The Evolution of US Policy toward West German-Soviet Trade Relations 1969–89

Abstract

From Nixon to Reagan, official US perceptions of West German trade with the Soviet Union (Osthandel) underwent a remarkable evolution. Despite initial skepticism, the Nixon and Ford administrations placed no major obstacles to West German–Soviet economic relations. Carter, however, changed the situation. His stance on human rights and economic sanctions against the Soviets for various developments - along with his belief that West Germany should follow the United States' lead - led Carter to ask Schmidt to curtail Osthandel, an action that contributed to Schmidt's notoriously poor relationship with the US President. Despite coming from a different political party, Reagan initially continued Carter's outlook on Osthandel. Yet rather than emphasize human rights, he publicly stressed Poland's self-determination as the reason to implement his aggressive policy to curb trade with the USSR, even though his advisers feared the strategic implications of greater German dependence on Soviet energy. Carter's and Reagan's early approaches were ineffective. Their actions, especially the latter's, strained US relations with Germany, the United States' most important ally in central Europe. Equally important, both Carter's and Reagan's policies undermined détente with Moscow. Because Nixon and Ford's approach to Osthandel harmed neither US–German relations nor US–Soviet relations, these presidents' responses had conspicuous advantages over succeeding administrations.