Farm Shortages May Affect Arms Plan

Press, Volume CII, Issue 30312, 12 December 1963, Page 21

Farm Shortages May Affect Arms Plan

(N.Z.P.A.-Reuter—Copyright) WASHINGTON, December 10.

Soviet agricultural difficulties are so great that Mr Khrushchev faces a crisis, a Reuter correspondent, John Heffernan, reports. Washington experts have come to this view after studying the speech which Mr Khrushchev delivered yesterday in which he referred to plans for a multi-million dollar fertiliser programme in an effort to increase farm production.

To make up for the failure to reach the goals of the seven-year plan. experts suggest, the Soviet Government will be forced to divert considerable resources

from military to food production.

It may also be faced with the decision to scrap the collective farm system in favour of enlarged peasant holdings or large-scale State-run

Er. her would be a radical change from the ideological commitments of communism Gain for Peace However, the United States also sees a possible gain for world peace in the Soviet economic difficulties. The diversion of resources may induce the Soviet Union to move further towards an easing of tension with the West and make progress possible towards some kind of The short fall tn agricul-

tural production is regarded as a severe blow to the Communist leaders. It is seen as creating a situation in which there will have to be a reappraisal of the direction of Soviet policy. Big Strain If Mr Khrushchev is forced to spend the equivalent of ! £llOO million a year for seven years for chemical fertiliser plants the strain on Soviet I resources is likely to be enor- ; mous. About 40 per cent of Soviet I requirements would have to 1 be procured abroad, thus im- ' posing a drain on the couni try’s gold resources.

Even the expanded fertiliser programme would not solve the problem because of wastage and the probable refusal of peasants to use the fertilisers efficiently. Therefore, they said, the Government would have to consider a great enlargement of peasant holdings or a movement away from the collectives to efficient Staterun farms. Deals with West Mr Khrushchev told the Communist Party’s central committee that a substantial amount of chemical equipment would be sought abroad, and it is concluded he would come to the West. Because Soviet reserves are already in a stringent condition, this would mean channelling and husbanding those reserves for peaceful purposes such as the buying of chemical fertiliser factories. Here, the subject of granting credits to the Soviet Union co.aes in. There are already divergencies among the NAT.O. allies on this point with the United States opposed to granting long-term credits. C.K. Policy Britain and others are more favourably disposed in an effort to build up their export trade. The experts say the West will soon have to face the question whether it is prepared to give the Soviet Union long-term credits to permit it to go forward with its programmes.