Trading with Communists

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.”