Suchergebnisse

The European Payments Union (EPU) was prolonged for a seventh year from July 1, 1956, without any alterations in the rules under which it had operated since August 1, 1955. The sixth annual report of EPU retraced the economic and financial developments in member countries during the fiscal year 1955–1956. It pointed out that economic activity had continued to expand, but in many countries demand had showed signs of growing rather faster than output, so that some inflationary pressures were felt in the form of rising prices and wages and of some weakening of individual balances of payments. The strongest advances in industrial output had occurred in France, with increases in west Germany, Italy, Belgium and the Netherlands being next in importance; there had been no growth in the United Kingdom. Most countries had witnessed a gradual exhaustion of spare productive capacity and very full employment, with man-power shortages in certain specific sectors. A significant development in most countries had been the increase in fixed capital formation. In France and the United Kingdom especially, one main reason for it had been the fact that full use of industrial capacity had already been approached and labor shortages were appearing. The rise in investment expenditure, in conjunction with a continued increase of consumer expenditure, particularly on durable goods, had added to inflationary pressures. In a number of countries wage demand had seemed in excess of the probable rise in productivity; and in several countries wage increases had been granted. Between the second quarter of 1955 and the second quarter of 1956, prices had risen in most countries by 4–6 percent, and by even more in Iceland and Turkey.

Annual Report:The fifth annual report of the Managing Board of the European Payments Union (EPU) covered the period July I, 1954 to June 30, 1955. The financial year 1954—1955, the report noted, had been one of considerable economic expansion in member countries, although with some variation between them; the progress of the previous year, which had followed upon a period of relative stagnation, had continued and gathered momentum. The report noted that in some countries the rapid expansion had had repercussions both internally and externally which had required corrective measures. During 1954–1955 industrial production had increased greatly, the increase being most marked in base metal manufacturing, metal products and in chemical manufacturing. However, agricultural production of member countries, as a whole, had not changed from the previous year. The report stated that the greater industrial production had been the result of both increased employment and productivity; in a number of countries unemployment had been reduced to new low levels and in certain countries, the number of unfilled vacancies exceeded that of the registered unemployed. Concurrently, and in connection with the rapid economic expansion, salaries and wages had increased in practically all member countries to a much greater extent than in previous years.

Settlements in EPU for the period May through July 1956 showed the German Federal Republic retaining the strongest creditor position. Austria, which showed a small surplus in June, had a larger one in July, while Italy moved from a substantial deficit in June to a surplus in July. France continued to have the largest monthly deficit; second was the United Kingdom, which showed a surplus in May, a deficit in June and a significantly larger deficit in July. Since December 1955, France had covered its deficits fully in gold payments, but in July 1956 it resorted to the 25 percent EPU credit to which it was entitled. Belgium and Luxembourg retained strong creditor positions.

Monthly statements issued by EPU during the period March 1954–December 1954 indicated that the German Federal Republic retained its position as chief creditor; United Kingdom monthly surpluses, while considerable, were less consistent than those of Germany. France showed a surplus for the month of July 1954, for the first time since June 1952, and by December 1954, had a cumulative surplus since June 30, 1954, of 6.7 million units of account. Settlements with France under the rule that gold paid by France would be recoverable to the extent that it had a net surplus for the period after June 30, 1954, reduced the amount of gold paid by France for deficits beyond its quota to 351.3 million units of account. Surpluses and deficits of other member countries were settled half in gold and half in credit, with the exception of Greece and Turkey, whose balances were settled in gold. As a result of EPU's December operations, its total of gold and convertible assets declined by 5.6 million units, to 422.9 million units.

European Payments Union: On June 30 the Council of EPU decided that the organization should continue for an additional year in accordance with Article 11 of the agreement. Special arrangements had to be made with the Belgian-Luxembourg economic union and with Portugal to settle surpluses beyond their respective quotas up to June 30, 1952. The settlement with the Belgian-Luxembourg economic union consisted of a payment by the union of $80 million in gold as part repayment of the credit and, on the part of the Belgian-Luxembourg economic union, a supplementary tranche beyond her creditor quota of 85.2 u/a settled as 42.6 million in gold and 42.6 million in credit. After the various adjustments, the cumulative accounting surplus of the Belgian-Luxembourg economic union came to 415.8 million u/a of which 33.6 million were within the quota and 85.2 million were beyond the quota. In the case of Portugal, the union waived its rights to recover $3 million in gold and the Portuguese accounting surplus was reduced to 15 million u/a settled as to 6 million in gold and 9 million in credit.

The second part of the third ordinary session of the Assembly of Western European Union (WEU) was opened by its president, Sir James Hutchison (United Kingdom, Conservative) on October 10, 1957, and was closed on October 14. The Assembly first discussed a report introduced by Mr. J. J. Fens (the Netherlands, Popular Catholic) on behalf of the Committee on Defense Questions and Armaments on the state of European security and on October 12, adopted a draft recommendation by 44 votes to 2. The proposal provided that the Assembly recommended to the Council to examine the conclusion to be drawn from Soviet progress in general technology and modern weapons, to consider further steps to achieve the fullest possible exchange of information and cooperation in the production and development of guided missiles and countermeasures and to bring these steps to the notice of the Committee on Defense Questions and Armaments, and to establish directives concerning the utilization of strategic nuclear weapons in the possession of member countries. The application of these directives, according to the resolution, were in the event of emergency to be the responsibility of the member states in possession of these weapons.

The Assembly of Western European Union (WEU) held the first part of its sixth ordinary session in Paris from May 31 to June 3, 1960. After Mr. Badini Confalonieri (Italian Liberal) had been reelected President of the Assembly, the first item of business was the presentation of the fifth report of the Council of WEU, covering the period from January 1 to December 31, 1959, by Mr. van Houten, Secretary of State for Foreign Affairs of the Netherlands and Chairman ad interim of the Council. In connection with the transfer of social and cultural activities from WEU to the Council of Europe, he pointed out that, by means of partial agreements, the seven governments of WEU remained free to undertake new activities either among themselves or within the framework of the WEU Council, and that only the implementation of current activities was to become the responsibility of the Council of Europe. Speaking next of the Standing Armaments Committee and of the Agency for the Control of Armaments, Mr. van Houten stated that the procedure for cooperation in the field of equipment formulated by the Committee had been successful and that the Control Agency had continued to develop its activities. Concluding his report, he pointed to the importance of political consultations within WEU as a means of enabling members to discuss differences of opinion and thereby come nearer to a solution. In the general debate which followed, members stressed the importance of cooperation in armaments and civil defense.

A summary of its activities in 1950 was released by the Organization for European Economic Cooperation in January 1951. During the first two years of its establishment, the report stated, OEEC had been essentially an instrument for the distribution of United States aid but then became increasingly an instrument of cooperation for the solution of European economic problems. In two years, European production had been restored, trade had almost entirely recovered and international financial stability was achieved. The establishment of a European Payments Union was considered one of the main achievements of OEEC during 1950.

Annual Report: The fourth annual report of the Managing Board of the European Payments Union covered the period July 1, 1953 to June 30, 1954. The financial year 1953–1954, the report noted, was marked by a general improvement in the balance of payments of member countries with the Union, an overall trend which had been apparent in the previous financial year. However, during 1952–1953 there had been a reduction of the largest extreme positions i n EPU, whereas during 1953–1954 there had been considerable increase in some of these positions. The restoration of internal economic stability, which had begun in a number of member countries in 1952–1953, was continued during 1953–1954; during the earlier period, the improvement had been accompanied by a relative stagnation in industrial production, but during the period 1953–1954 the increase of industrial production was fairly marked, especially i n chemical products and textiles, in agriculture and in building.

An arrangement proposed by the managing board of the European Payments Union to meet the situation which had arisen as a result of Belgium's having granted to other member countries far in excess of its stipulated quota was approved by the Council of the Organization for European Economic Cooperation on October 18, 1951. The plan provided that Belgian excess credits in EPU would be met for the next three months partly by payments in gold and partly by the granting of credit. Possible long-term solutions of the problem were to be investigated by the executive committee, which was to report by the end of the year.

Meeting on January 7, 1952, the Council of OEEC agreed that for January, February and March, Belgium, a constant creditor in the European Payments Union, would receive a maximum of $60 million in gold — a reduction of 25 percent on the previous allowance. This was a partial solution to the problem of Belgium's excess credit position. The Council also recommended that member countries try to increase exports to Belgium and that Belgium increase its imports from them.

The sixteen nations of western Europe participating in the Economic Recovery Program signed on April 16, 1948, a convention formally establishing the Organization for European Economic Cooperation, providing machinery for the handling of European aid, and including a legally binding contract for self-help to supplement and eventually eliminate the need for outside aid. The principal aim of the organization was stated as the speedy establishment of sound economic conditions, without outside assistance, so as to make a full contribution to world economic stability. The sixteen governments and the western zones of Germany pledged their efforts to a maximum exchange of goods, lower tariff barriers, work towards a customs union, achievement and maintenance of financial and monetary stability, and the best use of their manpower.

The official American policy regarding a United Europe has developed rapidly since the end of World War II and has already gone far toward committing the United States to the establishment of a European Union of some kind. The first important overt act in this development was the declaration of policy in the Economic Cooperation Act of 1948. One purpose of this legislation, Congress declared, was "to encourage these countries [that is, European participants in the Marshall Plan] through a joint organization to exert sustained common efforts as set forth in the report of the Committee on European Economic Cooperation, signed at Paris on September 22, 1947." With this encouragement the Organization for European Economic Cooperation was soon effected. The next step was to extend the area of American interest from the economic to the military field. One of the purposes of the Mutual Defense Assistance Act of 1949 was "to achieve international peace and security through the United Nations so that armed force shall not be used except in the common interest." This legislation led eventually to the effort to organize a European Defense Community capable of playing an important role in the North Atlantic Treaty Organization. A further step was the Mutual Security Act of 1951, which declared American policy to be "to further encourage the economic unification and the political federation of Europe." Thus the American government finally became involved in the projected establishment of a constitution for a United States of Europe.

Council The Council of the Organization for European Economic Cooperation (OEEC), meeting in Paris on June 29, 1956, decided to maintain the European Payments Union (EPU) for another year beginning on July 1, 1956, without any modifications in its rules. The Council also approved bilateral agreements on repayment and liquidation concluded by some EPU members. The Council met again in Paris from July 17 to 19, under the chairmanship of Mr. Harold Macmillan (United Kingdom); among the major questions discussed were nuclear energy and trade liberalization. Prior to the meeting, press reports indicated that the United Kingdom had refused an invitation from the west German government to discuss a flexible exchange rate for sterling, stating that the United Kingdom government saw no useful purpose to be served in an international discussion of the exchange value of sterling. During the Council session the ministers had before them a report and proposal dealing with 1) the need for the OEEC countries to achieve a degree of free trade abolishing quantitative restrictions to the extent of 90 percent or more; 2) the possibility of consolidating that degree of liberalization; and 3) the desire of the low tariff countries in Europe to see this quantitative liberalization accompanied by tariff reductions.