Britain, the Six and the World Economy
When France and Germany, with Italy and the three Benelux countries, made it clear that they were really going to form a customs union, they forced the British government to face a decision it had hoped to avoid. Now Britain's decision to join the Common Market, if reasonable terms can be agreed on, requires the United States to make some major decisions of its own. Our action-or the lack of it-will pose new choices for the rest of the world.
When France and Germany, with Italy and the three Benelux countries, made it clear that they were really going to form a customs union, they forced the British government to face a decision it had hoped to avoid. Now Britain's decision to join the Common Market, if reasonable terms can be agreed on, requires the United States to make some major decisions of its own. Our action-or the lack of it-will pose new choices for the rest of the world.
The British decision followed a long reëxamination of the courses open to the United Kingdom once the Six had left little doubt-especially by their decision of May 1960 to accelerate tariff reduction-that they would succeed in creating a common market. Conversations in Europe, including those following the Adenauer-Macmillan talks of August 1960, presumably gave the British a reasonably good idea of the terms they would have to meet if they chose to go in. On the assumption that the Europeans would concede some essential points, the Prime Minister worked at building popular support at home and a majority in the House of Commons of a size appropriate to so fundamental a decision. The explicit opposition that remains-strongest at opposite ends of the Tory and Labor parties but scattered throughout the country-will undoubtedly gain recruits as a result of some of the compromises the government will have to make as a condition of entry. Concern for the Commonwealth will also influence votes. Still, the decision to seek entry could hardly have been made except in the belief that in the end the fundamental conviction would prevail that in the future Britain will be better off in the new Europe now taking shape than outside it.
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It is already clear that the most serious obstacles to Britain's entry into the Common Market lie not so much in any direct clash of economic interest between Britain and Western Europe as in the difficulty of transforming and modifying the vast web of Britain's external trading commitments. A loose, worldwide, pragmatic association has to be shrunk, without too much damage, into a close, contractual relationship. For extra-European communities, the squeezing and pinching threaten economic disturbance and political resentment and nowhere perhaps do the problems seem more daunting than in independent Africa where, by a chance of history, the confrontation of Commonwealth and Common Market is physically most direct and potentially most disruptive.
The devaluation of the pound sterling on November 18, 1967, and the announcement on January 16, 1968, of a firm timetable for Britain's withdrawal east of Suez have been widely lamented as marking the "end of an era." Along with such spectacular domestic reversals as the imposition of charges for medical care and the promise of still heavier taxation, the events of the past several months may at least justify the clichés, so often repeated, that Britain is at a "turning point" or has reached a "crossroads." But does all of this necessarily mean continuing deterioration or indicate that Britain's economic base can no longer support her as a major power? Or can those of us looking on from outside reasonably hope that what Labor Ministers have called the "second Battle of Britain,"1 will result in new patterns of economic expansion?
In 1962 the European enthusiasts in Brussels were explaining regretfully that although British membership would slow down the process of European integration-perhaps severely impede the whole movement toward a United States of Europe-it was a price that had to be paid for widening the geographical spread of the Community. No doubt these people, while regretting the manner of General de Gaulle's rupture of negotiations with Britain, are now privately relieved that the price will not have to be paid. Their view is that Britain's inherent weakness is such that she will be compelled sooner or later to come back and knock on the door again and plead for entry into the European Economic Community (E.E.C.). On the whole, better later than sooner. The European Community will by then have consolidated itself; it will be able to impose its terms with less difficulty and, in fairness it should be added, will be less niggling about making small concessions which may contravene the letter, though not the spirit, of the Treaty of Rome.
