Russia's strongarm tactics against the liberal elements
in Czechoslovakia have produced a setback in sales
policies for Western manufacturers cultivating the
Eastern bloc market. Nurturing of the market behind
the iron curtain has been a slow process over the past
five years. But American firms such as IBM, Univac
and GE (through its European subsidiaries) and the
near-at-hand ICT, English Electric and Siemens have
steadily gained ground. In spite of the present
uncertainties the three U.S. makers put up a brave
show at the important BRNO trade fair in
Czechoslovakia in mid-September.
The hovering Soviet spectre dampened the ardour
of the most enthusiastic salesmen. Nevertheless, the
now consolidated U.K. computer group ICL chalked up
another $2.5 million worth of orders for more
1900 series and System 4 processors to go to
university research and steel industry production
scheduling. What worries some sales people is that
increased tension will bring about more rigorous
policing of the Cocom agreement of the Nato countries
about goods banned for export to the east.
Although there is little ambiguity in the Cocom
list about the generation age and type of systems
which can be shipped, departments responsible for
agreeing on export licenses in all governments
participating have shown increasing leniency. Stiffer
bureaucratic intervention could cut business without
difficulty. Forecasts of the value of business
expected from the Eastern bloc vary considerably.
But one prediction of $40 million total in 1970 was
justified by present rates of growth.