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role in the free commercial life of the free has adopted a provisional system of tariffs "lowing the reversal of that country's col'world. Given a chance, the prospect is that based on the Brussels nomenclature.

lectivization policy, and Poland's special they will liberalize their economy as fast To deny most-favored-nation treatment relationships with the West have all been as their improving balance-of-payments will likely curb the efforts of these two watched intently by other Soviet bloc counposition permits and will become a useful countries to strengthen their Western eco- tries and noted with particular interest by member of GATT.

nomic ties. Over 90 percent of the total their peoples. Yet today the Yugoslavs are beginning to value of Yugoslav exports to the United General Eisenhower (quoted in "First wonder whether they have a commercial fu States would be subject to sharply increased Hand Report," by Sherman Adams) : ture with the West. They are not mem rates of duty if most-favored-nation treat "I am a little old-fashioned," (Charles) bers of the European Common Market, and ment is withdrawn. About 15 percent of Wilson said, "I don't like to sell firearms to the establishment of a common external Poland's trade with the United States would

the Indians." Eisenhower turned on Wilson tariff may prove a serious impediment to the similarly be affected.

quickly and said, “You should say first what expansion of their traditional trade with 3. Debt repayment to the United States: trade is, and what it is doing. Suppose you the Community countries. If we add more The ability of Yugoslavia and Poland to couldn't make a single firearm without raw pressure on their economy by severely re repay indebtedness to the United States

material out of the enemy's country. The stricting access to our market for their ex would be seriously impaired if needed sources last thing you can do is to force all these ports, we shall be reinforcing the argument of foreign exchange are denied by curbing peripheral countries—the Baltic states, Poof the Soviet Union that independence from their trade with this country.

land, Czechoslovakia, and the rest of them the bloc does not pay.

Yugoslav obligations during the next sev to depend on Moscow for the rest of their The Department feels there are hopeful eral years will run in excess of $10 million lives. If you trade with them, Charlie, signs of movement within several of the annually. Poland's debt repayment obliga- you've got something pulling their interest satellite countries and that it is important tions to U.S. citizens whose property was your way. You immediately jump to guns to encourage this movement. But we shall nationalized amounts to almost $11 million and ammunition. I am not talking in those be severely limited if the United States fore

annually, and within the next few years terms. It must be selective. You are not closes the Western option for Yugoslav trade

the obligation will be in excess of $13 mil going to keep them looking toward us and and creates an economic climate which com

lion per year. The obligation will increase trying to get out from under that umbrella pels the Eastern European countries to seek in 1967 to over $20 million when the first unless you give them something in the way their commercial opportunities with the payment in dollars for Public Law 480 trans of inducement to come out. You just can't bloc.

actions falls due. The capacity to pay these preach abstraction to a man who has to turn DEPARTMENT OF STATE, October 1963.

dollars to us depends on their ability to for his daily living in some other direction.” obtain dollars, and trade earnings are the

source. MOST-FAVORED-NATION PROVISION IN

4. Historically established: Most-favored ILLUSTRATIVE BACKGROUND ON CONDITIONS IN FOREIGN AID BILL nation treatment for Yugoslavia goes back

YUGOSLAVIA AND POLAND The foreign aid bill contains a most im to an 1881 treaty; and most-favored-nation

IMPACT OF AMERICAN IDEAS portant provision amending the Trade Ex for Poland was authorized by President pansion Act of 1962 to allow restoration of Eisenhower in 1960. Denial of most-favored

In Yugoslavia, English has replaced Rusnation treatment for the two countries will nondiscriminatory trade (most-favored-na

sian as the most widely taught language in be a serious psychological as well as financial tion treatment) for Yugoslavia and Poland.

the country; American and West European This amendment was approved with bipar blow and will inevitably force both countries books are freely available at bookshops.

American films are by far first in number tisan support by the Senate Finance Commit to turn more to the East.

shown each year; Voice of America broadtee as well as the Foreign Relations Commit 5. Strategic significance for the United tee. It would not, of course, change existing States: The fact that efforts to win Yugo

casts are unjammed; the U.S. Information slavia and Poland toward the West can have

Service is permitted to carry out a program law prohibiting trade in strategic materials.

on a greater scale than in any other East Senate approval of the pending provision significant effect is best indicated by the is sought for several important reasons: improvement in U.S. relations with the two European country; American and West

1. Trade, not aid: Nondiscriminatory trade nations through past steps and by the major European newspapers and magazines are with these two countries will allow the

sold on the newsstands; the New York Times role both countries have played in splintering

and Herald Tribune are taken by some 70 United States to carry on its strategic ob the Communist bloc. jective of seeking to turn them increasingly

libraries. American plays are translated and For example, in 1958, when Yugoslavia

performed regularly. Yugoslav intellectuals toward the West. This will be done through split with the Soviet Union and U.S. assist

have been in close contact with American commercial ties based on the free interplay ance was extended, Greece was a battlefield

authors, sociologists, scientists, educators of market conditions in which the United for guerrilla warfare supported by YugoStates is strong and which we have tradi slavia and other eastern European countries.

and economists.

In Poland, Voice of America broadcasts are tionally believed will lead to a more open so

Czechoslovakia only a few months before ciety. already had fallen victim to Communist ag

unjammed; U.S. Government magazines dis

tributed; American films, books, and comThe opportunity for business transactions gression. Bolstered by the expanding Soviet

mercial magazines circulated; American with Yugoslavia and Poland on the same presence on the Adriatic, the large commu

teachers and lecturers brought to Polish basis as with other nations will allow the nist parties of Italy and France were in

universities; and large exhibits of American United States to continue to strengthen our creasingly aggressive in seeking to undermine

the governments in those countries. relations with those two countries while

The

products and American accomplishments

shown at the Polish international trade fair shifting from aid to trade. Existing AID Soviet-Yugoslav break in 1948, followed

each year. projects in Yugoslavia are being brought to promptly by U.S. aid to Yugoslavia, cut off a conclusion, and no new ones started ex the Soviets from direct access to the Medi

Farming in Poland and Yugoslavia is now cept assistance financed principally from terranean. Yugoslavia sealed off its border largely private and the ruthless drive toward

collectivization has been reversed. available Public Law 480 funds in connection to guerrillas operating in Greece and this with the Skopje earthquake. No AID proj allowed Greek forces to concentrate on a con Socialization of arable land in Eastern ects have been undertaken in Poland except tracted battlefield where they quickly moved Europe (collectives and state farms) - see for a children's hospital in Krakow. Public to victory. Yugoslavia became a buffer table below: Law 480 sales of surplus agricultural com zone for NATO, especially Italy, allowing

Percent modities will still be possible; but the inthe Italian Government to concentrate more

socialized creasing emphasis will be on commercial on internal problems. The Trieste problem

1963

Country: trade. was also promptly settled. Rapid reduction Yugoslavia.

13.0

Poland.-of U.S. aid to Europe was facilitated by these

13.0 2. Increasing Western economic ties: Yugoslavia and Poland have repeatedly dem developments. The more long term conse

Albania.-

86.0

Czechoslovakia.-quence has been the embittered squabbling

92.0 onstrated their desire to expand commercial ties with free world countries. While and splintering within the bloc set off by

96. O

East Germany---Poland is part of the Communist trade bloc, Yugoslavia's unyielding insistence on inde Bulgaria.

96.0 pendent nationalism. This has led to the it has persistently sought to expand its trade

Rumania.

96.0 Hungary

96. O and ties with the West, thereby loosening end of the myth of monolithic Communist its dependence on the Soviets. Poland now invincibility and a shift of underlying power U.S.S.R.

98.6 carries on over 35 percent of its trade with toward the free world.

In Yugoslavia, present efforts are being free world countries. Yugoslavia has come Poland, as a member of the Warsaw Pact,

directed to formation of privately owned coto have about three-fourths of its foreign has of necessity played a more limited role.

operatives, similar to those in the West, in trade with the free world and ever since the It has nevertheless served as a model for the

an attempt to increase farm size and effibreak with the bloc in 1948, it has been other bloc countries in their recent tendency

ciency. Both countries still give lipservice moving away from centralized direction of its to exercise increased autonomy in internal

to eventual socialization. economy toward a system in which market affairs and to broaden relations with the forces play a dominant role. Since 1961, it West. The degree of freedom of religion and

FREEDOM OF RELIGION has begun a major series of reforms to inte speech among the Polish people, the more In Yugoslavia, harsh repression of religion grate its economy with the world market and satisfactory agricultural results achieved fol abruptly ended in 1949. A law passed in

1953 attempted to "normalize relations" be- previously approved projects. In local gov Trade and aid dataU.S. exports of domestween church and state. It provided for ernment meetings, greater participation by tic merchandise to Yugoslavia for 1962 state assistance to the religious communities, the public and by locally elected officials is (selected commodities)-Continued the operation of theological seminaries, the increasingly encouraged, and the opportu

Value (dollars) reemergence of a religious press. Internal nity for expressing opinions and attitudes Textile fiber and manufactures: autonomy was guaranteed, interference with toward local problems is increasingly utilized. Cotton, unmanufactured.--- 15, 189, 393 religious services prohibited, and the ban In Poland, freedom of speech and the press Cotton, semimanufactures.

723, 262 removed from church rites following civil is limited but contrasts sharply with condi Cotton manufactures--

72, 689 marriages. tions when Poland was fully under Soviet

Vegetable fibers and manuArchbishop Stepinac was released from control:

factures---

22, 178 prison in 1951, and, until his death in 1960, "I agree to the present state of affairs

Wool manufactures.

7, 257 was a focal point of hostility between the on condition that our children's freedom Hair and manufactures--

1, 842 Roman Catholic Church and the Communist will be greater, not less. We talk of com

Silk and manufactures---

536 regime. Relations between the Roman Cath- peting with the West. This competition can Manmade fibers and manuolic Church and the Yugoslav Government not be purely economic. It must also ex factures --

1, 418, 035 have since improved; channels of communi tend to the field of rights, to the field of Miscellaneous textile prodcations have been established at local, pro freedom.” (Polish Scientist Leopold Infeld,

ucts.

6, 872 vincial and federal levels; and Catholic pre in Przeglad Kulturalny (Warsaw), Novemlates have been issued exit papers without ber 23, 1961.)

Subtotal.

17, 442, 064 difficulty for visits to the Vatican.

At the end of 1961, Polish pollsters found The basic problem involved in church their teachers read Western novelists. Of

Wood and paper: state relations in Yugoslavia—the incom 220 primary school teachers questioned, not

895 patibility of Communist ideology and re

Wood, unmanufactured-----one had mentioned a contemporary Polish

Wood manufactures---

26, 497 ligion-remains unresolved; but, before 1949, or Soviet novel. Secondary school teachers when U.S. assistance arrived, religion was listed Hemingway, Camus, and Steinbeck as

Paper base stocks, except
rags----

1, 117, 766 treated with the full range of strong-arm most frequently read, and in an expanded attacks and other police state methods. To list did not include a single Communist writ

Paper, related products and day the regime is seeking to regularize its Radio Warsaw, reporting these things,

manufactures--

387, 100 relations with religious groups, and to im- complained that children praised the capitalprove general church-state relations. This ist system in their school essays, and that

Subtotal.

1, 532, 258 is being attempted without, however, giving even those that defended socialism were unup basic Communist principles and objec able to state points of superiority.

Nonmetallic minerals: tives.

Coal and related fuels.-- 3, 912, 094 Trade and aid data-U.S. exports of domesIn Poland, freedom of religion had been

Petroleum and products--- 1, 478, 751

tic merchandise to Yugoslavia for 1962 under severe Communist repression and is

Stone, hydraul cement and

(selected commodities) still embattled, but has made meaningful

lime--

204 strides: COMMODITY GROUP AND SUBGROUP DESCRIPTION Glass and products

46, 721 Catholics (who make up 95 percent of the

Value (dollars) Clay and products.

15, 137 population) enjoy basic freedom of wor Animals and products, edible:

Nonmetallic minerals.

98, 494 ship. The church maintains a nationwide Meat and meat products---- 323, 068 program of religious education for children Animal oils and fats, edible-

7, 500
Subtotal.--

5, 551, 401 as well as a Catholic university and semi Dairy products----

630 Cardinal Wyszynski, Polish primate,

Fish and fish products.

1, 199

Metals and metal manufacand many of the Polish bishops have re Animal products, edible----- 14, 705

tures: cently traveled to the Vatican on several

Iron and steelmaking raw maoccasions in connection with the ecumenical

Subtotal.

347, 102
terial.---

1, 290, 442 council and the conclave. The Government

Iron and steel mill prod roll treats a number of religious holy days as Animals and products, inedible:

and fi-----

2, 704, 777 national holidays. The following descrip Hides and skins, raw, except

Metal mfrs.---

3, 121, 065 tion of a church service is taken from an furs.--

1, 182, 345 Alum ore,

etc, & semfab eyewitness report in Newsweek magazine Leather-

2, 034 form---

3, 843, 330 (June 18, 1962):

Furs and manufactures---

1, 080 Copper ore, etc, & semfab In Warsaw, in the darkened Church of Animal and fish oil and grease,

form--

5,992, 271 the Holy Cross, a young priest has just

inedible----

328, 752 Copper base alloy and semfab finished reading Stefan Cardinal Wyszynski's Animal and animal products,

form.-

1, 560 pastoral letter urging the faithful to fight

inedible
9, 673 Nickel ore, etc, & sfab form.-

556 atheism, materialism, and the corruption of

Tin ore, etc, & semfab form. 121, 220 youth.

Subtotal.

Nfer ore, etc, & sfab f, nec--“ 'And now,' the priest intoned, 'repeat

1, 523, 884

85, 945 Prec mtl & plated ware, nec.

992 after me: We pledge to thee, Holy Mary, Queen of Poland, that we shall fight the Vegetable products, edible:

Subtotal.-
Grains and preparations.--- 50, 515, 802

17, 162, 158 evil forces of atheism and materialism, and that we shall protect our youth. So help

Fodders and feeds.

2, 027, 455 us God.'

Vegetables and preparations,

Machinery and vehicles: "The congregation, kneeling in the pews,

edible------

3, 105 El mach and app except sc 2- 3, 583, 225 in the aisles, and on virtually every inch Fruits and preparations.--. 413, 234 of the floor, solemnly repeated the pledge." Nuts and preparations------ 1,239 Power generating mach. nec--- 2, 313, 956 FREEDOM OF SPEECH AND THE PRESS Vegetable oil, fat and wax,

Constr. excav. and mining refined.---

763, 527

mach---In Yugoslavia, freedom of speech and the

1, 955, 894 Cocoa, coffee, tea, and subpress is limited, but has changed drastically

Mti ctg mach. tools ex sci---- 1,991, 209

stitutes--since Yugoslavia was part of the monolithic

5, 199

Mti form mach tools.------ 111, 248 Soviet bloc. The author of the widely

Spices--

3,048

Mtlwrking mach nec pt and
Sugar and related products.-

acc--known anti-Communist books, "New Class”

8, 308, 061 3, 091

Textile, sewing and shoe and “Conversations With Stalin,” Milovan

mach--

634, 461 Djilas, is in jail, but his books came out of

Subtotal..

53, 735, 700 the present intellectual ferment in that

Industrial mach and parts,

nec--country. The overwhelming majority of Vegetable products, inedible:

11, 614, 190 Yugoslav writers within the system have ex

Office acctg and comptg mach. 478, 387 Rubber and manufactures, ex

Printg, bookbinding apparaperimented relatively freely and with com

clusive of sc 2------

741, 006 parative lack of interference in their work.

tus.--.

93, 352 Naval stores, gums, and resYugoslav newspapers publish more straight

Agric mach implements and ins.--

21, 230 news and more balanced news than those

pts----

144, 595 in any other Communist country, and they Vegetable oil, fat and wax,

Tractors, nec pts----

542, 710 subscribe to AP, UPI, and the New York

crude---

8, 297, 505

Auto. etc. pt and acc. ex sc 2- 457, 266 Times service. Foreign correspondents are

Nursery and floral stock.---

3, 534

Aircraft pts acc ex sc 2------ 8,000 not censored and they are free to report

Tobacco and manufactures. 1, 072, 754

Watercraft, excl of sc 1------ 6, 432 what they can find out.

Miscellaneous vegetable prod

Railway transportation equip. 113, 177 Eyewitnesses attending local area meet

ucts, inedible_

41, 540
Vehicles and parts, nec----

7, 389 ings report sharp and outspoken criticism of the regime, especially in regard to eco

Subtotal...

10, 177, 569
Subtotal.

32, 363, 552 nomic and social plans, and to execution of

[blocks in formation]

(The U.S. export data include Public Law 480 sales, Export-Import Bank loans, and AID programs including the Development Loan Fund. In 1962, U.S. exports for the first time in many years dropped rather than increased and were exceeded by imports as a result of Yugoslav foreign trade reforms and successive droughts forcing a 2.4 percent reduction of Yugoslav imports for the year.)

U.S. AID TO YUGOSLAVIA Current U.S. assistance to Yugoslavia is almost exclusively in the form of surplus agricultural commodities under the Public Law 480 program. The last loan from the Development Loan Fund of the Agency for International Development was made in the fiscal year 1961. Grants from the Agency for International Development amounted to $3.3 million in fiscal year 1961, $0.5 million in fiscal year 1962 and $0.1 million in fiscal year 1963. The fiscal year 1963 grant was made from funds authorized by the Congress to complete orderly phasing out of prior year AID activities.

Under title I of the Public Law 480 program the United States sells surplus agricultural commodities to Yugoslavia for Yugoslav currency. Ten percent of the sales proceeds are reserved for U.S. uses, and the remaining 90 percent is made available to the Yugoslav Government, principally in the form of loans, for economic development projects. The United States is also selling commodities to Yugoslavia on 15-year dollar credit terms under title IV of Public Law 480. Under title III of Public Law 480, surplus agricultural commodities are provided to support U.S. private relief agencies operating in Yugoslavia, such as CARE, Church World Service, and Lutheran World Relief.

As a result of the disastrous earthquake which virtually destroyed the city of Skopje, Yugoslavia, on July 26, 1963, the United States has provided emergency relief assistance consisting of medical aid and supplies, blankets and cots, shelter, food and transportation services. In addition, 37.5 billion dinars in U.S. holdings, equivalent to $50

million at the current exchange rate, was 1962 U.S. exports of domestic merchandise to made available for relief and construction

Poland—Continued from Yugoslav currency holdings available

Value for U.S. use.

(dollars) Approximate quantities of commodities un- Machinery & vehicles: der title I, Public Law 480, agreements El mach & app except sc 2---- 237, 509 signed July 1, 1954, to June 30, 1963

Power generating mach, nec- 45, 295 Wheat and flour (bushels)----- 221, 140,000 Constr. excav & mining mach. 220, 583 Cotton (bales) --

656, 000 Mtl ctg mach. tools ex sci---- 246, 943 Nonfat dry milk.-5, 441,000 Mti form mach tools----

13, 211 Fats and oils (pounds)

666, 159, 000 Mtlwrking mach nec pt & acc. 1, 864, 756 Dry edible beans (hundred

Textile, sewing & shoe mach. 79, 478 weight)--

222, 000 Industrial mach & parts, nec. 186, 539 Fresh fruits (pounds)

15, 504, 000 Office acctg & comptg mach- 34, 004 Canned fruit and juices

Printg, bookbing apparatus. 17, 758 (pounds) --

4,993, 000 Agric mach implements & pts. 7, 081 1962 U.S. exports of domestic merchandise to

Auto, etc. pt & acc. ex sc 2.-- 18, 845
Poland

Aircraft pts acc ex sc 2------ 23, 648
Watercraft, excl of sc 1------

7, 700 COMMODITY GROUP AND SUBGROUP DESCRIPTION

Value
Subtotal.-

3, 000, 350
(dollars)
Animals and products, edible

Chemical and related products: meat and meat products----- 7, 659 Coal tar and products, exc Hides and skins, raw, ex furs

SC--

50, 895 (inedible)----

386, 297

Medicinal and pharmaceut
Leather manufactures (inedi-

prep------

850, 622 ble)---1, 728 Chemical specialties.

76, 728 Animal and fish oil and grease,

Industrial chemicals ex. sci- 86, 670 inedible---

4,021, 903

Pigments, paints and
Subtotal (edible and in-

nishes --

1, 377 edible)

Chemical and related products
4, 417, 587

Continued
Soap and toilet preparations.

828
Vegetable products, edible:
Grains and preparations----- 43,930, 624

Subtotal.

1,067, 120 Fodders and feeds, nec----

123, 025 Vegetables and prep., edible-

3, 800

Miscellaneous:
Fruits and preparations--

10, 190

Photo proj goods ex sc 1.--- 99, 710 Veg. oil, fat and wax, refines- 3, 245, 588

Sci and prof eq. nec. ex sc 1- 112, 214 Cocoa, coffee, tea, and substitutes--

Musical instruments pts and
18, 264

acc---
Beverages.---
940

18, 934 Miscl office supplies.

2,000 Subtotal--

47, 332, 431 Toys, games athl and sptg
good--

4, 712 Vegetable products, inedible:

Books, maps, and print mat
Rubber and manufacturers

nec---

143, 003 excl of sc 2-----

1, 450, 239

Miscl commod nec excl sci--- 7,930, 697 Oil seeds exc. essential--

478, 944 Veg. oil, fat and wax, crude--- 4, 367, 363

Subtotal--

8, 311, 270 Seeds, except oil seeds---

2, 726
Nursery and floral stock.-----

180
Total.---

94, 404, 543
Tobacco and manufactures--- 346, 143 Department of State, Oct. 29, 1963.
Miscl. veg. products, inedible. 77, 070
Subtotal.--

6, 722, 665

[A public affairs reprint, Agency for Inter

national DevelopmentDepartment of Textile fiber and manufactures:

State, Washington, D.C.]
Cotton, unmanufactured--- 20,523, 937 POLAND? YUGOSLAVIA ?-WHY HELP
Cotton, semimanufactures--- 203, 635

COMMUNISTS?
Cotton manufactures ----

1,000

(By Christian A. Herter)
Wool, unmanufactured------ 11,000
Wool, semimanufactures.-

Emotion is rarely a reliable guide to sound

563, 270 Manmade fibers and manu

policy decisions. Yet all of us are tempted factures--

638, 789

at one time or another to speak out or act

in anger against situations not to our liking. Subtotal.--

21, 941, 631

More often than not, we discover anew that

we cannot end our troubles merely by opposWood and paper:

ing them. In the conduct of international Sawmill products_

29, 850 relations, we are far more likely to achieve Wood manufactures---

8, 500 our goals by careful planning and the quiet Paper, related products and

and skillful use of diplomatic tools than by manufactures...

5, 945 harsh words and hasty decisions.

A case in point is our relationship with the Subtotal--

44, 295 countries of Eastern Europe. Few of the

numerous problems that confront us in the Nonmetallic minerals:

world generate more frustration or arouse Glass and products..

2, 533 more controversy than this. Many of us, and Clay and products.

85, 161 more of our ancestors, came from that arc of Nonmetallic minerals, nec--- 394,832 states that runs through the heart of Europe

from Poland to Rumania. It distresses us Subtotal.--

482, 526 to know that most of the people now living

in those countries are ruled by regimes they Metals and metal manfacturers:

neither approve of nor respect. We blame Ir & stl mill prod roll & i.-- 176, 537

ourselves, in part, for not successfully opCastings and forgings-----

16, 330 posing their absorption into Moscow's empire. Metal mfrs, excl of sc 1------ 15, 152

And we find it galling that we can do so Alum ore, etc. & semfab form. 732, 819

little now to promote their freedom and Nfer ore, etc. & sfab f, nec---- 144, 830 independence.

Against this background of concern and Subtotal.

1, 084, 668 frustration, it is not at all puzzling that we

should occasionally lash out at the Commu

nist rulers and all their works, that we should cow's control have become increasingly in 1956, revolt against blind acceptance of seek to end or prevent any action on our apparent.

the Soviet pattern erupted in Poland. part that might lend them comfort or pres Yugoslavia's break with Moscow and its Wladyslaw Gomulka, who had been jailed tige. This feeling was reflected most recently pursuit of an independent course produced by the Stalinists, assumed power on the crest by the action of the Senate in voting to ban significant political and strategic advantages of this Poland-first demonstration. any assistance to countries "known to be for the United States and the rest of the The new Polish leader had to walk the dominated by communism or Marxism." non-Communist world. Soviet power was narrow ledge between his basic loyalty to

This sweeping restriction was modified the rolled back from the Adriatic Sea and from Moscow and to Marxism-Leninism and his following day by a second amendment to Italy's northeastern border. Austria's south comprehension of the demands of his own the Foreign Assistance Act, sponsored jointly ern boundary was freed from Moscow's con people for liberalization and more freedom. by the Democratic and Republican leader trol. The closing of Yugoslavia's borders to Forced collectivization of farmlands was ship in the Senate, which permitted the use Greek Communists sounded the death knell halted. Pressures on the Catholic Church of surplus agricultural products for foreign for the latter's effort to win over Greece. were reduced. Limitations on contracts with assistance in some circumstances. Even so, Other consequences flowed from Yugo the West were relaxed and the Warsaw govthe surplus products are not to go to any slavia's independent course, to the obvious ernment moved to improve its long-neglected country "participating directly or indirectly advantage of both the Yugoslavs and the relations with nonbloc countries. in any policy or program for the Communist West. The pace of development accelerated As we watched these developments from conquest of the world” or to one that is "con and living standards rose. Foreign trade in Washington, we concluded that they should trolled by any country promoting the Com creased and more than two-thirds of it was not pass unnoticed. In October 1956, the munist conquest of the world."

with nonbloc countries. Cultural and tech- late Secretary of State John Foster Dulles At almost the same time, the Ways and nical contracts have grown and new bonds of declared: Means Committee of the House was sending friendship have been established. Over the “The captive peoples should never have to the floor a foreign trade bill that would ex- past decade, thousands of westerners have reason to doubt that they have in us a sinclude Poland and Yugoslavia from most visited Yugoslavia and come to know first cere and dedicated friend who shares their favored-nation treatment under our system hand that country, its progress and prob- aspirations. They must know that they can of tariffs.

lems, and its intelligent, able, and fiercely in draw upon our abundance to tide themselves These actions in the Congress sought to dependent people. And many Yugoslavs over the period of economic adjustment reverse policies followed by three adminis

have been able to see the West and to com which is inevitable as they rededicate their trations, two Democratic and one Republic pare its reality with the propaganda stereo- productive efforts to the service of their can, for a dozen years and more. I am certypes.

own people, rather than of exploiting mastain that the frustrations mentioned earlier We know that the present course has been ters. Nor do we condition economic ties beplayed an important part in these actions. welcomed by most young Yugoslavs and by tween us upon the adoption by these counAlso at work was the feeling that the assist

broad segments of the population at large. tries of any particular form of society." ance given Poland and Yugoslavia in recent We should harbor no illusions, however, as

A few days later, President Eisenhower years had produced no tangible results from regards the present political leadership and said: the point of view of our interests. There was its basic Communist orientation. Nonethe

"The United States has made clear its understandable irritation that Polish and less, President Tito is a proud and independ

readiness to assist economically the new and Yugoslav leaders frequently criticized the ent man, and he is a Yugoslav. However

independent governments of these countries. United States but not the Soviet Union. much he might welcome readmission to the

We have already-some days since been in Some legislators argued that it made no bloc, he is not likely to consider it on terms

contact with the new Government of Posense for the United States to go out of its of less independence than he demanded in

land on this matter. We have also pubway to ease the economic problems of Com1948. And from Moscow's viewpoint, such a

licly declared that we do not demand of munist regimes. demand could only stimulate the forces of

these governments their adoption of any "I am not able to understand how we nationalism which already have caused the

particular form of society as a condition would help people to get free by making Kremlin incalculable trouble.

upon our economic assistance. Our one contheir tyrant masters stronger," one Senator

The danger in the present situation is that

cern is that they be free-for their sake, and said during debate on the foreign assistance a drastic revision of U.S. policy along the

for freedom's sake." amendment. It was a question that many

lines of the proposed Senate amendment Americans have asked themselves. would sharply reduce Yugoslavia's freedom

Since 1957, these expressions of interest Why

of choice. A harsh stiffening of our policy should we help a Communist government?

and support have taken the practical form The first and most obvious answer is that

and a modest softening of Moscow's might of credits and deliveries of surplus farm our policy is not designed primarily to help

convince the men in Belgrade that they had products. There has been a significant and only one road open to them. The hand of

fruitful growth in technical and cultural governments but rather to help the unfortu

exchanges. those who all along have favored a reoriennate people of the countries concerned. That

Thousands of Americans and tation of Yugoslav policy in the direction of

Poles have come to know each other well, it helps the governments, we recognize, of closer ties with Moscow would be incredi

whether as official visitors or as tourists. course. But for any realistic judgment, we bly strengthened; those whose orientation

Well-known Americans, such as former Vice need to look at the total effect, not merely has been toward the West would be left with

President Nixon, who have visited Poland, the most obvious one; the subtle and indirect few effective arguments or defenses.

have been overwhelmed with the warmth and consequences of action are frequently more

In testimony before a House committee

friendliness of their reception by the Polish important than those readily discernible.

people. For a fuller answer, we must know just Rusk said: “We believe the question answers earlier this year, Secretary of State Dean

The Poles know that economic assistance what it is that we have done to assist Poland itself as to whether we would prefer that the

from the United States has helped to raise and Yugoslavia. We should consider the reaYugoslavs fall back into dependence on the

their standard of living. They know that sons that convinced Presidents Truman,

Soviet bloc and thus reorient their country grain imports from America have permitted Eisenhower, and Kennedy that such aid was toward the East. We are convinced that the

their farmers to concentrate on other agriin the security interests of the United States. present policy, supported by three admin

cultural products that earn hard currency Finally, we should study the results of this istrations and fully tested by time and events,

on world markets. Their farm situation, policy. is effective and in the interests of this coun

the best by far in the Soviet bloc, has enOnly then can we judge whether the course try."

abled them to resist pressures for tighter we have pursued has produced useful results, There are elements of both similarity and controls and possibly a revision to the hated and whether it should be continued. considerable difference in the situations in

collectivization. In the years immediately following World Poland and Yugoslavia. Like the Yugoslavs,

They know, too, that help from the United War II, Yugoslavia was probably the most the Poles are a proud and independent- States has permitted the Government in militant and extreme of Moscow's recently minded people. But they are also realists

Warsaw to steer a course freer of dominance acquired satellites. That very extremism and they know that their geographic posi from Moscow than would otherwise have created problems. Tito, in those days, was, if tion creates special problems for them. Bor

been possible. anything, more Stalinist than Stalin himselfdering the Soviet Union and athwart the There have been reports lately of discourand his militancy created intrabloc problems main lines of communication between the aging developments within Poland that we of discipline and control. Stalin sought to Soviet state and East Germany, Poland can only read with regret. New pressure take over the Yugoslav party from within. knows that any overt moves in the direc is being exerted against the Catholic Church When that failed he engineered the exclu tion of a rupture with Moscow would pro by the government. The authorities have sion of Tito and his followers from the duce the most severe kind of repression. It expanded controls over the press and the Cominform.

does not enjoy the kind of relative isola schools. Nevertheless, the Polish people The Soviet dictator calculated that without tion from the Soviet Union that made Yugo- enjoy a measure of freedom unknown in any his support, the Yugoslav Communists would slavia's break with Moscow possible.

other bloc country. And Polish farmers still quickly be brought to heel. He was wrong, During the first decade after World War own more than 85 percent of the land under and it proved to be one of his most serious II, Poland's Communist leaders were doc cultivation, whereas in other bloc countries blunders. For Tito had broken the so-called ile followers of Stalin and careful executors that percentage or more is under the stultifymonolithic unity of the Communist bloc, the of his policies. American policy towarding hand of collectives. winds of nationalism and independence be the Warsaw regime paralleled that toward Nor has Gomulka surrendered his views gan to blow, and their erosive effect on Mos the other members of the Soviet bloc. But on the right of each state to determine and

follow its own road to socialism without President is to have available to him the au- long-term credits to South American being rigidly tied to the Soviet model. Fol- thority to extend or not extend assistance at countries, and in fact concluded such lowing the 22d Soviet Communist Party times and places where the available evi

agreements ? Congress last fall, Mr. Gomulka in his report dence indicates that such action would pro

Mr. FULBRIGHT. I am not informed said: "Every party is fully independent and mote our own national security interests. autonomous and bears fuil responsibility for It is also a matter of our overall posture

as to that. the country it rules and for its policy in the toward peoples now living under unwanted Mr. HARTKE. Did he not also make country.”

Communist rule. If they and their govern- long-term agreements with Bolivia to There is evidence of many other significant ments know they cannot count on us for sell that country machinery? differences between the views held in Mos- urgently needed help, they will suit their Mr. FULBRIGHT. I am not informed cow and those dominant in Warsaw on both actions and their policies to fit that fact. If

as to that. I have not made a special domestic and foreign issues. While the So they realize that such help might be forth

study of trade with every other country. viet Union has been stressing the desirability coming in certain circumstances, their acof expanding intrabloc trade, Poland has tions could be quite different.

Mr. MANSFIELD, Mr. President, will been establishing a privileged sector of in Two years ago, as Secretary of State, I ex

the Senator yield? dustry producing primarily for Western pressed my views on this matter in a speech

Mr. LAUSCHE. I yield. markets.

to the American Bar Association in Washing Mr. MANSFIELD. It is my underAs we look at these and other facts of life ton. I said then:

standing that Tito did offer the Bolivian inside the Soviet system, it is more important “We have tried to encourage any trend to- Government $5 million. I wish other than ever for us to distinguish between the ward greater freedom within the Communist governments would make loans to some myths and the realities. This is particularly bloc. We aided Yugoslavia, whose break with

countries and offer aid on a bilateral or vital as we consider our policies toward Yu the bloc compounded the difficulties of maingoslavia and Poland. The basic objective of taining monolithic Soviet control over the re

multilateral basis, instead of making this our policy in both countries has been to en maining Eastern European states. We are

country carry the whole burden. courage their independence and freedom for helping Poland. We have sought through

Mr. FULBRIGHT. If Tito wishes to their people.

exchange programs and other personal and trade, I assume, as in the case of every Critics of the course we are and have been

cultural contacts to broaden the exposure of other country, he is trying to trade in following tend, I think, to regard the public the Soviet people to outside influences.

every way he can. statements of Tito and Gomulka on foreign "If we hold to our course, I believe that

Mr. HARTKE. Mr. President, will the policy matters as the only valid evidence of

these trends will continue and will work in what is happening in their two countries. our favor. Basically our policy is running

Senator yield further? Each expression of friendship for Moscow is with the grain of history.

Mr. LAUSCHE. I yield. read as a sign of our own failure. Those who

My reading of the situation in which we

Mr. HARTKE. Is it not true that so would have us turn our backs on those most

find ourselves today only reinforces that con- far as special favors and Tito are confriendly to us in Poland and Yugoslavia seem viction,

cerned, such favors, or special considerasurprised to discover with some regularity

tion, or the most-favored-nation treat

Mr. HARTKE. Mr. President, I comthat mMessrs. Tito and Gomulka are still mend the Senator from Ohio for bring- ment, are not being extended to other

Communist countries except Poland? Surely this is not the time to walk away ing the situation to a head. There is from the competition. I can think of few

Mr. FULBRIGHT. The Senator from no real difference in ideology between actions on our part that would be more wel

Illinois said there is no special considerathese dictators. This man is an opporcome in Moscow than that. If I were Mr. tunist. This is the type of opportunism tion; there is no preferential treatment Khrushchev, I would surely heave a sign of which the Communists work to their

over 44 other countries, I think the numrelief if I knew that Poland's and Yugo- advantage.

ber is. slavia's windows to the West were being

Mr. HARTKE. What other Commu

The Senator from Ohio has said that nist countries have received such treatbricked over. Never have the signs of internal disarray been more obvious within the he is going to stand alone. He is not

ment? Soviet empire than they are today. Never going to stand alone so far as I am con

Mr. FULBRIGHT. Poland and Yugohave the forces of autonomy and independ- cerned. I am going to stand with him.

slavia. ence been more evident.

Mr. LAUSCHE. Mr. President, the

Mr. HARTKE. They are the only two There is a puzzling inconsistency in all of Senator from Indiana has asked that he Communist countries. this that we should consider. We have all

become a joint sponsor of the amendheard words of warning about the effective

Mr. FULBRIGHT. Yes; and previous ment. I ask that his name be added to administrations have found good reason ness of Moscow's penetration of an increasing number of countries through trade-and

it and that the amendment be known as for it. aid offensives. Yet some of us who seem the Lausche-Hartke amendment.

Mr. HARTKE. I am not arguing most alarmed at this intensified competition The PRESIDING OFFICER. With- about what previous administrations did. are among those who would deliberately de out objection, it is so ordered.

Mr. FULBRIGHT. No one has inprive ourselves of the opportunity to carry

Mr. HARTKE. If I am in error, the sinuated in the slightest degree that both on this brand of peaceful competition within the bloc itself.

distinguished chairman of the Foreign are not socialistic countries. One of our problems, I believe, is our im

Relations Committee is present, and he Mr. HARTKE. I heard the distinpatience and our desire to find clear-cut can correct me. As I read the figures guished Senator from Oregon say he did and quick answers. Given the complexities from page 40 of the report, it states that not want to cheat America out of this of our world, there are few such answers U.S. imports from Yugoslavia in 1962 trade. What about the situation as to short of devastation. We must gird our totaled $48.3 million, and U.S. exports to imported zinc? An application as to selves for the long, hard pull that this kind Yugoslavia were $154.1 million, of which zinc was before the Tariff Commission, of competition requires. The search for shortcuts can drive us into hasty and emo

an estimated $131 million were financed and the decision was 3 to 2. It was a tional decisions that only create new prob- by the U.S. Government under AID pro- hotly contested decision. lems.

grams, Public Law 480, and Export Mr. FULBRIGHT. It amounted to A policy of abandonment toward key areas Import Bank loans.

$766,000 with respect to zinc. of Eastern Europe would seem to me to be According to my computation, $131 Mr. HARTKE. That is correct. the ultimate in the “no win” policy we hear million subtracted from $154.1 million Mr. FULBRIGHT. That is a very discussed these days. Its logical outcome leaves $23.1 million, which leaves a def- great matter to become excited about. would seem to be either surrender or mili

icit balance of $25.2 million. Am I in Mr. HARTKE. That is only one. tary conflict. Certainly we cannot "win” a error?

There have been split decisions over and competition in which we refuse to participate. And if we hope for internal tension

Mr. FULBRIGHT. No; that is cor over again. I do not care if we proceed and turmoil as the outcome of our inaction, rect. It is in the committee report. We on an equal basis, but how do Commuwe must in good conscience be prepared for were not trying to deceive anybody. nist countries establish their prices? Do the consequences of such a development. Yugoslavia has substantial loans from they establish them on the basis of cost,

I doubt that that is what we want. I the International Bank, and it is serv as we do? doubt that such an outcome would serve well

icing Yugoslavia's loans. The Senator Mr. FULBRIGHT. I do not know how the interests of freedom or independence of our friends in Eastern Europe.

is correct. That is quite clear from page they establish their prices. We do not

40 of the committee report. The question of our policy is sometimes

give them a special price. They have to phrased as one of aid for Communist govern

Mr. HARTKE. Is it not true that on meet the world price. ments versus no aid. That is not the real a recent trip to South America, Tito at Mr. HARTKE. They do not have to issue. The central question is whether the tempted to make an agreement to extend worry about labor or production costs.

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