Evening star., 1950-06-08
j. 5. Domestic Policy
Completely Altered
By International Steps
Fronco-Germon Proposal
For Steel CorteI Sure to
Hit American Exports
By Davfd Laurence

Dolicy Of the United States Is nova
lays completely altered by steps
AIKEN in international policy.
Thus for the last two years the
left wing" has been insisting that
here were not enough steel plants
n America. There have been
hreats by President Truman of
Government Intervention with
funds and subsidies unless the
teel industry increased its facili-
les.
p Now all this is changed. With
reat enthusiasm the United States
government has embraced the
Franco-G German proposal for a
Iteel cartel. Analysis of the way
his will operate brings out the
act that Europe will in the not
ar-distant future be exporting
Iteel on a competitive basis with
American producers and will seek
markets in Europe, the Far East,
ndia and Latin America, where
vt present American steel is sold.
Naturalization" Checked.
When the amounts of steel being
Exported are sharply cut because
If the Franco-German produc-
don, the American steel industry
will be very anxious to find in the
domestic market the outlet for
irtually its complete production.
I by some turn of events there
d. s a diminution in the present size
VI the armament program, steel
will have a substantial surplus and
production will naturally taper off
% balance the foreseeable de-
nand.
, It is because American producers
nowadays can sell all the steel
hey can produce that some of
hem do not offer any objection
o the Franco-German cartel's
, uture competition. The one sat-
. sfaction steel men are getting is
. n realizing that the cleft wing"
rive to expand steel facilities in
his country now will run its course
md that the next crusade to bring
naturalization" Of the steel in
, lustry will thereby be automat-
cally checked.
Incidentally. as the British posi-
= don in the Franco-German cartel
S analyzed, it is expected that the
! British will enter the arrangement
inally but not until they have
,. 'xacted the right Of veto over
teel ALLEGATIONS. Actually this
4. light stems from the technical
2 wording Of the allied occupation
tatute. The British are saying
'ublicly that they are for the
. Ilan "in principle" and want to
Examine the details" In the
details" as finally worked out,
, will be the right Of the British
have voice in whatever ex-
|ort ALLEGATION plan is evolved.
Britain Can't Swallow Plan.
The British steel industry Is
bout to be "nationalized" and,
.1nder complete government con-
rol, cannot long survive against
he competition Of the low-cost
Franco German producers. The
Efficiency of the continental pro-
lucers is higher. labor costs are
ess, and raw materials are cheap
r than in Britain. Also the Ger
mans work So hours a week, the
belgians So hours, and the French
10 hours, while the British work
10 hours-all these figures being
n what is known as straight
tme" before any overtime rates
!pply. Since direct labor is 35
o 40 per cent Of the ultimate pro-
luction cost, the British can't
wallow the French-German car
el plan without serious study and
ome concessions to meet their
ituation.
The United States Government
g 100 per cent for the cartel even
hough it does set up a super
authority to supervise a private
industry, doing. in effect, what
he Nazis and the Italian FaScistS
lid with their industrial cartels.
Il is all part of the so-called "eco-
atomic integration" of TODAY which
ieems to recognize monopolies and
flives them governmental and even
International sanction.
50 Politically the move is all-im-
portant in signifying Franco
German unity. But the old-time
Nazis in Germany and the Fascist
businessmen Of Italy must be
milling to themselves at the
:, resurrection of their mode Of con-
rolling industrial production.