Drive Under Way to Change U.S. Law on Soviet Trade

The Ford Administration, aided by the U.S.-USSR Trade and Economic Council, has begun its expected drive to revise the Trade Act of 1974 and provide massive credits to the Soviet government without assurances that the USSR would liberalize its emigration policies in return for trade benefits.

The Council concluded a three-day conference last Friday with a news conference at which its Soviet and American co-chairmen criticized Congress and called for trade expansion between the super-powers. The Council, organized in 1973, consists of 140 U.S. companies and banks, and 113 Soviet government organizations. Its co-chairmen are Vladimir S. Alkhimov, Soviet Deputy Foreign Trade Minister and Donald M. Kendall, head of Pepsico Corp.

Council leaders met with Secretary of State Henry A. Kissinger at the State Department and also with Rep. A1 Ullman (D. Ore.), chairman of the House Ways and Means Committee, where trade legislation originates. They also were to meet later with other Senate and House leaders, but Kendall declined to reveal their names. He also barred questions from reporters on Kissinger’s comments to the Council. (See separate story.)

WILL DEAL WITH EX-IM BANK LIMITATION

State Department spokesman Robert Anderson, asked to make available a transcript of the Secretary’s comments to the Council, replied that none was made. With regard to Kissinger’s remarks on trade, Anderson said Kissinger “would like to see U.S.-Soviet trade normalized and he win be consulting with Congress on how best to proceed towards that end.”

Asked whether the Secretary’s position was that the Trade Act should be changed or for the Soviet Union to comply with the U.S. laws, Anderson replied that “at this particular stage,” Kissinger was “going to talk to appropriate members of Congress in view of the difficulties that have arisen.” Anderson pointed out that Kissinger was not “going to tell Congress to do it this way or that,” and while he would not speculate on how the situation would evolve, “we feel the problem should be solved in consultation with Congress.”

“One of the subjects” to be dealt with, Anderson said, is the Export-Import Bank limitation on credits to the Soviet Union to $300 million over four years unless the President receives Congressional approval to extend greater amounts. The link between most favored nation treatment and emigration practices is in the Jackson-Vanik proviso of the Trade Act itself.

RUSSIAN RIDICULES J-V AMENDMENT

At the news conference at the Madison Hotel held by the Council, which was attended by many diplomatic correspondents and specialists for trade publications, Alkhimov ridiculed the Jackson-Vanik proviso. The Soviet Union, he said in response to a question, would abide by it when the United States gives equal rights to women. “We will insist on giving rights to the ladies and others,” he replied when asked whether greater credits would satisfy the Soviet government.

Alkhimov explicitly linked Export-Import loan ceilings with the emigration proviso and made it plain both would have to be modified to meet Soviet wishes. He scorned the tentative $300 million ceiling in the Ex-Im Bank law and pointed out that France, West Germany, Italy and Japan were extending credits to the USSR “approaching eight billion dollars so we don’t postpone our job” In economic matters.

Soviet planners will be providing a new five-year plan to the Supreme Soviet in mid-year, Alkhimov warned, and indicated that unless changes in U.S. laws come, some American companies will lose orders. However, he emphasized that despite the Soviet repudiation of the 1972 trade agreement, the USSR is prepared to honor it and meanwhile other agreements “all remain valid.”

Kendall said that American businessmen will renew their efforts in Congress on trade legislation, “We hope the Administration will soon have a strategy for going back to Congress to correct this situation,” he said. He indicated that the Soviets were assured by those with whom they had met that “this Administration is committed to change.”