Pursuant to section 411(c) of the Trade Act of 1974, I hereby transmit the East-West Trade Report for 1981, covering trade relations between the United States and the nonmarket economy countries.

I have reviewed the sanctions on the export of oil and gas equipment to the Soviet Union imposed on December 30, 1981 and decided on June 18, 1982 to extend those sanctions through adoption of new regulations to include equipment produced by subsidiaries of U.S. companies abroad as well as equipment produced abroad under licenses issued by U.S. companies.

The objective of the United States in imposing the sanctions has been and continues to be to advance reconciliation in Poland. Since December 30, 1981, little has changed concerning the situation in Poland; there has been no movement that would enable us to undertake positive reciprocal measures.

The decision taken to extend the sanctions will, I believe, advance our objectives of reconciliation in Poland.

Ronald Reagan

The White House,

August 24, 1982.