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[From Metalworking News, Oct. 7, 1963] ticularly if large new investments are now The apparent absence of grain reserves CZECH EFFORT TO MODERNIZE SEEN STALLED made for modernization and expansion. raises serious questions about Soviet agri

It is also ventured that the industrial cultural performance in recent years. West(By Bernard Leason)

situation in Czechoslovakia, Poland, East ern calculations indicate that if Soviet PRAGUE.—Plans for modernization and ex Germany, and Hungary is probably worse harvests since 1953 had been as high as pansion of basic sectors of the Czechoslovak than has been generally recognized in the officially reported, there should have been metalworking industry-particularly the West, and that this will become more evi- very ample reserves to meet the contingency well-subsidized machine tool branch-have dent during the winter of 1963–64, which is of this year's crop failure. A possible exreportedly been stalled or postponed 1 to 3 expected to be a tough one.

planation is that official harvest reports for years because of foreign currency shortages.

MUST TURN TO WEST

recent years may have been greatly exaggerDuring a recent tour of Czechoslovak

Experts in the U.S. Department of foundry installations and a visit to the Brno

Prague's planners find themselves in the

Agriculture have suspected an increasing International Trade Fair, a Metalworking position where they must deal with Western

degree of exaggeration in these harvest data News correspondent was told of hopes to buy producers of sophisticated automatic equip

for at least the past 6 years. new automatic foundry equipment for mold

ment if the metalworking sector is to receive making from Britain or Japan and of the the doctoring it needs.

It may me that the falsification has oc

curred at the lowest level—that Soviet pressing need to divert resources to the task

The transfer line for processing motor

farmers responded to high-level pressure for of reequipping the country's own machine blocks in the 2-year-overdue Skoda plant at tool producing plants.

Mlada Boleslaw, outside Prague, is report- larger harvests by inflating their reports. Considered very indicative of the present

edly being supplied by a French group; the If this is true, then top Soviet officials have electronically guided overhead conveyor

been misled and have only discovered in the situation is quiet but earnest talk among Czechs in the industry about the possibility

supply system for carrying bodies and blocks past few months that the graneries were will be British.

emptier than they had assumed. In any case of obtaining Western licenses in fields where

Czechoslovak plants seen by Westerners in

it is now very difficult to accord the official development costs are especially high. September exhibited an almost total absence

data much credence, for the harvests for is believed this could include complex elecof automatic machinery.

recent years may have been as much as 30 tronic gear for factory automation and such new Western developments as high energy

Behind talk of modernization and licens- percent below official claims. ing, and the noticeable improvement of

In broader perspective, the present acute rate forming. United States-Czechoslovak relations, lie sev

grain shortage is but an aggravated instance Equipment in most Czech factories of the eral facts of great importance.

of a chronic agricultural crisis. The Stalinist favored machine tool industry averages 13

The year 1962 was the worst year eco strategy of economic development gave agriyears old; most of it was installed during

nomically for the Czech Communists since culture, along with other consumer-related a retooling drive lasting from 1946 until the

they took power in 1948. A drop in labor sectors, a very low priority. Stalin's main Communist seizure of power in 1948. Other

productivity from 1961 to 1962 was on the interests in agriculture were to squash any less favored factories are believed to be order of 10 percent. Production increases potential political opposition from the peasequipped with prewar tools.

in the past have come mainly from increases ants and to extract as much farm produce as FULL CIRCLE

in the labor force. But reserve labor is now cheaply as possible for export and urban In the eyes of knowledgeable Western oblargely exhausted.

consumption. At the time of his death in servers, Czechoslovakia's metalworking in

1953, Soviet agriculture had not yet recovered dustry has come full circle.

[From the New Leader, Oct. 28, 1963 ] from the twin traumata of collectivization Emphasis since 1948 on full production

RUSSIA'S CONTINUING CRISIS

and wartime destruction. to support a politically inspired export drive

(By Richard Judy)

The sequel to Khrushchev's oratory at the of almost total proportions, and an accom

September 1953 plenum was an immediate

On September 3, 1953, Nikita Khrushchev panying regime refusal to cut production

and dramatic rise in agriculture's priority. went before the central committee of the for the sake of continuing modernization,

State purchase prices of farm goods, which Communist Party of the Soviet Union to research, and development has now resulted

Stalin had maintained at levels far below sound the tocsin: Agriculture was in crisis. in an investment bind of major importance. A decade of Khrushchevian husbandry has

costs of production, were boosted. Consumer It is felt the situation has matured in the

goods were made available in village stores. passed, and Soviet agriculture remains in midst of other, more general, economic

Peasant incentives were lifted and collective crisis. troubles and that the Czechoslovak situation

farms found that they had resources to in

The immediate crisis of 1963 is acute. A is probably reflected to a greater or lesser

vest. Khrushchev greatly expanded state long and viciously cold winter killed many degree in other strongly industrial Soviet

investment in agriculture; in fact, the share crops before they could sprout; the summer of all state investments going to agriculture bloc states.

was hot and dry in many parts of the counDefective production throughout the econ

increased by half. Soviet farms also received try, causing widespread drought. The grain greatly increased quantities of trucks, tracomy cost the country about $500 million in

harvest this year may have been the worst 1962, according to the regime's own com

tors, and other equipment, and from 1953 in the past 10 years.

to 1958 deliveries of mineral fertilizer rose by plaints. Prague acknowledged that Ruma

The poor harvest apparently caught the nian protests about badly produced equip

nearly two-thirds. Soviets with grain reserves that were inment were correct, and it has been reported

Perhaps the most decisive Khrushchevian sufficient to tide them over until next year. that whole shipments of Skoda cars have

measure during the period 1952-58 was the Bread shortages were reported as early as been returned to South American importers.

plowing of about 100 million acres of virgin midsummer. Both the state and the party and idle land on the steppes of Kazakhstan, SORRY PICTURE

issued appeals to the population to exercise Western Siberia, and other eastern areas. The country's own consumers are rebel great care in the use of grain and bread. The wisdom of this venture was questioned ling against badly made or tastelessly fin

Cafeterias ceased to serve free bread with in the Soviet Union and abroad on the ished products.

their meals, and severe penalties were dealt grounds that the climate in these areas was The minister of metallurgical industry and out to profit-seeking individuals who took too arid and erratic for agriculture. But ore mining, V. Supka, in an August interview advantage of artificially low state prices to Khrushchev prevailed, and vast quantities with the Czech trade union newspaper buy bread for fattening livestock.

of men and material were sent to the steppes. Prace presented this picture:

Crop failure and negligible reserves placed The results were striking. Grain harvests In July, not a single foundry achieved its the Soviet leadership in great difficulty. A

for the years 1954–58 were reportedly about planned production.

harvest upon which the nation could subsist 40 percent above the level for the period Almost all blast furnaces had a high inci in 1953 was grossly inadequate in 1963: 1949–53. Higher priorities for agriculture dence of breakdowns “due to deterioration The population had grown by 37 million combined with excellent weather to produce prior to major repairs." mouths. Importation of food became an

a bumper crop in 1958. The output of liveProduction of raw steel was 3.4 percent immediate necessity. Russian orders for

stock products increased sharply. By Amerishort of the plan, and rolled material was vast quantities of flour went out to brokers

can standards, the Russian diet continued 4.1 percent under the plan in July. in Western Europe and colossal wheat pur

to be monotonous and starchy, but by local In the opinion of observers of the Soviet chases were contracted from Australia and

standards Soviet tables were more abunbloc economic scene Czech efforts to do a Canada. A quantity of grain was "borrowed" quick repair job on past bad relations with from Rumania and negotiations are now

dantly spread than they had been since before the United States, to settle American com underway in Washington which may lead

collectivization. Buoyed by success, Soviet mercial claims against Czechoslovakia, and to large sales of American wheat.

planners set ambitious targets for agriculto increase United States-Czech trade stem The size of the Soviet grain imports is

tural growth during the period 1959-65. from the economic situation. enormous, with the total cost expected to ex

Contrary to plan, Soviet agricultural deFor West European machine tool produc ceed $1 billion. Indications are that the velopments since 1958 have been dismal. ers, a gradual respite from Czechoslovak low Russians feel great urgency for immediate Instead of expanding, harvests exceeded the pricing and long-term credit policies in ma delivery. Everything testifies to the acute 1958 crop only in 1962—and this is now open chine tool sales is expected. Sources in ness of the present food crisis in the U.S.S.R.: to serious question due to doubts about the Prague maintain the country can no longer The expenditure of such quantities of gold

The expenditure of such quantities of gold accuracy of official data. Why has nothing support large subsidies for the industry and and foreign exchange is unprecedented in gone as planned by Khrushchev and his that it must begin paying its own way, par Soviet history.

colleagues?

Unfavorable climatic conditions have con the agricultural lag is not recognized and which other cherished objectives must tributed to the poor showing in most years remedied in good time."

sacrifice the resources required by agriculsince 1958. In particular, drought has dras But in his closing speech to the same ture. Much talk is now loose in the Soviet tically reduced the productivity of the new plenum, Khrushchev retreated from his Union about the necessity for a crash prolands. Rainfall in these areas is always demands for dramatically increased alloca gram of irrigation and fertilizer production. sparse and irregular, and abundant harvests tions to agriculture. The arguments that A plenary meeting of the Central Commitwere possible in the first few years of their occasioned this retreat may be surmised tee is scheduled for November to consider exploitation because moisture had been from his remarks. He said:

« * * * measures these programs. At present, it appears that stored in the soil during the preceeding long for increasing aid to agriculture do not the advocates of high priority for agriculperiod of fallow. The continuous grain crop signify that resources will now be diverted to ture are in the ascendant. Time will tell if ping and inadequate fallowing of recent agriculture at the expense of the development

and to what extent this is true. years have combined with paltry rainfall of industry and the strengthening of the to deplete drastically the moisture content nation's defenses. The buttressing of

SOVIET ECONOMIC WARFARE of the soil. Dust Bowl conditions now prevail Soviet military power is our most important (From the Christian Science Monitor, Feb. over much of the Soviet Union's virgin lands. task, and we will perform it unflinchingly.

7, 1963] After a brief stay at a comparatively giddy The results were thus inconclusive: Farmers height on the party scale of priorities, agri were asked to content themselys with vague

REDS FORGE CHROME LEVER culture also found itself demoted to its more promises of larger material inputs and ad

(By Pieter Lessing) accustomed position after 1958. Increasing monitions to make better use of the equip SALISBURY, SOUTHERN RHODESIA.—Unless demands on scarce Soviet resources were ment available.

official steps are taken to prevent it happenlevied by such high priority programs as the Later in 1962, the matter of priorities was ing, the West is likely before the end of this space effort, the arms race, foreign aid, and made even more explicit. It had long been year to become totally dependent on the Soreemphasized rapid growth in heavy indus evident that one reason for lagging Soviet viet Union for the supply of strategically try. The shore of total state investment livestock production lay in the fact that important metallurgical chrome ore. that was allocated to agriculture declined to state purchase prices for animal products Metallurgical chrome is an essential inabout the same level that it had occupied were far beneath the average costs of pro gredient in the alloys needed for the manuduring the Stalin era. Soviet farms received duction. The Soviet leadership finally recog facture of missiles and jet engines, and also only 62 percent as many trucks during the nized that, as Khrushchey put it, only "a for stainless steel. year 1959–61 as in the preceding 3 years. fool is going to raise meat production if Until recently, Western Europe and the Fertilizer deliveries similarly lagged. In the the more he produces, the more the collec United States drew all their requirements conviction that the agricultural problem was tive or state farm loses." Higher prices from Southern Rhodesia and Turkey, the solved, the Soviet leadership, in the words were necessary, and this meant a diversion only two countries outside the Soviet bloc of one American expert, appeared to "sit of resources from some other sector of the where adequate ore deposits are available. back to watch and eat.”

economy into animal husbandry. But from The Soviet Union is also a major producer By the end of 1961, it was obvious to the which other sector should those resources of metallurgical chrome ore, and 3 years ago Soviet leaders that agriculture was lagging be diverted?

it entered the European market, offering far behind what had been expected. The The statement announcing the price boost large quantities at prices below Rhodesian 1961 harvest was reported to be 11 percent posed the rhetorical question: "Perhaps, for or Turkish production costs. below plan, meat output trailed by 16 per the sake of the quickest possible increase in As a result it has by now captured 70 percent; and milk production fell behind by meat and milk production, we should trans cent of the European market. nearly 13 percent. A plenum of the central fer funds to this area at the expense of our

FIRMS THREATENED committee was convened in March 1962 to

defense capacity and the development of our consider agricultural problems. By this time industry?” This alternative, however, was

The United States, particularly with its an intensive debate was raging in party cir- quickly and emphatically rejected on the

vast defense program, continued to offer a cles over the proper priority to be accorded grounds that: “Such a decision would cre

large enough market to keep both the Turkagriculture. At one extreme were those who

ate the conditions our enemies are hoping ish and Rhodesian mines in production. argued that agriculture must be stimulated for.” Instead, it was decided that the funds

Four months ago, however, the Soviet whatever the cost might be to other sectors for the development of animal husbandry offering

high-grade ore at $1 a ton less than

Union entered the American market as well, of the economy. At the other extreme were would be lifted from the pockets of Soviet the champions of undiminished top priority consumers. On June 1, 1962, the retail prices

it costs to produce in either Turkey or for space, military, and heavy industry. The of meat went up by 30 percent and butter Rhodesia, and it promised to reduce prices latter opposed any measure that appeared prices were boosted by 25 percent.

even more if large contracts were placed. to transfer resources from these claimants Moderate concessions have been made to

This has meant immediate disaster for the to agriculture. the resource requirements of agriculture in

ore-supplying industries in Turkey and RhoThe debate over priorities is dramatically the past 2 years, but it is clear that this

desia. illustrated in two speeches by Khrushchev, sector of the economy has yet to be really

In Rhodesia, one in three mines has already one was his keynote address to the March lifted high on the party's scale of priorities.

ceased production and the prospect is that 1962 plenum, the other his concluding re It is also clear that significant increases in

the whole industry will come to a standstill marks to the same body. Only 4 days of con Soviet farm output are likely to be forth

before the end of this year. It is undertroversy separated the first speech from the coming only in response to massive resource

stood that the position in Turkey is about second, but in tone and content they were inputs. Agricultural gains during the pe

the same. far apart indeed. riod 1954-58 were due, in large measure, to a

RECOVERY SLOW Khrushchev's keynote speech contained vast expansion of the cultivated acreage.

This information and accompanying foretwo important proposals: The first was a ret These were relatively cheap gains in terms of cast were given a few days ago by G. H. rogressive plan for the formation of a party the investments required to bring them

Parkinson, president

president of the Rhodesian bureaucracy to supervise the operation of about. No such easy potentials are left to

Chamber of Mines and general manager of collective and state farms. The second was be developed in Soviet agriculture.

the Rhodesian chrome mines. a proposal for the intensification of Soviet Each additional bushel of grain wrought "If the West's major producers of chrome agriculture, i.e., for raising acreage yields from recalcitrant nature will cost the Krem ore are forced to discontinue operations,” he and placing emphasis on animal husbandry. lin more resources. Vast quantities of capi- said, "both Europe and America will be To this end, Khrushchev recommended that tal and chemicals will be required. If and forced to rely entirely on supplies from millions of acres of grassland and fallow be when these are provided, the problem of Russia.” seeded to grain and forage crops, and called motivating the Russian peasant will remain. He explained that once the mines close for a broad program of technical and mate Moreover, increased investments will bring down they cannot be reopened at short norial aid to agriculture.

a poor return if resources are used unwisely, tice, thus making the future of ferroalloy Noting that state and party attention to which is now the case. Peasant workers producers and all the industries which deagriculture had declined in recent years, the and managers must be able to directly as pend on them contingent on Soviet trading Soviet Premier asserted that "some officials sociate their efforts with a decent reward, policy. display unconcern and irresponsibility with and in the 30 years of its existence, the

POLICY PUZZLE respect to the urgent problems of increasing Soviet system of collectivized agriculture has Referring particularly to the Soviet capthe output of equipment, mineral fertilizers, been unable to permit them to do this. One ture of the U.S. market, Mr. Parkinson said: herbicides, etc." Some leaders, he said, even may entertain a certain skepticism that this “It is difficult to understand the policy of thought it should be possible to divert re will change soon.

the American Government in this matter. sources from agricultural investment to The crop catastrophe of 1963 presents the On the one hand they are spending many other sectors of the economy. Such erro Soviet leadership with agonizing choices. millions of dollars each month in an effort neous views were alleged to be held even by They may choose to become dependent on to persuade European, African, and Asian unnamed persons in departments of the foreign food; or they may choose to force states to remain outside the influence of the Central Committee. “Serious conclusions a tightening of the citizens' belts; or, finally, Communist bloc, while on the other hand must be drawn from this,” he continued. they may choose to do what is necessary to they are prepared to permit American in“Agriculture must not be treated lightly develop their own agriculture. If they de- dustry to become dangerously dependent on The entire economy may be undermined if cide on the latter, they must again choose Russian switches of policy."

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The Rhodesian Chamber of Mines is con Obviously, a higher price detracts from the rived from Havana. The ship was returning vinced that the Soviet Union is pricing its attraction of buying Soviet oil, especially (200?) Chilean, Argentine, Brazilian, Parachrome ores without regard to economic costs now that in the present state of the world guayan, and Uruguayan students to their with the sole intention of forcing competi- oil market there are Western sources which homes. tion into bankruptcy in order to become the might be prepared to match the Soviet price world's sole supplier. in a long-term deal. Such a deal would fol

[From the Baltimore (Md.) Sun, Freight costs from Rhodesia to a U.S. port low the lead of Standard Oil which recently

Oct. 30, 1963) amount to $14 a ton.

signed an agreement with ENI for a medium- UNITED STATES ACCUSES REDS OF LAOS VIOLAThe Soviet ore comes from the center of term supply at a favorable price.

TIONS_SAYS SENDING OF MILITARY EQUIPthe Urals and must therefore be moved long But, nevertheless, an oil deal with the Sodistances by rail before being shipped on a

MENT IS ILLEGAL viet Union has the advantage that it can be long sea journey. arranged against payment in the kind of

(By Howard Norton) It is therefore estimated that the Soviet products ENI has to offer and wishes to sell. WASHINGTON, Oct. 29.--The U.S. Governfreight costs must be considerably higher, There are other pointers which indicate ment charged today that the Communists yet Soviet chrome ore has on occasions been that Professor Boldrini might be exploring have violated the Geneva agreement on the offered in the United States for as little as the possibilities in Moscow for an advanta neutralization of Laos. $16 a ton.

geous trade deal. For instance, Italian ex The accusation came from an official COMPETITION FELT

ports are not as buoyant as they were. The spokesman of the State Department, who American alloy manufacturers who are rate of increase in 1962 was not as high as it declined to say what the United States might switching to the Soviet chrome ore have ex was in the preceding years, and there is do about the violation. plained that they have been forced to do so nothing in the first quarter of this year to The spokesman said this country has “inbecause European and Japanese producers show that matters in this respect are im telligence reports” that military equipment have for some time been buying cheap Soviet proving.

has been sent to the Communist Pathet Lao ore and then shipping the alloy to America

SIGNIFICANT ITEM

forces in Laos from North Vietnam. to undersell American alloy producers. The With exports now assuming such an im

He declared that the United States is satonly way for American producers to compete portant role in the Italian economy, there is isfied that these reports are true, and that is therefore also to buy Soviet ore cheap. every reason that Italian industrialists the information has been forwarded to the

Mr. Parkinson commented: “For the should look for new markets wherever they International Control Commission in Laos, chrome ore producers in Turkey and South can be found.

which is now attempting to verify the vioern Rhodesia the economic consequences are It is interesting that there has recently lations. serious, but the issue is even bigger than been a noticeable increase in propaganda for

HAVE BEEN CHECKING that. As chrome ore is strategically impor greater trade exchanges with the Soviet Un The reports of the illegal shipment of arms tant material, both Europe and America ion. Such exchanges certainly offer great and munitions into Laos from North Vietmust face up to the dangerous situation possibilities if they can be exploited and if nam first came to the attention of the U.S. which has developed."

satisfactory means of payment can be found. Government about 3 weeks ago, it is report

It is not only ENI which is interested in this ed, and American sources have been checking [From the Christian Science Monitor, direction; several large industrial corpora them since then. October 1963]

tions in the private industrial sector have “The Geneva agreements," the State DeMoscow VISIT ALERTS OILMEN

been trying to line up deals, for building partment spokesman pointed out, “prohibit

whole plants or providing machinery and the introduction of armaments, munitions, (By Walter Lucas) equipment for Soviet factories.

and war materials generally except as reROME.-The visit to Moscow of Prof. Mar But as far as ENI is concerned, basically quested by the Laos Government for the nacello Boldrini, the president of the Italian

the question comes back to oil. A small tional defense of Laos. state oil corporation (ENI), is the subject significant item, appearing in the press re "Since the Laos Government has not reof widespread speculation in the Italian press

cently, disclosed that 300 new cars were quested such supplies from North Vietnam,” and Rome oil circles.

taking to the Roman streets every week. If he declared, “the military supplies introduced The natural question is: What is he doing that figure is translated into national figures, from there are in violation of the agreethere? Questioners note especially that the some idea is given of the growing consumpinvitation came from the Soviet side. He tion of gasoline in Italy-in fact, for the

NOTED OFFICIALLY has, to date, had lunch with Nikolai Petoli- first 2 months of this year (and these were chev, president of the State Committee for winter months), this growth in consumption ment has officially brought this matter to

The spokesman said that the U.S. GovernForeign Trade, and had talks with Soviet ex was 15.2 percent.

the attention of the International Control perts in the chemical and petroleum busi Since ENI is maintaining and even increas

Commission, and that the Commission has ness.

ing its share of Italian sales of gasoline, here The interest and speculation aroused by is one indication of ENI's rapidly expanding violations of the agreement wherever they

attempted and is attempting "to verify the this visit caused the press officer of ENI here need for more supplies of crude at economic may occur.” in Rome to take the unusual step of tele- prices if it is to meet its liabilities, not only "But the Pathet Lao have refused to allow phoning this correspondent and asking him at home but around the world.

the International Control Commission team not to draw any conclusions from the visit, ENI is never tired of stating its agreement to conduct a meaningful investigation in which was, so that official claimed, only an with Standard and in no way restricts its Pathet Lao territory," the State Department occasion for Professor Boldrini to meet some freedom to acquire its crude requirements spokesman said. of his Soviet friends.

wherever it is most profitable to do somand He pointedly declined to say what the UNUSUAL PICTURE that, of course, includes the Soviet Union.

United States might choose to do about the Such an interpretation of the trip paints

LEVER SUGGESTED

violation of Laotian neutrality, but indicated the unusual picture of one of Italy's lead It has been suggested in some oil circles

that if a serious proved violation of the ing industrialists taking the long and ex here that the deal with Standard could be Geneva agreement should occur, it would pensive trip to Moscow, accompanied by exused as a lever in the negotiations for further

"undoubtedly lead to a consultation among perts from his office, for the pleasure of so Soviet supplies, providing always that the

the governments signatory to the agreecial chatter among the clatter of teacups Soviets are still interested in pushing their

ment." with some of the Soviet Union's leading in exports of crude. This depends upon domes

Under questioning, the spokesman acdustrial figures and managers of factories. tic political and economic considerations, knowledged that the consultation might not This may be the object of his visit, just which are difficult to judge.

include “all” the governments who signed to exchange courtesies, but, at the same time,

In any case, whatever may be the ultimate

the agreement-presumably meaning that the visit certainly offers an opportunity for objective of Professor Boldrini's present visit

the Communist governments might not have some business talks, too. to the Soviet Union, it can only be of an

a part in such a meeting. In the first place, a time fast is approach- exploratory nature, since Italy is without a

The spokesman speculated that the Coming when the ENI oil deal with the Soviet government, and Mr. Boldrini has no official

munist Pathet Lao forces might be getting Union must be renegotiated. It looks then mandate for any conclusive arrangement the new military supplies for any one of a as if the conversation in his meetings with which might commit a government which is

number of reasons. Mr. Petolichev and other experts might well still to be formed.

He said it might be simply to reequip the turn from social chatter to the questions of

Communist forces in the country, it might oil, petrochemicals, and synthetic rubber;

be to strengthen their position, or even to both of these latter products ENI has or will Moscow CONTINUES THE COLD WAR enable them to carry on some limited milihave surpluses to dispose of.

[Lima Radio America network, in Spanish,

tary action.
HIGHER PRICES
033, GMT, October 26, 1963]

Whatever the purpose, he said, the resupIn regard to Soviet crude oil, information SUBVERSIVE PROPAGANDA SEIZED ON U.S.S.R.

plying of these forces is a direct violation of gathered here indicates that the Soviet Union

SHIP

the Geneva agreement. might be wanting higher prices for its crude SÃO PAULO.-The police of the port of San

AGREEMENT OUTLINED than it has previously offered to such favored tos seized large quantities of subversive prop This, according to the State Department customers as the Italians.

aganda aboard a Russian ship that had ar spokesman, was brought out clearly in a

letter, outlining the agreement, written by A second westbound U.S. convoy, which cow and in Potsdam-a Soviet Army headthe head of the neutralist government, left Berlin with 143 soldiers on 25 vehicles quarters in Germany-pointed to a Soviet Prince Souvanna Phouma, to the cochair- at 8 a.m. was ordered by the Army to remain desire to exploit the incident diplomatically. men of the International Control Commis at Babelsberg with the unit detained there

OTHER THEORIES EXPRESSED sion on June 2, 1963.

although the Russians had cleared it within Observers here point out that any viola 45 minutes.

That was the mildest of many theories tion of the Geneva agreement opens the A third convoy from Berlin reached West

offered by Government analysts. Some floodgates to rearmament on both sides. Germany without delay or incident at 11 a.m.

thought the Russians needed an opportunity The violation by the Communists, for ex All the troop movements were made in

to demonstrate their power in Berlin, espeample, gives the United States the right to connection with an exchange of two Army cially after they had conceded great economic increase its military assistance to the central units between Berlin and West Germany

weakness. Some noted that Premier Khrugovernment to guard against the possibility that began Monday. All such moves are now

shchev had not been seen in Moscow for 2 of Communist attack. suspended.

weeks and they expressed the belief that And any increase of American or other Last May the Russians held a U.S. unit for

military leaders wish, through an incident, Western supplies to the central government 4 hours on the same grounds as those today.

to spoil the present East-West calm. is likely to cause a boost of the inflow of In 1959 five U.S. servicemen in four trucks

There also were some signs that Soviet Communist arms. were detained for 56 hours.

commanders in Berlin might have wanted to During much of the day a U.S. helicopter avenge recent displays of force by the West

ern garrisons. (From the New York (N.Y.) Times, Oct. 12, hovered over the scene. A Soviet Mig fighter

circled the area for about 15 minutes. 1963)

All sides, however, were assuming that So

viet forces in Berlin could not long act indeCOUNT OF CONVOY'S TROOPS IS DEMANDED BY RUSSIANS (From the New York (N.Y.) Times, Oct. 11, pendently of orders from Moscow.

The immediate issue at the Babelsberg

1963] BERLIN, October 11.-Soviet forces moved

checkpoint, near the Berlin end of the armored vehicles and guns into position on CONCERN GROWING—EMERGENCY SESSIONS ARE 110-mile autobahn through East Germany, the autobahn from West Germany to West

HELD AT THE WHITE HOUSE

was a Soviet demand that the American solBerlin today to block a U.S. Army convoy

(By Max Frankel)

diers in the 18-vehicle convoy dismount for detained in East Germany since 9 a.m. yes WASHINGTON, October 11.-The United an individual count. The Americans refused. terday. States protested strongly and repeatedly to

Behind this situation lies an even subtler considered the military action to be related blocking of an American military convoy by the right of Soviet guards to inspect or otherDiplomats here and in Bonn said they the Soviet Union today against the day-long problem,

The United States has never acknowledged to the talks between the United States and Soviet troops outside West Berlin. the Soviet Union on a détente. Officials em

The convoy remained stalled on the Com

wise issue orders to any military convoy on phasized that the matter was not a local munist-controlled autobahn tonight, and

the highway. issue but had very serious implications for Washington still had no satisfactory expla

For some time, however, "as a conventhe entire political scene.

nation from Moscow. As the hours passed, ience,” U.S. commanders have made it a U.S. officials declined to comment on rethe administration took an increasingly se

custom to show their troops for counting ports that the unit had tried to break rious view of the incident.

whenever the number of passengers in a conthrough the checkpoint barriers but was

Officials expressed certainty that Premier

voy exceeded 30. There was some doubt here stopped by Soviet soldiers and armor. Khrushchev and other Soviet leaders had

today about whether this number had ever The convoy of 61 men and 18 vehicles had time to be briefed on the situation.

been given to the Russians. was starting on the 110-mile trip to West Their refusal, or inability to clear the con

Drivers and codrivers of vehicles were not Berlin from the West German border when voy at a time when both sides seemed eager

included in this American calculation. As it was stopped by Soviet troops for the first to hold down tensions aroused concern and

far as could be determined here the number time at Marienborn. puzzlement.

of soldiers in the stalled convoy was below After being held for 15 hours, it was al The concern was expressed to the Soviet

30, but the 18 drivers and some codrivers lowed to proceed, only to be stopped again Ambassador here, to the Soviet commanders presumably made a total of more than 30. at 4 a.m. at the Babelsberg checkpoint, just on the scene and in Potsdam, to the foreign

PREVIOUS DELAYS outside West Berlin, which is an enclave in ministry in Moscow and in public state Two-to three-hour delays on the autobahn East Germany.

ments. It also brought about an emergency have been imposed on military convoys alCOUNT OF PERSONNEL ASKED

session of the four-power ambassadorial most regularly, at least once or twice a week. The Soviet guards demanded that the steering committee on Berlin affairs, and two At times, considerably longer delays were imAmericans leave their vehicles and submit meetings at the White House.

posed by some technical argument. to a count. U.S. officers rejected the de

EASED ATMOSPHERE IN PERIL

The convoy now blockaded, however, has mand as unwarranted under existing Western The administration's view is that the had a particularly rough journey. It came Allied rights of access to West Berlin on the longer the blockade remains in effect the

onto the autobahn at the Marienborn checkground that fewer than 75 men were in

more serious the consequences, both inter- point about 6 a.m. yesterday, New York time. volved. national and in domestic politics.

When it had been stalled there more than 8 The Russians then brought armored per High Soviet officials indicated during the hours, Washington was alerted. sonnel carriers, antitank guns, and other day that they did not intend to let the inci

The news was rushed to Secretary of State equipment to obstruct the superhighwaydent grow into an issue of major proportions. Dean Rusk just before he went to the White The soldiers were spending the second night But their first reaction was to support the House meeting between President Kennedy in their jeeps and trucks.

technical demands of their officers on the and Mr. Gromyko. Five Soviet armored cars were sent to scene. U.S. authorities said that nothing

American officials raised the incident as an Marienborn yesterday when the convoy was less than release of the convoy would satisfy example of the kind of thing that must not halted for the first time, and a truck and them.

occur if relations are to improve, but Mr. trailer obstructed the autobahn.

The feeling here was that the timing of the Gromyko professed ignorance of the situA second convoy, bound from West Berlin new dispute threatened to spoil not only the

ation. to West Germany, also was detained at conciliatory atmosphere of recent weeks but Mr. Rusk saw the Soviet diplomat again at Marienborn yesterday.

also the political tolerance for conciliation dinner last night, but by then he thought The three Western Allied commandants that President Kennedy has tried to develop the incident was closed. The convoy was met in West Berlin for almost 2 hours to re in the United States.

passed through the Marienborn checkpoint view the situation after the U.S. Army had Only 48 hours ago, with some political risk, about 7 p.m., after a delay of 14 hours, predelivered two protests to the Soviet troop the President authorized the sale of at least sumably without any concession to Soviet command at Wunsdorf.

$250 million worth of wheat to the Soviet demands. In Bonn, the political counselors of the Union.

About 3 hours later, however, while diplothree allied embassies met twice to consider Yesterday, while the same convoy was mats were still at dinner at the Soviet Emthe situation.

being held for 14 hours at the West German bassy here, the convoy reached the Berlin Civilian traffic on the autobahn was halt- end of the autobahn, the President and other end of the road and was again denied cleared briefly at noon as the Soviet armor moved officials conferred for more than 8 hours with ance. into position but was later allowed to pro Andrei A. Gromyko, the Soviet Foreign At 5:45 this morning, New York time, after ceed in both directions on the westbound Minister.

a delay of 7 hours, the convoy's commander lane.

Leading Government officials continued threatened to proceed past the checkpoint Truckdrivers coming in from the west this evening to give the Soviet Union what without clearance, if necessary. An hour later said the Russians had set up a military camp they called the "benefit of the doubt." They he ordered his men to raise the bar across equipped with antitank guns and an anti meant their readiness to believe that the the road and ordered the vehicles forward. aircraft gun. The U.S. Army announced that autobahn incident was local in origin and After moving only a few yards, however, the Russians had moved in about 12 armored was not ordered from Moscow.

they were stopped again, this time by eight personnel carriers, but civilian travelers re But they also believed that Moscow's fail Soviet armored personnel carriers. Another ported counting 30 to 40 Soviet armored ure to resolve the dispute promptly after convoy was hastily mounted by Americans vehicles in the area.

strong protests were delivered here, in Mos- in Berlin and sent to the checkpoint.

It was cleared quickly and without inci- nauer lied when he recently asserted that unemployed, this great curse in this land dent, but then parked on the road to assist he had tried to achieve German unification of plenty and abundance, and the the stalled vehicles in case of trouble. Both on the basis of offering Moscow a 10-year wealthiest Nation on earth, before we have been there since. “armistice.”

start on ventures overseas. MOSCOW'S KROLL EFFORT FAILED

This idea has relevance to the debate [From the Washington (D.C.) Star, Oct. 22, 1963]

Doubtless the Russians were angered by now going on in connection with foreign

Mr. Adenauer's comment that he was opposed aid. I am not opposed to foreign aid, but REDS AGAIN EYE BERLIN ISSUE

to selling wheat to the U.S.S.R. without (By Edmund Stevens)

exacting political conditions and by his I think its extravagant expenditures Moscow.-With the nuclear test ban skeptical attitude toward the present easing could well be reduced in a number of sealed, signed, and delivered, the Russians of tension.

countries which no longer need our aid, show symptoms of again pressing for the But the main reason for painting the out for various reasons. Some of the money oft-threatened, oft-postponed showdown on going Chancellor in the blackest colors was could be used to put the unemployed West Berlin.

to make his successor, Ludwig Erhard, look back to work. At a glance, this seems inconsistent: First good by comparison on the theory that any

While we are debating the authorizaMoscow takes the initiative in pressing for a change from Mr. Adenauer could only be for

tion of the expenditure of several billion test ban and improved relations with the the better. Although hardly wild about Mr. Western Powers, in order to revive the one Erhard, the Kremlin is at least prepared to

dollars in foreign countries, our funds for issue sure to generate tension. give the benefit of a doubt.

public works at home have run dry. The Kremlin sees no inconsistency. The About 2 years ago Mr. Khrushchev serious

Hundreds of worthwhile projects are desire for a test ban and an accommodation ly flirted with the idea of making a separate processed and waiting to be put into with the West was spurred by its mounting deal with West

deal with West Germany, bypassing the effect, but cannot be because there is no trouble with Red China for the Russians are United States and Britain.

money. That, at the same time we are determined to avoid the prospect of having

He made overtures to Mr. Adenauer though discussing an expenditure of $4 billion to face threats from opposite directions si- Hans Kroll, then West German Ambassador

in foreign aid, is in my view a failure multaneously.

to Moscow. Mr. Kroll had a strong empathy
for Mr. Khrushchev—the saying around the

to give proper consideration to our own
WANT NEUTRAL WEST LINE
Moscow diplomatic colony was that these

citizens. Because of the new menace along the vast two saw eye to eye, being of almost identical I pay tribute again to the able speech length of the border with China, the Rus- height and build.

of the distinguished Senator from Arsians would like to neutralize their Western

And Mr. Kroll's response to Mr. Khru- kansas [Mr. FULBRIGHT], made a week approaches. But they consider this impos- shchev's feelers was so eager as to prove his sible while the Western Powers continue to undoing. For Mr. Adenauer spurned Mr. ties, which agrees with the view I have,

and a half ago, on the subject of priorioccupy West Berlin and while West Germany Khrushchev's proposition and Mr. Kroll was is committed to a policy of rearmament.

a view which we cannot emphasize too recalled for exceeding his mandate. Because the horrors of the Hitler invasion are still etched in people's memories, Ger- but apparently the Kremlin was prepared to

L'affaire Kroll was never fully ventilated, much. I think our first priorities should

be for domestic needs, to putting our unman rearmament is a highly emotional issue

go a long way toward reunification and employed back to work. So long as 512 here. The Kremlin leaders have deliberately economic relations in return for West Ger- percent of our people are out of work, our played it up for political reasons.

many's giving up NATO and acceptance of an first duty is to work on that problem. I This helped reconcile the citizenry to Austria-like neutrality.

have pending an amendment to increase sacrifices for the sake of defense. It also helped to keep the Poles and other restive hot and cold on their demand for the signing What we eliminate from the foreign aid,

The reason the Russians, after blowing our accelerated public works fund. satellites in line. But as sometimes happens, the Kremlin may now be set on forcing the issue ties in of a German withdrawal from West Berlin,

and space programs, should be expended ended by believing its own propaganda, with their belief that the threat from China, at home for needed public works projects especially since the propagandists selected while serious, is not immediate.

that help diminish unemployment. and collected evidence which, though one

The Kremlin may consider its bargaining I ask unanimous consent that the edisided, made a fairly convincing case.

position with the West is better now than torial which quoted the distinguished DIRECT ATTACK

it will be when China is strong enough to Senator from West Virginia [Mr. RANThe proposal for a nonaggression pact press its challenge. And the Russians prob- DOLPH], entitled "Needs of Our Citizens between NATO members and the Warsaw Treaty powers, which Foreign Minister Andrei Bonn government may prove more malleable. Must Be Fulfilled First,” which appeared

in the Charleston Gazette of October 30, Gromyko first tried to crank into the test ban negotiations, was the first move in the

be printed at this point in my remarks. renewed Soviet diplomatic offensive on the NEEDS OF OUR CITIZENS MUST BE There being no objection, the editorial issues of Germany and West Berlin.

FULFILLED FIRST

was ordered to be printed in the RECORD, Since the reception this proposal received

Mr. GRUENING. Mr. President, at a

as follows: in NATO chanceries was less than lukewarm,

NEEDS OF OUR CITIZENS MUST BE the Kremlin, as an alternative to an oblique recent banquet in Charleston, W. Va., our approach, has since trained its sights directly able and distinguished colleague, the

FULFILLED FIRST on the target. Thus, Premier Khrushchev, senior Senator from West Virginia [Mr.

Voices throughout the land are being in his message to President Kennedy

on the JENNINGS RANDOLPH), gave as his opinion raised in opposition to the continuing excoming into force of the nuclear test-ban that it was more important to help peo

to treaty, referred to the need for “liquidating ple on earth than to hurry a man to the Nation's "overkill” and conventional arms

lunar space probe and to agument the the remnants of World War II.” In Soviet

moon. parlance this is synonoymous with the sign

A somewhat similar theme, expressed

supply. ing of a German peace treaty and demili

It wouldn't be accurate to claim that these tarization of West Berlin.

differently, was eloquently voiced the voices represent a majority, but many public For several months prior to this, the So- week before last by the junior Senator officials, businessmen, labor leaders, and viets ignored the Berlin issue, muted their from Arkansas [Mr. FULBRIGHT), who private citizens are having hard second press attacks on NATO and even toned down said it was desirable, in our spending, to thought about the billions upon billions their criticism of the Bonn Government to establish some priorities. He empha

being pumped into the economy for purely keep from rocking the boat before the test sized that it was more important that we

destructive purposes and for the questionban was settled.

able purpose of placing a man on the moon. But now, along with the revival of the cut down on space and some other ex

One of the leaders in this fight, we're German peace treaty-West Berlin issue, Mos- penditures, and concentrate our spend- happy to report, is West Virginia's own cow has resumed 'its attacks on NATO, ing on some of our domestic needs, such Senator RANDOLPH. pegged principally to the project for a multi- as education.

The other evening in Charleston at an national nuclear force which is pictured as It was natural that our able colleague AFL-CIO banquet, Senator RANDOLPH told a Bonn inspired subterfuge for getting nu [Mr. FULBRIGHT) should emphasize the

the audience that in his opinion it was clear weapons into West German hands. importance of education, he being a

much more important to "help people here Simultaneously, on the eve of Konrad former university president, and having

on earth than hurry a man to the moon.” Adenauer's resignation, the Soviets mounted been a pioneer in extending education in

He acknowledged the necessity of the

United States meeting its foreign aid, dethe old man, accusing him of filling his ad- the international field, through the Ful- fense, space and nuclear obligations. But ministration with former Nazis and ss bright scholarships.

he doubted that withdrawing a mere billion troopers and plotting preventive war against Likewise, I feel it is our duty to focus

from these programs and using it to assist the U.S.S.R. The Soviet Foreign Ministry our attention on problems at home, and the Nation's jobless and impoverished would even issued a statement charging Mr. Ade- it is more important to take care of the seriously jeopardize these obligations.

CIX -1322

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