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8
The
PLAIN TRUTH
February 1972
Compounding the deteriorating situation, the October
deficit topped
$821
million - the worst monthly figure in
the nation's history!
Officials in Washington feel that protracted East and
West Coast dock strikes influenced the unusually poor trade
figures. But running up against a
2.
7 billion dollar surplus
in 1970 - and figures over twice that high less than a decade
ago - the United States position in world trade has been
steadily eroding in recent years.
With the aid of new monetary measures engineered late
in 1971, President Nixon hopes to turn last year's loss into
a surplus in 1972. But whether this will be enough to
reverse the trend is the question. Sorne economists believe
the slowly rising economic rise in the U. S. will only result
in more sales within the count ry rather than in the exploitation
of a larger export market.
As a result, lobbyists for powerful U. S. industrial groups
are ready at the first sign of trouble to reopen their drive
to limit foreign imports .
•
France Tugging Spain Toward
The Common Market
Since World War
JI,
Spain has been detached from the
mainstream of European affairs. The southwestern boundary
of the Common Market stops high up in the Pyrenees
Mountai ns.
Recent events, however, indicate that this nation of
over
32
million people may sooo be taking its place again
among the European states.
Since ao economic cooperation agreement between the
two countries in
1963,
France has become Spain's third–
ranking trade partner, after the United $tates aod West
Germany.
"France is a stubborn advocate of Spain" said French
Foreign Minister M. Maurice Schumann, on a significant
November
1971
visit to Madrid. He added that his govern–
ment would try to "smooth the way for Spain towards
Europe."
According to the
Times
of London, the main obstacle
in the way of complete French support for Spain's entry into
the Common Market remains the continuance of the "hard
line" Franco regime. But General Franco is in bis eightieth
year and has already designated Prince Juan Carlos of Bour–
bon to be King of Spain in the future. There could well be
a change of government in Spain long before the Spanish
preferential trade agreement with the EEC expires in October
1976.
A change of government would also alleviate British,
Dutch, and Belgian antipathy concerning Spanish member–
ship in the EEC. Their disfavor stems from the Franco
regime's chumminess with Nazi Germany during World
War II.
Despite the fact that many Frenchmen are also sensitive
about recent Spanish history, the French government views
today's Spaio as a useful partner in its Mediterranean policy.
•
lsrael's Trade Woes
Israelí economists are concerned about the possible
adverse effect Britain's entry into the Common Market could
have on their already embattled economy.
Once Britain adopts the Common Market's tariff system,
the duties on such rnajor Israelí exports as citrus fruits and
juices, plywood, and bromides will rise substantially. Con–
versely, the North African states of Morocco and Tunisia
will be able to compete much more favorably on the British
market in the sale of citrus products because of their associ–
ate member status in the trading bloc.
While Israel does have a preferential trade agreement
with the Common Market, it is in fact limited to certain
commodities. With regard to many other products, Israel
will again find itself at a distinct disadvantage because it has
been excluded from the "Group of 77" so-called "developing
nations" which enjoy a zero tariff on industrial exports.
Israel is regarded as a "developed" country subject to con–
siderable tariffs.
Israel eventually hopes to renegotiate a broader agree–
ment with the EEC by 1975. Otherwise, with regard to
European trade, which is absolutely vital to Israel because
of the Arab economic boycott, the Jewish state may find
itself more and more on the outside looking in.
•
Russia Builds A New " Aswan"
A key to entering the Middle East, according to Soviet
strategists, is to build daros. Egypt's Aswao High Dam is a
monument to this unique Russian foreign policy. Now the
scene is shifting to Syria.
At Tabqa a new high dam is being built on the Eu–
phrates River by sorne
25,000
Syrian workers aod
900
Soviet
engineers and technicians. Scheduled to be completed in
1975, the dam is expected to transform northern Syria from
a desert outback into a virtual garden.
The scene at Tabqa is startlingly reminiscent of Aswan
in Egypt during the construction of the High Dam. High–
rise apartment houses for Russian and Syrian workers and
technicians are dotting the skyline of this lively new boom
town of
33,000.
Modero shops and markets supply the
construction community.
Many of the Soviet engineers who worked at Aswan
and sorne of the Soviet equipment were transferred to
Syria from Egypt.
The benefits of the new dam will be sorne
300,000
kilowatts of new dectric power for the whole of Syria. Over
one-and-a-half million acres of arid land will come under
irrigation. New towns, industries, and services are scheduled
to spring up along the shores of both the Euphrates and
the giant new lake which will stretch about
35
miles up–
stream from the dam toward the Turkish frontier.
Possible disadvantages of the new dam have not been
caléul.ated yet. But if there are any similarities between it
and the Aswan Dam, theo one must question the benefits
as opposed to the price that will be paid for such gigantic
tamperings with nature - as well as the price for encouraging
Soviet inAuence in domestic Syrian affairs.