riers' Union (A.F. of .L.), Packing House
Workers' Union (C.I.O.) and Furniture Work-
. ers' Union (C.I.O.)."
Mr. Deutsch expressed his regret that the
leaders of his union were unable to partici-
pate in the Conference. Perhaps, lie said, they
could not penetrate the "iron curtain" that
supposedly exists somewhere between Wash-
ington, D.C. and Moscow, though the Ameri-
can delegation did not bump their heads onto
any "iron curtain" in Moscow. We are happy,
Mr. Deutsch continued, to be able to parti-
cipate in this Conference and hope to contrib-
ute to the discussion the needs and desires
of the American working class.
Unemployment is growing in America. The
production of war materials will not eliminate
unemployment. Latest labour market survey
of the U.S. Department of Labour for Jan-
uary showed 23 areas where at least 6 per
cent of the labour force is out of work.-This
does not include those on parttime work.
These areas involve mainly the textile, wear-
ing apparel, automobile and coal industries.
A report from Boston to the Wall Street
Journal in a February issue said: "Textile
companies are gripped by their severest de-
pression in 20 years. Cotton and rayon proces-
sors of New England are running at about
half normal capacity, woollen and worsted
mills at a scant 40 per cent of capacity."
Between November 1950 and November
1951 some 103,000 production workers were
laid off in the automobile . industry, while in
textiles the drop was 115,000 in the same
period. The Department of Labour predicts
a job cut of 400,000 this year in the construc-
tion industry.
Mr. Deutsch pointed out that unemployment
and the rise in prices are having a serious
effect on the condition of the working class,
and he bore this out by citing a statement
made o.1 March 21 by U. E. president Fitz-
gerald to the Senate Banking and Currency
Committee.
"Not spendable average weekly earnings of
production workers in manufacturing, in 1939
dollars, show a decided drop from December
1950 to December 1951. The average worker
now falls short by 652 dollars of obtaining a
`minimum adequate' standard of living for his
family."
When the United Nations was organized,
Mr. Deutsch continued, it was hoped that.
America would use its tremendous productive
powers to raise the living standards not only
of its own people, but would help to raise the
standard of living of other peoples of the
rest of the world. Instead, the American
government has engaged in a struggle for
world power, disregarding the rights of co-
lonial peoples to self-government, and is now
engaged in a useless and unpopular war in
Korea.
The American workers want no wars of
conquest. They refuse to accept a wage
freeze and are struggling for a higher stand-
ard of living.
I believe that most of us realize that the
best way to get along with somebody else is
to give and take. Therefore, as practical
people, we know that all of us can get along
better by trading with each other. The reviv-
al of free trade between America and the
rest of the world will bring about better re-
lations between all countries and bring much
closer 'a world living without fear of war.
I would like to offer a few proposals. The
first is that we should make a recommenda-
tion to revoke the Battle Act. This law re-
stricts American businessmen from trading
with the East.
We should work to remove the discrimina-
tory barriers.
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We should try to get war production cur-
tailed so that we can have better housing.
Finally, we should recommend to the Ple-
num to have a permanent committee set up
from this body and possibly have another con-
ference next year. (Applause.)
Mr. Stelian oraru
(RUMANIA)
Mr. Moraru gave the views of his delega-
tion on the causes for mounting unemploy-
ment and lowering living standard in a num-
ber of countries. Elimination of unemployment
and improvement of living standards, he said,
depends in large measure on international
economic cooperation, for international co-
opration will bring mere business to all
countries.
Broad and effective development of trade
requires that all transactions and agreements
between countries, regardless of their social
and economic systems, be based on the prin-
ciple of equality and mutual advantage and
should preclude discrimination in any form.
Expanding international trade makes for
more intensive employment of production ca-
pacities, and this means jobs for millions of
men and women now living in unemployment
and poverty.
Despite all the obstacles which the ruling
circles of certain countries are raising, Ruma-
nia's foreign trade, far from contracting, has
increased, thanks to her agreements with the
U.S.S.R. and the People's Democracies. Trade
with the Soviet Union, Czechoslovakia, Poland,
Hungary and other People's Democracies has
helped in no small share to develop industry
and agriculture in Rumania and to promote
the welfare of her people.
Compared with 1938, Rumania has doubled
her industrial output, and agricultural output
in 1951 was likewise above the 1938 level.
Construction of new mills and factories and
expansion of existing plants is making for
the influx of more and more workers into in-
dustry. There is no unemployment in the Ru-
manian People's Republic; on the contrary,
there is a demand for more and more work-
ers.
Rumania's economic development necessi-
tates greater imports and offers additional
possiblities for exports. Rumania is prepared
to import from the West, in 1953-55, goods
to a value of 1,500 million Swiss francs. Bro-
ken down in commodity groups the figures
would be: metal and metal products-400-500
million Swiss francs; chemical products -
100-150 million; electrical machinery and ap-
pliances, motors and machine tools--200-300
million; textile raw materials and semimanu-
factures-approximately 200 million; nonfer-
rous metals and semimanufactures of same ---
approximately 150-200 million; machines, in-
dustrial plant, precision instruments, diverse
appliances-200-250 million; rubber --100-150
million Swiss francs.
From Great Britain we could import raw
materials, textiles, rubber, chemical products,
nonferrous metals, machines, rolled goods;
from Argentina-wool, tanning stuffs; from
Austria-machines, chemical products, rayon
yarn; from Switzerland-dyes, chemical prod-
ucts, machinery, motors; from France-medic-
aments, rayon yarn, aluminium; from West-
ern Germany-rayon yarn, rolled goods,
machinery, motors, instruments, appliances
and other items. In exchange, Rumania can
offer oil products, grain, fruit, vegetables,
timber, cement and other building materials,
locomotives, tractors, oil and mining equip-
ment and other industrial goods.
This is a concrete program of exports and
imports, Mr. Moraru said in conclusion, and
on the basis of it we sincerely desire to pro-
mote international trade in the knowledge that
it is an indispensable condition for raising liv-
ing standards everywhere. (Applause.)
Mr. Ferenc Boz.soki
(HUNGARY)
Many important problems were discussed
in our Working Group---unemployment,
housing, social welfare and others. Their
positive solution would contribute to an im-
provement in social conditions in some
countries.
Before the war niany thousands of Hun.
garian workers sought escape from unem
ployment in emigration. There was unem-.
ployment after the war too. But the far-.
seeing leaders of our country led the people
onto the path of rapid progress. Every
Hungarian worker knows that only peace
and constructive labour can bring prosperity
and happiness.
The first three years after the war were
devoted to economic recovery. One of our
objectives was to wipe out unemployment
and poverty, and we drew on the experi-
ence of the country where the problem had
been successfully solved. We learned from
our great friend, the Soviet people, rational-
ly to utilize our natural resources for the
benefit of the working people.
New mills have I een built, many are still
under construction; they are greatly en-
hancing our national output. In the last
three years over 300,000 workers were
added to our labour force.; the number of
workers employed in the heavy industries
has practically doubled. The building indus-
try has likewise developed rapidly. We
eliminated unemployment in 1950, in fact,
we have had to set up a special institute to
train workers for industry.
Industrial development is paralleled by in-
creased living standards. Our people are
buying more clothing, footwear, foods and
other goods than ever before.
Our country guarantees every worker
the right to labour, rest, social maintenance
in the- event of sickness and old age. The
social welfare system has been broadened
to include agricultural workers as well as
those in industry. Every worker is entitled
to free medical service. All factories supply
working clothes and special diets. Every
worker is entitled to an annual paid holiday
of from 12 to 24 days which lie. can spend
at the country's best health resorts.
Hungary has developed from an agrarian
country into an industrial one. But agricul-
ture, too, is making rapid headway. In ad-
dition to our exports of industrial goods, we
can export increasing quantities of farm
produce, and in coming years we will be in
a position to place on the market sonic
900,000 tons of cereals, 240,000 tons of
sugar and sizable quantities of vegetables,
fruit and animal products.
Our import requirements consist of ma-
chine tools, precision machinery, timber,
metals and raw materials.
We are firmly convinc^d that the exten-
sion of international trade would help to
raise living standards and solve the social
and cultural problems that face the working
people. (Applause.) -
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INTERNATIONAL ECONOMIC CONFERENCE
Mr. John Stanley
(GREAT BRITAIN)
Members of trade unions and trade , union
officials, Mr. Stanley said, are concerned with
every trade, as the prosperity of one has its
effect on the others. As an example, Mr.
Stanley cited his own particular industry, the
constructional engineering and building indus-
try, which, he said, is suffering from a short-
age of steel for the building of flats, hospi-
tals, schools, etc., this being due to the
.available supply being diverted to rearma-
ment. The steel shortage is affecting motor
cars, wagons, etc. Timber, which can be im-
ported from the East, is in short supply be-
cause of the restrictions on British trade as
a result of outside pressure. Carpenters, join-
ers and other building trade workers are
unemployed as a result of short supplies of
materials. Scottish unemployment is increas-
ing from the same cause, Mr. Stanley point-
ed out.
British agriculture is feeling the pinch, be-
cause of a lack of capital necessary for ex-
pansion and, owing to the restrictions on ex-
ports, British imports of essential foodstuffs
suffer serious reductions. Consequenitly, Mr.
Stanley continued, if the British people are to
be fed adequately, Britain's export trade must
be increased.
We do not want trade to be treated as a
gamble again, Mr. Stanley continued. Busi-
nessmen must link up with all countries on
a cooperative basis and. pool their resources.
We, as trade unionists, see the difficulties
under a competitive system, and, possibly, our
.solution will not find universal favour.
Submitting a proposal aimed at eliminating
currency chaos, Mr. Stanley said in conclu-
sion: "No more must we rely on rearmament
to prevent unemployment and slumps. We
must build for construction and not destruc-
tion." (Applause.)
Mr. Jorgji Shuli
ANN"
(ALBANIA)
Mr. Shuli began his speech with a de-
scription of the economic situation in Albania.
Prior to the Second World War, lie said,
Albania was formally considered an independ-
ent country, but actually she was a semi-
colony of .Italy. Foreign capitalists bought up
the country's raw material at very low
prices for export, and then sold Albania
goods made out of these very same raw
materials at high prices. This affected the
condition of the toiling masses: the peasants
eked out a miserable existence, unemploy-
ment was rife among the working class, and
large. sections of the Albanian people were
unable to satisfy even their most elementary
needs. The people were at a very low level
of culture, as can be seen from the fact that
before 1944, over 80 per cent of the popu-
lation were' illiterate. The Second World War
inflicted considerable damage on Albania's
economy.
Following the liberation of the country, the
prewar economic level has been rapidly sur-
passed, and effective measures have been
taken to improve the living conditions of the,
people. Women have acquired rights on a
par with men, and now receive equal pay
for equal work; unemployment has been
abolished and a system of social insurance
and free medical service has been introduced;
there is a growing network of nurseries and
kindergartens, and illiteracy is being
liquidated.
After the Second World War Albania has
established and developed commercial rela-
tions with the Soviet Union and the People's
Democracies on a basis of mutual advantage.
She exports the products of her industry
and agriculture and imports the goods the
country requires, mainly equipment. It is
these relations that have facilitated the
country's economic progress.
Our delegation, Mr. Shuli stated in corn
elusion, supports the proposals that M. Louis
Saillant, the Secretary General of the World
Federation of Trade Unions, put forward at
the Plenary Session of this Conference.
(Applause.)
Mr. Seyed Taghi Razawi
(IRAN)
Undoubtedly, Mr. Razawi said, the living
standard and purchasing power of Iran's
working people are exceedingly low. The
housing and hygienic conditions and food of
the workers and middle classes leave much
to be desired.
Iran is potentially a very rich country in
agriculture and mineral production. .Unfor-
tunately, however, until now all these are
mere potentialities.
It is not our intention, the speaker con-
tinued, to discuss here problems related to
the demands of Iran's working people, and
for this reason I shall limit myself to the
following proposals:
Firstly, to develop basic industries in the
economically underdeveloped countries;
Secondly, to abolish the domination of the
monopolies and trusts, which are the cause
of the present economic crisis. This will
bring about a development of trade between
all countries;
Thirdly, to organize on a broader scale
cooperation among the economically under-
developed countries with the object of
developing agriculture and industry in these
countries. (Applause.)
Mr. Jamal Musa
(ISRAEL)
The speaker began by saying that the
problem of foreign trade is closely bound
up with the country's social problems. For
example, the problem of imports depends
on the state of the national economy, in-
volving problems of unemployment, wages,
and prices of essential commodities.
Israel, whose trade with the Soviet Union
and the People's Democracies is almost in-
significant (constituting no more than 3 per
cent of the total trade), is forced to pay for
the bulk of her imports in foreign currency,
particularly in dollars. But since Israel is
suffering a shortage of foreign currency,
imports have been curtailed. A. reduction
has taken place in the importation of indus-
trial plant and raw materials, as well as in
consumer goods. Imports of agricultural im-
plements and equipment have also fallen off.
As a result, home industries are suffering.
The output of footwear has fallen by 70
per cent, of textiles by 50 per cent. A large
number of building projects have been dis-
continued.
The curtailment of imports has brought
about a similar situation in other industries.
Some of Israel's businessmen have been
hard hit. The number of unemployed has
grown, has in fact doubled during the last
two months. This in turn has brought
about a lowering of the standard of living.
The purchasing power of the population has
dropped by almost 35 per cent.
The housing problem has become acute.
There is a shortage of shoes and clothing.
The consumption of foodstuffs has fallen off
by one-third as compared with an earlier
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period. The prices of essential commodities
have risen by 50 to 100 per cent since the
beginning of the current year. Real wages
are approximately only half of their
original value. Taxes have increased.
Incidence of disease is increasing and
the use of medicines has fallen off,
since a rise in prices has made theta almost
inaccessible to the general public. Nor can
the masses of the people afford medical
services. Due to a decrease in imports of
building materials, refugees are living in
shacks and hovels, unable to find decent
living quarters. At the same time the pro-
duction of foodstuffs has suffered. Sowing
areas are not being expanded in accordance
with the growth of the population. Areas
under olive groves have been diminished
despite the fact that olive oil is in demand
on the world market,
If Israel had a chance to increase imports
of industrial plant, raw materials, and agri-
cultural equipment, this would bring about
a revival of industry and agriculture, would
strengthen the national economy, lower the
number of unemployed, solve problems
of housing, food and clothing. And if
Israel's imports were based on an exchange
of goods rather than on payment in dollars,
the country would be in a position to ex-
pand production, especially agricultural
production,' the export of which would cover
the cost of imports. Then Israel would be
able to trade with the Soviet Union and the
People's Democracies on the basis of an
exchange of goods. Trade agreements con-
cluded between these countries and Israel
during the last two years show that Israel
could pay for imports half in foreign cur-
rency and half in kind. In 1949, 20 per cent
of Israel's total trade was with these coun-
tries, but at present it is only 3 per cent, a
fact which has been very detrimental to
Israel.
An increase in the production of indus-
trial and agricultural machines and con-
sumer goods in the Soviet Union and the
People's Democracies has opened up exten-
sive markets from which Israel can import
industrial plant and consumer goods. It is
just this which the interests of the people
and the national economy of Israel require.
In conclusion, the speaker suggested that
at the Plenary Session of the Conference,
the Working Group submit a recommenda-
tion that delegates from all countries place
before their governments, as well as before
trade and industrial circles and the business-
men of their countries, the demand that pres-
ent barriers to trade be removed in order
to expand peaceful trade among all nations.
(Applause.)
Mr. C. Riffo Blest
Mr. Blest began by noting that the Inter-
national Economic Conference was not mere-
ly of technical interest. It was of interest to
the whole of mankind, he said, since it con-
cerned itself with the whole of mankind with-
out distinction as to race, ideology or class.
Chile is in the throes of an economic cri-
sis, Mr. Blest stated further, The victims of
this crisis are the factory and office workers,
and that is why they are vitally interested in
attainment of the basic objects of the Inter-
national Economic Conference.
The speaker supported the proposal that the
Conference recommend removal of discrimi-
natory practices and obstacles to economic
and trade development. As one of the victims
of this discrimination Chile would like to see
steadily increasing trade and elimination of
all obstacles to trade development.
Further Mr. Blest said that the copper
mined by his peace-loving nation was now
being used in other countries for the manu-
facture of weapons for the destruction of
mankind. We want our raw materials to be
used not for war but for peace, lie declared.
Large-scale exports of Chilean saltpetre to
countries which have carried out agrarian
reforms and are developing their agriculture
would enable it to be used as fertilizer, for
lofty humanitarian purposes.
The speaker supported the proposal that
the Conference recommend a reduction in
military expenditures.
Endorsing, as well, the Italian delegate's
proposal that a message be addressed to the
United Nations, Mr. Blest staled" in conclu-
sion: "I should like to, reaffirm the Chilean
people's confidence that our Conference will
be characterized not by talk but by an earn-
est desire to get things done." (Applause.)
Mr. A. H. Shah Sayed
(PAKISTAN)
Stating that the living standards of the
people depend on the solution of the food
problem, Mr. Shah Sayed pointed out that of
Pakistan's 114 million acres of land, only
42 million were cultivated. Another 25 mil-
lion could be brought under cultivation if
Pakistan had the cooperation and assistance
of developed countries.
Pakistan produces more grain and other
agricultural crops than is consumed at home,
and accordingly exports a large part of them.
But agricultural production could be doubled
if Pakistan received farming machinery and
fertilizer from developed countries on a long-
term credit basis.
In her turn, Pakistan is in a position to
export jute, cotton, hides and foodstuffs. The
country also needs the services of experts
in the food problem and the health services.
(Applause.)
Mr. Arnoldo Cuneo
Mr. Cuoeo spoke of the need to improve
the world economic situation and pointed to
removal of the barrier between East and
West as one of the conditions for this.
Going over to concrete proposals, he said
that Argentina had to develop her natural
resources; she must increase her output of
oil, coal and water power. From the speeches
of various persons who had taken the floor
it was clear that there were countries where
factories and mills were standing idle or
soon would be; these countries had a big
man-power potential. "I propose the follow-
ing," lie said. "Conclude an agreement
with Argentina for a definite period, say five
years, -send businessmen, workers and equip-
ment, and start prospecting for oil, drilling
wells, building factories, plants and
hydroelectric stations, and sinking mines.
"This would open up prospects for abolish-
ing unemployment and improving the con-
dition of the working class of Argentina."
Mr. Cuneo considered that Argentina could
conclude agreements with countries in need
of agricultural produce and ready to sell
industrial equipment in return.
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April 9, 1952, No. 6 INTERNATIONA. ECONOMIC CONFERENCE II
He said that Argentina needs rolled
metals and cement for housing construction.
It also needs medicaments and surgical in-
struments for the public health services, in-
secticides and chemicals.
In conclusion Mr. Cuneo proposed that an
international congress of agriculturists be
convened in the Soviet Union. (Applause.)
Mr. Thakin Lu Aye
(BURMA)
Mr. Lu Aye described the position of the
working class of Burma. The country's
working people, he said, suffer from mal-
nutrition, some of them do not have sufficient
rice and part of the year have only one
meal a day. Disease and epidemics are
common. The death rate of Burma's popula-
tion is the highest among all Southeast
Asian countries. Official statistics for 41
towns of Burma show that in 1947 there
were 39 births and 38 deaths per 100 in-
habitants, in 1948 the figures were 43 and
37 respectively and in 1949--34 and 37. In
1949 there were 2,106 stillborn cases out
of a total of 34,216 births in these towns.
Many of the children do not survive: 331
out of every 1,000 new-born infants died in
1949.
Mr. Lu Aye pointed out that in Burma
many women die during childbirth, a big
number of infants are stillborn or die in
early childhood; many of those surviving
then die from diseases which could be
prevented.
There are many unemployed in the country,
Mr. Lu Aye said. Burma's working people
eke out a beggarly existence. Real wages
have dropped sharply. Compared with
prewar, wages increased approximately 3.5
times, while the cost of living went up
5-6 times.
As for social security, the speaker noted,
the working people have nothing to hope
for, except old-age pensions for a limited
circle of government officials.
To develop the country's economy it is
essential to discontinue the armament drive
and to expand foreign trade.
Burma, Mr. Lu Aye summed up, can
restore her war-devastated economy only if
she receives the unrestricted possibility to
trade on international markets. It is neces-
sary that Burma conclude agreements with
China, Czechoslovakia, Poland and other
countries, as was the case before the war.
(Applause.)
Mr. Ricardo Mario Acosta
(URUGUAY)
Mr. Acosta said that the Conference
should take. measures to put an end. to the
policy of discrimination and blockade. This
policy, he said, is an instrument for rearma-
ment and brings great harm to the masses,
chiefly the working class, by raising the
cost of living, increasing unemployment and
complicating social problems in the un-
derdeveloped countries.
Uruguay is feeling the results of the war
policy, Mr. Acosta said. Its budget for 1951
allocated 62 million pesos for armaments
and 28 million pesos for maintaining the
armed forces. In addition, Uruguay an-
nually spends about 60,000 pesos on pay-
ments to foreign missions which are train-
ing the army, navy and air force.
Mr. Acosta said that Uruguay needs
machines, equipment, timber, cotton and
iron ore. In return she can export wool,
meat, hides, butter, wheat, rice, flax and
other agricultural produce, textiles and semi-
manufactures. He said that if discriminatory
practices were completely removed, his
country could participate in world trade.
The Uruguayan delegation proposed that
the Conference adopt a resolution condemn-
ing the policy of discrimination as being
detrimental to all nations, and especially to
the working people. (Applause.)
Mr. Mobarak Saghar
(PAKISTAN)
Mr. Saghar declared his full agreement
with the views expressed by Conference
delegates in regards to solving social prob-
lems through economic development and the
abolition of unemployment.
Peaceful production, lie said, increases the
wealth of the nation, is conducive to full
employment and raises wages. But produc-
tion without a more equitable distribution
of products can only render the condition
of the working people more difficult, and
multiply industrial conflicts and strikes.
In conclusion Mr. Saghar proposed that
the magnates of finance and industry should
plan higher wages and better amenities of
life for the workers when they plan to ex-
pand production. Genuine international co-
operation requires that the advanced coun-
tries should try their best to ameliorate the
social conditions of the working people in
both their own and other countries.
(Applause.)
Herr Hermann Schlimme
(GERMAN DEMOCRATIC
REPUBLIC)
Concern for the workingman, said Herr
Schlimme, involves a great social problem,
and the International Economic Conference
must contribute to its solution by the ra-
tional development of international trade.
Herr Schlimme spoke of the colossal
damage suffered by many countries, includ-
ing Germany, as a result of the Second
World War. He recalled the fact that ac-
cording to official statistics, 1,300 million
people are suffering today from undernourish-
ment or starvation.
Mankind, continued Herr Schlimme, cannot
for long endure this state of affairs. Every-
thing must be done to ensure that by in-
creasing international trade and abandoning
general armament we cure the ghastly
wounds inflicted by the war.
Dealing with the situation in Germany,
Herr Schlimme stated that the splitting of
Germany into two parts, the East and the
West, has resulted in the country's economy
pursuing two different lines of development.
Over a period of almost sixty years extensive
social and political legislation was adopted
in defence of the rights of the working
people. But on orders from the Government
nearly 20,000 million gold marks were ex-
pended during the two world wars on ar-
maments, against the will of the people and
at the expense of their social services.
About a year ago, the entire social welfare
system in the German Democratic Republic
was handed over to the trade unions.
What chiefly conditions the better organ-
ization of social insurance in the German
Democratic Republic is the fact that unem-
ployment has been abolished, and the work-
ing people receive holidays with pay. They
enjoy free medical attention, and we are
thankful, said Herr Schlimme, to the Soviet
trade unions for having shown us the new
ways of reorganizing all branches of social
welfare.
Following the First World War there was
established the International Labour Bureau,
whose task it was to assist in implement-
ing social and political legislation in all
countries. It was part of the League of
Nations, but it proved absolutely incapable,
of solving any social or political problems.
Herr Schlimme expressed his views on
measures for solving urgent social problems
on the basis of expanding trade and of
social cooperation among the peoples.
Germans, said Herr Schlimme in conclu-
sion, are very anxious to ensure that after
the nearly seven years of war and the
postwar period, our nation shall be able to
reorganize its economy in the East and the
West of Germany, and thereby ensure
peace throughout Europe. (Applause.)
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INTERNATIONAL ECONOMIC CONFERENCE April 9, 1952, No. 6
Mr. Charles Mubrey
(UNITED :STATES)
.Mr. Mubrey said that he saw only one
Negro in the Social Economic Group of
this Conference. In this connection he felt
it was in place to -refute the assertion that
the Negro allegedly does not want to take
part in public affairs. This is not the case.
The Negro is. on the march with you,
marching for justice, equality and fair play
(applause), not only in the social economic
sphere but also in all others which have : a
bearing on man's determination to thwart
those who propose to forcefully maintain
and strengthen the policy of race dis-
crimination.
We, the rank-and-file Negroes of America,
Mr. Mubrey declared to the applause of the
audience, warmly clasp your hands in a
spirit of lasting friendship, the hands of all
peoples everywhere who are willing to live
on the principle of the golden rule which
says: "Do unto others as you would have
others do unto you." (Applause.)
UNDERDEVELOPED
GROUP
Mr. Youn Hen Chjoun -
(KOREAN PEOPLE'S -
DEMOCRATIC REPUBLIC)
Mr. Youn Hen Chjoun associates himself
with the views of many speakers who de-.
dared that the development of commercial
relations on the basis of- cooperation and
iuutual respect for interests, leads to the
economic progress of the . underdeveloped
countries and to improved --living standards..
The economic situation in Korea is clear
proof of this.
In August 1945 Korea was liberated from
the yoke. of, Japanese imperialism by . the
great Soviet Union, and the Korean people
proceeded - to build up a _ united . and - in-
dependent Korean People's Democratic
Republic. The Americans, - however, occupied
South Korea, with the result that the coun?
try was split into two parts. In North Korea
democratic reforms were speedily carried
out, so that the national economy rapidly
developed. Speedy progress was achieved
above all in machine-building and iron and
steel industries. There was also an increase
in the area under crops and in the grain
yield.
By the first half of 1950 all the conditions
existed for the transformation of North Ko-
rea from an agrarian into an industrial land.
Its economic successes were facilitated by
the system of trade between the Soviet
Union and the Korean People's Democratic
Republic, based as it is on conditions of
mutual advantage. The Soviet Union helped
Korea to restore its factories, mills, mines,
railways, etc.
Due to the colonial regime established by
the American imperialists in South Korea,
its economic life is being wrecked. The
Americans are closing down and destroying
COUNTRIES
many factories and mills. If we take the,
1945 output in South Korea as 100, the out-.
put of the engineering industry in 1949 was
only 5, that of agricultural machinery pro-.
duction-9, and of the textile industry-13.
That is why, despite the fact that the South
Korean market is swamped with American
goods, the people are unable to avert the
severe inflation, starvation and unemploy-
ment reigning there.
. U.S. ruling circles are unconcerned about
the needs of the South -Korean people; all
that interests them is their selfish aims. It
was to multiply their profits that they let
loose a sanguinary war in Korea. Air raids
and bombardment from the sea have re-
duced many of our towns and villages to
ruins. Factories, mills, mines, railways,
schools and hospitals have been destroyed
and many thousands of our civilian popula-
tion have been killed.
The speedy rehabilitation of the economy
of North Korea, continued Mr. Youn Hen
Chjoun, will require a large amount of ma-
terial and technical assistance. We must im-
port agricultural machinery, medical equip,
ment, rubber, soya, textiles and other goods.
In exchange we can offer the products of
our mining industry, rice and fish and other
sea products.
In conclusion Mr. Youn Hen Chjoun said:
"We shall still further strengthen and ex.
pand our foreign trade with the Soviet
Union, China and the People's Democracies
and we hope to establish commercial rela.
lions with all other countries. We are pro?
foundly convinced that foreign trade rela-
tions can be established between countries
of different social and economic systems,
and also between industrially underdevel-
oped and highly developed countries, to the
mutual advantage of the parties concerned."
Mr. Youn Hen Chjoun submitted the pro-
posal that the . industrially highly developed
countries should supply -the- underdeveloped
countries with the necessary- equipment by
way of international trade, and that an in-
ternational body : should be set up to render
technical aid. (Applause.)
Mr. Hossein Dariuche
(IRAN)
Mr. Dariuche introduced. himself as:: an
expert-on"questions of trade. He stated Ahat
in- Iran the Situation was no better: than-in-
any other poorly developed country in Asia.
He then submitted the following proposals:
1) All unnecessary restrictions, which act
as barriers to the, development - of. trade
should be removed.
2) An International Bank should be
established for the purpose of promoting
barter or exchange relations between the
different countries so as to put an end to
the currency domination of the highly
developed countries over the underdeveloped
countries.
3) An International Transport Bureau
should be established to facilitate the
transport and handling of goods which a
country may be in need of.
4) Economically advanced countries may
assist the underdeveloped countries by
supplying them with machines, equipment
and other items on the basis of long-term
credits to be agreed upon and without any
political or economic restrictions whatso-
ever.
5) A permanent office representing this
Conference should he set up and should
be charged with the work of organizing
similar conferences should such be needed
in future. At the same time they should
examine and study on the spot the condition
of the underdeveloped countries, and submit
their recommendations. (Applause.)
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INTERNATIONAL ECONOMIC CONFERENCE
Underdeveloped Countries Group in Session
. .................................................................................................................................................................................
Drnitri Borisenko
(U~)
The principal task before our Group is to
explore possibilities of improving the living
standards of the people in the economically
underdeveloped countries by promoting nor-
mal trade between them and other countries.
The Soviet foreign trade organizations are
prepared, on their part, to extend trade with
the underdeveloped countries, and this would
doubtlessly assist in their economic advance-
ment. It is known that the Soviet Union bases
its commercial relations with other coun-
tries on the principle of equality and nonin-
tervention in the domestic affairs of other
states, and that these relations are free from
any political strings.
In accordance with its trade agreements
with the People's Democracies, the Soviet
Union supplies to these countries equipment
and raw materials, thus assisting in the de-
velopment of their economies, and of their
industries in particular, For illustration,
D. Borisenko referred to the aid rendered by
the Soviet Union to Bulgaria and Albania.
Many speakers at the Conference empha-
sized the great importance of industrial devel-
opment for the economy of the underdevel-
oped countries. A vivid illustration of this is
afforded by the Central Asian Republics of
the Soviet Union which were economically
backward in the past. Let its take Uzbekistan,
for example. A colonial hinterland of tsarist
Russia in the past, it has developed into an
advanced industrial republic.
We share the view of those representatives
of the underdeveloped countries who spoke
of the necessity of industrial development
in their countries. The economic policy of the
underdeveloped countries should be so framed
as to- promote -the - thorough development
of national industries and to . protect them
against dumping and other forms of ruinous
foreign competition. The representatives of
Chile and Brazil have directed our attention
to the fact that foreign states are pumping
out of their countries great wealth without
due compensation, and that this restricts the
development of their economy, and of indus-
try in particular. Some of the speakers re-
ferred to so-called one-sided economic assist-
ance. I am of the opinion that the best form
of real economic assistance lies primarily in
the normal development of trade and other
economic relations on the basis of mutual
advantage, equality and nonintervention in
the domestic affairs of other countries.
You already know from M. Nesterov's
speech that the Soviet foreign trade organi-
zations are in a position to supply within the
next 2-3 years about 3,000 million rubles' worth
of machinery and equipment to the countries
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of Southeast Asia and of the Near and
Middle East.
The Soviet foreign trade organizations are
in a position to supply India with considerable
deliveries of equipment for the construction
of power stations, irrigation systems, for iron
and steel plants, for railway and road con-
struction, for the food and textile industries,
as well as agricultural machinery, fertilizers,
motor cars, paper, medicaments, cereals and
other goods. The Soviet organizations would
also agree to receive payment in sterling cur-
rency for deliveries to India. The Soviet for-
eign trade organizations are prepared to
purchase from India her regular export items,
such as jute and jute products, shellac, spi-
ces, tobacco, skins and hides, wool and other
commodities.
The Soviet foreign trade organizations are
prepared to do a far greater volume of trade
with Pakistan, and they could supply equip-
ment for railways, for the construction of
irrigation systems, for power stations and
food factories, agricultural machinery, trac-
tors, automobiles, cotton fabrics, paper, etc.
In exchange for this, the trade organizations
of the Soviet Union could purchase from Pa-
kistan cotton, jute, oil seed, hides and skins.
The foreign trade organizations of the
Soviet Union are prepared to establish com-
mercial relations with Ceylon, with which
we have conducted hardly any trade hitherto,
to supply various equipment, cotton fabrics,
and wheat flour, and to purchase in exhange
rubber, coconut oil, cocoa beans and spices
from Ceylon.
The Soviet foreign trade organizations
are in a position to trade also with Burma.
We could supply Burma with equipment for
the mining and timber industries, agricultur-
al machines, fertilizers and cotton fabrics,
and buy from Burma such commodities as
rubber, rice and nonferrous metals.
Soviet organizations are also willing to
conduct and promote an extensive trade
with Indonesia; they could sell to Indonesia
a wide range of goods: equipment for
textile and paper mills, transport equipment,
automobiles, agricultural machinery, rolled
metal and metal products, instruments, sew-
ing machines, bicycles, paper, cotton yarn
and fabrics, dyes, glass and other goods. In
exchange for this, the Soviet organizations
INTERNATIONAL ECONOMIC. CONFERENCE
could purchase rubber, tin, coconut and palm
oil, spices, coffee, tobacco, copra, cinchona
bark, quinine preparations and resins.
The Soviet foreign trade organizations are
prepared to conduct a considerably greater
volume of trade with Thailand, to sell
mining, road building and irrigation con-
struction equipment, and to buy rubber, tin
and rice.
The Soviet trade organizations are pre-
pared to extend their commercial relations
with Iran; they could supply Iran with a
wide range of items, and, in particular, with
equipment for grain elevators, for cotton
ginneries and textile mills, for the food in-
dustry and road construction, transport
equipment, agricultural machinery, cotton
fabrics, paper, cardboard, sugar, etc., and to
buy, in exchange for this, rice, cotton, dried
fruit, tobacco, oil seeds and natural resins.
The Soviet trade organizations would be
willing to do a considerably greater volume
of trade with Afghanistan, and to deliver
in particular various equipment, equipment
for the food industry, automobiles, agricul-
tural machinery, fertilizers, oil products,
cotton fabrics, sugar, etc., and to buy cot-
ton, wool, dried fruit, hides and oil seeds.
The Soviet trade organizations have the
possibilities to effect a considerable increase
in their volume of trade with the countries
of the Near and Middle East: Egypt, Iraq,
Syria, the Lebanon and Israel; to export to
these countries various goods, including
transport and road building equipment, auto-
mobiles, iron and steel and allied products,
coal, timber, building materials, paper, card-
board, cotton, fabrics, wheat, sugar and
other goods. On their part, the Soviet
organizations could purchase the goods
usually exported by these countries, such
as cotton, rice, wool, hides, dates, etc.
Soviet industry is able to produce the
machines and equipment which the under-
developed countries may require for building
up various branches of industry, transport
and agriculture. Soviet trading organizations
are also prepared to offer other goods
required by these countries. Moreover, So-
viet trade organizations would be willing to
receive payment for their exports in the
national currencies of the respective coun-
tries and to use them for making purchases
in these countries.
D. Borisenko noted with satisfaction the
fact that representatives of the business
circles of some of the underdeveloped coun-
tries-Iran, Ceylon, Egypt, the Lebanon and
others-are already conducting lively nego-
tiations with representatives of Soviet for-
eign trade organizations. As a concrete
example the speaker mentioned the offer
made by the representatives of Ceylon's
business circles to sell rubber and to buy
fiom the Soviet trade organizations auto-
mobiles, cement, sewing machines, paper,
etc.
It should be noted that the representatives
of the business circles of the underdeveloped
countries are conducting lively negotiations
both with Soviet organizations and with
organizations of other countries.
We thus see, gentlemen, said D. Bori-
senko, that there are extensive possibilities
for widening trade between the U.S.S.R.
and the economically underdeveloped corm-
tries on mutually advantageous conditions..
The expansion of this trade will unques-
tionably help to promote international eco-
nomic cooperation and to sustain peace in
the whole world. (Applause.)
Mr. Bruzio Manzocchi
(ITALY)
Mr. Manzocchi pointed out that to him, as,
economist and director of the monthly
"Notizie Economiche," work in this group
was of great interest.
Italy is a country with a relatively. devel-
oped industry and production machinery and
capacities that are much above the present
level of output, said the speaker. There
is a great disproportion in the development
of different branches of economy in Italy.
While the northern areas of the country
have a well-equipped industry, the southern
areas are economically backward,
As a consequence, Italy suffers from a
chronically limited home market, expressed
in a low level of industrial consumption.
The average daily per capita food diet
amounts to 2,200 or 2,400 calories and the
average annual consumption of pig iron is
less than 100 kilograms per capita. The
limited home market affects production, a
considerable part of the production capaci-
ties is idle and the potential labour of ow-
people is not utilized. According - to the
official statistics, the number of totally
unemployed exceeds 2 million and the
number of parttime workers equals this
figure.
Thus, Italy, while not being in the
category of underdeveloped countries, is.
undoubtedly but little developed in coin-
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April 9, 1952, No. 6 INTERNATIONAL ECONOMIC CONFERENCE 15
parison with the potentialities of her econ-
omy and the needs of her population.
Under these conditions, Mr. Manzocchi
said, it is evident that the development of
foreign trade is of great interest to Italy.
I would like to stress here, however, the
interest in increasing Italian trade with the
underdeveloped countries, specifically with
the countries of the Near East and Asia.
Owing to the special structure of her econ-
omy, Italy buys from these countries
mineral raw materials, especially nonferrous
metals, cotton, industrial oil, etc. On the
other hand, Italy can offer such manufactured
goods as, equipment, motors, agricultural
machinery, industrial plant, as well as con-
sumer goods, especially textiles. Prior to
the Second World War Italy's trade with
these countries was at a high level. After
the war, especially during the last two
years, Italy's trade with the underdeveloped
countries of Asia is shrinking. Italy has
almost completely broken direct relations
with the so-called third markets. This un-
doubtedly has aggravated the difficulties of
Italian foreign trade and consequently the
difficulties of Italy's economy. For this
reason I think that I will express an opinion
current among Italian economic circles,
making the wish that this Conference con-
cretely facilitate the expansion of trade with
the underdeveloped countries.
I think that the Conference can make its
contribution with regard to the following:
1) Establishment of trade relations on the
basis of equality and mutual advantage;
2) Creation of a vast economic area of
multilateral trade with the participation of
all countries on a parity basis, and of a
corresponding system of payments.
Thus, Italy could assist in the advance of
the underdeveloped countries and sinnrlta-
neously accelerate the pace of her economic
development, making a step towards abolish-
ing the existing disproportion among var-
ions branches of" her national economy.
(Applause.)
Mr. Bela Szilagyi
(HUNGARY)
Hungary, said the speaker, suffered greatly
as a result of World War II. The first three
postwar years were years of rehabilitation.
At the end oaf 1951 our industrial output was
three times greater than in 1938. This changed
the entire character of our national econ-
omy. At present industry is the primary
source of national income.
Our country has been transformed from
an agrarian country into an indus-
trial one. At the same time every-
thing is being done to develop agri-
culture. Formerly, said Mr. Szilagyi, Hungary
was known in Europe as an exporter of
agricultural produce. We still export them,
but the development of industry has enabled
us to produce various types of machines
and consumer goods, which have now
become an important part of our export
trade. Among these items are electric
motors, locomotives, pumping stations, and
electric bulbs.
In the postwar period Hungary established
trade relations with many countries of
Southeastern Asia as well as of Latin Amer-
ica. For example we export machines to
Pakistan and locomotives to Egypt, Argen-
tina, and other countries. Hungary also ex-
ports electric measuring instruments,
bicycles, textiles, and other things. At pres-
ent we trade with some eighty countries.
We would like to form business contacts
with countries with which we have never
'traded before. That of ' course does not mean
that we shall neglect our traditional Euro-
pean markets. There are a number of com-
modites which in the near future Hungary
will begin to export. Among them are indus-
trial plant, refrigerators, autobuses, bicycles,
radio sets, and sewing machines. We our-
selves would like to buy raw materials, semi-
manufactures, and other things.
We are of the. opinion that trade should
develop unfettered, without the slightest
discriminatory measures, and not in the
Forced manner in which certain countries
would have it develop.
Further M. Szilagyi stated that Hungary
would like to develop bilateral trade rela-
tionships, in which backward countries could
participate to their own advantage. The
basic problem is to establish direct contact
with these backward countries. Hungary is
willing to accept the currency of whatever
country she trades with, in which case
Hungary will use this currency for buying
semimanufactures and raw materials. Mr. Szil-
agyi is of the opinion that arrangements
could be made for credits to be granted by the
Hungarian National Bank or the Hungarian
Foreign Trade Bank.
We shall be very glad if other countries
find such conditions acceptable, in which
case we can develop trade relations with
underdeveloped countries. (Applause.)
Mr. Qiriako Harito
(ALBANIA)`
Mr. Harito spoke of the fact that Albania
used to be an underdeveloped country with
an extremely low economic and cultural level.
Feudalism held sway' in the countryside.
Albania's mineral resources were exploited
by foreign capitalists. Minerals were export-
ed at low prices and then resold to Albania
as manufactures at high prices. This held up
the country's economic development.
Further Mr. Harito pointed out that when
Albania won complete economic and political
independence she began to rebuild the coun
try, develop its economy, and raise the living
standard of the people. Economic consolida-
tion is being accompanied by rising living
and cultural standards. Albania has established
broad economic relations with the U.S.S.R.
and the People's Democracies on a mutually-
advantageous basis. These relations have
helped Albania to lay the foundation for in-
dustrialization and to build up new indus-
tries; including the sugar and textile in-
dustries. With the assistance of the U.S.S.R.
and the People's Democracies Albania has
built a number of industrial enterprises and
has obtained trained personnel to operate
them.
In conclusion Mr. Harito expressed the
conviction that the development of mutually
advantageous economic relations would be-
come an important factor in raising both be
living and cultural standards of the peoples
of all countries. (Applause.)
Following the general discussion, the
Group heard the draft recommendations on
problems of underdeveloped countries. The
recommendations were proposed and discussed
by Mr. Baidyanath Banerjee and Mr. Pu-
rushotta Tongaonkar (India), Mr. Orlando
Millas (Chile), Mr. M. Miller (Canada),
Mr. H. Davies, Mr. A. Horsley and
Mr. W. McCrelland (Britain), Mr. Jacques
Charriere (France), Mr. Jose Maria Rivera
and Mr. H. Fuchs (Argentina), Mrs. Eliza-
beth Grisar (Belgium), Mr. Saluku Purbodin-
ingrat (Indonesia), Mr. Americo de Oliveira
(Brazil), Mr. C. Economides (Cyprus),
Mr. Juan Perez (Uruguay), Mr. Otakar Pohl
(Czechoslovakia), Mr. Altaf Husain (Pakistan).
The draft recommendations were passed on
to an editorial commission which is to report
to the Plenary. Session of the Conference.
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Industrial Exhibitions in
Moocow has a whole number of indus-
trial exhibitions now open to visitors. They
display the various products of Soviet
engineering, light industry and also the arts
and crafts.
At the "Stankokonstruktsia" works there
are demonstrated metal-cutting and wood-
working lathes, forge and press equipment,
a great variety of tools and abrasives.
In the Maxine Gorky Central Park of
Culture and Rest one can see on display
passenger cars and trucks, tread and wheel
The International Economic Confer-
ence is proving that it is promoting
expansion of international trade. As a
result of an exchange of letters in
Moscow on April 8, 1952, between
Mr. Lorimer, head of the business
group of the British Delegation to the
Moscow International Economic Con-
INTERNATIONAL ECONOMIC CONFERENCE
tractors, and an assortment of cultivators,
seeders and harvesters.
The All-Union Construction Exposition
comprises building and road-maldn machines
OF various models, as well as mining and
oil equipment, pumps and compressors.
Light industry products-.garments, mil-
linery and furs--are exhibited at the Fashion
House on Kuzfietsky Most.
The Chamber of Commerce of the U.S.S.R.
has an exhibit of petroleum products, coal,
rolled metal, ferrous and nonferrous metals,
News Item
ference and Mr. Lu Hsu-chang, Pres
ident, the China National Import and
Export Corporation, and member of
the Chinese Delegation to the Confer-
his mat ri 1 procured by
Moscow
grains, food products, wines and fit ors,
n motorcycles, bicycles and many other com-
modities.
Twelve rooms of the U.S.S.R. Academy
of Arts at 21 Kropotkin Street are devoted
to a display of applied. folk art and the arts
and crafts industry of the Russian Federa-
tion,
The latest achievements of Soviet tech-
nology are embodied in the exhibits on dis-
pray at the Polytechnical Museum.
ence, a Sino-British trade contract
was signed to the value of 10,000,000
pounds sterling a side covering the
period up to December 31, 1952.
PUBLISHED BY THE SECRETARIAT
OF THE INTERNATIONAL ECONOMIC CONFERENCE
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