Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-03-11
By DARDEN CHAMBLISS
Associated Press Staff Writer

Associated Press staff Writer
NEW YORK. The nations of
Western Europe, dropping the bar
riers to commerce among them
selves while building a wall
against outsiders, present Amer
lea with an agonizing challenge.
American reaction varies from
gloom to glee.
One industrialist terms the
growth OF the European Economic
Communicative Common Mar
ket--"the most serious single eco
nomic threat ever faced by our
country"
To spurn its challenges, says
Thomas Watson, jr., head of In
ternational Business Machines,
could be turning our backs on
the future"
America can't fight it ex-
clusively with tariffs, says Ray r.
Expert of Burroughs Corp, be-
cause fencing out imports merely
fences in exports"
America must, says Houston
(Tex0 Banker George F. Ebanks,
"face the fact 300 million Euro
peans no longer depend on U.S."
And, says Houston tool execu-
tive John F. Maher, no innova-
ton has ever come about without
hurting someone. That fact, too,
we will have to face.
Meeting the Challenge
Hand in hand with these ex-
pressions of urgency and concern
are predictions of a glowing fu-
ture, If the challenge is met.
Says Charles w. Englehard,
Newark IN. j. industrialist, Our
standard of living and our rate
of economic expansion should i'm
prove. Consumers will have even
a wider variety of products.
The burdens and Illustrations
are far outweighed by the pros
pect Of a more prosperous United
States and a unified free world"
This mixture Of menace and
promise arises from an agreement
in Rome in 1857 among West
Germany, France, Italy, Belgium,
the Netherlands and Luxembourg
to unite in trade.
They set up a 12-year timetable
for looping away all their in
ternal tariffs. They have already
beat their own schedule with cuts
amounting to about 40 per cent.
England has petitioned to join
them. Sweden, Denmark, Norway,
Switzerland, Austria, Spain and
Portugal are expected to follow,
seeking member or associate
status.
In 1860 this combination of IS
nations had 270 million people
Tvs. Americas 1873 million), a ma
tional product totaling $192 bill
lion Tvs. Americas $500 billion.
It's industrial growth of plus 5
per cent is twice ours.
AS their internal tariffs drop,
their mutual tariff against out
side nations is, in effect, rising.
The external tariffs of each mem
Der are being averaged over the
IL years to create a uniform COM
mon barrier.
Toriff Reductions
One way open to the United
States is to try for reciprocal
tariff reduction.
United States negotiatorS have
Just completed talks in the Com
mon Market capital, Brussels, pro-
viding cuts reported at about 20
per cent on a long list-still I'M
disclosed-of American tariffs in
exchange for European cuts.
Officials say they can go no
farther without new legislation.
President Kennedy is seeking
congressional authorization to
eliminate some tariffs gradually,
reducing others by half in five
years. And he wants authority to
negotiate across the board rather
than on an item-by- Item basis.
There have been other suggeS-
tons that the only possible reply
to the Common Market is work
ing arrangement with it-even if
1t means the United States be-
comes partner.
But thus far there is no indi-
cation that the Big Six looks
fondly upon the idea.
Many United States industries
have come up with their own in
dividual answers. They are setting
up plants overseas, behind tariff
walls, or making working arrange
mentS with foreign companies.
More than 1000 such subsid-
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