Evening star., 1948-12-26

two years ago, when 1t was most
vitality needed Lastly, Swiss private
charity, individual and collective,
has made notable contributions to
the distress of other European lands.
When one considers Switzerland's
microscopic size, lack of natural re-
sources, and small population COM
pared to the United States, its et-
forts toward European recovery
stack up very well against ours. 1t
may therefore be reasonably held
that Switzerland's role in Europe's
reconstruction is that Of an able
Junior partner in our own Marshall
Plan enterprise.
Needs No u. S. Funds
1t should, of course, be understood
that Switzerland receives no finan-
cial assistance under the Marshall
Plan. Needing no dollars from us,
it asks for none. Therefore it neither
gets nor expects any direct results
from the plans operation. But in
directly its gains should be note
worthy. The progressive recovery Of
Europe's economy cannot fail to
effect favorably Swiss trade rela-
tions with other European nations.
Short-term effects of American dol
lar aid will be registered in the pro-
portion that we allot dollars to re-
cipient countries for the purchase Of
Swiss products. Certainly, Switzer-
land is deeply Interested in efforts
to put inter- European payments on
multilateral basis. But, in view OF
the fact that the projects now being
discussed under our European Re-
covery Program are contingent upon
dollar aid, Switzerland cannot be
expected, for the time being at
least, to play an active part therein.
AS already seen. Swiss economy
is very closely tied in with Euro
pean, and, indeed, with world trade.
1t stands to reason, therefore, that
Switzerland is interested in seeing
international trade relations follow
system of the greatest possible
freedom. The Swiss government has
made every effort within its power
to contribute its share toward the
realization of this ideal. Swiss
tariffs amount to a protection aver
aging only per cent. Other i'm
port restrictions are maintained
merely to the extent that they are
necessary for the carrying out OF
Swiss trade agreements with the
rest of the world. AS Switzerland
is producing chiefly goods that are
considered "nonessentials" by coun-
tries with ance-of-payment difh-
culties, her trade agreements are
designed to assure the marketing OF
these Swiss products in exchange Tor
needed imported commodities
chiefly foodstuffs and raw materials.
Proportionately as the balance-of-
pavment difficulties Of her trade
partners will be removed and their
currencies become freely convertible,
the existing restrictions WILL be
abolished.
Seek Exports to y. S. !
Perhaps the most desired factor
in Swiss foreign trade calculations
is the growth of its exports with
the United States. Before the war
Germany held first rank among
Swiss trading partners. The virtual
(even If temporary elimination OF
Germany as a trading nation has
put the United States at the top OF
the list, both as source OF supply
for Swiss imports and as market
for Swiss exports. At present swift
zerland is buying from the United
States approximately twice as much
as it sells us, its deficit to us last
year amounting to 673,000,000 francs.
Admitting that Switzerland, as a
heavy importer of foodstuffs and
raw materials, usually runs an ad-
verse trade balance which is paid
for out of invisible" exports such
as earnings from capital investments
abroad, tourism, banking services,
etc, this formidable deficit toward
the United States is abnormal and,
if continued, would be detrimental
to Swiss economic stability. Switzer-
lands interest in expanding its
exports to the United States Is,
therefore, intense.
Asks No Special Favors
To accomplish this, Switzerland
desires no special favors. Swiss
goods have habitually made their
way on their own merits in the
world market. Furthermore, the
principle of free enterprise is Swift
zerlands economic creed, which it
meticulously practices. The initia-
tive in developing Swiss exports to
the United States must come pri-
marily from private trade itself.
All that the authorities can do is
to assist private endeavors and re-
move any obstacles that may arise.
Nevertheless. the success of efforts
to increase Swiss exports to us de-
pends to a considerable degree on.
our tariff policy. The fact is that,
despite concessions made under our
Reciprocal Trade Agreep ~'ts Act,
our tariffs still constitute, 1
that gives to the American
an average protection of 80 pe. 4
ad valorem, as compared with IN Ay
g per cent in Switzerland. The
scaling of our tariff wall for many
Swiss products is, therefore, a for
midable undertaking.
Certainly, the stability and pros
perity of Switzerland is to our own
interest, since its aims, policies and