Evening star., 1962-01-25

cultural products-already goes
to the members and prospective
members Of the EEC. European
manufacturers, however, have
increased their share Of this
rapidly expanding market at a
far greater rate than American
manufacturers. Unless our in
dustry can maintain and in
crease its share of this attrac-
tive market, there will be fur
ther temptation to locate addi-
tional Am eric a n financed
plants in Europe in order to
get behind the external tariff
wall Of the EEC. -.
Our efforts to prevent infla-
tion will be reinforced by ex-
panded trade. Once given a
fair and equal opportunity to
compete in overseas markets,
and once subject to healthy
competition from overseas
manufacturers for our own
markets, American manage
ment and labor will have addi-
tional reason to maintain COM
petitive costs and prices, mod
ernize their plants and increase
their productivity. -.
Our efforts to correct our
adverse balance Of payments
have in recent years roughly
paralleled our ability to increase
our export surplus. It is neces-
sary If we are to maintain our
security programs abroad-our
own military forces overseas
plus our contribution to the
security and growth Of other
free countries-to make sub
stantial dollar outlays abroad.
These outlays are being held to
the minimum necessary, and we
are seeking increased sharing
from our allies. But they will
continue at substantial rates
and this requires us to enlarge
the SIS billion export surplus
which we presently enjoy from
our favorable balance of
trade.
Our efforts to promote the
strength and unity of the West
are thus directly related to the
strength and unity Of Atlantic
trade policies. An expanded
export program Is necessary to
give this Nation both the bal
ance of payments equilibrium
and the economic growth we
need to sustain our share of
Western military security and
economic advance. Equilly i'm
portant, a freer flow of trade
across the Atlantic will enable
the two giant markets on either
side Of the ocean to impart
strength and vigor to each
other, and to combine their
resources and momentum to
undertake the many enterprises
which the security Of free peo-
Piles demands.
1t is time now to write a new
chapter in the evolution of the
Atlantic Community. The sue
cess of our foreign policy de-
pends in large measure upon
the success Of our foreign
trade, and our maintenance of
Western political unity depends
in equally large measure upon
the degree Of Western economic
unity. An integrated Western
Europe, Joined in trading part
nership with the United States,
will further shift the world bal
ance of power to the side of
freedom.
Our efforts to prove the SUI
periority Of free choice will thus
be advanced immeasurably. We
will prove to the world that
we believe in peacefully tear
ing down walls" instead Of ar
bitrarily building them. We will
be opening new vistaS Of choice
and opportunity to the produc-
ers and consumers of the free
world. In answer to those who
say to the worlds poorer coun-
tries that economic progress
and freedom are no longer COM
patible, we-who have long
boasted about the virtues of the
market place and of free COM
petitive enterprise, about our
ability to compete and sell in
any market, and about our
willingness to keep abreast of
the times-will have our great
est opportunity since the Mar
shall Plan to demonstrate the
vitality of free choice:
Communist bloc nations have
negotiated more than 200 trade
agreements in recent years. In
evitably the recipient nation
finds its economy increasingly
dependent upon Soviet goods,
services and technicians. But
many of these nations have also
observed that the economics of
free choice provide far greater
benefits than the economics of
coercion-and the wider we can
make the area of economic
freedom, the easier we make it
for all free peoples to receive
the benefits Of our innovations
and put them into practice.
Our efforts to aid the de-
veloping nations Of the world
and other friends, however,
depend upon more than a
demonstration Of freedoms
vitality and benefits. If their
economies are to expand, if
their new industries are to be
successful, If they are to &C
quire the foreign exchange
funds they will need to replace
our aid efforts, these nations
must find new outlets for their