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attempt to salvage any segment of the do- is higher, the Maritime Administration rules please the shipowners, who have been in mestic shipping industry.
that an American ship is not available. recession since 1957, more.
The American rates have ranged from $7 The $21 figure released by the tramp shipOCEAN RATES TO RUSSIA HOLDING UP THE
to $10 higher than the foreign freight rates owners may serve as a guide to the "guideWHEAT DEAL
for several years. Therefore, there is nothing line" which the Maritime Administration is
new about them and no reason for a sudden to determine soon. (By Helen Delich Bentley)
gust of sympathy for the Russians because It is interesting that no directive or indiThe American shipping industry is being they may have to pay more to move wheat cation has been made that any grain other buffeted from all sides in the proposed sale which they claim they so desperately need. than wheat is to be channeled to American of wheat to the Soviets. Should the sale The Department of Agriculture has been ships. fall through because of the higher rates unhappy about the Cargo Preference Act Moreover, wheat moving to other Commucharged American-flag vessels, then the since it was passed in 1954 and has been nist bloc nations purportedly can move on whole blame might fall on the U.S. Merchant caught repeatedly trying to skirt it by fav ships of any flag. So the big question cenMarine. [Latest reports are that the United oring foreign ships. More than once the ters around an estimated 4 million tons of States has proposed a rate compromise which Department of Justice has had to issue di- wheat and wheat flour that the Russians the Russians are studying.-Editor.]
rectives to Agriculture that it favor Ameri- allegedly want for themselves. Will the Even some of the American press is criti cans where the Cargo Preference Act is transaction be consummated and will the cizing rate structures that threaten to dis- applicable.
wheat move on American vessels? rupt the wheat deal. Foreign maritime It is certainly true under the Kennedy adnations are angry at President Kennedy for ministration that more Government agenspecifying the use of American ships. Yet cies are using American ships almost ex
THE COLLAPSING CONTROLS ON EAST-WEST American seamen's unions say that Ameri clusively whenever and wherever they can.
TRADE can ships must be given preference or they But there is still a great deal to be done to
From the Washington (D.C.) Star, will picket and longshoremen might not load indoctrinate both the Departments of Agri
Mar. 24, 1963) the foreign carriers otherwise.
culture and of State to think of American BRITAIN SEEKS RED CHINA AND SOVIET TRADEDid President Kennedy deliberately risk flag shipping first.
CONTROVERSY SEEN IN WEST'S CAPITALS OVER this controversy because he truly felt the The Cargo Preference Act is the only pro CONTRACTS wheat should move American? The shipping tection that the American Merchant Marine LONDON, March 23.—The British Governindustry, which has felt neglected under the has. Today, less than 10 percent of all of ment, plagued by export difficulties and high present administration, would like to believe the U.S. imports and exports move on Ameri unemployment, is quietly setting the stage that the President himself decided that any can-flag ships. The Norwegians lead the for for important new business deals with Rusof this wheat sold at world market prices eign nations in the amount of American for sia and Red China. meaning that the American taxpayer is pay eign trade transported and yet the Norwe Two big contracts with the Russians were ing a subsidy of 60 cents a bushel to the gians were the first to blast President Ken reported under study. Each seems certain American producers-should move on Ameri nedy for his suggestion that the subsidized to heighten controversy in Western capitals. can-flag ships.
American wheat should move preferably on They are: But well-informed sources claim that in American ships.
1. The Board of Trade has advised the the initial inquiries between the two Gov Other countries which have raised ques- South Durham Steel & Iron Co. it is free to ments, the Russians requested American-flag
tions or registered indignation over sell oil pipe to the Russians. The $225 miltransport and that the President made his "preference" to American ships are Japan, lion Middlesborough firm has been losing public statement for that reason,
Denmark, Sweden, Italy, Greece, the Nether- money lately. It hopes to pick up orders for If the story is true, some wonder whether lands, and Great Britain,
pipeline equipment which West German the Russians didn't plan this deliberately to
Luther H. Hodges, Secretary of Commerce, companies have had to cancel as a result of embarrass the White House by subsequently
defended President Kennedy's stand by a Government embargo. Britain's refusal to refusing to purchase the wheat because of pointing out that foreign nations would ar- join in a general Atlantic alliance embargo the high American shipping rates. It is dif bitrarily designate their own ships (and have of steel pipe sales to Russia has been critificult to believe that the Russians were not done so) to carry such cargoes without con- cized in Bonn and Washington. aware beforehand of the higher shipping sideration for anyone else. Secretary Hodges 2. The British Cabinet is also considering rates on American tramp ships. They have indicated that was the position the United a Moscow offer to sell Britain up to 2 milbeen chartering vessels for years and their States should adopt on the Russian wheat lion tons of Soviet oil a year. shipping agencies are active enough in the movements.
As bait, the Russians have indicated they world market to know all about the high Despite all of the hullabaloo, no one really will place orders with the hard-pressed American rates.
knows what the American rates actually will British shipbuilding industry. The higher rates, incidentally, do not apply be until a fixture-contract-has been made
NO TRADE INHIBITIONS to berth line services—those steamship lines for a ship. Until that time, no one can deterserving on regular trade routes with a steady mine whether the American rate will fall
In general the British have no inhibitions service because of the conference systems within the "fair and reasonable" category.
toward trading in nonstrategic goods with under which both foreign and American The factors involved in determining a rate the Russians, Chinese, and other Communist
lands. operators charge identical rates and insti are numerous: How many tons a ship can tute identical practices on those routes. carry, the port of loading, the port of dis
“This country must export or die," one But grain moves on tramp ships primarily, charge, the facilities available for discharge, senior authority said. “We are traditionally as do most bulk cargoes. The liner services the length of the voyage, the speed of the a trading nation and cannot exist in selfmost of which are subsidized or about to ship. All of these are cost factors. A larger sufficiency as the United States could do. be-would be available only to move parcel and faster ship can quote a much lower rate We would do business with the devil prolots of wheat on their regular run. This they because it could carry several times as much vided he pays." might be able to do at a slightly lower rate as a 10-knot Liberty. For instance, the British Government ministers began a than the tramp ships, but only if they happen 106,000-deadweight-ton tanker Manhattan
round of talks with Lu Hsu-chang, Red to have some empty space on a ship that is recently picked up aid grain for the Middle China's visiting Deputy Minister for Foreign sailing near or to Russia. East for about $12.80, while a Liberty ship
Trade. The Government-aid grain which has been quoted $24.50.
A treasury spokesman said afterward Mr. moving around the world to India, Poland, A group of tramp ship operators did an- Lu "gave some indications of how he thought Yugoslavia, Great Britain, France, Germany, nounce last week that they would make suf- China's trade with Britain might be develAlgeria, and other countries since the Mar ficient tonnage available at $21 a ton to oped.” In the past 3 years the volume of shall Plan was first instituted is transported transport 1 million tons of wheat to Russia
British Chinese business has neared the primarily on regular tramp ships or on liners before next summer. This, presumably, was
$500 million mark and both countries think chartered to a tramp operator. The Cargo a drop of $5 a ton from what they say is the
there is scope for at least a 50 percent inPreference Act requires that at least 50 per comparable rate on aid cargoes to nearby crease. cent of any Government-financed cargo shall points. However, it still ranges from $5 to $8
READY TO FORGE AHEAD move on American-flag ships, if available at a ton higher than quoted foreign rates.
London-Peiping Trade reached a peak in fair and reasonable rates.
An interesting development, however, is 1959, immediately before a succession of Those fair and reasonable rates are de the climb in foreign rates since the big wheat three crop failures forced the Chinese to termined according to guidelines established movements from Canada and Australia were curb imports. On top of this, foreign exby the Maritime Administration of the De announced. The indices show rates rising change and domestic political difficulties partment of Commerce. Although the guide from $3 to $5 a ton in the world market with compelled the Chinese Reds to reorganize lines are in theory never made public, the indications they will go still higher. History their economy and revise their foreign tradindustry learns of them somehow so its has shown that whenever American ships ing policy. operators may know what to charge for a were not available to steady them, the for But now they are considered ready to forge cargo fixed (contracted) for a specific coun eign rates climbed to abnormal levels. One ahead into new economic and fiscal relatry. Any rate equal to or less than the guide- prognosticator last week mused that "before tionships with Western countries, including line means that an American ship is avail this grain rush is over, both American and Britain, which has a centuries-long record able at a fair and reasonable rate. If the rate foreign rates will be $33.” Nothing would of business dealings with China.
Mr. Lu and his mission will be visiting an
SOVIET VIEW OF FUTURE
the view that Japan cannot be criticized for aircraft factory which is building six jet
In his talk with Mr. Beitz, Premier Khru
seeking trade with Peiping on the same terms airliners for delivery to China, a nuclear shchev appears to have tried hard to en
as such other countries as Britain, Australia, power station, electronic and power gen
courage the present interest of West Berlin's and Canada. erating plants and a variety of other indusindustrialists in expanded commerce with the
It was noted that a British trade group trial centers. The British are hoping to inEast. Officials here believe the Soviet leader
had just returned from Peiping with predicterest him in buying complete factory may well have been expecting that a new
tions of a rapid expansion in trade between installations, machine tools, and consumer
the two countries. government in Bonn might become more goods and equipment. receptive to Soviet political approaches than
Statistics show that Japan has been falling [From the New York Times, May 31, 1963] the regime of Chancellor Adenauer has been.
behind Western competitors in exports of SOVIET PRESSES BONN FOR MORE TRADE; SEEKS
Premier Khrushchev is understood to have machinery and plant equipment largely be
questioned Mr. Beitz closely on the probable cause of the 20- to 30-percent downpayment PACT BYPASSING COMMON MARKET DEAD
character of the government to be organized requirements imposed by the Government. LINE by Vice Chancellor Ludwig Erhard when he
The United States has looked askance on (By Arthur J. Olsen) succeeds to the leadership in October. The
the Japanese assertion that the sale to China BONN, May 29.--Premier Khrushchev has
Premier apparently did not ask the indus is simply a business arrangement and has no suggested a 3-year renewal and expansion of
trialist to convey an invitation for Mr. Er political significance. the Soviet Union's $400 million a year trade hard to visit Moscow, as was rumored in the
American officials have observed that in agreement with West Germany. West German press.
dealings with Peiping, economics and politics The suggestion was made to a West Ger
Mr. Beitz's report will be a principal con
cannot be separated, and have reminded the man industrialist, Berthold Beitz, in Moscow tribution to a conference next month on Japanese of what happened in 1958, when the last week. It appears to fit a pattern of deEastern trade policy to which West German
Chinese suddenly seized on a political preveloping Soviet interest in economic ties with industry leaders have been summoned.
text to break off all commerce. West Germany. It also promises to confront
Mr. Erhard, Foreign Minister Gerhard
The U.S. view is that the Japanese, in Bonn with a difficult decision on its future Schröder and possibly Chancellor Adenauer
making such manufacturing plants available trade policy with eastern countries.
will hear recommendations and arguments for deferred payment, would be better adUnder the treaty setting up the European of industry. It is expected to advocate trade
vised to consider the underdeveloped counCommon Market, all trade agreements with expansion with the East and pressure on the
tries of southeast Asia, where the need is countries outside the trade bloc are to be Common Market for concessions that would great and the future of commercial relationnegotiated by the Common Market as a whole make that expansion possible.
ships could be more promising. after January 1, 1966. West Germany's trade with the Communist
CONCESSIONS SOUGHT The 3-year agreement sought by Mr. Khru bloc has risen by 25 percent since 1958, alshchev would run through 1966. Bonn there though it remains comparatively small.
In announcing the Government decision fore would have to insist on short-term reLast year it amounted to slightly more than
yesterday, Hajime Fukuda, Minister of Internewal of the Soviet agreement that expires $1 billion, or 4 percent of total West German
national Trade and Industry, declared that this year or ask the Common Market execu
the extent of future contracts for plant sales foreign trade. Of the East bloc trade, the tive for an exception to the 1966 cutoff date.
to Communist countries on easy payment Soviet Union accounted for $400 million.
terms would be limited by the amount of BLOC NATIONS ARE WARY There is considerable sentiment in gov
funds available in the Japan Import Bank. [From the New York Times, Aug. 22, 1963]
However, U.S. officials believe that the Government and industry for expansion of West JAPAN MILL SALE HAS WIDE IMPACT-TOKYO
ernment, having said “Yes” to Kurashiki Germany's commerce with Soviet-bloc coun TO REASSURE ALLIES ON RED CHINA DEAL
Rayon, may find it difficult politically to turn tries. Bonn is far from sure of similar en
(By Emerson Chapin)
down other applicants. thusiasm among its Common Market part
TOKYO, August 21.-Japan was reported ea
A number of new applications by textile ners, some of whom compete with East ger today to reassure its allies that the sale
and chemical fertilizer concerns are expected European countries in exports to West Gerof a multimillion-dollar synthetic textile
in the wake of yesterday's decision. many.
plant to Communist China had no political Soviet pressure for a 3-year renewal is sure implications.
[From Metalworking News, Oct. 14, 1963) to be heavy, Communist governments, which
As the long wait began here for world TOOLBUILDERS IN UNITED STATES GENERALLY plan their economies on a long-term basis,
reaction to the deal with China, Japanese insist wherever possible on 3-year or 5-year
ENDORSE TRADE WITH RUSSIANS Government sources stressed that the aragreements. Short-term trade protocols are
A general tendency among machine tool invariably limited in scope and size. rangement did not constitute any form of
builders to favor selling their wares to Rus“economic aid" to Peiping and asserted that Premier Khrushchev is understood to have
sia emerged last week in a Metalworking Japan was merely following international impressed Mr. Beitz, who is general manager
News spot check around the country. business practice. of the Krupp industrial enterprise, with
In the wake of the administration's deci
The Government was said to be anxious to Moscow's interest in broadened commercial
sion to sell wheat to the U.S.S.R., many toolexchange with West Germany. This is a rereassure its allies, particularly the United
company chief executives showed varying States and Nationalist China, that the deal current theme in Soviet propaganda aimed at
degrees of interest in the idea of such trade was strictly commercial. Bonn.
for themselves. At the same time, a subFears of adverse reaction in the United WEST BERLIN AN ISSUE
stantial minority of those checked flatly opStates are thought to have been responsible posed dealing with Russia. A parallel theme, now worrying West Ger
for the Government's long delay in approving man officials, is a current Soviet effort to
Most tool executives favoring U.S.S.R. the sale of the $20 million plant to produce trade made it conditional on Government cultivate commercial relations with West
vinylon. Under the terms finally approved, Berlin. The purpose apparently is to develop
approval, and many would specifically exthe Chinese will make a downpayment of clude sales of machinery directly useful in the position of West Berlin as a foreign-trade
25 percent and pay the balance over 5 years partner separate from West Germany.
war production. Others excluded any tools at 6-percent interest. When the Bonn regime and the Soviet
not already available to Russia from other Vinylon, also known as vinal, is a poly
sources. Union negotiated their current trade agree
vinyl alcohol fiber developed by the Japanese ment in 1960, Soviet authorities refused to
The fact that equipment is being made and not generally used in the United States.
available to Russia by America's allies was recognize Bonn as representing West Berlin's
The low-cost fiber can be produced in regu- pointed out repeatedly. commercial interests.
lar filament and staple form as well as in Officials here are uncertain whether Mos
Builders opposed to Russian trade tended water-soluble form. It is strong and abra
for the most part to question the wisdom Cow will resume its effort to cut Berlin off
sion-resistant and has relatively low elonga of building up the strength of a potential from the Federal Republic as far as Soviet tion.
A few shrank from trading with trade is concerned. The one recent hint of
The Japanese Government imposed on the Russia, however, on the basis of bad expeSoviet policy was ambiguous.
Kurashiki Rayon Co., which is selling the rience in prior transactions. In an invitation to West Germany to ex
plant, what was generally regarded as a face Following are detailed reports from major hibit at a Moscow trade fair next year, the saving condition.
toolbuilding centers: Soviet Union specifically invited West
The rate of interest was raised from the Berlin's participation. Berlin officials are
SHOULD ALLOW IT 412 percent originally specified to 6 percent now trying to discover whether the Soviet so Japan could not be accused of granting
Cleveland: American machine tool buildUnion meant that West Berlin should appear more favorable payment terms to China than
ers should be allowed to sell to Russia. as a separate country. are offered by any of the Western trading
That was the unanimous opinion of maThis interpretation could well be correct, nations. But the price was reduced from
chine tool builders here last week in the since the Soviet Embassy in East Berlin has 7,400 million yen ($20,555,555) to $7,200 mil
wake of the decision to allow the sale of recently been trying to interest West Berlin lion yen ($20 million), so that the total
wheat to Russia. businessmen in Soviet trade. The effort, amount paid by China would not be altered.
None of the builders were willing to be which included a conference with about 50
quoted for the record, however, and several West Berlin executives last month, has won
U.S. VIEW OUTLINED
recommended restrictions. limited response because few Soviet export There was no public reaction from the Machine tools that can be quickly conproducts are useful to West Berlin.
U.S. Embassy. American officials here take verted to making of weapons such as artil
lery shells should be barred, said one builder. related to production of military items or He added that NMTBA knows of no members He admitted that all machine tools indi- those of unique technology was suggested. who had applied for an export license to sell rectly would help in making military equip In considering the eventuality of future to the Soviets. ment, but added that so would wheat and trade, local machine tool management felt Under the Export Control Act, only manproposed the banning of only those ma that trade negotiations should be begun and ually operated bench and floor tools can be chines that would directly turn out muni carried on by the individual firm rather than licensed for sale to Russia. tions.
industrywide Another builder would allow the sale only groups.
[From the Baltimore Sun, Sept. 25, 1963] of machine tools the Soviet Union can now
ISSUE TOO COMPLEX purchase from other countries. He also
HODGES FAVORS RED BLOC TRADE-ADMINISTRAsaid that if the Government wants to ban
Providence: Henry D. Sharpe, Jr., presi TION IS CONSIDERING CHANGE IN POLICY these machines, the industry should be willdent of Brown & Sharpe Manufacturing Co.,
(MINNEAPOLIS, September 24.-A team of here, feels the question of machine tool trade ing to go along.
American private grain traders is negotiating "If we don't sell the machine tools to with Russia is too complex to be answered
with a Soviet commission now in Canada for Russia, then Great Britain, West Germany,
with a simple yes or no.
a huge sale of this country's wheat to the France, and other countries will. What's
Russians. the difference between wheat and machine
osition to consider before you could evaluate tools?” That was the consensus. it,” he said, adding that the interest of the Register said in a copyrighted story tonight
The Minneapolis Tribune and Des Moines One builder claimed Iron Curtain counUnited States weighs heavier than the in
that approval of the U.S. Government was all tries are now copying American machine terest of any one manufacturer.
that remained before a deal could be closed.) tools and paying no attention whatsoever
CHICAGO SEES VALUE
(By William Knighton, Jr.) to patent rights, except to restrict sale of
Chicago: Machine tool executives here these tools to other Iron Curtain countries. generally favor a review of U.S. machine tool
WASHINGTON, September 24.-Luther H.
Hodges, Secretary of Commerce, today said MIGHT AS WELL, TOO trade restrictions with the Soviet Union.
he supports the move to expand trade in Rockford, Ill.: The United States might
Several say they cannot understand why
consumer goods with Communist bloc as well sell machine tools to Soviet bloc the United States does not sell the Russians
countries. nations if those nations can buy them from machine tools when our Allies make such
A change in the present governmental our allies. Chester J. Braatz, president of
sales. One builder, while favoring a review, policy banning the sale of not only miliBarber-Colman Co., here, said last week: said he does not think we should sell the
tary goods, but also those of economic value, "We accomplish nothing if we deprive Communist world sophisticated machine
to the Communists is now under very defiourselves of this business," he stated. tools such as numerically-controlled items,
nite consideration by the administration, he Mr. Braatz stressed that this is his perthough he saw no objection to selling con
told a news conference. sonal view and is restricted to equipment ventional machines.
He said he had not yet formally made any the Soviet “can buy from someone else if
The president of one large tool manufac
specific recommendations on the issue to the they can't get it from us." He said he does
turer, said, however, he does not want us to President, but his own feelings on this could not feel the United States should promote trade with the Russians. He termed them
be summed up in his statement: sale of machine tools to the Soviet. potential enemies and sees no reason to help
"I favor selling goods." Clayton Gaylord, president of Ingersoll such a country even if it means profits here.
He quickly emphasized that "strategic maMilling Machine Co. here, noted that any
terials are completely out." thing we sell to the Russians aids their abilDetroit: "If we are to get our gold back,
CANADA SELLING WHEAT ity to wage war on this country. There is
how are we to do it unless we increase our no point in distinguishing between wheat
Hodges has been designated by the Presiexports," was the reaction of Sam S. Schmidt, and machine tools, he added.
dent to lead a drive to increase the sale of president, Drillmation Co., Inc., Center Line, Mr. Gaylord said the decision as to
American goods abroad by 10 percent, which, Mich., to the question of selling machinery if accomplished, would make a sizable dent whether to trade with the Soviets should be
to the Soviet Union. made by the "people planning the strategy of
in the present imbalance in U.S. interna
“The Russians are getting what they want the cold war and in a position to estimate
tional payments. anyway from Europe, and we might as well the possibility of a hot war."
Further, a White House conference on excash in,” he added. Philip Mattison, president of Mattison
port expansion last week recommended that Machine Works, here, stated his strong per- man L. Parker, vice president, Parker-Majes: policy on trade with Russia and other mem
A similar point of view was voiced by Nor
this Government take another look at its sonal opposition to selling to the Soviets.
tic, Inc., here. He favored sales to the Soviet "If we had an inquiry right now, and it Union, but not sale of machinery that might cally call for a change.
bers of the Red block, but it did not specifiwere legal, we would not quote,” he said.
be converted to military applications. Still another local builder, who prefers to
Also, the recent announcement that canremain unidentified, said "we'd sell to any
WORTH THINKING ABOUT
ada had signed a contract for the sale of $500 one else first." This builder had done busi Windsor, Vt.: The prospect of trade with million in wheat this year to the Soviet has ness with Russia's Amtorg Trading Corp. at Russia is worth thinking about to J. A. Kiely, greatly enhanced the possibility that the one time and he recalls it as the “toughest vice president and assistant general manager
United States will liberalize its present kind of business. Their arguments over of PneumoDynamic Corp.'s Cone Automatic
policy. tolerances were intolerable.” Division, here.
A new policy on the sale of foodstuffs could OPINION DIVIDED
"I think that, if we were permitted to by be agreed to relatively speedily, and Hodges
the Government, we'd be inclined to consider indicated he thought an announcement libCincinnati: Test-ban treaties and sale of
the business,” he said. “Both English and eralizing current policy against the export of wheat-all signs of growing, yet limited German manufacturers are interested in the
such goods to Russia and the other members U.S. cooperation with the Soviet Union business, and there's no reason why we
of the Eastern bloc might come in about 30 have not brought about a major realinement shouldn't be.”
days. of thinking on trade with Russia among ma
A FINE THING
A decision on the sale of other consumer chine tool builders here. Earlier attitudes, on both sides of the
Bridgeton, N.J.: Trade, even with an enemy,
goods probably would take longer to be issue, continue to prevail. is "a fine thing,” in the opinion of George reached, he said, for our allies would have
to be consulted in this respect. Graham A. Marx, president, G. A. Gray Co.,
E. Bass, president of Ferracute Machine Co.,
"Maybe, we have not been as practical" as said, “We are not eager to deal with the Rus
we might have been regarding East-West sians," while Frank Fields, president, Fosdick Machine Tool Co., said, "I feel that machine
trade, the Commerce Secretary said. [From the Metalworking News, Oct. 14, 1963]
A number of consumer items could be tool sales to Russia are certainly justified.
TOOLS ISSUE SIDESTEPPED BY NMTBA
placed on the export list without congresThere is nothing we build that the Russians WASHINGTON.-The National Machine Tool sional action, he pointed out. can't get from our European allies."
Builders' Association has taken no stand re He also said, in answer to a question, he A more middle-of-the-road statement was garding the sale of U.S. tools to the Soviet expected that Russia would want to purchase offered by William Dolle, Sr., president of Union and will leave the decision "up to the from this country a great many items worth Lodge & Shipley Co.: "If we would get Gov Government."
considerably more than the products ernmental approval on trade with Russia, The Commerce Department's Office of Ex America would want from the Soviet. there would be no objection to taking orders port Control is "considering" a reexamination This, of course, he noted, would give the but Government opinion wil govern our atti of the Export Control Act, which now severely United States a favorable balance of trade. tude.”
limits the sale of equipment to the U.S.S.R., But it would not be necessary for America It was commonly felt that the wheat-sale a spokesman said. He made it clear that to balance its trade with the East bloc, he agreement would spark industrywide con no firm decision to reexamine the act has said, pointing out that the overall trade balsideration of lifting the Communist-Bloc been made.
ances are figured out on a world-wide basis. trade barrier.
An NMTBA spokesman said that if the Gov In answer to a question, he said a shift of Restricting some machine tool types from ernment decides to permit the sale of so policy would not interfere with aims to isopossible trade was seen as advisable by many called strategic tools to the Soviet Union, the late Cuba from trading with the rest of the builders here. Excluding machines directly association probably will advise against it. world. The new policy toward each country
would be considered on an individual basis, nounced that it would sell 300,000 tons of the this year and wants to increase this figure. he said.
grain to Russia for $11 million. Earlier it had At present only 20 percent of Bulgaria's total Hodges answered two unrelated questions sold $6,800,000 worth of wheat to Poland. trade is outside the Eastern bloc, he said. in this fashion:
Canadian imports from the Communist The delegates noted that Bulgaria would like 1. He has no plans to leave the Cabinet countries have been relatively small. In 1962 to expand trade with Western nations, inand again be a candidate for Governor of she imported only $24,223,000 from these na cluding the United States. his native North Carolina.
tions, over a third of which-surprisingly Bulgaria currently makes general purpose 2. Business prospects for the remainder of came from Czechoslovakia.
lathes, milling, shaping, and drilling mathe year are good.
If the agreement to admit Chinese textiles chines; and will soon begin production of a indicates a trend, and several trade sources multipurpose miller-borer. However, the
believe that it does, then Canadian imports delegates noted that the country needs more [From the New York Times, Sept. 9, 1963]
from the Communist countries can be ex specialized equipment for mass production, CANADA SEEN WIDENING TRADE WITH THE
pected to grow appreciably in the near fu and also requires gear and thread grinding COMMUNIST COUNTRIES ture.
machines. (By Philip Shabecoff)
There are, however, several built-in barSome recent rumblings have been heard riers that probably will put a limit on the [From U.S. News & World Report, June 17,
1963) to the north that may herald an expansion expansion of Canada's trade with the Comof trade between Canada and the Communist munist areas.
Another result of the battle for markets is nations. Aside from promoting wheat sales
In the first place, Canada requires that a growing European interest in trade with to China, the Canadian Government has its exporters refrain from shipping strategic
Communist countries. There is to be a played a relatively passive role in trade with
materials to the Communist bloc. Like most “Khrushchev round" of trade talks next year the Communist bloc.
Western nations Canada uses a looser defini under United Nations sponsorship. Moves In the last few weeks, however, there have
tion of "strategic materials” than the United to expand East-West trade are already well been several indications that the Govern
States but finds itself tied willy-nilly to the advanced. ment will actively press for increased EastAmerican definition because of its economic
West Germany has a new trade treaty with West trade. ties with this country.
Poland, negotiates another with Hungary. Greeting a Soviet negotiating team that
The general manager of Krupp, German inarrived at Ottawa last week to renew a trade Many Canadian companies are subsidiaries
dustrial giant, pays a visit to Moscow, comes agreement with Canada that expired last and affiliates of U.S. concerns, and thus can
back with plans for selling Russia $12.5 milweek, Canada's Trade Minister, Mitchell
lion chemical plant. Kiel shipyards hope not ship products that are prohibited to the Sharp, expressed the hope that "a mutually
for a Russian order for trawlers. Communist nations by American law. Moresatisfactory basis could be found for the
Trade groups shuttle back and forth beover, many Canadian manufactures are made continuation of the trade agreement and the
tween Britain and Russia all the time. Rusunder U.S. patents, and these, too, cannot be expansion of trade between the two coun
sia signs up to buy $70 million worth of exported to the Communist nations. tries."
Former Prime Minister John Diefenbaker
British equipment for a plastics plant. Brit
ain ships more steel in Russia this year, TRADE EMPHASIZED
commented some time ago that Canada does Paul Martin, the Dominion's Minister of not share the views of some countries (mean
mulls larger purchases of Russian grain, iron
ore and wood products. External Affairs, said in a recent speech that ing, presumably, the United States) that
Sweden nails down big Russian order for the limited nuclear test ban treaty should argue against trading with Communist coun
10 refrigerator ships and 2 floating docks, is be followed up with other contacts with the tries. However, in many instances Canadian
expected to take more Soviet oil in return. Communist countries, including China. He exporters have no choice but to follow Amer
Austria shows interest in expanding trade emphasized the expansion of trade as an ican views on the subject.
with Poland. important contact.
In the case of the Soviet Union, Canada's
Red China plans purchases of European Perhaps most significant was Canada's trade potential is somewhat limited by a sim
industrial materials and machinery. agreement to admit $7 million worth of com ilar raw materials capacity. A Canadian
Communist world clearly believes the time petitive goods from China-mostly textiles- trade official commented recently that “we
has come when Western nations will gladly as part of the deal in which she will sell 187 send wheat to Russia and she sends furs to
sell all sorts of things the Communists need million bushels of wheat to the Chinese over us. This is carrying coals to Newcastle."
to keep their economic plans from slipping the next 3 years. This clause was admitted
too badly. to the contract despite the angry protests (From Metalworking News, Oct. 22, 1963)
Meanwhile, trade problems cause friction of Canada's textile industry.
BULGARIA PLANS TO HIKE WESTERN TOOL inside the Soviet bloc, just as they do among It has been widely conceded that Canada,
Western Allies. Moscow's plans for induswhich consistently maintains a heavy sur LONDON.-Bulgaria is planning to increase trial integration of Eastern Europe run into plus of exports over imports in trade with
its machine tool and machinery imports and opposition. Satellites are unwilling to the Communist nations, could not substan would welcome an opportunity to acquire shelve plans for broad-based national develtially expand these exports unless it admits
American-made equipment, according to the opment, do not want to specialize on just more Communist goods. The willingness of
members of a Bulgarian trade mission which those products the Russians think they the Government to accept Chinese textiles wrapped up a 10-day tour of Great Britain
ought to produce. Pressure grows in Eastwould seem to indicate that Canada would last week.
ern Europe for some kind of deal with the import competitive products to accelerate
Purpose of the 10-man mission was to ex
Common Market. exports to the Communist nations.
plore trade expansion with the United KingIn 1962, Canada's exports to the Commudom, according to Metody Simeonov Popov,
[From the Christian Science Monitor, nist nations totaled $208,028,000 in Canadian president of the Bulgarian Chamber of Com
May 1, 1963) funds. Considering Canada's economy and merce and leader of the mission. He noted
BRITISH SELL ENTIRE INDUSTRY size, this compares very favorably with that Bulgaria, usually considered an agricul
(By John Allan May) U.S. exports of about $288 million to the tural country, has stepped up machine tool
LONDON.–A development of some imsame countries.
production since World War II. Bulgaria portance is seen to lie behind the news that WHEAT IS EXPORTED is now emphasizing the manufacture of
two British firms have signed contracts worth Over half of Canada's sales to the Commu
metal cutting machinery, Mr. Popov said. £26 million ($72,800,000) with the Soviet nists—some $147 million-went to China, tool plants, expects purchasing agreements
The mission, which visited British machine
Union for the supply of six complete chemwhich is blacklisted by the United States.
ical plants. Exports to the Soviet Union and most East
will be reached after it reports to the Bul The Soviet Union is here trading out of ern European nations dropped sharply last garian Government, it was said.
need rather than out of political guile. year because of reduced sales of agricultural
Emil Mindov, general director, Machineo
It is in a sense buying its way out of products.
import, Bulgaria, said the mission was im failures in Soviet planning. These, in an Exports to Russia fell to $3,297,000 in 1962
pressed with the workmanship of British age of sputniks and widening horizons of from $24,276,000 the preceding year, accord
machine tools, but he thought they lacked thought, become at once more obvious and ing to the Dominion Bureau of Statistics.
the efficiency needed for Bulgarian produc less bearable than before. These exports representing widely scattered tion. He said he did not see multipurpose
A NATION'S OUTPUT product categories, the largest of which were machine tools for mass production such as
The two British firms, Simon-Carves and cattle hides, tractors, and plastics and synmodels known to be manufactured in the
Humphreys and Glasgow, are in effect being thetic fibers. United States,
asked to produce a complete industry for Poland remained the largest customer for
Last year, foreign trade represented one
the Soviet Union in double-quick time. Canadian goods with imports of $37,449,000 half of the country's national income, Mr.
The two plants to make the ethylene raw last year. Poland imported some wheat but Popov said. Bulgarian exports and imports the largest dollar volume was accounted for each totaled about $900 million, but only polythene are to have a production capacity
material and the four to produce the finished by synthetic fibers.
20 percent represented machinery, he added. equal to the entire polythene capacity of This year, however, the Soviet bloc is again
TO SEEK INCREASE
Great Britain. loading its shopping cart with Canadian Mr. Mindov noted that Bulgaria is im They are intended to quadruple the Soviet wheat. On August 30 the Government an porting $20 million worth of machine tools Union's output of this now-essential packag
ing material. They are to be completed here
NO DETAILS GIVEN
sion also burned up considerable amounts of before the end of 1966. It is noted that this time there is no oil
The informal Soviet proposal was not tied grain and feeding stuff much faster than
by Patolichev to British imports of Soviet they were being produced. blackmail about the deal, no making the oil, Wilson said. No details of whether the
It is estimated that the additional requireprovision of employment in British heavy sale might be for cash or credits were dis
ments of grain may amount to something industry dependent on British Government
like 5 million tons. cussed. agreement to buy Soviet oil the country does
Wilson said he discovered that Russia of
To this must be added the disappointments not really need. fered some $40 million worth of oil in ex
of this year's harvest, whose marketable grain DAILY WORKER QUOTED
change for a similar amount of British-built target had originally been set at 65.5 million The Daily Worker on Tuesday again men
tons, was then raised to a minimum of shipping in 1961, and the proposal was turned down by the British.
69 and a possible maximum of 74 million tioned the supposedly great advantages of buying Soviet oil but not until the 14th
There is no doubt that a considerable
tons, and is now put by Soviet sources at amount of the unemployment in British
something like 45.6 million tons. This is 10 paragraph of its front-page article and then
million tons less than was procured last year. without great conviction.
shipyards would have been prevented if the The Worker also stated that “this deal offer had been accepted, he said.
In the meantime the cows and pigs and
bullocks whose appetites may have started it was concluded in 4 weeks.” However, Leslie
He stated that while it is not the Labor
all are beginning to be killed off before the Dobson, joint managing director of SimonParty's policy to increase British imports of
extra feeding stuff procured by the governCarves, has put the actual period of negotiaSoviet oil at the expense of British coal, he
ment abroad has a chance of arriving, pretion at 6 years. did believe that more Soviet oil could have
sumably because the Russian peasant knows For the British there are also interesting been consumed as the over-all use of oil in
from long experience that there will never implications in the deal. Britain increased.
be enough, and that it is better to slaughter The contracts were won in the face of
Russia apparently has no current oil sur
the cattle while there is still meat on them, very strong competition from West Germany. plus but is ready to talk about a straight
rather than wait until they starve to death. That Britain won the contest is credited
oil-for-ships deal, taking from British yards to these facts: British engineering is cer
trawlers, freighters, and refrigerator vessels.
They also will offer Britain a quantity of oil tainly as good as German, British prices by
[From the Christian Science Monitor, Sept. now are keener, and the British process of in exchange for items on a list including
25, 1963) producing polythene, developed by Imperial
chemical plants, plastics, fibers, cellulose and SOVIET CITIZENS ASKED TO TIGHTEN BELTS Chemical Industries, is the best in the world. paper, Wilson said.
Moscow.-Soviet citizens, who doubtless Credit facilities for the contracts are being
His party would consider forming a con
eat more bread than any other single food, provided by Lazard Bothers, with a group of sortium of firms to meet such Soviet orders
are being told at private meetings and in other London bankers. if they materialize, he stated. One firm is
the press to ease an acute shortage by getnot likely to be able to handle such orders.
ting along with less.
Local leaders are being warned that bread Two of the plants to be supplied by Simon today, answering questions for about an hour
must be saved and that prices may be Carves are to have an annual capacity of afterward. American correspondents have raised. 48,000 tons and two a capacity of 24,000 been barred from his press conferences so far. Despite these warnings there appears no tons. Another conference, to which they may be
great probability that any Soviet citizen Total British exports to the Soviet Union admitted, will be held tomorrow after he
will go seriously short of bread. have been running at the rate of £55 million talks to Premier Khrushchev a second time. Emergency wheat purchases abroad, runa year in the recent past and British imports He leaves for Warsaw for talks with the ning about 7 million tons, will offset crop at about £85 million. Polish party leader, Wladyslaw Gomulka,
losses during the past year due to drought The Soviets have usually used the con- Saturday.
and persistent mismanagement of planting sequent surplus to buy raw materials in
and harvesting. The loss apparently is the overseas sterling area. It could be that
THE SOVIET AGRICULTURAL CRISIS
about 10 percent of the crop, which last year in future there will be less need for those [From the Washington Post, Oct. 25, 1963] was 65 million tons. materials and more for machinery, which
CATTLE KILLING IN SOVIET GIVES HINT OF The shortage and the bad harvesting have would redound to Britain's trading advantage
sent Premier Nikita S. Khrushchev storming without requiring extra imports of Soviet
(By Victor Zorza)
about the country denouncing careless farmgoods.
ing methods. LONDON, October 24.-Reports in Soviet
And again one of his pet projects, the papers today that farmers were slaughtering virgin lands in Siberia and Southwest Asia, [From the Baltimore Sun, June 14, 1963] cattle for lack of fodder give to the Soviet
has let him down as it did in other recent RUSSIA EYES BIG PURCHASE FROM BRITAIN food situation the air of panic which Premier
years. WANTS TO BUY OIL REFINERY AT COST OF Nikita Khrushchev has tried to prevent by
Harvesting in the Kazakhstan virgin-land $300 MILLION his purchase of foreign grain supplies.
area is so far behind schedule that it seems Moscow, June 13.-The Soviet Union
The unauthorized slaughter of cattle is a
inevitable much grain will rot in the fields wants to buy an oil refinery costing almost countryside. It has accompanied
every agritraditional danger signal in the Russian
and some will be buried under the snow. $300 million from Britain.
While Soviet citizens may not go short of If the project goes through, it alone will cultural crisis since the 1917 Revolution,
bread, the shortage of wheat and corn as amount to more than twice Britain's current through the great famine and collectiviza
well seems certain to make them short of annual exports to Russia. tion in the thirties, to the postwar disasters
meat again this year. under Stalin. News of the Soviet interest in a refinery
In the Kuban, the Soviet Union's best was given to Harold Wilson, British Labor sia” today pictured lines of lorries filled with
An account in the newspaper “Soviet Rus
farm area, a bumper crop of wheat was harParty leader today by Nikolai Patolichev,
vested there before the drought set in durcattle waiting in front of slaughterhouses Soviet Foreign Trade Minister.
ing July and August. in the Kursk area. The lorries had come Some observers believed the disclosure was from collective farms “trying to get rid of
TRACTORS INOPERABLE made to Wilson, rather than to one of the the cattle," said the paper.
But the drought hurt the corn badly as officials of the ruling Conservative Party who The newspaper quoted farmers as saying well as vegetables and fruit. Villages and have been here in recent weeks, in an effort they had no fodder to feed the livestock. towns in the area are short of vegetables. to boost the Laborites' chances in the next The paper said that serious apprehension This is reflected also in Moscow and other British election.
was caused by farmers who were sending cities, In the capital, queues form every Wilson clearly is using his trip here for cattle to slaughterhouses prematurely, even time a shop displays any fresh vegetables. campaigning, tying in cracks at the Conser- though they had enough fodder.
Grain was lost in the virgin lands last vatives with many of the developments The first indications of food shortages in year because thousands of combines and during his visit.
Russia began a few weeks ago with reports tractors lay idle in the fields for lack of He talked with Patolichev, Mikhail A. of farmers buying up bread to feed cattle. spare parts. And as early as August 28, Suslov, Soviet Party Presidium member and A newly disclosed shortage of potatoes has Selskaya Zhizn (Farm Life) reported that secretary, and Anastas I. Mikoyan, First Dep- added to the difficulties.
some farms had not finished the repair of uty Premier, in a busy day.
In one sense the trouble can be said to harvesting machines and combines before Wilson said Mikoyan, who has been ill have begun with the very cattle that are now the beginning of this year's harvest. with kidney trouble for several weeks, looked being slaughtered. In the middle of last In some areas only 20 percent of the mafairly fit but not yet fully ready to resume year, Khrushchev decreed a considerable in chinery was used. In the Irkutsk area of his official duties. He saw him at Mikoyan's crease in the prices to be paid to the farms eastern Siberia, the paper said, “Peas started dacha outside the capital.
for milk and meat. The selling prices in to fall out of the pods while drivers were The Labor Party leader said he did not the shops were also raised, but it was prom still testing their machines.” think construction of a refinery for Russia ised that over the longer term the new policy One big state farm in that area was awaitwould conflict with British obligations not would bring more meat to the market. ing the delivery of 100 combines from Rostov, to sell embargoed strategic goods to Com The farms responded very handsomely, so in European Russia, because the farm's own munist nations.
much so that the cattle population explo machines lacked belts or batteries.