their continental neighbors, then there is no visible solution of the long term economic problem of either Britain or Germany, and we would be faced, at the termination of ERP, with another crisis of demand on this country for European aid.[1]
To me there seem only two lines of emergence from this dilemma. They are not mutually exclusive and might, in fact, supplement each other very well.
In the first place, Britain could be encouraged to proceed vigorously with her plans for participation in a European union, and we could try to bring that entire union, rather than just Britain alone, into a closer economic association with this country and Canada. We must remember, however, that if this is to be really effective, the economic association must be so intimate as to bring about a substantial degree of currency and customs union, plus relative freedom of migration of individuals as between Europe and this continent. Only in this way can the free movement of private capital and labor be achieved which will be necessary if we are to find a real cure for the abnormal dependence of these areas on governmental aid from this country. But we should also note carefully the possible implications of such a program from the standpoint of the ITO Charter.[2] As I see it, the draft charter, as well as the whole theory behind our trade agreements program, would make it difficult for us to extend to the countries of western Europe special facilities which we did not extend in like measure to all other ITO members and trade agreement partners.
A second possible solution would lie in arrangements whereby a union of Western European nations would undertake jointly the economic development and exploitation of the colonial and dependent areas of the African Continent. The realization of such a program admittedly presents demands which are probably well above the vision and strengths and leadership capacity of present governments in Western Europe. It would take considerable prodding from outside and much patience. But the idea itself has much to recommend it. The African Continent, is relatively little exposed to communist pressures: and most of it is not today a subject of great power rivalries. It lies easily accessible to the maritime nations of Western Europe, and politically they control or influence most of it. Its resources are still relatively undeveloped. It could absorb great numbers of people and a great deal of Europe's surplus technical and administrative energy. Finally, it would lend to the idea of Western European union that tangible objective for which everyone has been rather unsuccessfully groping in recent months.
- ↑ For documentation on United States policy with respect to the economic situation in Europe, see vol. III, pp. 352.
- ↑ For documentation on United States policy with respect to the proposed International Trade Organization, see pp. 802 ff.
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