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East-West
Trade Trends

MUTUAL DEFENSE ASSISTANCE
CONTROL ACT OF 1951

(the Battle Act)

* * *

FOURTH REPORT TO CONGRESS

Second Half of 1953

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letter of transmittal

To the Congress of the United States:

I have the honor to submit herewith the fourth semiannual reporton operations under the Mutual Defense Assistance Control Act of1951 (Battle Act), the administration of which is a part of myresponsibilities.

The period covered is July through December 1953.

A large part of this report is an examination of what the SovietUnion has been doing in its trade relations with the free world. Inorder to put the Russian activities of the last half of 1953 in a moreunderstandable framework we have ranged back over the last 30 yearsto show how foreign trade fits into their economy and serves theirpurposes. To study Soviet trends and tactics is obviously importantto the economic defense of the free world. To make a report to theCongress and the public on these matters should also be useful. Therehas been much public interest in the subject.

The selection of this theme, however, does not mean that Soviettrade activities are the only important consideration to be taken intoaccount in the formulation of U. S. economic defense policy. Theyare not. Many other factors enter in, as told in Chapter V.

In preparing the report my staff has drawn heavily upon the expertknowledge of the Department of State and other agencies. But ofcourse the responsibility for the report is ours.

In my last Battle Act report I said that the strategic trade controlprogram had been hampered by lack of public knowledge. This isstill true, but to a less extent, it seems to me. There is a better understandingof the Government’s policies, a greater realization that thesoundness of East-West trade policy is to be judged not primarily onthe amount of trade, but more on what kind of goods move back andforth, and on what terms they move.

Signature of Harold Stassen

Harold E. Stassen,   
Director, Foreign Operations Administration.

May 17, 1954.

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CONTENTS
INTRODUCTION:Page
Note on “Strategic” and “Nonstrategic”1
 
CHAPTERS:
I.Stalin’s Lopsided Economy3
Emphasis on Heavy Industry
...

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