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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (May 22, 1963)
Hdns May 22, 19M p, 7.C Horald & Nun Klamath Falii 35 Nations Talk Trade In Geneva BRUSSELS UJPIi Trade ministers from 35 nations gather in Geneva starting May IS to dis cuss plans for giving 'free world trade its biggest bo-ret since the Marshall Plan which saved Eu rope in the 1940s. But the boost could turn out to be a bust if mutual accusations of "protectionism" by the United States and the Common Market are carried to the conference table. Nobody can predict accurately the outcome as ministers from the United States. Britain. Latin America. Asia and Africa con verge on the lakeside Swiss con ference center. The center of the stage will be occupied by the United Slates and that giant economic newcomer1 tile Common Market. On Equal Terms The six Common Market coun tries, combining 170 million indi tnalized people, are now the greatest single trading bloc out side Russia and the United States. I Since they got together under the Treaty of Rome in 1958, r ranee, Germany, Italy and the tnree Benelux countries 'Belgium. The Netherlands and Luxem bourg 1 can talk on equal econom ic terms with anybody in the world. . The United-States may find this out at Geneva where, for the first time since the war, Ameri ca is in the position of having to ask as much as she is giving be cause of her deficit in balance of payments. Sparks New Talks j What is bringing all these na tions together is the American Trade Expansion Act signed by President Kennedy on Oct. 11, 12. It was drawn up in the be lief Britain would have become by now a member of the Common Market. But it is still valid de spite the French veto of British membership in January this year. In approving the act Congress authorized the President to cut tariffs on a reciprocal basis up to 50 per cent on all industrial i; and agricultural goods. Kennedy also is authorized to eliminate tariffs on goods of which more than Ito per cent are im ported by one trading bine. 'He also can abolish tariffs of five per cent or less. Exceptions one is petroleum - amount only to six tenths. oLone per cent of U.S. imports. Situation Different What the United States may. run up against in Geneva is a European feeling that Americans need the tariff cuts more than the Common Market does. The Euro peans have been in a booming economic period since IB58. Some member countries, espe cially France, also feel the Com mon Market should first consoli date itself before it starts nego tiating with "outside" 'powers. As the British found nut, 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 ltiiiti. France has said she will not discuss anything until the Com mon Market's own farm policy is decided probably not before IfW. 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