Computers and the Cold War: United States Restrictions on the Export of Computers to the Soviet Union and Communist China

Abstract

The USA persuaded its European allies under the terms of the Marshall Plan to agree to embargo exports to the Soviet bloc in 1947 and to the PRC when it was established in 1949. This ban took the form of an East/West trade war and literally banned the export of everything from needles to anchors. As the West invented new technology such as coaxial telephone cable or scientific instruments, these were embargoed, although the Soviets were able to develop their own versions of those products. The Americans were early developers of the electronic computer, supported greatly by extensive sales to the military. The British looked to sell their computers in external markets, including the Soviet bloc and China. The Americans objected, but their officials did not wish to alienate the British from continuing to support the East/West trade embargo and allowed a small number to be sold. US support for such sales was important because the British machines contained some essential US equipment. The Wilson government sought to expand the development and export of British high technology, including computers. This article highlights the tension between Britain and the USA, particularly under the Nixon administration, over how the British computer firms struggled to obtain sales in the communist countries.