22 AUGUST 1947, Page 2

European Customs Union ?

The difficulties in the way of a European customs union are very great. The speeches made by the delegates at the Paris economic conference, including Sir Oliver Franks for the British, demonstrate that beyond question. But that does not alter the fact that, if inter- national collaboration means anything, the difficulties will have in the long run to be overcome. Progress towards political unity in Europe at present suffers from so many handicaps that every possible aid must be given to strengthening of economic ties, and the removal of customs barriers is an obvious prerequisite of closer association. But although it takes its place in a long-term plan it must not be assumed that a customs union is an essential part of the agreement necessary to provide a European contribution to the Marshall Plan. In the first place, quantitative restrictions on trade are far more effec- tive at the moment than customs barriers, besides being of much greater importance in the American view. In the second place the complete working out of a customs union would, as Sir Oliver Franks points out, take years, whereas the work of the Paris con- ference must be completed in a matter of weeks. Nevertheless it is a legitimate aim, and the British and French delegations have recog- nised it as such. Belgium, Holland and Luxembourg have gone further and formed their own Benelux customs union and the

countries of Scandinavia may follow suit. There is no reason why the progress which began with an Italian suggestion at the conference, and is to be continued by a specially appointed study group, should ever be checked until the final aim is achieved. After, all, the ideal of European economic unity has more solid and lasting foundations than the need to present Mr. Marshall with a scheme which he can show to the American people as an incentive to further aid. Marshall Plan or no Marshall Plan there would have had to be a European economic conference sooner or later, and. on its agenda proposals for a customs union would have been bound to appear.