SPAIN MOVES BACK

Press, Volume XCVII, Issue 28556, 9 April 1958, Page 7

SPAIN MOVES BACK

Economic Links With Europe (By a Reuter Correspondent) MADRID. Spain is moving slowly back to form part of the European community after years of isolation. A new stage in this process is her recent admittance as associate member of the Organisation for European Economic Co-operation. Full membership was beyond her economic possibilities, for the new Spanish industrial system is a tender plant which require! shelter. But as associate member she has a voice in all discussion, though no vote. She can also use most of the trading machinery of the organisation. Development of Spain’s foreign trade and the seeking of more I capital to speed up her industrialisation should result from this move. But it is not only the question of shipping abroad more rich red wine from La Mancha or more golden oranges from the Valencian plain. Spain is anxious to take part in the vital discussions afoot within the organisation to try to set up a free trade area for those nations which for one reason or another do not wish to join France, Western Germany, Italy and the Benelex trio in their European Common Market. "Disastrous” Most Spanish economists agree that for Spain to enter the Common Market in the near future would mean that French and German manufactured goods would swamp her budding industry with disastrous economic results. But these economists are divided as to what Spain’s long-term attitude to the Common Market should b*». Some regard it as natural that once her industry is strong enough to stand the shock Gf severe competition, Spain should enter the European Common Market. Other economists think that Spain should plan her economy with a view to remaining permanently outside this group, and should pay particular attention to entering the markets of Latin America.

So far, countless efforts to develop Spanish exports across the South Atlantic have yielded only modest results. It is possible that new industries now developing rapidly in Spain, such as lhe electrical and shipbuilding industries. where cheap labour may well make Spain competitive in her prices abroad, will enable more progress to be 1 made in the Latin-American market in the future than has yet been possible.

The well-known Spanish economist, Mr Jesus Prados, proposes that if Spain enters into a European Free Trade area, she should at the same time join thr Economic Commission for Latin America of the United Nations in order to facilitate exports to that area. Farm Tractors Spain’s immediate concern appears to be to use her new connexion with her European neighbours in the organisation io acquire more farm tractors ro modernise her countryside and more industrial equipment to nevelop her new factories. She also hopes that the creation of a free trade area for those lands, including herself, Britain. Portugal, Turkey and others, which remain outside the Common Market, will be possible. Such an organisation might. Spaniards feel, help to reduce the possible harmful effects to Spain’s economy which might arise out of the formation of the Common Market.