Trading with Communists

July 25, 1956

Report Outline
Controversy Over Trade with Communists
Free World Restrictions on Red Trade
Changing Patterns of East-West Trade
Special Focus

Controversy Over Trade with Communists

A strong attack by the Democratic majority of a Senate subcommittee, July 18, on the Eisenhower administration's handling of international controls over trade with Communist countries underlined the explosive political nature of the problem of adjusting national commercial needs to the demands of free world security. Whether and at what point long-term security precautions should outweigh immediate economic advantages of trading with the Reds is hard to determine. The difficulty is multiplied when, as in the present case, the varying interests of a large number of countries are involved. The United States, through the leverage of foreign aid, has been put in position to exert strong influence over the commerce of other countries of the free world with Soviet Russia, the Soviet satellites, and Communist China.

The Senate Investigations Subcommittee, headed by Sen, John L. McClellan (D-Ark.), accused the administration of agreeing in secret two years ago to a dangerous modification of the controls applying on exports to the Soviet bloc. The administration, it asserted, had withheld from the American people “the fact that foreign nations receiving aid from the American taxpayers are in turn helping the Communists to arm themselves against the United States and the free world.”

A committee minority of two Republicans, Sens. Bender of Ohio and Mundt of South Dakota, stressed the point that the United States must be concerned to strengthen the economies of its allies. They voiced regret that other countries were not as “realistic” as the United States in restricting exports of strategic materials. At the same time, they praised “competent American leadership and persistent persuasion” for continuation of “significant restrictions on the shipment of supplies to Communist countries.”

ISSUE TRACKER for Related Reports
U.S.-Soviet Relations
Sep. 14, 1990  The Western Alliance After the Cold War
Feb. 10, 1989  Soviet Trade: In America's Best Interest?
Nov. 01, 1985  U.S.-Soviet Summitry
Jul. 09, 1982  Controlling Scientific Information
May 25, 1973  Trends in U.S.-Soviet Relations
Apr. 05, 1972  Russia's Diplomatic Offensive
Feb. 09, 1972  Trading with Communist Nations
Mar. 10, 1971  Indian Ocean Policy
Apr. 21, 1965  Negotiations with Communists
Nov. 13, 1963  Scientific Cooperation with the Soviet Union
Oct. 03, 1963  Trade with the Communists
Sep. 11, 1963  Non-Aggression Pacts and Surprise Attack
Oct. 11, 1961  East-West Negotiations
Mar. 29, 1961  Russia and United Nations
Aug. 10, 1960  Challenged Monroe Doctrine
Sep. 02, 1959  American-Soviet Trade
Jul. 03, 1959  Cultural Exchanges with Soviet Russia
Aug. 11, 1958  Conference Diplomacy
Jul. 23, 1958  Limited War
May 14, 1958  Cold War Propaganda
Feb. 26, 1958  Military Disengagement
Feb. 20, 1957  Indirect Aggression
Jul. 25, 1956  Trading with Communists
Jan. 11, 1956  Economic Cold War
Nov. 26, 1954  Peaceful Coexistence
Dec. 01, 1953  Tests of Allied Unity
Sep. 18, 1953  Negotiating with the Reds
Jun. 17, 1953  East-West Trade
Apr. 12, 1951  Non-Military Weapons in Cold-War Offensive
Apr. 20, 1949  Mediterranean Pact and Near East Security
Apr. 28, 1948  Trade with Russia
Sep. 11, 1946  Loyalty in Government
Jul. 31, 1946  Arctic Defenses
Apr. 01, 1943  American and British Relations with Russia
Feb. 24, 1933  Soviet-American Political and Trade Relations
Nov. 03, 1931  Russian-American Relations
Feb. 14, 1924  Russian Trade with the United States
Bilateral and Regional Trade
Export Sanctions and Restrictions