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...ALUMINUM. Despite U.S., Canadian and Scandinavian pressure, the Common Market, at French insistence, refused to cut its 9% aluminum duty; but the EEC agreed to allow the import of 130,000 tons a year of the metal at a 5% rate...
Because of the June 30th expiration date of the Trade Expansion Act, which enables the U.S. to cut its import duties across the board, the Kennedy Round negotiators came under relentless pressure to end the marathon talks last week to allow time for the complex documents to be prepared for President Johnson's signature. Much of the delay was caused by the Common Market team, led by diminutive Jean Rey, a Belgian lawyer who heads EEC external affairs. Again and again since last fall, Rey stalled the bargaining in order to seek fresh instructions from EEC head quarters...
...Still, the U.S. insisted that reluctant Europeans join in creating a massive food-aid program for underdeveloped countries, which would increase world demand for U.S. wheat. For its part, the Common Market demanded that the U.S. get rid of its 1922 law that bases tariffs on certain chemical imports, drugs and rubber footwear on the American selling price of those products. The result is extraordinarily high import duties-up to 172% in the case of yellow vat dye-but only Congressional action can abolish the system...
...Army of the Rhine, long a drain on Whitehall's sterling reserves. At the same time, the Bundesbank agreed to refrain from converting U.S. dollars into gold, and promised to honor its purchase of $500 million worth of 41% Treasury bonds - in effect a capital import for Washington -through...
...with industry. Says Economic Affairs Minister K. T. Li: "It is often said that every developing country wants to begin with an atomic reactor and an airline of its own. We resisted that temptation." With loans of $43 million from the World Bank, $56 million from the Export-Import Bank and a $150 million line of credit from Japan, the Taiwan government set about building industry and improving the infrastructure of railroads, highways and communications on which it depends. At the outset, major industries were put under government control, and many of them remain there...