AMERICA PERMITS EXPORT OF OIL PLANT TO SOVIET

Greymouth Evening Star, 24 September 1949, Page 5

AMERICA PERMITS EXPORT OF OIL PLANT TO SOVIET

NEW YORK, Sept. 22—The United States Government, through the Department of Commerce, has approved of the immediate export to the Soviet of 500,000 dollars’ worth of field machinery. Old field machinery has been prohibited for Russia by the United States since the United States put its ban on the shipments of war potential industrial ° goods to the Soviet in March, 1948. This’ action by the United States Government in allowing the export is interpreted by the New York Times today as the first tangible evidence that the cold war in trade between the United States and Russia is abating. There are also reports in trade circles that 40,000 tons of Russian manganese and chrome ores are on the way to United States ports. Russia had retaliated to the United States ban on industrial machinery by putting an unofficial embargo on all shipments of manganese and chrome ore to the United States. The approval of the shipment of electric oil-drilling rigs by the Department of Commerce came as a surprise to the oil trade, where the executives said that American oil companies have been bidding for such equipment for their own use. Although the quantity of oil equipment is small, the fact that it has been approved is regarded by foreign traders, bankers, and others as being of great potential significance. It was recalled that, at the time of the meeting of the Deputy Foreign Ministers in Paris, last spring, there were persistent rumours that United States and Russian officials were working toward an easing of the economic and diplomatic tensions. 1