2 g SUNDAY, MAY 12, 1963 MEDFORD MAIL TBIBUNE. MEDFORD, OBEGON .
World Trade s Biggest Boost Since Marshall Plan To Be Discussed
By WILLIAM ANDERSON
.. United Press International
Brussels OJPB Trade min
isters from 35 nations gather
in Geneva starting May 16
to discuss plans for giving
free world trade its biggest
boost since the Marshall Plan
which saved Europe in the
1940s.
But the boost could turn
out to be a bust if mutual ac
cusations of "protectionism"
by the United Stales and the
Common Market are carried
to the conference table.
Nobody can predict accu
rately the outcome as min
isters from the United StBtes,
Britain, Latin America, Asia
and Africa converse on the
lakeside Swiss conference
center.
The center of the stage will
be occupied by the United
States and the giant economic
newcomer the Common
Market.
The six Common Market
countries, combining 170 mil
lion industrialized people,
are now the greatest single
trading bloc outside Russia
and the United States.
Since they got together un.
dcr the treaty of Rome in
1958, France, Germany, Italy
and the three Benelux coun-
tries (Belgium, The Nether
lands and Luxembourg) can
talk on equal economic terms
with anybody In the world
The United States may find
this out at Geneva where, for
the first time since the war,
America is in the position of
having to ask-as much as she
is giving because of her deli,
clt in balance of payments.
What is bringing all these
nations together Is tho Amer
ican trade expansion act
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signed by President Kennedy
Oct. 11, 1962. It was drawn
up in the belief Britain would
have become by now a mem'
ber of the Common Market
But it is still valid despite
the French veto of British
membership in January this
year,
The Kennedy act recognizes
that no nation can stagnate be
hind tariff barriers and pros
per. In approving the act
(TEA) Congress authorized the
President to cut tarriffs on
a reciprocal basis of up to
30 per cent on all industrial
and agricultural goods.
Kennedy also is authorized
to eliminate tariffs on goods
of which more than 80 per
cent are imported by one
trading bloc. He also can
abolish tariffs of S per cent
or less. Exceptions one is
petroleum amount only to
six - tenths of 1 per cent of
U.S. imports.
Powers Were Granttd
These sweeping powers
were granted because previ
ous tariff cutting talk had
bogged down in item by-
item haggling. Year - long
tariff talks in 1061 resulted
only in cuts of 8 per cent.
affecting but one - fifth of
American trade
What the United Slates may
run up against in Geneva is
a European feeling that Amer
icans need the tariff cuts
more than the community
does. The Europeans have
been In a booming economic
period since 1058.
Some member countries, es
pecially France, also feel the
Common Market should first
consolidate itself before it
starts negotiating with "out
side" powers. This includes:
Part of this European "hard
to get" attitude undoubtedly
is shrewd posturing in prep
aration for some hard bar
gaining. Although France may
not be over enthusiastic,
Germany, Belgium and Hol
land are all in favor of the
tariff cuts.
But, as the British found
out, if France says "non" then
non it is because under
the treaty of Rome the six
must have common external
tariffs by the end of 1068.
Farm Policy Not Decided
France has said she will
not discuss anything until the
Common Markets own farm
policy is decided probably
not before 1864. The United
States says agricultural prod
ucts must be included In the
tariff cuts or there's nothing
doing.
This international poker
game has been going on since
President Kennedy's special
representative for overseas
trade, Christian A. Hcrter,
first contacted Common Mar
ket authorities here last Jan
uary. It will go on until offi
cials actually sit down next
spring and start the real bar
gaining for the tariff cuts
which will come into opera
tion only in 1865.
There are many fundamen
tal problems that will have
to be solved before any tariff
cuts can be made.
Some U.S. tariffs are as
high as 80 per cent. Europeans
argue that even If they get a
30 per cent tariff cut the re
sulting 30 per cent is still an
unsurmountable barrier to
goods in this category. The
Europeans point out their top
tariffs are 25 per cent and
argue that "across the board"
cuts as foreseen in the TEA
will favor the United States.
Id.. Is Te Cut Tariffs
The United States says the
idea is to cut tariffs and not
to harmonize them. Although
the U.S. "highs" are higher
than the Europeans, the U.S.
"lows" are lower and thus
concessions will balance out,
say U.S. negotiators
The Europeans reply that
the average European tariff
is S.8 per cent and the aver
age American tariff 7.1 per
cent, and that a no "balance.
U.S. statisticians disagree and
say the gap is much less.
Community grain prices are
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CENTER OF STAGE-The United States ain (black), which the U.S. had expected
and the European Common Market will to be a Common Market member by now.
occupy the center of the stage when trade In bottom picture, French farmers begin
ministers from 33 nations meet in Geneva their harvesting. In tariff bargaining,
May 16 to discuss free world tariff reduc- France is expected to contend that its
tions. Newsmap shows the six Common farmers needs protection from competition
Market countries (shaded) and Great Brit- with mechanized U.S. farms. (UP1)
the key to the farm policy.
The German farmers get
high government subsidies on
grain and want them kept
high. French farmers get low
subsidies and the French
therefore want the grain price
as low as possible. This ar
gument may last a year.
France expects to double
its farm produce within a
decade and become the com
munity breadbasket. It is in
French interest to exclude
American farm produce
which because of Ameri
can efficiency and knowhow
can clear stiff tariffs and
still be marketed on a com
petitive basis in Europe. So
France wants a heavily pro
tectionist agricultural policy.
Helping Europe Out
But the U.S. counters some
of this argument by pointing
out her heavy defense spend
ing is helping turope out eco
nomically, especially in Germany.
The upshot may enable the
United Slates to maintain its
volume of farm trade with
Europe, but Common Market
agricultural chief Sicco Mans
hift has said "The U.S. must
have no illusions that she
can expand this market."
In addition to tariffs, the
Geneva talks will have to go
into other hindrances to trade
expansion. In this category
the Europeans point accusing
ly to the buy American act
first mooted to protect stra
tegical industries.
In return the United States
can rightly point to some un.
busted European trusts, to the
inward looking attitude of
the Common Market and
French moves against increase
in American capital invest
ment in the community.
As to who is hurting most
under present conditions, the
United States can point to
a $2 billion trade deficit last
year, much of it due to ex
ternal aid programs. But the
Common Market countries
bewail a $1.3 billion deficit
due in part to helping out
African nations.
Observers give the talks a
fifty fifty chance of success.
The odds could increase if
the economic upturn now be
ing predicted materializes.
Term Suspended
For Valley Man
George Howard Harper,
route 1, box 84, Jacksonville,
received a one year suspended
sentence to the Oregon State
penitentiary on charges of
non-support when he appear
ed in Jackson county circuit
court last week.
He had pleaded guilty
earlierl Harper was directed
make proper support of his
family, and to follow the pro
bation regulations.
Gareth George Flansburg,
25, route 2, box 24B, Jackson.
ville, was sentenced to two
years In the Oregon State Cor
rectional institution on a
charge of receiving and con
cealing stolen property.
7i
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par
11
ID
with complete confidence at . . .
Jackson County Federal
Savings and Loan Assn.
Homt Office-2 E. Main, Medford Ashlind Brjnch-337 E. Min, Ashland
JO
Research Projects
By Faculty at SOC
Noted in Report
Ashland-Four research prot
ects by Southern Oregon col
lege faculty members have
been described in a report to
the Committee on Studies of
the American Association of
Colleges for Teacher Education.
Dr. Richard H. Byrns, pro
fesssor of English, will pub
lish the results of "A Survey
on Reading Interests in High
School," a project concerned
with materials and methods
relative to the teaching of
literature in the junior and
senior years in high school
and the freshman year in col
lege. "Sclf-motivaled Speech Im
provement Lessons for Chil
dren" is the topic of a re
search by Dr. Leon Mulling,
head of the speech and thea
ter arts department. The study
is aimed toward a new con
cept in providing for the
child, pnrent, and teacher ma
terials that will carry over
naturally into the home and
will promote improvement of
speech problems.
Third Project Noted
A third project utilizing 240
students split into two equated
groups, is "A Pilot Study In
the Effects of Frequency of
Writing Upon the Improve
ment of Writing."
One group has written a
theme a week throughout the
year. The other group has
written a theme a month dur
ing the same period. Both
groups will be retcstcd on the
STEP (Sequential Tests of
Educational Progress) eassay
test at the end of the year.
Involved in the writing
study are Dr. Arthur Kreis
man, director of general
studies and chairman of the
humanities division; Dr. Rich
ard Byrns, professor of Eng
lish; and Dr. Donald Moore,
associate professor of English
and education.
Dr. Krcisman also has initi
ated a research questionnaire
to 300 freshman students ask
ing specific reasons for en
rolling at SOC, the date at
which the decision wns made,
persons influencing that deci
sion, and the academic pro
gram which the student
planned to follow at the college.
Sales Tax Proposal
Reviewed by Cof C
Governmental Group
The sales tax proposition,
recently tabled by the Ore
gon legislature, was described
as the "one tax that could
have saved the day for Ore
gon," when Clarence Young,
vice president-manager of the
Rogue Valley branch of the
Oregon Bank, spoke before
the government operations
committee of the Medford
Chamber of Commerce.
Reviewing in detail the ac
tions of the Oregon legisla
ture in seeking answers to
current tax problems, Young
said the House had passed on
to the Senate a heterogenous
number of bills designed to
meet state expenses.
In his opinion, he repeated,
It would have been much bet
ter to have settled on the
sales tax.
Recommend Strong Stand
Hpralri T.ntham. husiness
manager of the Mail Tribune, I
recommended that the cham-1
ber of commerce take a strong
stand "even at this late date"
in favor of the sales tax, a
proposition which could be
submitted to the people in
next May's primary or the
general election.
He moved that the com
mittee go on record favoring
a sales tax as an off-set and
relief on property and income
taxes and to obtain the need
ed 15 to 20 per cent increase
in tax money. The commit
tee approved the recommend
ation with unanimous vote.
Latham also proposed two
other actions by the commit
tee, which received unani
mous approval. First, he ask
ed that the local committee
forward to the University of
Oregon a criticism of the
student team from the uni
versity which visted Medford
recently presenting a taxation
form before the chamber's
roundtable.
Those in attendance, it was
pointed out by Latham, felt
that the students had not giv
en adequate research to the
subject.
Favor Modest Fee
In a second action; Latham
asked that the committee go
on record favoring a modest
use-fee on the newly develop
ing recreational areas of the
county. The county, he said,
will be "hard pressed to meet
all the financial require
ments for proper develop
ment of the areas related to
the Talent and Rogue Basin
projects.
A small fee per family or
per car, Latham said, would
make possible more rapid de
velopment of present areas
and would make possible the
development of other areas at
an earlier date.
Col. W. H. Paine, an hon
orary member of the Medford
Chamber of Commerce, in
which he has been active
since 1821, was honored at
the close of the meeting with
a birthday cake in celebration
of his 83rd birthday. -
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RECEIVES SCHOLARSHIP
Eugene - Philip Sherburne
of Rainier, won the Maurice
Harold Hunter Scholarship
Saturday night at the Uni
versity of Oregon during
award ceremonies at the All
Campus Sing.
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