‘U.S. Against Soviet Trade Liberalisation’

Press, Volume CII, Issue 30288, 14 November 1963, Page 17

‘U.S. Against Soviet Trade Liberalisation’

(N.Z. Press Association — Copyright) LONDON, November 13. The American Undersecretary of State, Mr George Ball, will arrive in London from Bonn today to discuss East-West trade with British Ministers. The “Daily Mail” said Mr Ball had been sent to Europe “to put the brakes on any major liberalisation of N.A.T.O. agreed trade restrictions with the Soviet Bloc.” Britain was seeking to expand trade with the Communists.

Mr Ball, tomorrow, will have talks with the Foreign Secretary (Mr Butler) and the President of the Board of Trade (Mr Heath). The East-West trade issue would be forced into the open at a special session of the North Atlantic Treaty Organisation Council in Paris on Monday, the “Daily Mail” said. The United States and West Germany felt that a free-for-all in Soviet trade could develop, with Western countries bidding against one another to offer the Communists better credit terms, the newspaper said. The “Daily Mail” said Britain’s bid to expand EastWest trade had received a severe setback in Bonn last night. The West German Chancellor (Dr. Erhard) had said his country would not give long-term credits to the Communist Bloc until it changed its hostile policies. He made the announcement after talks with Mr Ball. Reuter said the Americans appeared to want a limitation to five years of commercial credits in trade with the Communists, but Britain, less rigid in its attitude, took the view that credit cover should be determined on essentially commercial grounds. “Effect of Wheat Sales” “The Times” diplomatic correspondent says: “The United States Administration

is naturally anxious lest in Britain it should be said that if the Un .ed States can sell wheat to the Russians. Britain equally should expand her trade with Russia, for example by buying Soviet oil and extending credits to Russia as part of a new trade agreemei t. “The agreement is due for renewal next year. Mr Ball is concerned therefore lest the wheat deal may open up a credit race among the United States’ Western partners in favour of Russia when all available Western loans are in fact needed over and over again by developing countries."