Evening star., 1961-12-06
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increaSe-not as much as our
exports. but they will increase.
And we need those imports If
other nations are to have the
money to buy our exports and
the incentive to lower their
tariff barriers. We need those
imports to give our consumers
a wider choice of goods at COM
petitive prices. We need those
imports to give our industries
and our defense establishment
the raw materials they require
at prices they can afford-and
to keep a healthy pressure on
our own producers and workers
to improve efficiency, develop
better products, and avoid the
initiation that could price us
out of markets vital to our own
prosperity.
Finally, let me make it clear
that I am not proposing uni
lateral lowering of our trade
barriers. What I am proposing
is joint step on both sides of
the Atlantic. aimed at benefit
ing not only the exporters of
the countries concerned but the
economies of all the countries
Of the free world. Led by the
two great common markets of
the Atlantic. trade barriers in
all the industrial nations must
be brought down. Surely it will
be said that the bold vision
which produced the EEC will
fall short if it merely transfers
European protectionism from
the national to the continental
level.
But if we can obtain from
the Congress. and successfully
use in negotiations. sufficient
bargaining power to lower COM
mon market restrictions against
our goods, every segment of the
American economy will benefit.
There are relatively few men,
bers Of the business community
who do not or could not sell,
transport. distribute or process
either exports or imports. There
are millions of American work.
erS whose Jobs depend on the
sale of our goods abroad-mak-
ing industrial sewing machines.
or trucks, or aircraft parts, or
chemicals. or equipment for oil
fields or mining or construction.
They may process lubricants or
resin, they may dig coal or
plant cotton. In fact. the aver
age American farmer today al
ready depends on foreign mar
kets to sell the crops grown on
one out of every six acres he
plantS-in wheat, cotton, rice
and tobacco. to name but a
few examples. Our consumers.
as mentioned, will benefit most
of all.
But if American industry
cannot increase its sales to the
Common Market, and. increase
this Nations surplus of exports
over imports, our international
payments position and our COM
mitments for the defense of
freedom will be endangered.
If American businessmen cam
not increase or even maintain
their exports to the Common
Market. they will surely step up
their investment in new Ameri-
can-owned plants behind those
tariff walls so they can compete
on an equal basis-thereby TAX
ing capital as well as jobs away
from our own shores, and
worsening still further our bal
ance of payments position.
If American industry cannot
increase its outlets in the Com
mon Market, our own expansion
will be Stifled-the growth tar
'get of so per cent in the '60s.
adopted last month by the 20
nations of DECD for their COM
bined gross national product,
will not be reached-and our
business community will lack
the incentives to lower prices
and improved technology which
greater competition would
otherwise inspire. The indus
tries which would benefit the
most from increased trade are
our most efficient-even though
they pay our highest wages,
their goods can compete with
the goods of any other nation.
Those who would benefit the
least, and are unwilling to ad-
Just to competition, are stand
ing in the way. as the NAM
economic advisory committee
pointed out last year, or greater
growth and a higher standard
of living. They are endanger-
ing the profits and jobs OF
others, our efforts against in
flation, our balance of pay
ments position, and, in the long
run, their own economic we'll
being-for, in order to avoid
exertion, they seem willing to
accept paralysis.
Finally, let me add, if we
cannot increase our sales
abroad, we will diminish our
stature in the free world. Eco
nomic isolation and political
leadership are wholly incom-
patible. The United Kingdom,
faced with even more serious
problems in her efforts to
achieve both higher growth and
a reasonable balance of pay
ments, is moving with bold
ness, welcoming. in the Prime
Minister'S words, "the brisk
shower of competition" We
cannot do less. For if the ma
tions of the West can weld to-
gether on these problems a
common program of action as
extraordinary in economic his
troy as NATO was unprecedent-
ed in military history, the long
range Communist aim of di-
viding and encircling us all is
doomed to failure.
In every sense of the word,
therefore. capitalism is on trial