Freer International Trade
Nobody need blame the Continental members of the Organisation for European Co-operation for the fears, .which they were expressing only a week ago, lest the British Govern- ment should restrict still further our trade with other European countries in order to carry out certain exclusive manoeuvres, including sterling convertibility, with the United States. For what is the O.E.E.C. for, except to foster European economic co-operation, and to question any move that seems likely to hinder that co-operation ? Fortunately Mr. Eden and Mr. Butler were able not only to lay all these fears to rest but also to go further and announce measures and policies designed to open further the channels of European trade. The Paris meeting of O.E.E.C. began with rejoicing that the British Government had brought itself to ease its restrictions on imports from Western Europe and to raise the travel allowance for its own nationals from £25 to £40. ended with rejoicing mixed with relief that the British GoverNnent not only agreed to the prolongation of the European Payments Union, that valuable instrument of multilateral trade, for a further year from July 1st, 1953, but also surrounded its proposals for a review of this undertaking, should convertibility become possible, with so many resolutions for the liberalisation of trade generally that there could be no doubt that Britain was going straight in the direction of freedom. In fact everybody is so pleased that a little judicious carping may perhaps be introduced, with a view to ensuring that the work now begun does not flag too soon. The original reduction of the travel allowance to £25 was an action that no enlightened person could have condoned. The £8,000,000 that it will cost to raise it to £40 is a small price to pay for good that will be done to the cause of European co-operation. And as to the relaxation of import restrictions, it still releases only some 14 per cent. of imports into the United Kingdom from Western Europe on private account from quantitative restrictions, leaving 42 per cent. still under control, as against 90 per cent. free for Britain in 1951 and (very significantly) for Germany at this moment.
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