Easing the Embargoes

Through the cold war, the U.S. has pressured and persuaded its trade-hungry allies to hold down exports to the Soviet world. But the U.S. was fighting a losing battle. Last week, in a policy switch, Secretary of State Dulles confirmed that Western controls on Red trade will be eased "appreciably." Within a month, about 80 items are expected to be lifted from the 200-plus-item strategic-embargo list, including some chemicals and machine tools, nearly all raw materials, electronic equipment, trucks, cars, ships and perhaps older planes, such as the DC-3.

The embargo is being eased in response to increasingly heavy pressure from European, Japanese and even many U.S. businessmen for more trade with the Communists. The U.S. itself wants to encourage trade with certain satellites, notably Poland, to try to pry them from the Soviet economic orbit. Furthermore, the U.S. no longer believes that the embargo is hampering the Soviet economy, because in many fields the Reds' technology is roughly on a par with the West's.

Trade with the Soviet bloc now accounts for 5.8% of West Germany's total foreign trade, but only 2.5% for France, 2.8% for Britain, 2% for Latin America, a mere one-half of 1% for the U.S., which does not trade with Red China. Easing the embargoes is expected to expand East-West trade slightly but not spectacularly. The real barriers to trade are the facts that the Communists often have not had the cash to buy or have not been able to sell what the West wants.

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