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...Kremlin action came in angry response to conditions imposed by Congress, such as the so-called Jackson Amendment (see box). In declaring their 1972 trade accord with the U.S. invalid, the Soviets rejected by extension the Trade Reform Act signed by President Ford early this year. Thus the U.S.S.R. spurned lower U.S. tariff rates and $300 million in Export-Import Bank credits, while reneging on their agreement to repay $722 million in wartime Lend-Lease debts...

Author: /time Magazine | Title: DIPLOMACY: A Serious But Not Fatal Blow to D&233;tente | 1/27/1975 | See Source »

...spite of these disclaimers, the Soviet decision to scuttle its trade accord with the U.S. constituted a major reversal of Kremlin policy. Determined to modernize their economy, the Russians -who will launch a vast, multibillion-dollar 15-year plan in 1976-want massive foreign investment, industrial know-how and sophisticated technology from the U.S. Although such aid has long been available from Japan and Western Europe, the Soviets calculated that only the U.S. could provide the technology for such grandiose enterprises as the $5 billion truck-manufacturing complex on the Kama River. In light of this hunger for credits, Moscow...

Author: /time Magazine | Title: DIPLOMACY: A Serious But Not Fatal Blow to D&233;tente | 1/27/1975 | See Source »

Principal Victims. Paradoxically, U.S.-U.S.S.R. trade will probably suffer little from the Kremlin cancellation. Existing contracts between the Soviet government and American firms are likely to remain in effect. Nor are new contracts precluded by the nullification of the trade accord. Many analysts expect that the present $1 billion U.S.-U.S.S.R. annual trade volume will not be significantly reduced. As for the technology that the Soviets require, Tass has already indicated that Moscow is still looking toward the West, "not excepting the most economically powerful Western nation -the U.S.A." The Kremlin may now reckon that Congress, discouraged by its inability...

Author: /time Magazine | Title: DIPLOMACY: A Serious But Not Fatal Blow to D&233;tente | 1/27/1975 | See Source »

...Soviet action also heightened worldwide speculation that yet another victim may be the man who, on the Soviet side, initiated, nurtured and negotiated the trade accord in the first place: Leonid Brezhnev. Top government officials in Washington and in European capitals continued to dismiss rumors of an impending Kremlin shake-up as fanciful. But persistent reports of the 68-year-old Brezhnev's ill health, coupled with the defeat of his trade policy, lent a bit more credence to conjectures that he may be ousted. And Sovietologists noted that even though Brezhnev was seen riding in his Zil limousine...

Author: /time Magazine | Title: DIPLOMACY: A Serious But Not Fatal Blow to D&233;tente | 1/27/1975 | See Source »

...agreement does not appear to bar the U.S. from doing what is necessary to correct or compensate for these imbalances. I am disappointed that the accord does not do more to avoid that necessity. Thus I cannot view Vladivostok as a triumphant breakthrough...

Author: /time Magazine | Title: Forum, Dec. 23, 1974 | 12/23/1974 | See Source »

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