Evening star., 1947-12-28

Inc 1mmeQlaCe praCllCAl eIleCt .
may not be great. What 1t does
is to eliminate tariffs on goods of
Benelux origin moving from one
Benelux country to another, and to
put into effect a common tariff on
imports from other countries.
Already, the Benelux initiative
has started the 16 Western Euro
pean Marshall plan" nations talk
ing about a general customs union
to wipe out some of the barriers to
the exchange of goods among them
selves.
Goes to Heart of Trouble
Such action goes to the heart OF
one of Europes fundamental eco
nomic troubles which has aggra-
vated emergency difficulties STEM
ming from the war.
A volume of background infor-
nation submitted to Congress by
the State Department for use in
considering legislation to carry out
the Marshall plan for European re-
covery puts this phase Of the prob
lem this way:
I'm the period between the two
World Wars, policies Of economic
nationalism were followed increas-
ingly by the nations of the world
and especially in Europe. The build
ing up of tight economic compart-
ments did violence to the natural
economic interdependence of the
Western European countries, which
can function best in a world in
which trade moves comparatively
freely without reference to national
boundaries"
The State Department document
adds, that to make the Marshall
plan succeed, prompt and decisive
measures will be necessary to
achieve a freer movement of goods
among the participating countries.
This is matter which lies at the
heart of European CO : operative
help"
Agreement to cooperate to reduce
tariffs and other barriers to the eX-
pansion of trade between them
selves and with the rest of the world
was one of the basic undertakings
pledged by 16 Western European
nations in the program they worked
out at Paris last summer.
Steps Already Taken
A step toward carrying this out
was taken in November when the
Benelux countries acted as sponsors
for a group meeting in Brussels to
study the preparation of European
customs union. Another meeting
is scheduled this month.
The Benelux idea developed dur
ing the war. While In exile in
London, the governments of Bel
gium, Holland and Luxembourg
began planning for economic CO.
operation after the war. They con-
cluded a customs union agreement
September s, 1914. 1t was to go
into effect Immediately after liberia
ton, but was delayed because of
many factors, among them the
scaracity of all commodities which
necessitated a temporary suspen-
sion Of import duties.
Clarified through subsequent
negotiations, this agreement goes
into effect January 1. The COM
non tariff, worked out during
of negotiation. for ap-
plication to Benelux imports,
a compromise approx
mately halfway between the previ-
ously higher Belgian and lower
Netherlands duties. While no ordi-
nary tariff will be assessed by one
of the Benelux countries against
commodities originating in one OF
the others, customs borders will re-
main, with some excise taxes COL
lectable.
The Belgian Senate's Committee
for Foreign Affairs, in reporting the
agreement for ratification last July,
asserted:
This is a measure Of great i'm
portance, direct consequences Of
which will be many, but the SYM
bolic significance of which is even
greater. -
"In effect this agreement Is only
the first step along the road which
should lead some day to economic
union"
Uniform Taxation Next
The next step contemplated by
the three governments, the Belgian
committee pointed out, is unifica-
tion of provisions as regards excise
and sales taxes. Gradual co-ordina-
ton Of regulations Of all kinds
applying restrictions to interna-
tional trade is planned. Already, the
three countries have set up Coun-
Gil for Economic Union to prepare
Dss ~ Dr