ABSTRACT
The sources of conflict are compounded by the political, economic and legal differences between these basically opposing social systems. However, it must be pointed out that although the sources of conflict exist, the extent and incidence of disputes have tended to decrease. In contrast to the bitter recriminations common during the Cold War, it appears that the two sides have made genuine attempts to appreciate each other’s special problems and devise safeguards for mutual protection. However, a variety of safeguards have been developed which, together with the well-known reputable adherence to contracts by the Socialist partners, have made dealings with the East in fact less risky than with capitalist firms. As joint ventures represent the closest form of collaboration with capitalist partners, the need for exhaustive safeguards is the most vital. Co-operation agreements are usually negotiated on the Socialist side by a ministry or an industrial branch association, so that the national interest can be reasonably well safeguarded.
