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The Luxembourg Situation

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X.A. (HO)
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Habsburg Ottó Alapítvány
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1952-11
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5
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f : KeAe2e November 52. - page five nations. They explain it by the fact that Luxembourg, being the smallest. has the least number of voices in decisions and that, on the other hand, its economy is more fully involved (its steel production corresponds to approximately 80% of Luxembourg's economy). The heavy Luxembourg industry has been used to draw attvantages from free competition on the European market, without needing protective measures. It fears now that the Coal and Stell authority might develop a large administrative bureaucracy and policies of trade controls. +his in turn would create both overhead charges and limitations which = so Luxembourg fears =< might become harmful in the competition with American producers. In that case, such detrimental consequences will not eventually stay with coal and steel alone, but will be felt in other consumption goods - industria’ or agricultural - which Americans can produce at low cost, because they have a large and already unified domestic market of their own. With all these considerations in view, Luxembourgers frequentl, comment with apprehension about the socialist influence within the high authority of the coal and steel pool. The unexpected election of Mr. Spaak as president of the Assembly ~ in opposition to Gemany's christian=—democrat carididate von Brentano = is revealing at their eyes. . They interpret it as an outward sign that party policies and party es em at timesstronger in “uropean affairs than national oe ey fear thát socialist influences might be further strengthe£32 Ene toulá lead then directly towards a harmful policy of strict trade controls. In a year hence, Luxembourg itself will have its elections. “hould these go along the lines to be foreseen today, it would mean that the country's Premiership and foreign affairs would pass into socialist handse This again = and Luxembourgers themselves emphasize that point - wuld increase the socialist positions and policies on the Luropean level. Luxembourgers feel that a Kuropean economic, political and defense community - although it feans giving up some of the country's sovereignity - is as such a stép in the right dircctione It is the road leading to a larger and united entity that alone can effectively oppose the dangers of a new invasion from the Hast. The only doubts expressed are connested with the practical appbication: the groups and personalities who sill assume leadership and the policies that will be put forthe _—_— or

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