INDUSTRIES IN EUROPE

Press, Volume LXXXVI, Issue 26123, 27 May 1950, Page 7

INDUSTRIES IN EUROPE

PLAN FOR BASIC CONTROL REPORT BY SOCIALIST PARTIES . r LONDON, May 25. A far-reaching plan for the international control oi coal, transport, steel, and electricity has been proposed by the economic experts of the nine Western European Socialist Parties in a report. “International Control of Basic Industries,” published in London. The report will be discussed by two international Socialist conferences next month, together with the plan of the French Foreign Minister (Mr Robert Schuman) for a single authority over the steel and coal industries of France and Germany. The report originated from a study group representing the Socialist parties of Austria, Finland. France, West Germany, Britain, Holland, Norway, Sweden, and Switzerland. It says that socialist and capitalist countries could co-operate in the aim of international control of basic industries, but adds that “the prospects of immediate internationalisation seem dim.” International control would need to be undertaken in easy stages. A transition in three stages was envisaged. In the first the task of each authority would be to draw up an annual report of the industry covered and to make recommendations based upon the problems disclosed. These reports would be sent to the organisation of European Economic Co-operation and the General Assembly of the Council for Europe “so that publication could be followed by immediate public debate." New authorities would be set up to cover transport, coal, steeland electricity through the modification of the existing committees of O.E.E.C. The second stage would come when all Western European countries accepted at least the principle of full employment planning, the planned economy. and national control of basic industries. Political Control At that stage the authorities would be transformed into public international cartels. In order to provide the required political control they could be placed in the hands of 0.E.E.C.. or perhaps the Council )f Europe. The decisions taken should be based upon unanimity. Obviously, says the report, “a change in the political climate" was needed before this stage was reached. Complete international control would come with this third stage which presupposed a change in the political structure of Western Europe, resulting in the creation of a Western European Parliament with wide powers over Western European economy. It was vital to take a first step now. Integration and rationalisation should be planned by an international authority. to improve Western Europe’s competitive position in world markets by reducing costs, and also to raise living standards. If international Planning of basic industries was to be effective. there must be parallel international planning of all investment. International control should extend economic democracy by vesting control in the hands of representatives rather than private owners. This involved, amongst other things, the suppression of private international monopoly and cartels. International control was possible only if the industries concerned were subject to national controls. Otherwise a full employment basis could not be ensured and governments would not be able to operate the decisions of the international authority.