Economic Cooperation Administration Press Release Number 1736

ECA Dress Release ECA No. 1736 Newman Office of Information STerling 6400, Ext. 2655-9 For Immediate Release Rm, 415, 800 Conn. Ave., N.W. so WASHINGTON, September 18 - Paul G. Hoffman, Economic Cooperation Administrator, today made these points about East-West trade; 1. Since 1945, shipment of arms and ammunition from the West to the East have been nil. Shipment of goods with a possible military potential "have represented an insignificant percentage of the total trade. " 2. The major objective of ECA policy "has been to minimize the flew of materials of military value from the West to the East and to maximize the flow of such goods from the East to the West. This objective has been accomplished, # 3. Shipments of military goods from the West to the East can be controlled only by concerted action of all nations. This concerted action cannot be achieved "by the use of threats or by wielding a big stick." Nations that have to be "bullied" into compliance will not prove to be the kind of friends that are necessary when the fighting gets tough. Further, certain of the nations which must be a party to this concerted action receive little or no aid from the Unite States. 4. To assure that the nations of Western Europe will continue to receive the good,3 they need to build up their economic and military strength, regulations controlling trade must remain flexible and, while subject to policy agreed to by the governments, must be administered by field experts. 5. Under the Kem-Wherry-Byrd amendment, no one would have authority to exercise any discretion whatever in regard to trade in goods of possible military value. Instead, the Secretary of Defense would be directed to compile lists of the articles commonly used in the manufacture of arms, ammunition and military material, Every metal, machine and tool, to say nothing of a long list of items such as cotton, wool and duck feathers, would be included. (more)