Links With Europe

Press, Volume XCV, Issue 28180, 19 January 1957, Page 10

Links With Europe

Because of Suez and its consequences, the “ Financial “ Times ” recently predicted that Britain’s association with Europe would be much closer in the coming year. After referring to the “ imaginative “ scheme ” for a European free trade area, the newspaper observed that the need to prepare a European plan for oil supplies had taken the existing economic co-operation one stage further. “In the outcome of “ the Suez policies ”, it said, “ it “has been recognised that the “economic unity of Europe is “ already a fact of geography. “The forces which are working “ towards closer functional co- “ operation are now stronger “ than ever before ”. The “ Manchester Guardian ” also pointed to increased support for the free trade scheme which, it said. “ some people, “ not previously noted for their “ enthusiasm, now believe to be “ the swiftest route along which “ we can attain independence of “ America ”. Nearly all observers emphasise that the formidable problems which might be created in Commonwealth trade relations will need to be carefully assessed before Britain commits itself to close economic integration with Europe.

In spite of Suez, 1956 was not an entirely black year for Britain’s domestic economy. “ Below the surface of events ”, said the “ Financial Times ”, “ there has been a substantial “ and far-reaching improve- “ ment in the country’s economic position ”. Increases in inflationary pressures appear to have been halted; the credit squeeze has operated largely at the expense of consumption, and not of investment: and, according to the “ Daily Tele- “ graph ”, there has been no rise in the retail price level since last April. At the end of 1956. fewer than 1} per cent, of the working population were without jobs, and the number of vacancies exceeded the unemployment total. Except in motor manufacturing, employment in industries affected by short-time working had improved substantially. Provided wage demands can be restrained, there seems a reasonable prospect that these gains will be held. Knowledge of what the British people have already achieved in their struggle for renewed economic strength inspires confidence in their ability to surmount the perplexing difficulties which 1957 will bring.