Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-06-08
Europe Has
Trade Plan
LowIond Nations Are
Forming Business
Partnership
Rv EdI ComnheII
By Ed L. Campbell

for themselves as business partners.
They are the citizens of Belgium,
the Netherlands and Luxembourg.
While bigger nations wrangle and
tussle, these little countries are
shaping an economic union which
shrewd observers say may well be a
new world force.
"Benelux" is the handy name
tagged to the combine. More for
mallv it is the Observation-Disclosures
Luxembourg Economic and Customs
Union.
Its aim is to lift foreign trade OF
the three nations to a level none
could reach separately and to lower
their own production costs.
Designed to operate solely in the
economic field, it steers clear OF
political or cultural entanglements.
Started during the war in London
by the three nations governments
in-exile. the union may not be COM
pleted for five or six more years.
London Interested
Then, declares Edmund ]. Jaspar,
Dutch general secretary of a joint
Belgo-Dutch commission mapping
the union, it will prove itself "a
decisive step toward the abolition OF
customs barriers and will appear
consequently as a powerful contrl-
button to a lasting world economic
peace"
In a world ruled by large eco
nomic entities" commented Baron
Hankar, president of the Belgian
Bankers Association, there is no
more room for isolated countries and
isolated economies"
In London, where public officials
and private businessmen watch the
developing scheme with keen IN
terest, an authority said:
Anything which will rationallze
and help trade in Europe will be a
good thing"
The union is planned in three
steps.
Third Phase Biggest
First is the establishment of 8
uniform tariff. This has been
mapped fairly completely. Subject
| to approval by the respective Par
liaments before July i, it will become
effective September l.
Second will be establishment OF
uniform excise and sales taxes
That will be more difficult, but
leaders are optimistic.
Third and biggest will be conclu-
sion of full economic and monetary
union. This is not expected before
1852. But even with the first step
incomplete, the three countries an
ticipated the final move by sending
single common delegation to the
Geneva World Trade Conference
this spring.
There its leader, Max Suetens
Belgian director of foreign trade
was elected president of the confer
ence. Both British and Americans
welcomed 1t.
TT might hit a few exporters,
said one Briton, but we figure any
thing that will benefit those three
countries will raise living standards
and, in the long run, give us busl-
ness"
Starts NEGOTIATIONS
The United States already has
started tariff negotiations with the
Benelux combine and one American
source said any agreements reached
would supersede present treaties.
Belgium and Luxembourg have
had an economic union since 1922
so the present negotiations are actu-
ally only two-sided.
Tough shedding has been encoun-
tered on the question OF uniform
sales and excise taxes. Currencies
of the nations have different values
Dutch wage and price levels are
lower than the Belgian. Internal
trade taxes are calculated on diff
ferent bases. Changes will have te
be cautious to avoid upsetting do
mestic economy.
The final stage, with perhaps q
common currency and surrender
of some sovereignty. will be the most
interesting phase. Here the united
desires of the peoples will be called
upon to override special objections
from pressure groups.
Belgian industrialists are keen te
see the union carried through, with
strongest support coming from
heavy industry. Some medium anc
light manufacturers have expressed
fear Holland would take advantage
of the union to increase its low in
dustrial potential and Belgium
would awake to find the Dutch
dumping In Belgian trade areas.
Farmers Uneasy
| Belgian farmers fear low-cos
Dutch agriculture, especially dair,
products.
/ Mr.. Jaspar of Holland scouts thess
fears and denies the union woule
mean government encroachment or
private enterprise.
| I'VE are of the opinion that pri
vate individuals are better trader
that officials or governments ant
we will always back private efforts,
Mr.. Jaspar said.
/ Likewise he said fears of Belgian
farmers were unfounded.
/ Belgium's Premier, Paul Henri
Spaak, told Parliament that the twt
main advantages of the union woult
be a widening of the interior marke
and the Adjustment of closer re
! lations in every field of econoulii