ABSTRACT

This chapter explores the differences of opinion regarding the Soviet economic performance and its links with foreign policy. It suggests areas in which Western ignorance might be reduced. The dispute between the United States and its allies over the Soviet-West European pipeline illuminated the depth and breadth of the disagreement without resolving it in any significant way. The leaders of West European governments disagreed with the President, not only on the specific case of the pipeline, but also on his general concerns about the contribution of East-West economic relations to Soviet economic performance and the growth of Soviet military capability. Philip Hanson’s research into machinery and equipment import policy in the Soviet Union suggests one of the major explanations for the decline in orders was a growing disillusionment among Soviet economic decisionmqjcers with the impact on economic performance of imported technology.