574 



able to maintain and expand on its advantages. Transfer of this sort 

 of technology appears to create markets for export rather than satisfy 



them. 



(-i) Mass Production Machinery Output. — Traditionally, the Soviet 

 machine-building industry has patterned itself after the" large-scale 

 industries of the United States. The Gorki auto works, patterned 

 after the Ford Plant in Michigan in the 1930s, was an example of 

 this pattern. Although the Soviets are at present relying on Italian 

 and French assistance in auto and truck production, there is still a 

 major role for U.S. technology. Some- of the key equipment for the 

 new Soviet auto and truck plants was purchased from the United 

 States by European companies for installation in the Soviet Union. 

 The trade agreement includes a special arrangement for a Soviet pur- 

 chasing office in New York to buy American equipment for the new 

 Kama River Truck Plant. If the Soviet economy is "entering the auto- 

 motive age," then a continuing requirement may be expected. Like- 

 wise, in other areas where production for the large American market 

 justifies assembly line and mass production techniques, the machinery 

 outputs of the United States may find an expanding market. 



(4) Agribusiness : A System and A Technological Development. — 

 If the Soviet planners are serious in seeking a qualitative improve- 

 ment in the diet by increased meat output, the agricultural approach 

 prevalent in the United States — the so-called "■agribusiness"- -would 

 be an appropriate approach for them to adopt. The performance of 

 Soviet leaders after the poor 1972 harvest suggests a genuine com- 

 mitment to attain their new goals for food output. It was estimated 

 that nearly $24 billion was shifted to agriculture because of the 

 crop failures. 87 The Soviet Union also exported substantial quantities 

 of gold. Major outlays of scarce hard currency were made in order to 

 import feed grains and wheat. "While purchases on the 1972 scale are 

 unlikely to recur, large imports of agricultural commodities and tech- 

 nology will be needed. 



A new system of animal husbandry for the Soviet Union would in- 

 volve imports of soybean products, feed grains, breeder stock, and 

 technical advice. Also, improved meat supplies would require storage. 

 transport, and sales facilities. These needs add up to a sizeable in- 

 vestment over time. Nikita Khrushchev attempted to increase meat 

 production by introducing a new program for corn and pig produc- 

 tion. But discovery of the corn-hog cycle was not enough to raise the 

 meat supply, particularly when livestock holdings were sharply di- 

 minished in the poor crop year of L963. The Soviet livestock inventory 

 was again threatened during the even more extreme crop failure in 

 l!)Ti^, hut survived without major reductions. 



(-'7) Tourist Systems. — With better facilities. Soviet tourist income 

 from the United States, Western Europe, and Japan might rise sub- 

 stantially. Judging by the changes in tourism in developing coun- 

 tries — including Yugoslavia a consortium or Western-Soviet joint 

 venture approach seems most appropriate. The tourism package in- 



- 7 Veto York Times. Oct. 31, 1972. 



