Canadian-Soviet trade on the increase

Benifits for both countries

By NIKOLAI CLADKOV
(Novosti Press Agency)

In recent years the trend has
emerged towards diversification
of Soviet-Canadian trade which,
in the final run, is bound to en-

sure a more stable growth of
reciprocal trade. This was large-
ly prompted by contacts be-
tween the heads of the Soviet
and Canadian governments in
1971, a more regular exchange
of opinions within the frame-
work of joint commissions on
trade and scientific and techno-
logical cooperation, and notice-
able increase in the activity of
the Scviet and Canadian busi-
ness communities interested in
greater reciprocal trade.

During the visit of Prime Min-
ister Trudeau to the USSR in
May 1971 our countries ex-
changed opinions on the pros-
pects of Soviet-Canadian trade
and economic relations. As a re-
sult, the two governments came
to the conclusion that favorable

_ Opportunities existed for the
growth of mutually advan-
tageous trade. In the autumn of
the same year, during the visit
cf A. N. Kosygin, Chairman of
the USSR Council of Ministers,

_ Third World fight for sovereignty)

Widespread interest in the
activities of the multi-nation-
als, is heightened by the ap-
proach of the World Confer-
ence on Multi-National Corpor-
ations to be held in Toronto,
Nov. 14-16, 1975.

This is the third of a four-
part article which appeared
under the title, Multinationals
and the Young States, in the
USSR publication, Asia and
Africa Today (No. 6, 1975). I.

~ Ivanov, D.Sc. is a Soviet eco-
nomics expert.

By |. IVANOV

Thirld World Undertakes
a Counter-Offensive -

In previous articles the author
dealt with “competition” among
the multi-nationals, their influ-
ence (including bribery) in the
internal affairs of the developing
countries, and their resorting
even to armed intervention to
maintain their stranglehold. He

However, the activities of the
multi-national corporations have
been confronted with mounting
determinationn on the part of
the Third World countries to
safeguard their scvereignty from
the multi-nationals’ attacks.
Such factors as the economic
achievements scored by the
young states, the influence of
the world system of socialism as
an alternate source of means for
development, and the increasing
dependence cf the West on deli-
veries of raw materials have
been gradually changing the
situation. In the past the condi-
tions in the Third World deter-
mined absolute rule of the inter-
national corporations in the eco-

to Canada, the Canadian side
declared that it would promote
the expansion of imports from
the USSR, particularly machine-
ry and equipment. The Soviet
side said that it would act in
the same way in respect to im-
ports from Canada.

This accord -laid the founda-
tion for a new approach to the
development of Soviet-Canadian
trade which until then had been
predominated by raw materials
and foodstuffs. Since then Soviet-
Canadian commerce has changed
quantitatively and qualitatively.
In 1972-74 our trade more than
doubled. Soviet foreign trade
quarters note with satisfaction
the growing exports of Soviet
machinery and equipment to
Canada. Thus, the USSR suppli-
ed over 1,200 tractors to Canada
as against 25 in 1971, and a
contract was.concluded for the
delivery of over $60-million
worth of Soviet generating
equipment, turbines and genera-
tors, for hydraulic stations un-
der construction in British Co-
lumbia and Manitoba.

~ In recent years Soviet foreign
trade agencies have stepped up
their activities in the Canadian
market. In particular, this finds

an expression in the fact that
Soviet machinery and equipment
are exported to Canada mostly
via the mixed agencies for the
marketing of tractors, other
farm machinery, machine tools
and generating equipment, set
up in Toronto and Vancouver
with the assistance of Canadian
authorities.

‘It is also necessary to note the
application of new forms of trade.
— long-term contracts on Soviet
commodity deliveries to Canada.
Under such contracts Canadian
firms receive chromium ore, ply-
wood, heavy water, watches,
clocks, and cameras. :

Certain changes also occur in
Canadian exports to the USSR,
although their bulk are still grain
and flour. Soviet purchases of
these commodities are not pre-
cluded in the future. However,
for Sowet foreign trade agencies
Canada presents a great interest
also as a supplier of machinery
and equipment. Canadian firms,
in their turn, are interested in a
greater export of these goods to
the USSR.

The prospects of Soviet-Cana-
dian trade and economic coope-
ration will look even more favor-
able if we remember that our

Canadian-USSR trade, especially in machinery, generators and
tractors shows steady increase since 1971, says Soviet writer Cladkov

He speaks of the benefits for both countries that this will bring.

countries could receive a mutual
advantage from the exchange of
experience relating to the solu-
tion of. economic development

-problems and the exchange of

achievements in the elaboration

MULTI-NATIONALS

Nc

nomic periphery of the capitalist
werld.

The early 1970’s were marked
by overall revision of the un-
equal contracts and agreements
signed by the Afro-Asian coun-
tries with the international cor-
porations. This line was charac-
teristic of Zambia, Lybia, Iran,
Tanzania and India.

This period was also charac-
terized by a wave of nationaliza-
tion of the companies’ assets in
Iraq, Kuwait, India, Pakistan
and the Congo and the introduc-
tion of stricter measures limit-

PACIFIC TRIBUNE—OCTOBER 10, 1975—Page 6

ing the activities of foreign
capital.

Oil, copper, banana producers
have set up “anti-cartels”. Talks
are under way to set up “anti-
cartels” on the markets of baux-
ite, iron ore and coarse fibre.
These “anti-cartels” are taking
steps to quench the appetites of
the multi-nationals.

‘Support cf Sccialist Community

The developing countries are
introducing measures to intensi-
fy financial-ccntrol over these
companies, to centralize talks
with them in the government de-

partments and to deprive them
of access to the economies in
which the local firms or the na-

' ticnal state can cperate success-

fully.

Enjoying the support of the
socialist community, the devel-
oping countries initiated the dis-
cussion of the multi-nationals’
role at United Nations level. The
Fourth Conference of the heads
cf state and government of the
non-aligned countries in Algiers
stated the need for formulating
a set of general rules which
wculd govern relations with the

of technological problems. In thé |
final run, this would lead to 4
considerable increase in Soviet |
Canadian trade, which would |
correspond to the interests of q
our two peoples. a

companies. Its decisions con- |
firmed the inalienable right of |
the young states to sovereignty |
over their natural resources, t0
nationalization of. foreign pro: |

perty and to the settlement of
conflicts arising from here on thé
basis of national legislation. :

Subsequently. these decisions —
were largely reaffirmed in the
recommendations of the Six
Spécial UN General AssemblY
session and the “Charter of Eco"
nomic Rights and Obligations of
States” adopted by the 29th
General Assembly session. A Ul
commission and _ informatio® |
centre on international compa”
nies have been set up.

Détente Contributes

Détente has made a tremen
dous contribution to the success
ful struggle against the interna”
tional corporations and to othef
positive shifts in favor of thé
developing countries. Indeed, if
1956 Great Britain and Francé
undertook an armed interven”
tion against Egypt in retaliatio™
to the nationalization to the Sue2
Canal.

In 1973-1975, however, thes
very countries and even the
United States regarded the pos
sibility of armed seizure of thé
oil fields belonging to OPEC
(Oil Producing and Exporting
Countries) as a reckless gamble:

Of course, it is impossible tO
rule out in the future ‘“‘relapseS
of the policy of strength on the
_part of the international corpor-
ations. However, the majority 9
the managers and advocates 0 —
international corporations are |
beginning to realize the irrever” |
sible character of the changes
that have taken place in thé |
Third World. ;

=