SOVIET SAVES GOLD

Evening Star, Issue 22445, 16 September 1936, Page 12

SOVIET SAVES GOLD

GOODS IMPORTS REDUCED Soviet purchases from abroad, which have declined from the peak of more than 1,000,000,000 gold roubles (£200,000,000) annually at the height of the first Five-year Plan to less than 250,000,000 (£25,000,000) at present, are to be still further reduced, writes Harold Denny from Moscow to the ‘ New York Times.’ This was announced by A. P. Rosengoltz, Commissar for Foreign Affairs, in an address at a closed meeting of foreign trade executives. The purposes of further restricting imports are twofold as presented by Mr Ilosengoltz. The first aim is to save foreign exchange and build up the gold reserve because of the growing war danger. The second is to stimulate the country to develop its own resources independently of the outside world. “ It is perfectly eviderit that in the face of the increasing war danger and because of the necessity of preparing the country for defence, the significance of foreign exchange and gold reserve has increased tremendously,” said Mr Rosengoltz. There is nothing in Mr Rosengoltz’s address in the light of present conditions to indicate that American sales to Russia will be affected immediately. The trend of the announcement, however, is that Soviet Russia will become largely independent of the capitalist world early in the third Five-year Plan, which will begin January 1, 1938. FEW IMPORTS NEEDED. “ Wo must carry on this policy (that of finding internal means for industrial development), especially now on the threshold of the third Five-year Plan,” said Mr Rosengoltz. ‘‘The Stakhanoff movement gives us a powerful growth of productive forces that will make fulfilment of the third plan possible almost without imports. The Commissar said perhaps some tin, of which the United States sold the Soviet Union £140,000 worth y last year, and a few other raw materials would have to be imported, “ but not such things as wool, bearings, cotton, rolled steel, etc.” “ What we will import, and possibly in large quantities,” h« said, “ will be technical novelties.” . i Furthermore, he asserted, the Soviet policy would be to reduce the use of foreign credits and demand low interest rates. “ Some years ago,” he continued, “we paid 8 per cent, interest. Now, we will not agree even to 6 per cent. Mr Rosengoltz added that the Soviet Union would as far as possible reject credits offered by foreign companies and pay cash, as has been done tor some time past. The Soviet Union has already • refused to continue some credits, the terms of which were not liked, and has liquidated several credits long before maturity.