Tuesday, Jan. 5, 1965
University Daily Kansan
Page 3
Common Market Trade Up in 1964 'Tight Money' Policy Expected in '65
BRUSSELS — (UPI)— The need for a tight monetary policy to fight inflationary tendencies is expected to cut back the gross national product of the six member nations of the Common Market in 1965 but it should be a good year for business
This has been the Community's best-ever business despite a running fight with inflation. Trade among the six—France, Germany, Italy, Belgium, Holland and Luxembourg-is up 17 per cent over last year. This puts the intra-community trade increase since the common market began in 1958 up by 150 per cent.
Both France and Italy had to introduce strong price controls to hold down inflation. This slowed economic growth slightly but the dangerous upswing of prices was definitely slowed down. France's G.N.P. growth will be around three per cent.
The G.N.P. for 1964 will be about five per cent up on 1963, but the expansion will not exceed four per cent in 1965, according to predictions.
Belgium was in the most dangerous inflationary situation in the Community.
The French auto industry was hit by the credit squeeze and was unable to borrow sufficiently for development. All large French auto manufacturers were forced to cut back production and giant Renault reduced the working week to 40 hours. In late November, however, Renault announced it was returning to the normal working week.
The coal industry is suffering badly from competition with oil. Some 25 German pits are scheduled for closing in 1965 — reflecting the dilemma of the industry's 4 million tons pithead reserves.
WEST GERMANY continued its rapid growth in 1964 and all indications are that the steep upswelling will continue well into 1965.
The star performer was the German auto industry which (unlike the French, was unhampered by limited credit. Its output was estimated at 2.9 million, against 2.6 million in 1963.
Exports of German autos will hit 1,480,000 (m) units, compared to 1,330,000 (m) in 1963 and expectations are similar for 1965.
Gold and currency reserves held by the six increased by $320 million, according to latest figures. France's holding topped $5 billion for the first time.
Farmers harvested a record grain due to fine spring and summer weather, bringing in 58,600,000 (m) tons — 400,000 tons more than the previous best year of 1962.
Community imports were running nine per cent over 1963 and exports at about 10 per cent higher. This was reflected in the Community's
trade balance with non-member countries which is less deficitary than last year.
1965 WILL again be dominated by the need to hold inflation.
Hardest hit will be the building industry. Community governments are cutting down on building permits except for vital construction such as hospitals and low cost housing.
Interest on private loans for building will rise and help bring on the desired cutback. The rush to build was putting up cost of living prices generally and increasing the inflation spiral.
The global prediction is that economic activity will continue to expand but at a slightly lower rate than in 1964. The world business cycle which this year helped European economies is expected to be less lively.
Astronauts Termed Mixture Of Guinea Pigs and Scientists
HOUSTON—(UPI)Cross a scientist with a guinea pig, and the result is a U.S. astronaut.
Which is a figurative way of saying that each of this nation's 29 space pilots is in training to become both the experimenter and the experimented.
The average astronaut, in space, also is a part-time photographer, physician, engineer, radiologist, navigator, pilot and transport driver.
Such are the demands upon the men who will ride the dozen or so two-seater Gemini space capsules into orbit around the earth and the three-place Apollo ships to the moon between now and 1970.
DISREGARDING the heroes involved, the six U.S. astronauts who ventured into space during Project Mercury were little more than scientific sightseers. The art was too new, the flights too short and the Mercury capsules too small and limited for much more.
Ivy Cures All
By comparison, the "second generation" Gemini capsules are veritable flying laboratories. Each is nearly three times larger and heavier than its Mercury predecessor, and each will carry two astronauts.
The Gemini spacecraft can carry enough food, water, oxygen and fuel to keep its pilot and co-pilot in space for two weeks at a time—with enough room left over for the tools of the scientific trade that had to be left behind in Project Mercury.
The United States is investing more than $1 billion in Project Gemini. The returns should run the gamut from improvements in the nation's "spy-in-the-sky" techniques to perfection of space maneuvers to get men safely to the moon and back.
BECAUSE SPACE scientists wholeheartedly subscribe to the theory that one picture is worth 10,000 words, standard equipment aboard Gemini capsules will include cameras and an assortment of lenses and filters.
Circling earth in orbits ranging from as far north as the southern United States and Red China to as far south as Australia and Africa's Cape of Good Hope, the shutterbugs of space will collect snapshots of cities, towns, deserts, harbors, ships, railroads and highways.
The Defense Department, for one is highly interested in the results.
A particularly dramatic sequence of photographs could add impetus to that agency's idea of putting manned satellites in orbits over the poles to run "space sky" missions.
Photography will be a major Gemini goal from the very start—the three-orbit inauguration flight of Virgil I. (Gus) Grissom and John W. Young, now set for early 1965. While pilot Grissom handles the controls, co-pilot Young will man the cameras.
Creeping myrtle, also known as ground ivy, was once believed to be a cure for snakebite, intestinal trouble and envy.
Last chance to sign up for semester break trip or contact KU-Y office
Germany's interior demand will continue but there will be pressure on prices. France and Holland's interior demand will be moderate.
It's Alley Room Time Call VI 3-0281
Tension over prices will continue in the Belgium and Italian economies.
Welcome home to Christmas Ski Trippers!
Meeting of KU-Y SKI CLUB
Wed., Jan. 6
Union 7:00 p.m.
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- all appliances furnished (including disposal)
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- newly enlarged public laundromat
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