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While sorne farmers and grain exporcers are happy,
many wearber experrs do nor share rhe samc joy. For sorne
rime, parches of droughr have been srriking pans of che
U.S. whear belr. Should che droughr become exrcnsive in
any one year. che grain drain ro foreign narions could lead
ro a serious shorragc of whear in rhe Uni red Srares.
•
Spain's Dilemma - Europe or
lsolation?
Spain is facing one of her grearesr dilemmas. Her
place, rradirional ly, is wirh Wesrern Europe. Con–
seguenrly, she eagerly desires membership in rhe European
Common Markcr, which is soon ro expand.
Bur one major obstacle srands in che way: Generalis–
simo Francisco Franco's aurhorirarian regime, which
srrerches back ro rhree years before rhe ourbreak of World
War 11. The presenr EEC member counrries are all dcmoc–
racies. Eirher Spain makes che necessary polirical con–
cessi.ons and libera1izes her aurhorirarian governmcnt, or
she muse be prepared ro face isolarion from an inregracing
Europe. Spain, however, does nor appear willing, ar
prcscnr, ro pay rhc polirical price.
Spain concluded a preferencial rradc agreemenr wirh
rhe EEC in
1970,
bur rhe scheduled enrry of Brirain,
Ircland and Denmark inro rhe Common Marker nexr year
will render rhe arrangemenr obsolere. Brirain is a major
rrading parrner of Spain, absorbing a good share of Spain's
agriculrural produces. Wirh Brirain in rhe EEC, rhe Brir–
ish marker will be prorecred by hígh rariffs, and Spain will
be lefr in rhe lurch.
Looking ar rhe broader picrurc, rhe EEC Six
prcscnrly absorb 3
7
percenr of Spain's exporrs. The eigbr
EFTA (European Free Trade Associarion) counrries- al!
ofwhich will be ried ro rhe EEC in one way or anorhcr by
ncxr year - absorb
17
percenr. Of Spain's rora] imporrs,
33 perccnr come from rhe EEC Six and
16
percenr from
rhe EFTA Eighr. Thus Spain is dependenr on rhe EEC–
EFTA group for some 51 percent of her fo reign erade.
The .Spanish governmcnr's presenr attirude is sum–
med up by Foreign Minisrer Gregorio Lopez Bravo:
"Spain is eager ro join rhe EEC as a full member, bur we
are nor in a hurry. Europe is a communiry in every scnse
of che rerm. Sur chis communiry will be viable only if ir
permits each member country ro rerain irs individualiry."
So for rhc rime being, Spain will probably seek a
new preferencial crade arrangcmenr rarher rhan prcss for
full or associare membership.
lr appears now thar only afrer che dearh of che aging
bur srill energeric Franco and che assumprion of power by
J uan Carlos de Borbon, wi ll Spain begin ro move closer ro
rhe European democracies.
•
Mexico Looks to Japan
Mexico is rurning ro Japan for help in winning eco–
nomic indepcndence from che Unircd Srares.
Early in
L972,
Mexican Presidenr Luis Echeverria
Alverez, accompanied by sorne 30 cabiner miniscers and
orher high-ranking officials, journcycd ro Tokyo for a 6-
day visir ro lay che foundarion for closcr economic ries be–
rwcen rhe rwo councries. Echeverria's purpose for rhe visir,
in his words, was "ro hale che Mcxico economy's excessive
reliance on che Unired Srares."
Trade ries berween che two councries have been
sreadily increasing over rhe pase decade. Mexican exporrs
ro Japan have inaeased more rhan 8 percenr a year, and
Japan's exporrs ro Mexico have increased at an annual
race of more rhan 20 pcrcenr. Bur Mexíco would like ro
sce srill largcr increases, plus orher forms of coopera–
rion.
Growing American prorecrionism has sparked chis
Mcxican mde offensive in rhe Far Easr. Struggling ro
overcome a
$1
billion rrade deficir, Mexico is seeking
fi.
nancial and rechnical assisrance from Japan. as wcll as new
markets. Mexican produces are encounrcring increasing re–
sisrance in che U.S. markerplace.
Mexico in che pase, has relied on rhe Unired Srares
for sorne
70
percenr of her foreign rrade. She was hard hir
in Augusc
L97L,
when rhe U.S. imposcd rhe remporary
lO
percenr surcharge on imporrs. Adding ro rhe problem, rhe
U.S. has been slow ro granr Mexico and other dcveloping
narions rradc preferences in che U.S. There is also fear in
Mexico abour possible ncw imporr resrricrions on Mexi–
can farm produces, now being conremplared by Wash–
ington.
Whar do borh Tok)'Oand Mexico Ciry hope ro gain
by increased cooperarion? Japan would like ro supply
Mexico wirh many of che manufacrured goods Mexico
now purchases from che U.S. In rcrurn,Japan would rrans–
fer sorne of irs agriculrural purchases from rhc U.S. ro
Mexico.
In
addirion, Mexico is hoping for more Japanese pri–
vare invesrmcnt and che possibility of using Japan as a
"warehouse" for Mexican producrs en roure ro Australia,
rhe Philippines, Taiwan and mainland China. The Mexi–
can governmenr also soughr - and apparendy rcceived -
an agreemcnr from rhe Japanese ro assisr in che expansion
of rhree Wese Coast Mexican porrs, Manzanillo, Mazatlán
and Topolobampo, as well as che developmenr of
Mexico's sceel, mining, fishing, and shipbuilding indus–
tries.
For rhe Unired Srares. any such shifr in Mexico's
rrade posrurc could only mean a worsening of irs own in–
ccrnational balance-of-paymen es di fficul ries.
- Gene H. Hogberg
PlAIN TRUTH December 1972