ECONOMY OF EUROPE

Press, Volume XC, Issue 27488, 23 October 1954, Page 7

ECONOMY OF EUROPE

‘Extremely Rapid Progress’ (N.Z. Press Association—Copyright)

(Rec. 7 p.m.) LONDON, October 21. Europe s general economic situation is more satisfactory than at any previous time in its history, the general secretary of the Organisation for European Economic Co-operation (Mr Robert Marjolin) said today. Mr Marjolin, who was addressing 1000 delegates attending a conference of European managers at Torquay, Devonshire, said the last two years had been years of extremely rapid progress.

Dollar reserves had grown rapidly, and while they were not adequate, they were much more comfortable than two years ago. This had made it possible for many countries to begin the freeing of imports from, the dollar area, said Mr Marjolin. Production, after remaining stationary for one or two years, began to grow more quickly from 1953 onwards. Economists had been afraid that at the first sign of a recession in the United States the world would be subjected to a severe slump, but in spite of the recession, the European situation had basically improved. Mr Marjolin said he believed that within the next two or three years there would be a new recession in the United States. But he said it would not be of the same magnitude as the 1930 slump, and he did not think' it would have particularly far-reaching effects.

Unless there was a serious American slump he did not think the economy of Europe would be affected.