Europe: Trouble in the Pipeline

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According to most experts, the Soviets turned to the West largely to obtain cut-rate financing—in other words, a subsidy at the expense of Western European taxpayers—not because they needed foreign know-how. The Soviets already produce sophisticated aircraft turbines, which require expertise in high-temperature technology, aerodynamics and stress analysis. Says Victor de Biasi, editor of Connecticut-based Gas Turbine World magazine: "Anybody who can produce aircraft turbines of as high a caliber as the Soviets do can darn well produce turbines for use on earth." Indeed, French and West German companies last week were discussing the possibility of substituting Soviet turbines for the embargoed U.S. models.

Beyond the financial and strategic considerations, the pipeline has become a matter of national pride for the Soviets. "The net effect of the sanctions may. be rather small on the pipeline," predicts Sovietologist Edward Hewett of the Brookings Institution in Washington, "but in terms of U.S. relations with Western Europe, it could be rather serious." The Reagan Administration may be in for considerably more trouble with its allies than it bargained for. —By Frederick Painton. Reported by Gisela Bolte/Washington and Lawrence Malkin/Paris