Closer Trade Ties

As their relations with Red China worsen, the Russians are stepping up their economic contacts with the non-Communist world. Soviet-Japanese trade, for example, has nearly tripled in the past five years, now runs at $400 million annually, a volume 10% greater than Japan's trade with Britain. Last week, after prolonged negotiations, a four-man team of Soviet aviation experts stood by in Tokyo, ready to initial an agreement establishing the first commercial air service between Moscow and Tokyo, by way of Siberia.

The pact, which would open a potentially lucrative air route, could yet be grounded by Moscow, but the Japanese appear to have bowed to all major Russian conditions. State-owned Japan Air Lines and the Soviets' Aeroflot would jointly operate a weekly flight using giant Russian TU-114 turboprop planes, Russian cockpit crews (with a Japanese pilot sitting in as a face-saver) and mixed Soviet-Japanese cabin crews. Because of Russian sensitivity about Siberian military installations, Japan's 707 and DC-8 jets would at first be confined to the Tokyo-Kharbarovsk leg; after two years, the Russians would consider allowing J.A.L. craft to fly the entire 4,650-mi. run. The Soviets have also suggested that Japan help develop Siberian industry, invest $2 billion in oil refineries and in pipelines.

To expand its business with Europe, the U.S.S.R. has just closed two other deals. Italy's Olivetti announced last week that it will advise the Russians about how to mechanize their huge bureaucracies, sell them office machines ranging from typewriters to calculators. Greek Shipping Magnate Achilles Franghistas agreed to buy 33 Soviet-built cargo ships. The terms: $76 million in long-term credit, $29 million in increased Soviet purchases of farm produce--a welcome outlet for Greece's agricultural surpluses.

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