Complacency Regarding Market Unity Born of De Gaulle Rebuf
By WILLIAM ANDERSON'
United Press International
BRUSSELS (UPI) - Some of
the urgency has gone out of the
drive of the Common Market na
tions to cap their economic part
nership with full political unity.
Such unity remains a major
goal and some of its proponents
are still urging haste, but where
a year or so ago it was being
pushed hard on all Common
Market fronts there is today
more of a "no need to rush" at
titude. This complacency, born of full
employment, high wages and in
creasing standards of living, has
been increased by French Pres
ident Charles de Gaulle's re
fusal to allow Britain into the
European Common Market.
British membership now seems
unlikely in the general's life
time and many "Europeans"
thus robbed of an immediate
target have lost the fiery en
thusiasm for political entity that
was evident before the rebuff
to Britain last January.
Politicians are becoming more
reluctant to suggest that the
drastic legislation needed to
unite the continent be rushed
through. Their national electo-
raies, oeuer oil man at any
time in history, are less willing I
to experiment with their well-!
oeing.
Makes Big Studies
Economic integration, mean
time, is marching ahead with
giant strides but not without
dangers. There is growing evi
dence that the continent's two!
economic blocs represented bv :
the six countries of the Com
mon Market France, West
Germany, Italy, Belgium, Hol
land and Luxembourg and
the seven countries of the Eu
ropean Free Trade association
(EFTA) may be drifting apart.
The EFTA countries Brit
ain, Sweden, Norway, Denmark,
Austria, Switzerland and Portu
gal were on the point of dis
mantling their trade agreement
when it seemed Britain would
join the Common Market.
But since the De Gaulle veto
of British entry the EFTA coun
tries have shoved up their or
ganization to meet the competi
tion of the bustling Common
Market.
tuiT
TRADE ASSOCIATION ffesaj
MARKET MEMBERS MAI'I'EU-This newsmap designates
which countries are European Common Market countries and
which are European Free Trade Association members. (UPI)
Both trading blocs are pros
perous but EFTA countries ex
ported twice as much per cap
ita last year as did cither the
Common Market or the United
States. The combined exports of
seven nations totalled over $38
billion.
Cuts Tarrif, Too
EFTA also is matching t h e
Common Market in tariff cuts
among members, and tariffs on
industrial exchanges have been
cut by 50 per cent by both
groups.
EFTA's members like to point
up their organization has man
aged its business with s secre
tariat of some 40 people com
pared to the 3,000 "Eurocrats"
working (or the Common Mar
ket. The comparison is not real
ly valid. EFTA does not touch
on agricultural exchanges, has
no political program and no
supra - national authority as
does the Common Market.
Recently a group of parlia
mentarians from EFTA met in
to discuss their world image.
Some right - wing legislators
went so far as to suggest that
EFTA should set up a rival
common market among mem
ber nations. This would have
meant extending tariff cuts to
farm produce, setting up politi
cal aims, and establishing an
over - all directing authority.
This extreme idea got little sup
port but it did spark a motion
that EFTA should publicize it
self more.
The essential difference be
tween EFTA and the Common
Market is one of sovereignty.
Follow Orders
In the Common Market t h e
six members are merged eco
nomically and they all must fol
low the directives of the mar
ket's authority. In trade negoia
tions. they bargain as one.
EFTA's members, on the oth
er hand, are seven sovereign
nations who have surrendered
none of their independence but
simply have gotten together to
ease trade barriers among
themselves. All trade problems
are handled on a nation to na
tion basis. Politically, as well,
EFTA's members are complete
ly independent and in the pres
ent grouping could hardly be
otherwise with, for example,
such different regimes as Swe
den and Portugal.
Majority opinion in EFTA pre
fers "la difference" but at the
Strasbourg meeting the paiiie
mentarians did nevertheless dis
cuss increased contacts with the
Common Market. The discussion
was extended some time later
by the EFTA representatives to
talks with Common Market officials.
The sole result of the EFTA
Common Market talks was a
vague motion that contacts
should be continued via the
Council of Europe. This idea is
not likely to be efficient as the
council is only a consultative
body. Portugal, an EFTA mem
ber, is not a council member;
neither is Finland which is an
associate member of EFTA.
The only real bridge is a quar
terly meeting between the six
Common Market countries and
Britain within the framework of
the Western European Union.
This excludes the other s i x
EFTA members, however.
Chicken War
The Common Market too, is
flexing its economic muscle. Its
SECTION C PAGES 1 to 12
MedfordTribune
MEDFORD. OREGON. THURSDAY. OCTOBER 17, 1963
foreign ministers recently re
cently refused to bow to t h e
United States in a wrangle over
imports of American chickens in
what has become known as "the
chicken war." The amount in
volved was only $46 million a
year but the ministers refused
to lower their tariffs sufficient
ly to allow the Americans to re
tain a market they formerly
dominated. This may be a point-
11 x i. us 1 ill I i j jj
CITATION PRESENTED Bernard Baruch presents the Presi
dent's Citation to Mrs. Charles Shipman Payson at the People-to-People
Sports Committee's sixth annual "Dinner of Cham
pions" in New York. Mrs. Payson, vice president and director
of the New York Mets baseball team and co-owner of Green
tree Stables, is the first woman ever honored at the event.
The program was started seven years ago by former President
Dwight Eisenhower to further international sports exchanges.
(UPI)
er to the attitude towards Amer
ica's St. 2 billion a vear farm
exports to Europe.
Extending itself to Africa, the
market has associated 18
French - speaking countries on
that continent in an economic
convention. Greece and Turkey
have also hurried into associa
tion. Iran has initialled a trade
agreement for agricultural pro
duce. Russia, too, is seeking tariff
concessions from the "six" to
increase her cash sales of cavi
ar, crabmeat and vodka over
Europe's bustling shop counters.
EFTA countries and especial
ly Britain are suspiciously
watching Common Market over
tures to the English speaking
nations of Africa hitherto an
almost exclusive British mar
ket. Already preliminary talks are
under way with African giant
Nigeria with a view to drawing
up a trade agreement giving
Nigerian cocoa, vegetable oils
and tropical timber greater ac
cess to the "six."
Fear Economic Split
All these moves worry the
"Europeans" in EFTA and the
Common Market. They fear
that they herald a permanent
split between the two economic
blocs. The blocs may develop
along different economic lines
if there is no contact or coordi
nation. This would make politi
cal unity more difficult at a
later date.
The "Europeans," who in
clude Frank Figgures, secre
tary -general of EFTA, and
Walter Hallstein, the Common
Market's chief executive, there
fore put great hopes on t h e
forthcoming "Kennedy round"
of tariff negotiations. These ne
gotiations are due to open in
Geneva in May, 1964. They will
be the biggest trade talks in the
history of the world.
It is hoped that cuts of up to
SO per cent in industrial and
agricultural tariffs will be ne
gotiated at this conference on
all goods passing between the
50 nations which subscribed to
the general agreement on trade
and tariffs (GATT).
France Included
Franco has been cool to these
negotiations but is being car
ried along by the other five
Common Market partners into
what will certainly be some
tough bargaining. But if the
"Kennedy round" is successful
it may help break down the
tendency of the Common Mar
ket and EFTA to settle down
in different trading patterns.
The "Kennedy round" is nam
ed after President Kennedy who
proposed the negotiations after
Congress gave him powers un
der the trade expansion act to
negotiate on modification of U.S.
tarrifs.
The "Europeans" hope ths
"Kennedy round" by boost
ing trade with the West will
remove fears of trade wars and
settle economic questions long
enough to start anew on the
problem of political integration.
Just how this is to be accom
plished is vague at this stage.
Recently Professor Hallstein
warned if Europe "wants to play
its part on the stage of world
politics it must unite political
ly." And he said that only a
united Europe would be able to
accept President Kennedy's of
fer of Atlantic partnership.
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