COMMON MARKET IN ASIA OPPOSED

Press, Volume C, Issue 29682, 28 November 1961, Page 17

COMMON MARKET IN ASIA OPPOSED

Japan Rejects Idea; Interest In U.S. (N ■ZJ‘.A.-Reuter—Commaht >

RANGOON, November 27. fhe Japanese Prime Minister, Mr Hayato Ikeda, today rejected suggestions for an Asian common market. He said Asian nations were not prepared for such a step. , . * n Washington, United Press International said i nited States membership of a Pacific economic community to counter the European Economic Community was seen as one possibility in the growing Congressional battle on trade barriers. Mr Ikeda, who has been having talks with the Burmese Prime Minister, U Nu, said that in Asia a common market was an ideal towards which Asians aspired, but the realities of the present did not make it feasible.

BRITAIN’S ENTRY “Benefits For U.S.” (N Z.P.A.-Reuter—Copyright) NEW YORK, November 27 The United States would be likely to derive “important economic benefits” from Britain’s entry into tbe Common Market, the “New York Times” reported today. The shape of these potental benefits was emerging t orn the initial stages of the Brussels negotiations between Britain and the European Economic Community, the newspaper said in a dispatch from its Paris correspondent. The “New York Times" report said: “If Britain gets even part of what she is asking. barriers against an important group of United States exports to Europe will be reduced. “What is more, in the Bri-•:-h market itself, the United States will be fighting on even terms for tbe first time against Canada and other members of the British Commonwealth.” The “Washington Post” said the European Common Market would be a “magnificent achievement.” but the interests of countries outside the trade grouping must be safeguarded. ' The United States should be able to take care of itself, but how about the Commonwealth. Japan, and the less developed countries of Latin America, Asia, and Africa?” the paper asked. Redress against the grievances that the Common Market might create would have to come principally from the industrial countries. Special arrangements could be made for the Commonwealth nations. Entry could be given to exports from low wage countries. The United States could Dress for a lowering of tariffs all round, with profit to itself as well as others

Mr Ikeda said that in Europe there was a long history behind the Common Market scheme. Membership was made up of nations which were neighbours. with common political, economic and cultural development. The first task was to develop Asian countries in such a way that in the future an Asian common market could be secured. In Washington, an economic study for a Congressional sub-committee warned that a potentially troublesome problem might arise for Japan if the emerging European Common Market should adopt severely restrictive policies toward outsiders. “The United States would, of course, use its influence to prevent such a development,” an economic consultant's report said. It said the United States should nearly double annual Japanese imports by 1970. “But if it should happen, some special Pacific community or other trade ar-

rangement involving Japan and other excluded countries might become reasonable. for instance tying Japan with Australia. New Zealand, a number of Asian countries, the United States and Canada in some kind of association.” The report was prepared by the Johns Hopkins University economist. Mr Warren Hunsberger, for the joint Congressional sub-commit-tee on foreign economic policy. Mr Hunsberger said the United States should “in addition to treating Japan properly ourselves . . . continue to press Japan’s case for equal treatment elsewhere.” He said that a power balance in Asia could be at stake. “In today's world of cold war and high tension, Japan’s importance for the United States is multiplied.” the report said. “Japan is our most important ally in Asia, with a strong private enterprise economy and a democratic form of government.”