EUROPE’S TRADE MUST GROW INTERNALLY

Grey River Argus, 1 September 1948, Page 5

EUROPE’S TRADE MUST GROW INTERNALLY

Or U.S.A. Aid Cannot . Be Done Without U.N.O, Commission’s Findings Given [N.Z.P.A. —Reuter Cable]. (Received August 31, 9.35 p.m.) GENEVA, August 31. The United Nations Economic Commission for Europe, in a ten thousand-word survey, says: Trade between the East and West Europe must increase to nearly five times the present level for Europe to gain independence of United' States aid by the year 1952. If the Marshall Plan is to succeed, Western Europe must import at least 750 millions sterling worth of food and raw materials each year from; Eastern Europe as compared with 175 millions sterling worth during the year 1947. The report says: “These imports must be paid for in machinery and in other capital goods that are needed by Eastern Europe, and the imports must be backed by short and longterm credits.” The report was drawn up on the unanimous decision of all of the twenty-seven nations of the Commission, including the Soviet, Britain and the United States. It made concrete proposals to break down the trade barriers between the East >and the West of Europe. These proposals are contained in detailed suggestions for Western co-operation in developing, on a short-term basis, Eastern Europe’s agricultural, timber, coal and other raw material output, and, on a longer view, her transport output of electric power’ and steel, and the better utilisation of the full resources of the Danube Basin. These increases in Eastern European efficiency provided Western Europe’s only hope of becoming independent of extraordinary aid from the United States. The report added that the West European co-operation should take the form of, (1) trading arrangements to produce maximum imports into Eastern Europe from more 'advanced countries, both as regards equipment and technical information, including, perhaps, the assistance of skilled technicians; and (2) the provision of credits. The report referred only indirectly to the Soviet, and it made only one or two technical suggestions for an • '-’■ease in Russian trade with Europe. The report said that the crisis is facing West Europe, arising from a huge trade deficit. This could only be overcome, without a. sharp fall in living standards, if Europe’s industrial prduction were to be increased far above the pre-war levels and if nondollar sources were found for a large part of West European imports. East Europe’s main problem, it said, was how to increase' its capital equipment and its industrial techniques. The population pressure in most of the East European countries rendered acute the need for a greater utilisation of their resources. The excess in their farm populations was already causing the land resources to deteriorate.