“Greater Europe” Draws Near

Press, Volume CI, Issue 29760, 1 March 1962, Page 13

“Greater Europe” Draws Near

(Special Correspondent N.Z.P.A.) LONDON, February 27. Best informed forecasters expect “Common Market Day” or “G.E. Day” (the name used in Brussels for the day Greater Europe becomes a reality) will be in little more than a year from now, the “Daily Telegraph’s” Common Market correspondent said today.

This forecast. he added, was being made in spite of the fact that ratification of agreement by the Parliaments of the “Six” and, indeed, by the British Parliament, might be a lengthy business and that opposition was building up among members of Parliaments on the Continent. “The point when the firstround drafts of some of the agreements on how Britain could enter the Common Market can be tabled is getting nearer. “They will directly involve 50 countries. To the six now in the Market must be added 14 European countries applying for membership, plus 14 Commonwealth countries, plus 16 former French and Belgian territories in Africa which have recently become independent. Sacrifices Involved “Because all of these must make some sort of sacrifices for the long-term benefit of the Market as a whole, drafting will be all the more difficult. “The ‘Six’ now have in

mind this target timetable:—

"March 22: First tentative drafts of agreement discussed.

“April-May: Tabling of package deal, which would involve Britain giving way on some issues such as British agriculture or certain imports of Commonwealth manufactured goods duty free in return for important

concessions of benefit to the whole of the Commonwealth and to the British economy. “June: Hard bargaining on tying up final package, first at long sessions of the seven Ministers, then at meetings between Macmillan, de Gaulle, Adenauer and Spaak. and finally at the Commonwealth Prime Ministers’ conference. “July: Report to Parliament by Macmillan that the way is clear for Britain to adhere to some treaty,” stated the newspaper. Treasury Opinion

In London, the latest bulletin issued by the Treasury expresses the view it would be better for sterling for Britain to join the European

Economic Community rather than stay out. It gives three reasons for this opinion.

First, membership should open up the possibilities of a higher rate of economic growth.

Second, the use of sterling as a key currency and ot London as a commercial financial centre could be expected to increase.

Third, when forming its policies, the E.E.C. could be expected to take more account of sterling area interests if Britain were present.

The Treasury said M did not believe that anything in the Treaty of Rome would be incompatible with the continued working of the sterling area system, nor would the Treaty require Britain to treat sterling a'ea members less favourably than the "Six."

Admittedly, however, the Treaty would oblige Britain to co-ord mate her economic policies with other members and to participate in the E.E.C. monetary committee, which reviews the monetary and financial situation of member counties. The bulletin said that naturally the special needs of the Commonwealth must be safeguarded, but provided that proper terms were obtained to allow Britain to join the membership of the Common Markert, irt should not stop Britain from continuing her present practice of consulting with the Commonwealth on economic policies.

The bulletin said that, in the monetary field, no radical change need be expected if Britain joins. While London could certainly not become an important capital market for the region, it could expect to get a great deal of additional banking business, to find its unique bill market much more intensively used, and to attract the steadily growing amount of portfolio investment.