Harold E. Stassen,
Director, Foreign Operations Administration.

May 17, 1954.


CONTENTS
INTRODUCTION:Page
Note on “Strategic” and “Nonstrategic”1
CHAPTERS:
I.Stalin’s Lopsided Economy[3]
Emphasis on Heavy Industry
How Forced Industrialization Affects Trade
How the Kremlin Controls Trade
West Has Never Barred Peaceful Exports
Stalin’s Last Gospel
II.The New Regime and the Consumer[11]
Letting Off Pressure
The “New Economic Courses”
Malenkov’s Big Announcement
Khrushchev and the Livestock Lag
Mikoyan Advertises the Program
Has Stalin Been Overruled?
III.The Kremlin’s Recent Trading Activities[19]
The New Trade Agreements
More Consumer Goods Ordered
A Shopping Spree for Ships
Most of All, They Want Hard Goods
Something Different in Soviet Exports
They Have Dug Up Manganese
The Emergence of Russian Oil
Gold Sales Expanded
Reaching Outside Europe
IV.What’s Behind It All[35]
The Kremlin and Peace
A Mixture of Motives
Their Objectives Haven’t Changed
Their Practices Haven’t Changed
The Challenge
V.U. S. Policy on Strategic Trade Controls[43]
The Background
Basic Policy Reaffirmed
The New Direction of Policy
Reviewing the Control Lists
East-West Trade: Road to Peace
Trade Within the Free World
The China Trade Falls Off
They Play by Their Own Rules
United States Policy on the China Trade
VI.The Battle Act and Economic Defense[55]
Battle Act Functions
The Money and the Manpower
Meshing the Gears
Improving the Machinery
The Termination-of-Aid Provision
Miscellaneous Activities
Summary of the Report
APPENDICES
A.Trade Controls of Free World Countries[65]
B.Statistical Tables[89]
C.Text of Battle Act[99]
CHARTS
1.Volume of Trade of OEEC Countries With European Soviet Bloc[6]
2.Free World Trade With the Soviet Bloc[21]
3.EDAC Structure[57]

[INTRODUCTION]

Note on “Strategic” and “Nonstrategic”