TRADE DRIVE BY SOVIET

Press, Volume XCIII, Issue 27906, 1 March 1956, Page 13

TRADE DRIVE BY SOVIET

Worries In Western Germany

(Special Correspondent N.Z.P.A.) LONDON, February 29 The Federal German Minister of Economics (Professor Ludwig Erhard) has called on the Western Powers to take concerted measures to compete with the trade offensive of the Soviet Bloc, says the Bonn correspondent of the “Manchester Guardian.” Professor Erhard is convinced that the offensive has been carefully planned and will gather momentum within the next few months.

“He believes that the Soviet Bloc intends to invade two markets in particular, those of the Middle East and South America.

“Goods manufactured in the Soviet Bloc are already being offered in these markets at prices below production costs. This amounts to deliber-

ate dumping and the Minister’s explanation is that the Russians want to gain political influence in these areas and so undermine the unfettered trade system of the Western world. “There are several reasons for Professor Erhard’s worries. The first is the strenuous effort being made by the East German Government to increase its volume of foreign trade, and to establish closer relations with the countries of the Middle East.

“In the second place the Soviet Government has already been trying to bring pressure to bear on the Federal Government to secure a farreaching trade agreement. “A third reason is the growing belief in Western Germany that the Russians have worked out new methods for a new phase in the cold war The dumping of goods at uneconomic prices will certainly cost the Communist Bloc something, but its leaders will be able to concentrate on individual markets in rotation.

“The cost of ‘putting spanners in the works’ is only that of the spanner Communist interest in the Middle East indicates where the first spanner is being used,” the correspondent says.