What’ s ai the current debate
about E.C.M., and what ‘does it mean
to Canada? Following are parts of an
article that recently appeared in the

United Electrical

Union’s Research

Bulletin, which throws some light on

this issue.

EST Germany, as one
might expect of the
_ Strongest economic unit, domi-
nates the Common Market.
The postwar economic as-
cendancy of West Germany in
the 1950’s has been very rapid,
_based on copious infusions of
U.S. capital and “aid” in the
late 1940’s.
Result — West Germany’s
share of total capitalist world
- trade surpassed that of Britain
fin 1959; of Western European
. trade in 1952; of Latin Ameri-
ean trade in 1953.

In recent years, West Ger-
: man capital has been exported
On an increasing scale, first
_ through the international fin-
—ancial organizations domina-
_ted by the United States, and
“in the past year independently.
_ The Common Market set-up,
’ therefore, has worked out very
well for West Germany.
' The plans of EEC towards
further integration and expan-
sion will obviously further
 West.Germany’s interests most.
In this situation, it is easy
_ to see that Britain is far along
__. the road to losing its old dom-
- ination of. Europe through
playing off France and Ger-
many against each other.
France and Germany are
- now together in the Common
_ Market, with the latter assum-
ing a more and more domin-
ating position.
_ Similarly, it can also be ap-
- preciated why the United
States is not at all averse to
having Britain join the EEC,
thereby counter - balancing
~~ somewhat the position of West
* Germany.
'BRITAIN’S POSITION
Evidently. the time has come.
when Britain
afford to keep out of the Com-
mon Market any longer.
- From 1949 to 1960, West
- Germany’s share of West Euro-
pean trade. (imports of the

simply cannot)’

other West European coun-
tries) has risen from 11 per
cent to 24 per cent. In the
same period; Britain’s share
has fallen from 20 per cent to
12 per cent.

As a result of the acceler-
ated lowering of tariff bar-
rieres inside the Common
Market and their adjustment
of external tariffs, it has be-
come increasingly difficult for
British goods to penetrate.

The growing political coop-

eration of the EEC countries,|

with increasing West German
domination, accentuates Brit-
ain’s problems.

Britain’s chronic trade defi-
cit is becoming unmanageably
large again.

' Evidently Britain expects to
take most of EFTA-along into
EEC, thereby adding weight to
Britain’s position.

Arising out of joining EEC,
the hopes on which Britain ‘is
gambling appear to be three:

(1) That imports from Cana-}

da will fall drastically, that
exports to EEC will rise
enough to offset the additional
EEC imports needed to replace
former Canadian goods, there-
by easing the balance of inter-
national payments problem.

(2) That from inside EEC
Britain will be better able to
counter the growing power of
West Germany and the West
German-French axis that is de-
veloping.

(3) That it may be possible
to gain leadership of an Euro-
pean bloc closely tied to Africa
and dominating the latter.

Will the gamble pay off?

We doubt it; but there is no
doubt that Canadian exports
will be hurt in the process.

So will those of Australia,

New Zealand, Ghana and In-|:

iat.
CANADA‘S PROSPECTS

What happens to our trade| ‘

with Britain when she joins

the Common Market?

The guess is that we stand
to lose at least half of the bil-
lion-dollar export total of last
year.

The reason is that we would
lose the preference under the
British import tariffs.

The manufactured goods we
now export to Britain will
probably be kept entirely out
of the Common Market when
their external tariff wall is
finally settled.

What is the solution? Al-
ready there are several dubi-
ous brands being pushed.

All the Progressive Conser-
vatives have to offer is to try
to hold Britain back from join-
ing EEC and to demand con-
cessions if she does. This dog-
in-the-manger stand is futile.

The Liberals argue that Ca-
nada should be pressing for
some kind of attachment to
the Common Market as a pre-
lude to membership in a big-
ger “Atlantic” trading area.

Haven’t we had enough ex-

a, Britain and the Common Mark

perience already to teach us
that integration in economic
blocs with much stronger pow-
ers simply lets them walk all
over us?

The Canadian Exporters’ As-
sociation wants “Canada’s
close association or integration
with some group or groupings,
which would entail a substan-
tiol modification of Canada’s
existing external trading ar-
rangements.”

Integration with what group,
they do not specify. Maybe
they had in mind the South
American Common Market be-
ing promoted by the United
| States.

Neil McElroy, chairman of
the Procter and Gamble Co.
and former U.S. Secretary of
Defense, told) the Toronto
Board of Trade that Canada
and the United States should
operate within a North Ameri-
ca Common Market.

Now which country would
benefit. most from that deal?

Nuff said.

MACMILLAN’S DILEMMA

‘plus with Britain due to shi
-of exports.

‘| ly supplied by others obscu

We believe the solution
exactly in the opposite d
tion from these proposals.

We must do something 4
the import side of our bi
dollar trade deficit and
loss of half a billion trade

Canada’s trade policy
not be more “integrated
more independent.

We must be flexible
seek out trade wherever it
be promoted to mutual adi
tage of both sides. :

There are increasing se
of the world trade where.
is possible — the emer
countries, those now thro\
off colonial domination, the |
cialist countries.

We must be willing to tra‘
on any, basis that is mutua
satisfactory—barter, long-te
credits, reciprocal balanci®
dealing in each other’s cur
‘cies, etc,

We must be willing to
a hand to new (and old)
tries less fortunately situ
than we are with industri
and resources to help them
started.

We must gradually re-o
our trade policy towards. ©
porting in order to get the
ported goods we need. Exp?
in themselves don’t do the
ple of a country any good
it’s what they get for the ©
ports in real terms that cou?

An export surplus that 5!
ply. creates an increase in-
vestments abroad for s0
group is no benefit to the
ple.

It’s high time we got sial
ed on a sensible trade 3
gram.

The world has been oi
ing around us for years,
the temporary boost to our §
ports resulting ‘from warti?
destruction and the opport
ity to get. into markets norm

the real situatioin.

May the blow being dé?
our export trade. by the ©
panding Common Market pri
us to sensible policies desig?
to benefit the Canadian P'
ple, and not more “integ
tion® designed to benefit

monopolies.

GDR

By M. BADER

“| T is now sixteen years since

the weapons of the second
world war were silenced,” says
an East German writer. “But,” |
he continues, ‘Germany still
has no peace treaty. Failure to
conclude a peace treaty and
the consequent undecided sit-
uation can be misused to make
‘preparation for an nuclear in-
ferno—for world war three.”

Up to now, the Western Pow-
ers not only have rejected the

“proposals made by the Soviet

Union and the German. Demo-
cratic Republic, but have come
out openly with wartime
-speeches whipped up into a
whirlwind of hysteria against
those peaceable powers; in

‘fact, against the entire Social-
-ist camp.

-- "Phe imperialists call the pro-
~posed peace treaty a threat. If
. threat there is, obviously it

comes from the imperialist
wers; particularly from the

“newly-organized West German

Army, which is commanded by
- Hitler generals. Moreover, the

is a workers, peace-loving

German Army already is the
biggest military force of all the
NATO powers in Europe.

_ The plans of the Bonn Gov- |
ernment are well known. They
are aimed at creating condi-
tions that would allow an open
attack against the German
Democratic Republic; to’ first
provoke civil war and then
open military provocations.
Such provocation has been in
the making already: First, the
tremendous lie propaganda:

hunger in the GDR; “immin-.
ent collapse” of the East Ger-
man ‘regime; the “mass exodus
of East Germans westward: to
freedom.” This ’ provocation
has*been organized by “‘intel-
ligence”- elements of West
Germany, U.S.A., Britain and
France. The espionage activity,
diversionism, against: the.GDR,

conducted from West Berlin,
has been going on for years. It
was and_ still. is a constant

‘threat to peace.

uring August 1961, howev-
ever, the GDR dealt a
serious blow to the provaca-

This article was written by
M. Bader of Toronto who is ac-
tive in the Canadian-German
community. He is well-inform-
ed on the situation in both

Germanys and has travelled

widely in East Germany.

'teurs, in the name of the work-

ing people and the cause of
peace. It was thanks to the sons
and daughters of the working
people in uniform, supported
by the péople’s police, that
swift and decisive measures
were successfully carried out.
The provocateurs were thor-
oughly frustrated.

Walter Ulbricht, chairman of
the Council of the GDR, said
in his speech on August. 18:
“The militarists made an em-
barassing mistake; - they. con-
fused patience with weakness.”

The German. Democratic Re-
public is a workers. and peas-
ants’ state, a peace state, Not.
much has been heard about it.
If we hear anything it is sel-

jeal high standing. In general

miracle” to be found today: Is

dom the ee The GDR is

is'Gone is the chauvinistic, mili-

usually pictured as a dark.
downtrodden country! the peo-
ple are not free. At the same

time West Germany had all the |'

raw materials and refused to
send any to the Russian zone.
Yet, today, the industrial pro-
duction of the GDR is three
times greater. than it was in
1936 in this same territory! In
the ~ chemical industry alone
production per capita is now
second in the’ world. In all its
industrial branches the per ca-
pita is now second in the world.
In all its industrial branches
the GDR today has an economy
that is modern and of techni-

Production the GDR now
stands in fifth place. '

_ So where is the “economic

it not in the German Democra-
tic Republic?

But the most amazing devel-
opment is in the people them-
selves. Everything they do is
based on peace, mutual under-
stan ding and brotherhood.

~The working class

November 3, 1961—PACI

state

tary-philistine philosophy
Nietche and Spengler. 2

t is in the GDR that, for #3

first time, German peo
and the youth especially, |
ternize with the African
Asian people; indeed, with
the peoples of the world.
have opened the doors of
universities to the youth of #
undeveloped countries, W
may thereby acquire h
education, and at no cost W
ever to’ theffselvest
in
GDR, united ‘with the pe
ry and intelligentsia, is m
ing onward with enthusias™ ©
ward full socialist vict
They have paid a high DP
for their freedom from
mark’s anti-socialist law,
through decades of anti-im
ialist struggle until their li!
ation from Hitler’s catastroP”
ic war.

All peoples of goodwi
the world will reject the
perialist aims for another W°
war and will demand: “No We
over Berlin!” |

Mid

BUN