European Stars and Stripes (Newspaper) - August 26, 1968, Darmstadt, Hesse Page 8 the stars and stripes look a West economics played role in invasion by William l. Ryan Moscow s diatribes against the czechoslovak Liberal Leader ship spotlight the key role that economic problems played in bringing about the latest of series of czechoslovak National tragedies. By occupying Czechoslovakia the russians have bitten off a Large Mouthful which in Thelong run can prove indigestible enough to produce dramatic political consequences inside the soviet Union of Prague s Liberali Zers to repair the Economy severely damaged by 20 years of mismanagement and communist bureaucracy on the soviet Model played a key role in the soviet decision to crush the czechoslovak crushing the movement the russians would solve non of the problems and in fact Only aggravate the economic stars and stripes columns Ami comment troubles. But this was a Preven Tive measure. The soviet Union and its bloc allies particularly the hard nosed East German communists feared a Czecho slovak turn toward the West for economic economic relations with the West would have Politi Cal meaning and for the suspicious soviet military leadership strategic meaning. Military men in Moscow regard Czecho Slovakia As a most important Warsaw Alliance outpost its Bohemian mountains both a Natur Al shield against and a corridor to the West astride the Southern Hank of czechoslovak were get Ting desperate about their econ omy. It had suffered much at the hands of the russians. The soviet communist party news paper pravda now says that the forces which tried to undermine the positions of the czechoslovak communist party were doing everything in their Power to make it appear As if economic ties Between our coun tries were disadvantageous and a special correspondent even burdensome to but those ties were in fact burdensome and disadvantageous. The czechoslovak press pravda went on was trying to impress on the working class and the whole population of the country that a wrong economic policy pursued by the czechoslovak communist party allegedly was a Handicap to bettering the welfare of the the czechoslovak press was indeed implying that and in fact made a Good Case for said that Czechoslovakia depended on the soviet Union for Grain Cotton Oil and other goods which would have Cost dearly in hard currency. But pravda was not telling the whole Story. In the communist world Czechoslovakia is a creditor nation. Its favourable Trade balance with communist nations for the five years ending in 1967amounted to the equivalent of about 750 million. Czechoslovakia exported machinery equip ment finished goods and con Sumer products to Russia and the bloc. But Czechoslovakia could not use soft currency bal ances built up in communist countries to Purchase the goods it needed to revitalize its Indus try and its Economy in general. The czechoslovak badly needed hard currency for equip ment from world markets. The were in debt to capitalist coun tries of the free currency area to the tune of about s4m million. They were seeking from the russians a loan of 406-5m Mil lion rubles Worth of hard cur Rency. That Means about a half billion dollars. The russians already have heavy commitments for expend iture of hard currency for a variety of political enterprises. They Are reluctant to reduce their hard currency reserves. The alternative for Czechoslovakia was a turn to the West. As Long ago As last december when the stalinist party chief Antonin Novotny was being shunted aside czechoslovak re formers were thinking in such terms. A Central committee meeting concluded that Czecho Slovakia had to overcome the stagnation of its Economy by exporting More goods and serv ices to the West. But to compete with capitalist countries they needed hard currency. European edition col. James w. Campbell Usa editor in chief it. Col. 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