Lethbridge Herald, The (Newspaper) - July 29, 1970, Lethbridge, Alberta
-WitlnnJov, July 1770 THI LITHBRIDGI HERAtD 5 Robert Stephens GUI ide To Common Market Talks JJAHIS Tlie business nego- liations for, British entry into Uie Common Market m' to give tte organization its proper name, the European Community which began in Brussels on July 21, are ex- pected to continue for" the next 12 or 18 montlis, with meetings of ministers once or twice a month. What ane the negotiations about? What is Britain trying to join? The European Community is not a United States of though for some that may be its aim: it is not a political or military union or a federal State though it might one day become all of these things. Tlie negotiations will not in themselves be about foreign policy or defence co-operation, though they may be influenced by parallel talks on these sub- jects between Britain and all or some of the European coun- tries. Nor will they be about political institutions, except as far as the existing institutions of the European Community will be affected by its enlarge- ment from six States to 10. What is loosely called the "Common Market" consists of tliree "European Communi- ties" recently merged under one control the Economic Community (EEO the Coal and Steel Community (ECSC) and Euratom. Membership of the last two bodies creates no serious problem for Britain. It is with the effects of British membership of the EEC that negotiations will be chiefly con- cerned. The purpose of the EEC was set out in its founding docu- ment, the Treaty of Rome, signed in 1958 by the Six (France, Western Germany, Italy, Belgium, the Netherlands and It is to create a Common Market of all its member States, so that eventually goods, people, ser- vices and capital can move freely across their national frontiers. The basic instrument for creating this Common Mar- ket was Uie establishment of a customs union. This meant the abolition of tariff and quota re- between the mem- ber States and the application by all of them of the same tariff to imports from coun- tries oulside the Community. But to make the Common Mar- ket complete, the customs union needs to be accompanied by common policies between the member States on other matters, such as agriculture, transport, technologi c a 1 ad- vance, foreign trade policy, re- gional development, pub 1 i c purchasing, social secur i t y, economic and monetary pol- icies and commercial law and practice. For it is possible to maintain barriers to free trade in spite of the abolition of tariffs Uirough hidden national subsidies or public regulation of many kinds, or through cur- rency manipulation. Tlie complete Common Mar- ket as envisaged in the Treaty of Home does not yet exist among the Six, because all these barriers have not yet been removed. But the system already achieved and which Britain will now be asked to accept is substantial. Its essential parts are the customs union, completed (with some exceptions) on July 1, 1968; a common agricultural policy and a system of fi- nancing the Community's bud- get (mainly but not solely for financing Uie agricultural pol- finally agreed on at the Hague summit meeting of the Six last December; and a com- mitment by the Six, also made at then: Hague meeting, to a process of economic and mone- tary unification. Then there is the political and administrative machinery already set up to supervise the Community sys- tem the nine man Euro- pean Commission and its civil service with headquarters in Brussels, the Council of Minis- ter's, and the European Parlia- ment. The latter, which sits in Luxembourg, is still only an in- directly elected consultative body, but is intended eventual- ly to be directly elected with wider powers over the Com- munity budget. Tlie decisive political body is still the Coun- cil of Ministers. British adherence to Uie cus- toms union presents one set of problems to be negotiated. Britain would have access on equal terms to a market of nearly 300 million people, an economic unit second in weight in the world only to the United States. But at the same time Britain would have to drop the various special tariff agree- ments she has with other coun- tries outside the Community. This means the end of general preferences granted to Com- monwealth countries and also of the agreement abolishing in- dustrial tariffs between the countries of Uie European Free Trade Area The change In Common- wealth trade involves two spe- cial problems: New Zealand's very heavy dependence on the British market for its butler and cheese exports (85 per cent of New Zealand butter goes to Britain under a quota agree- ment lasting until and the Commonwealth sugar agreement, lasting until 1974, under which Britain buys sugar, chiefly from Jamaica and Mauritius, at guaranteed prices. These countries are in danger of being hit doubly hard, not only by losing their privileged access to the British market, but also because the Community itself already has big butter and sugar surpluses. Moreover, in their efforts to find alternative markets else- where in the world, Uie Com- monwealth producers face the competition of Community sur- pluses dumped at subsidized prices. The Six recognize that New Zealand represents a special problem lint how special? The New Zealanders would lilcs (though the best informed do not expect to get) a permanent arrangement for guaranteed access to the British market or. to the European market as a whole. But the Six are likely to consider a special arrangement only for a transitional period. This would be in line with tha principle agreed on by the Six for the negotiations that any adjustments for British entry should be for a transitional period only, and should not alter the basic structure of the Community. Tliree of the EFTA countries Ireland, Denmark and Nor- way whose economics are closely linked with Britain's have also applied for member- ship to the EEC. But other EFTA members Austria, Sweden, Switzerland and the associated Finland have been unable to take this step because it might compromise their political neutrality in the eyes of Russia. These States will try to work out with tho Community some form of non- political association or special trading arrangement. The crux of the negotiations will conif over the common agricultural policy and the sys- tem of Community financing. Agriculture has a special politi- cal and social importance with- in the Community. Nearly 16 per cent of the Community's labor force (17 per cent in France and over 24 per cent in Italy) is employed in farming, compared with only 3 per cent in Britain. Many of the Com- munity's farmers are also poorer and less efficient than their British counterparts. Both British and Community agriculture are subsidized but in different ways. In Britain there is little tariff protection for agriculture and food im- ports are large and relatively cheap. British farmers are sup- ported instead by State subsi- dies or "deficiency payments" which give them lie difference between the market price of their products and a guaran- teed price agreed upon in an annual price review. For some products Uie amounts for which deficiency payments can lw claimed are limited. British government spending on sgri- culture in 1968-69 was mil- lion of which million was for direct price suppoit to farmers. But in Britain the burden of farm subsidies is not borne directly by the consumer in high prices; it is financed out of the government budget through taxation. And there is not an unlimited incentive to produce surpluses. The Community system the principles of which Britain would have to adopt the other hand protects its agricul- FOOD VALUES PRICES EFFECTIVE THURS., FRI., SAT., JULY 30, 31, AUG. PORTER HOUSE STEAKS Steaks Red or Blue Brand Ib. .39 Hams T-Bone or Club, Red or Blue Brand Ib. or Round Steak Roost, Red or Blue Brand, Boneless, Ib. Smoked, Ready to Eat......... Ib. ].29 1.09 SMOKED PINIC 49c COJTAGE ROllS 98c Vl.39 RFFF Stenki........... __ Ib. 1.07 GARLIC SAUSAGE SJiLnSM............. 65c SAUSAGE STICKS ,b 79c SAUSAGE CHUBS 37c BREAKFAST SAUSAGE lb 59c SPARERIBS Pork................... ,b 79c Potato Chips Dulch Maid....... 9-er. pkg. White Vinegar Canada, Cheese Slices Kraft S-oi. pkg. lural market by high external tariffs, fixed support prices for farmers and direct subsidies to promote agricultural devel- opment and efficiency. The Community buys in unsold sur- plus production at a guaran- teed price, usually without limit on the quantity. The re- sults are high food prices and large surpluses. The Community has plans the Mansholt Plan for ra- tionalizing and modernizing agriculture by reducing the number of farms and concen- trating production on bigger and more efficient farms. But because of local political prob- lems the plans may take many years to carry out. Support for agriculture cost tie Community million last year and is expected to cost between million and million b'y 1972, when Britain would probably enter the EEC. The method of fi- nancing this support, worked out in permanent form at the Hague summit, and after, has three elements. First, the. levies on agricul- tural imports, 90 per cent of the proceeds of which are now to be handed over by each member State to the Com- munity. Secondly, an annually increasing proportion of all im- port duties up to a maximum of 90 per cent by 1975. Thirdly, after 1975 any extra contribu- tion needed will come from a value added tax of not more than 1 per cent. But at the Hague the Six also agreed on' the maximum percentage each of them should pay in national contributions to the Commun- ity budget until the end of 1977. If Britain accented the Com- munity farm and finance sys- tem without any special adjust- ment she would be affected in several ways. The cost of her food imports and of food prices to the British consumer would change. Payment of 90 per cent of the levies on imports and the other contributions to the Community budget would in- crease the debit side of her balance of payments. But these effects are difficult to calculate with precision. The British government White Paper of February this year estimated that Britain's annual food imports might either decrease by million (be- cause the higher Common Mar- ket prices might stimulate British farm output) or increase by million. Food prices might rise by between 18 and 26 per cent, involving an increase in the over all cost of living of between 4 and 5 per cent. The White Paper cal- culated that the British con- tribution to the Community budget could theoretically vary between a minimum of million a year and a maximum of million. This maxi- mum figure makes the improb- able assumption that there would be no percentage limit on Britain's contribution to the Community budget comparable with that already agreed upon by the Six for themselves. The fixing of such a ceiling at least until 1978, and if possible beyond is, in fact, likely to be the key issue in the negotia- tions. The White Paper esti- mated that if this ceiling were fixed for Britain at 20 per cent a not too wildly optimistic expectation the British con- tribution would cost mil- lion in 1971, rising to mil- lion in 1977. Mr. Olson's Hot Potato from The Victoria Daily Colonist PINEAPPLE 3 PURE STRAWBERRY JAMZ 1" CANNED POP Assld. Flavors 10-or. tins ,00 Sliced Green Beans Cranberry Cocktail PeasMalkins' Mnlkins Foncy, 14-ot, tin 4 2 14-or. tins for 85' 89' 89' COOKING APPLES B.C. CALIFORNIA Cantaloupe 4 CALIFORNIA Celery Hearts Green Peppers ib. GRAHAM'S FOOD MARKET 70S 3rd Avenue South GROCERIES 327-5434, 327-5431 MEATS 327-1112 OPEN THURSDAY Till 9 P.M. PHONE AND SAVE FREE DItlVERY An even wider uncertainty surrounded the White Paper's estimate of the effect on the balance of payments, which varied from million and million a year, the latter figure assuming that on every uncertain point the worst would prevail. The length of the transitional period over which the full ef- fect on food prices and tie bal- ance of payments could be spread will also be important for the British negotiators. The Six appear to be thinking in terms of a transitional period of up to three years while the optimum British figure is six to eight years with a pos- sible compromise on four or five. In the negotiations now open- ing in Brussels, the Six will lay stress on preserving the sy- stem they have created by lab- orious bargaining among them- selves. The British, on the oth- er hand, will need to bear in mind that they are joining not a finished structure, but a pro- cess. Whether tiiey join it or not, this process will probably continue- and the result will be an economic and social com- munity with an economic and eventually a political barga i n- ing power in the world vastly superior to that of any indivi- dual country except the United States and the Soviet Union. Tlie question for Britain is not only whether she can afford to pay the entrance fee, but whe- ther she can in the long run af- ford to stay out. Written for Tlie Herald and The Observer, London) JJIVALRY between Uie Canadian govern- ment and the governments of tlie var- ious provinces has never been absent even under tlie fdrly clear dividing lines of in- fluence drawn up in the British-North America Act, and there is little hope that even under a new constitution problems of interference could be entirely eliminated. Indeed the federal influence would be spread considerably, if various policies and bills of the present government are brought into effect. As the provinces are not likely to ac- cept a constitution that would deprive them of hereditary rights, bureaucratic overlap- ping and civil service redundancy might be expected to increase. Already the Canadian government is deeply involved in many activities such as forests, mines and education that are within the purlieu of the provinces under the BNA Act. In some cases this is good, and in others bad. A current issue involving Uie Canadian department of agriculture is the bill, still before the House of Commons, and at the second reading stage, which proposes to set up a nation-wide Farm Products Mar- keting Agency. Although agriculture is the concern of the provinces, Agriculture Minister H. A. Olson correctly points out that when it comes to interprovincial marketing the Ca- nadian government is involved. Because of this he believes various fruit and vegetable boards of the provinces are effective only up to a point, and that they cannot assemble an ordered marketing program for the whole country, thus, ac- cording to Mr. Olson, "being rendered wholly ineffective when all their plans and calculations arc disrupted by surpluses or shortages in other provinces." Mr. Olson, however, points out that any national marketing boards would be form- ed under the bill at the voluntary pleasure of the producers, and that there would be no interference where it wasn't wanted. He hopes the potato growers of the var- ious provinces will start the ball rolling for the new bill if it passes. To get his plans under way Mr. Olson says he will set up a National Marketing Council, thus establishing another bureaucratic division for the ever-growing Canadian civil ser- vice. The minister has expressed Uie view In potato growers in New Brunswick that the opposition parties have done a grave dis- service to farmers by criticizing the bill and delaying it to the extent that it was not passed before the recess. That, however, is a point of view. The vast majority of Canadians are more alarmed at the growth of the cost of gov- ernment to a degree that its bill amounts to more Oian one-third of the entire gross national product. Hence the opposition in- tervention against further spreading of fed- eral activity into provincial affairs before the constitution is revamped, will be re- garded by many as a very vah'd reason for taking a second look. U.S. Inaction On Geneva Protocol From The New York Times PRESIDENT Nixon earned considerable domestic and foreign applause last November when he announced his decision to seek Senate ratification of die Geneva protocol banning first use of chemical and biological weapons. The failure of the United States to endorse the 1925 treaty, which Americans helped draft, has been an international disgrace for 45 years. But eight months after Mr. Nixon made his promise, the White House still has1 not sent the protocol to the Senate for action. The apparent reason for this' unconscion- able delay Is the administration's reluc- tance to forgo the use of tear gas and herbicides. When ths president made his original announcement, White House aides contend- ed that the protocol did not cover these agents, which have been widely used by United States forces in Indochina. But a majority of Hie 84 nations that have already ratified the agreement believs tear gas and herbicides are Included. So do 80 members of the United Nations Gen- eral Assembly who so voted last Decem- ber. By failing to seek speedy Senate ap- proval of the Geneva protocol without ex- ceptions, the Nixon administration is defy- ing clearly expressed world opinion and, according to Ambassador Charles W. Yost, is creating profound embarrassment for its delegation at the United Nations. Tlie United States government's inaction on the protocol fosters the impression that it in- tends to continue to utilize methods of war- fare in Indochina that have been widely condemned at home and abroad and which should have been abandoned long ago by a nation that prides itself on its adherence to humane standards of conduct. Tliis failure to make good on a presiden- tial pledge is especially shocking on ths part of an administration that has repeat- edly emphasized the importance of main- taining the credibility of American prom- ises abroad. A Clout For Frontier College From The Toronto Daily Star TT'S beginning to seem that Mr. Bum- ble wasn't such a bad sort after all. While it's true he wouldn't give poor little Oliver Twist a second helping, he was at least fair enough to make sure all the other orphans went hungry too. In this, he was much more even-handed than our own federal government, which sometimes seems to lack even Mr. Bum- ble's minimal scruples. If it had been writing the book, Oliver might well have been sent off with a ringing clout on the ear while everyone else got steak. The plight of Ontario's Frontier College is an example of what we mean. It, too, has been asking for "more" in the form of an increased federal grant, and its ap- peal is every bit as moving as Oliver's ever was. For 71 years since long before anyone ever dreamed of a Company of Young Canadians or an American Peace Corps tiie college has been sending university students to bush camps, native settlements and isolated communities across Canada as part of a teaching program for adults who lack basic skills in reading, writing, language and zo forth. It's a priceless service when you think about it, and the college has been pro- viding it on a shoestring. Tlie volunteers have to put in a full day at whatever jobs tlwir students do laying track, clearing bush, whatever and Uicy are expected to live on the money they earn that way. The real work, the teaching, is done in the volunteers' off-hours. It's a harsh, demanding life (or the worker-teacher but die arrangem e n t makes it possible for the college to get a lot done for little money. By making volunteers pay their own way, it can put them in the field at an average cost of each. By comparison the CYC, which pays- its volunteers a small salary, budgets for an outlay of for each field worker. Ten times as much. The CYC provides other interesting com- parisons. In order to field 120 volunteers this year, it has a headquarters staff of 25 and a field staff of 15. Its budget is close to Frontier College has put almost as many volunteers in lire field 100 of them and it has done so with an administrative staff of six. Its budget this year is 000. We wouldn't try to judge which1 group is doing the more important job the CYC with its community service program or the college with its program of adult ed- ucation but the comparison does suggest that the college is providing stunning value for its budget dollars. For these reasons, it's almost impossible to understand why Ottawa has responded to the college's appeal for "more" with what amounts to a clout on the ear. The college says it badly needs a year to expand its service and undertake neces- sary research in adult education; Uie gov- ernment says it will have to make do with precisely what it has been getting for the past 12 years. And others are eating steak. In addition to giving the CYC its the gov- ernment has decided to spend more than million to entice jobless young people into, of all tilings, the militia. It's not willing to help the college send young people into the wilderness as ed- ucators, but it is willing to lavish millions on training the young in the useless arts of marching and loading dummy cannon. As we said, we're starting to like Mr. Bumble. Pollution Headquarters By Doug Walker HERALD'S most ardent anti-pollu- tionist is Jim Wilson. He i; ever on the alert for something be can pound his typewriter about. But photographer Walter Kerbcr is equally alert for those out- rageous things that warrant tlie snapping of a shutter. One of tho. shocking pictures lie has taken is of a pile of nibble: Jim Wilson's desk at Tba Herald. Walter has labelled liis picture: Pollution Headquarters. Jim good-humoredly perhaps a mite proudly since he is in the Mowers journalistic tradition has allowed the picture to re- main on display. Wouldn't it be interesting if Walter were to enter his shot in ''Uirty Pictures" contest being by the anli-pollulionista and win a prize?