Mr. Franklin on Common Market

The E.E.C. is essentially a political organization with political aims. Its economic aims are only of secondary importance. For if the E.E.C. had only economic aims, these could have been achieved by the Free Trade area.

There is a large percentage of nonviable farming in Western Europe and it is hoped that by joining the E.E.C. this situation will be changed, with the creation of six million new jobs. Also, agricultural surplus will be absorbed by the E.E.C. Hence, it is impossible that New Zealand will be allowed to join in the E.E.C.

Mr. Franklin mentioned the difficulty of integrating widely differing economies in the E.E.C. France compared with Germany is sparsely populated with an economy based on agriculture in the south. Mow will E.E.C. incorporate the different economies of highly industrialized Germany and the Mediterranean economies of Spain, Greece and Southern Italy, underdeveloped, poor, and mainly agricultural?

The economic consequences associated with the E.E.C. will be the raising of the standard of living of the member countries. There will be greater economic power for the community as a whole. Mr. Franklin also saw the ending of the class war in Western Europe because of the welfare state and the rising standing of living. However, will the levelling-out in Western Europe only increase the division between die European and non-European world—Africa and the underdeveloped countries of the world.

The political aim of the E.E.C. is essentially to strengthen Europe in the cold war. Economic improvement will mean increased military strength. The problem is how will Western Europe use this power? To perpetuate the cold war in the non-European areas? Or will the E.E.C. raise the living standards of underdeveloped countries by providing the capital for initiating development?

T.M.L.