ABSTRACT
F R O M the German point of view the E.P.U. must be regarded as a dynamic organisation calling for expansion by a maximum extension to overseas countries to the end that our foreign trade may be promoted equally on the export and on the import side. The current problems facing the E.P.U. and the problems connected with the tendency towards the convertibility of sterling which have become apparent since the end of 1952 can be properly appreciated only if the close inter-connection between the E.P.U. and the sterling area is taken into account. Anglo-German trade will be smooth and vigorous in proportion as the two systems are more and more closely merged.*
Since 1952 our structural surplus with the majority of the O.E.E.C. countries has been becoming more clearly apparent, a surplus balanced by a structural deficit with the respective overseas territories. Germany has always exported largely to industrial countries and its opportunities for export grow with the growth of industrialisation in general. The process of industrialisation undoubtedly offers us growing opportunities overseas in proportion as the countries affected become more fully industrialised or mechanise the production of raw materials. Yet for the time being the position is governed by our surpluses with regard to the industrial countries (except the United States and Canada). Accordingly our position within the E.P.U. would probably have become untenable some time ago were it not that an opportunity existed to offer our deficits with the overseas territories in compensation by bringing into the account these overseas territories, and particularly the sterling area.
