TRADE WITH RUSSIA

Press, Volume XCIII, Issue 27913, 9 March 1956, Page 11

TRADE WITH RUSSIA

Eisenhower Defends Relaxation

(N.Z. Press Association—Copyright)

(Rec. 9 p.m.) WASHINGTON, March 7. President Eisenhower today defended the 1954 agreement among the United States, Britain, and other European allies to relax controls on trade with the Soviet Union. He was questioned about the agreement at his press conference while the Senate Permanent Investigations Sub-Com-mittee was investigating East-West trade and criticising the relaxation as a means by which the Soviet Union was increasing its war potential. Mr Eisenhower said he did not think the agreement was a mistake. Before the war. Europe's trade traditionally was of the EastWest pattern. The friends of the United States had to make a living, he said and thev could not develop too big a market in the United slates because the United States itself was a surplus-producing country.

There had to be some relaxation with the Soviet Union, he said. What they had to be sure about was that the' Soviet Union did not gain a net advantage. _ Senator John McClellan (Democrat. Arkansas), chairman of the Senate Committee, promptly disputed Mr Eisenhower’s defence of the easing of embargoes on strategic exports to Communist countries. “I think it would be wrong to relax them. We were wrong to relax them, and if we wish to serve the best interests of our country and its allies the controls should again be strengthened.” he said. He said that his committee’s inquiry had shown it to be “conclusive, undisputed and unrefuted’’ that allies of the United States were shipping large quantities of strategic goods to Communist countries. They were doing this, moreover, with the agreement of the United States, which had accepted the relaxation of Fast-West trade embargoes in July. 1954. he said. These exports of strategic materials to_the Communist bloc might well offset the advantage that huge amounts of United States aid was designed to give the allies. Senator McClellan said. “Above all the Congress of the United States is entitled to know fully what the facts are with respect to this East-West trade for that should and will be an important factor in deliberation with respect to future legislation on appropriations for military aid and economic assistance to our allies abroad,” he said. Hutton as Test Commentator. —The former England test captain, Len Hutton had signed with Independent Television as a test match commentator, the “News Chronicle” said today. The newspaper described this as a sharp check to the 8.8.C.'s long run of “scoops’’ on the sporting front. Hutton’s audience will be in London, the Midlands and Lancashide—but not in Yorkshire, his home county.—London, March 8.