Expert's High Rating of Soviet Industry
Mi. 'holm's testimony before the Semite
Internal Security Subcommittee July ''I. 1954,
during hearings on "Strategy unit Tactics of
II orld Communism."
Gentlemen of the Senate:
This subcommittee is dealing with a
subject very dear to my heart. I appreciate your invitation to appear before
you and I would be very grateful were
it possible for me to make even the
smallest contribution to your considerations.
I note vour chairman's remark during an earlier testimony on June III.
thai "the Communist conspiracy in the
I nited Slates is only one tentacle ol a
world-wide octopus which has as ils
principal target lhe United Stales of
May 1 suggest lhal one of the other
tentacles is the Soviel potential through
East-Wesl trade from the Soviet poinl
We read aboul ei new treaty nearly
'very eleiv. made by England, France,
Italy, Switzerland, Greece, Sweden,
Norway countries lhat not long ago
thought and feared lhal by now they
flight he eet weir with lhe Soviel I nion.
lop Real economic commissars in the
Gosplan Bureau, which controls the nation's entire economy, back up lhe
Soviet Foreign Office, in greeting visii-
"ig treaty makers eunl European btlsi-
'"s-ini'ii who follow dose behind; such
•s the thirty-three British businessmen
who recently arrived in special Soviel
Ibis, of itself, brought aboul lhe lug
'-'est burst of Anglo-Soviel business ac-
of WFAA. Dallas
Henry J. Taylor is a journalist, economist,
author, and radio commentator. His "Your
Land and Mine" has been broadcast since
1946. He has contributed to leading periodicals in America and abroad.
tivily ever known in lhe Russian capital; directors and technicians of twelve
liritish firms negotiating with five Soviel
trading agencies. And what these buyers
have' found in Moscow has made their
eyes pop ve ith w onder.
The Official Soviel memorandum they
received from Gosplan's Central Sieiiis-
tieeil Board listed things now in good
supply in the Soviel I nion. Thc list
makes amazing and thought-provoking
Oil, iron, manganese ore. gasoline'.
kerosene, aluminum, large boilers, diesel
engines, roller and ball bearings, syn-
—Wide World Photo
A Russian blast furnace under construction at a steel plant in Siberia.
PACTS FORUM NEWS,
thetii rubber, chemicals, dyes—and
mountains of wheat and tea.
Take' oil, for example. Russia was
supposed lei In- pinched for oil. Yet Russia is selling petroleum products freely
10 Finland and two of the British mer-
I'heuils were able lo sign a si'rie-s of five
contracts to buy three ami ei quarter
million dollars" worth of high-grade
Russian refined oil products lhe first
day they arrived. The British negotiators said they were buying 100 thousand
tons eif these products mainly (interestingly enough)' for resale, in European
In turn, lhe Gosplan chiefs bought
fifty thousand tons of refined sugar
from another Britisher, the biggest such
sale in more than twenty years. Had she-
wished. Russia could have bought this
from her satellite stales. Several are exporting sugar. And after lhe contracts
were signed lhe British merchant asked
the Gosplan man the' equivalent of "How
come?" "Trade, not aid," be answered
in unsmiling parody of our free-world
The delegation from Paris announced
thai Riissiee's huying under a six-months-
old French trade agreemenl would now
he increased. Greek. Argentine. Swiss.
Swedish, Norwegian and Italian dele.
geilious have made similar announcements, or ni'w treaties, since Malenkov
took over. In Zurich Swiss international
bankers estimated lo tne that more, them
twenty thousand freight cars of materials from Italy alone have found their
way behind the Iron Curtain in recent
bike lhe hells on the pigeons of myth-
ie al Shangri-La, the siren song of Sov iel
trade, backed up hy Soviel gold, sounds
sweel iii Europe's ears, especially with
\merican subsidies emd aid declining.
But lhe bells should be ringing nul ee
Rigbl now. Russia, buying al high
price's, looks good. Beyond lhal. West-
Easl trade looks so good (and profitable) thai ii obscures lhe fateful pros
peel of what will happen when gianl
Russia, already consolitlateil. turns into
,' -. Her of many products Europe makes
Products, vmi seiv? We laugh at most
Russian products we see illustrated; and
certainly whal is being handed to Soviel
civilians is of mighty low order. But
i i ni ii wilh me for a moment lo Finland.
11 weis there I bad my firsl awakening
In whal the Russians can produce when
they want to.
\\ ith three Finnish Army reconnaissance scouts I weis traveling along the