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SUEZCANAL
(Contlnutd from prevlous pog•)
tbat Js.rael wíll
be:
barred from
using
tM:
canal unttJ she
comph~
ruUy woth !he terms or U.N.
Secu·
rity Council Resolutoon
#
242 or
November 1967. which calls ror her
withdrawal from taptured Arab
tcmtones.
Nteded Re,enut for
Egypr
For economic reasons. Egypt •s
hoperul that the canal's reopening
will
oa:ur at thc ea.rtíest
possible
date. lkforc
lt
•'U
dosed
in 1967.
the canal
'"IU
bring¡n& E¡ypt
reve·
nuc:s cM•mated at nearly
S2SO
mil·
lion a year. which n1adc up for a
substantial proponion of ber an·
nual tradc deficiL E&rpt now more
than ever needs th•s
roreign
e.x.·
change to bol>ler ots sa¡;gong econ·
omy. The Egyptians ai'W> hopc 10
rebuild and repopu1au: the sevcrely
war·damaged canaJ·side cities
o(
Pon Saod, lsmailoa. and Sucz and
to transform them
1nto
thrivm&
free ports teeming wuh business.
tourism. and industry.
Western Europe is also an.xious
for
lb~ ~~ning..
u
lt
will
realiu
signiDcant savings 1n shtpping
ex~
penses and shoner dehvery periodo
in
comparison
with the
long
route:
around
the
soulhern tip of Africa.
Slúpptn¡ l&mc between Europe and
the
Fas
wt will be redueed by
nine
days -
a
rcmarkable culback
in both 11me and costly bunker
fue!.
A reopened ca.naJ w111 be
ln
the
CQODOmiC:
intCftsl
o(
lbc
entire
\to'Orld communny, lO
varying de·
grees. Olslocat•ons 1n wor1d u-ade
pauems muJting from the canal·s
elosure
in
1967
bave
COSI
the world
cc:onorny
SI.S
billion
1
year
an in·
creased •hopping
costs.
trade red
u<·
tion~
and othcr losies.
E•ller t he Sovlt r Navy
To Wc:stem eyes. a more omi·
nous clfcct or the canal's projccted
reopeoon&
wiU
be the considerable
strateg1c advantages the Sov1et
Union
wtll
derive. With the
canaJ
open.
il
will
becomc:
n1uch
e.asic:r
for Moscow to increase the number
or Sovlel shops deploycd in the Ptr·
sian Gulf and lndoan Ocean arcas.
Cu.rrently, sbtps of the Soviet Blae.k
,Sea r-' lect would have
10
sail 10.400
miles around thc Cape of Good
Hope 10 reach lhc Pe,.ian Gulf.
Wheo thc canal reopens, tbe d...
tance
(rom the Black
Sea
lO
!he
Pe,.ian Gulr will be cu& by over
two
thirdl the
dista·ncc.
This developmenl could easoly
inteft.Sify the
yowm¡
naval rivalty
beiWU:R
thc
United SlatC$
and
So–
vice Un1on
in
the
1
nd1an
Ocean
area. which contains che vital sea
lanes for
t.ankers:
sailing from the
Peman Gulr oil fields
Oespite these dilficuhocs. the ca·
nars ttOpcning is
oonsrdered
1.n
Washonglon to be preferable to a
closed wacerway. And in future
years the canal is expected
to
tak.e
on even greater tmponance to the
Unitc.d
S~tes
and
lhe world
u
e
whole. " Japanese firm hu signed
a
b1Uion·dollar controct whh Egypt
lo widen and deepen the canal lo
acc:ommodate super1.1nken or up
to 250.000 toas by 1980or so.
But '"
the
meanttmc:,
the canal1s
teroporarily a vicum of snagged
Mideast peacemaking elforts. O
4
BUREAU REPORTS
Common Market
Finds Going
·Tougher With
Producer
Countries
BRUSSELS: Oifficultoes experi·
enced between the European Eco·
nomic Community
and 46
develop!n¡ natioo.s
in
reccnt
nego–
tiltions
here
undedine the new.
po>l-<>il embargo relauonshop be·
tweeo the worJd•s industnaljz.ed
natjons and the
supplicrs
of their
necesstt.ry raw materials.
Europc-an negouaton noted
a
touY,er bar&atning hne on the pan
or
many of thelr former colonte:S
in
lhe rcoent wrap-up sesston of
~he
18-montb negotJalions.
Most sign•ñeant amons, lhe
negoúat&n& d&fficult&es was lhe sen·
siuvity
on
lhe pan
of the devel·
oping countries (des1gnated the
A CP coumrltl.
ín
Cornmunity
par–
lance.
fot
••African.,
Car1bbean and
Pacifte") 10 any suggesuon or polit·
ieal
auoc:•ation
with
che
EEC.
Weak auempts
a1
such ties
had
been olfen:d by the EEC in the
form of "con.suJtations:· but
chi..s
wu
rejectcd by the ACP.
The "CP also demanded a oew
name for their ...side"
be
chosen
which more aocuracely
reftects the
changed nature of
thc•r
trading
agreement wilh
lhc
nine-n.acion
market. Up until now. developiog.
nations whoch had been pan or
previous agreements wath the
EEC
had been ((llled "as.socoated coun·
tries.."
The
developing nations reeJ
that this term. in Enghsh. implies a
relatiomh1p witb pohtacal ues io
whkh
the
"usociated"
na11ons
are
m a
subordmate role.
The ACP
<:ountrics reject thjs implication
and want
a
new
term selecced
'whicb si¡ntfies a more equal
part·
ner$hip.
Unsuccessful a\tempts by Com·
munity membcrs to
wm
iron-clad
guarantees for thei.r investmen&s in
ACP lands also revealed the new
telaüonship.
Tbesc: ne&Otiation.s
rollowcd soon after the recently
adoptcd U.N. resolutoon ''legal·
it1ng•• expropriations
or
foreign
business interesas. Since the ACP
eoosisu
o(
nations wh1eh tormu·
bted
a.nd voted
for
1bat
resolution.
the EEC met woll& little sueeess in
ohis sphen:. A weakly worded para·
grapb calling for "due coosid·
eration., or Europeao interests was
addcd 10 !he agreemenL
The
ta.lks
were oot
made
any
•impler by lhe ract lhat the nine–
membcr Community, often at odds
MJong iuelf, was raeed by 46 na·
tiof\1
ot
wadely
diversc: lOterests and
geograpboc:al positions. This ,..,.
the
first
maJOr ne,gotiatJon. thtse 46
nations had e.ver cntcred jointJy
into with each Olhtrl for lhe EEC,
thc ncz,oLiatioJU mcant a
long. list
or agricultura! producu - but for
eacb indJYOdual natioo of the "CP.
one of those producu moght be !he
key to thelr whole economy.
In spite or tbe difficulties experi·
enced in 1hc months of arduous
discussions, whoch exprcssed !he
""new realities..
or
tbe pos.l.colonial
aod post-oil embargo world, the
a,greement reachcd súJI )caves the
Commoo Market the world's
fore–
most trading bloc. Tb_e Uníted
Sta
tes and
othcr
users
of
raw
mate~
nab must inc:reasmgly takc note or
lhis raa.
-
Henry St1.11'Cktt
Australian
Unemployment
Highest Since
Depression
SYDNEY:
"ustralia's Depart·
ment of Labour and
lndusuy
re–
cen
el
y
rclcascd
tbe
natíon's
unemployment
figures
for Decem·
ber. Registered as unemployed
wcre
a
1o1al or 267,000 workel$ -
thc higbest figure sioee tbe Depres·
soon or tbe 1930's.
December saw the nonks of !he
JObless increase
by
a
mauivc
76.000. Economists are now prt·
dleting, Australian unemploymcnt
\l¡.'ill
approach
a
worrisome
$00,9QO
(S.Sl>
o(
tbe work force) by the
moddle
o(
IJ>iS year.
11
IS
hopee!.
howevc:r. that the! numbers wlll
be–
gin
10 ran in the lauer half or the
ycar.
In terms or the percenlage of !he
work torce u.ncmployed or evc:n of
the
absolute numbers w¡ihout
a
job. the Depression -
when an
esti·
mated
2~%
of the work ron:e was
unemploycd -
was much
worse
than Che prc.se:nt
situation..
But
in
"ustralia. v.here fult employment
i.s
virtqally regarded as thc norm.
the comparison
L~
unavoidable.
Criúcs of thc: government blame
the uocmployment partially on !he
rec:ent crcdJt squeeze
wh»Ch
raJSed
1ntcrcst rates. rcduced UquJdlly and
pushed many firms toward bank·
ruptcy, or at least to the point
whcre they
&rt
noc_investi.n¡ 1n new
plants.
Just wbat are tbe cause.s of
unemployment in
a
nation that
has
a tremendous agricultunJ
base and
1
wealth of n\lntrals is a
very
com–
plex question.
'The govtmmcnt strc.s.s-es the
~rldwitk
nature or thc cUJTCnt rc–
cession. lf
Australia's
tradjng pan·
ners buy less
AuscraUan
ptOducts -
mttt~
for inuancc - the:n
unemploymcnt
os
tbe log¡cal out·
come. Ma.ny naU\'C economiSU find
H.difficult,
however, 10
sec:
why
an
isoJated
coun1ry
lik.e Australia,
whicb largely escaped the elfects of
on<:reased ool pnces. should now be
so dramatocally aJfectcd
by
eondi·
uons ovef$eaJ. The stump
11 home–
grown, lhey say.
The 1wo measures recen1ly
adopted by tbe govemment were 10
íncrease lhe
s•z.e o(
the Common·
wealth Pubhc Servi«
and
10 im·
pose
imporl quotas on
cextiles.
shocs. and a few other ntanutac·
turing industries. This is dcsi¡ncd
to ereAte civil servioc: jobs a.nd help
pre-vent turther layotfs due to
an·
expeftS.lve ovcneu imports..
How·
ever. as ma.oy economists "e
pointmg out. the inftationary ef·
fects or these mcasures may be lhe
wone of the t""o evils in lbe long
tcrm.•
So, ror tbe moment
at
least, ......
tra!Jans are waiung
it
out, ex·
pecting
things
to bcoome worse but
hoping that by the midclle or the
year
the
tmploymcnt see.ne
wilt
be–
pn
to
tmprovc dramatic:aUy.
- Gany
de JtgH
Canada's Boom
Flattens Out
V"NCOUVER: In comparison
whh the olber ec:onomics or the
w..
~
the economy or Canada ap·
peaot exceptionally heallhy.
Natural resources is
one
big
rea·
son. The world market c:ontinues
10
make heavy demands ror Canada's
ancte:dtble mmcraJ
v..e.altb.
Jn
adda·
taon. abundant
aJnC.ulturaJ barve11S
make Canada one of the four re·
maining nct exporcers of grain in
t.heworld.
..Most
~nom1SU a~e.-
noled
one Canadian mapzine rec:ently,
••thal no matter what occurs dunng
tbe next
few
years - and
a
good
number of thc:m think thin.gs
will
get worse before they get '>e!ler -
Caruoda is tbe
best
place
10
be.
M
Am1d
this
economíc euphoria
over Canada's relative strength.
ho._wever, ttoubling
signs
or we:ok·
ness are appearing. The market ror
manera!
reso\ll'CeS
wiU
be:
s1rong
only
u
long
as
euttomer nauons
can pay ror them. Even !he devel·
opcd natiO!IS are hnrd pressed 10
balance thelr budgets. confronted
wolh quadrupled ool impon baiiJ A
..,orld
economy
facing seyert
re:oe:s.·
s•on
muns
a
vasdy
¡hrunkcn mar·
ket for Canadtan resources and
mnnufactured goods.
Evcn more: ominous.
lhert:
IJ
too
mucb forrign ÍIIV<$111\enl
in
Conoda ror
Canadians
lO
be isolated rrom
others• woes.
Re«
ni coofrontations
with theUnited Stntesoverproposed
dcaJs
bctween
Canadian
com~nics
and Cuba hiY,hghted this problem.
lbc Canadian c:conomy lS hand·
culfed 10 that ofthe Unitcd States–
and the key has long since been
thrown away.
Even lhe Canadtan trump card.
asriculture. may not play out.
Wcatber pauerns for
wcstem
Can·
ad1 show tbe arca
beoom•ns
in·
crc:asingly
drier. Practically
no
moisture
was
recorded
during the
summer of 1974. and very liule this
wmter. Water
tablc::s
and
rcsc:n·oirs
are dangerously low.
thr~temng
hard times for irngated farm land.
Ovcrall, a
hc:n\i.sphere~wi de
cool·
in¡ trend is obv ious to local
farmcrs
and
ranchers. Orowan,g
sca.sons a.re now
noueea.bly
Shorlc:t
lhan only a genc:ration ago. Farm·
ers and ranchers l\re far from OOn·
Rdenllhallheir incomes are secure
ror this yeas.
Compounchng thc &Joomy rann
forecast.
g.rushoppers
are prc·
dictcd
lO
$warm over much
ot
soulhem Albertn.
Time rnaybc runnin.g out on Can·
ada's nearly uninterrupted postwar
prosperity. Sums up one Canadian
observcr; "Canoda'slood luck may
be
nq mqre than a limt
la~
brought
on
by
thc ract that other national
economics have to slow down tirst
be(ore demand declines ror Cona·
dju
products.
n
- CIICil
M~amnllf
China "Votes"
for Strauss
BONN: Franz Josef Strauss. thc
controversia) B.avarian politac1an.
chumed up wa,·es on the German
politocal
seeoe
wbeo he became the
first
Gc:rman
policician ever
to be
. received
by
Cha.irman Mao Tse·
tung or tbc People's Republic or
Cluna
Tbc h1storic meeung,. wbicb took
place durmg
a
two--week vis1t
10
Clúna
In
January, was undoubtedly
the high point of Strauss' loog and
stormy
political
carcer. The ..
au~
dicnce.. witb
Cha1rman
Mao was
made
aU
the
more sag.nificant i.n
view
of che
fact that
OJlly
awo ot.hc:r
non-hcadl of government bavc
evtr
bccn
weleomed
pcnonally
by
China's •uprcme leader U.S.
S.c–
rel.1ry or State Henry Kossioger and
Edward Heath, who al the time of
his visit
was
head or
ahe
opposition
Conserval.ivc
Party
in
En¡Jand.
h doun't tá.ke mucb ró discern
why 1bc Chinese "'ere so hoopitable
to Straus.s.
The
Jeader of Bavana'.s
conservo\ive Chr1s1ian Soe1al
Union (CSU) hu never hidden his
contcmpt
for
1M
Soviet Union and
has been an outspoken eritic of cJt.
tente. Thes.e view.s fh right
in
-.·tth
!hose of Communist Chona's lead·
ers,
a.lso stcrnly opposcd to Soviet
foreign
policy.
ln
addition.
Prcmier
Chou En·lai has on severa! oeao·
sions
openly vor«d
bis
(a\·or of
Westem European umty. A
s1ron¡
and
v1g.orous
Western Europe m
Chinn·s...eyes would ac:l as a
pow·
errul de1ern:nt 10 allegcd Russian
desosns on China.
Tbere seems
to
be
no doubt
whom the
Chlnese
would Jikc to
see sealed in the .saddle of govcrn·
ment in Wcst Oermany afier tbat
nation·s general elecuons ln the au–
tumo or
1916 -
nonc olhc:r tha.n
tbc
ro~und
8avanan. and with good
reason.
The presenl West Gernun
Chaoeellor Helmut Schmidt said
reeently that Bonn desires "good
and nonnal
relallon.s·
witb
the
People's Repubhe. buo added that
German rela.tions with the Soviet
Union
were
of
gre1ter importancc
at lhe
pn~nt
time. t-h.s comments
came
aner
a
ca1l
from lirrr
StraUSI
for more ClOnsidenuon
of
China 1n
Germany's
•'Ostpohllk:'
which
up
to now has majnly involved the So–
viet Union and her Eastem Eui"'o.
pean Communist pannen.
Hcrr Strau.ss has saad
he
will
con·
fer soon wuh Chancellor Sehmidt.
wbo is planning
:,a
ltip to China
bimselr tbis sprinc Perhaps Fran1
JOStf
an
r,ive him a tip or
Nio
on
bow 10 bchave beh1nd !he
bamboo
cuna1n.
Such advice u about aJI be
can g.ivc.
1
-
Poul
Kit~
Hit
WEEK ENDING M"RCH 8.
191S