Ask the Scholar
Page 35 of 75
I can add historical knowledge about this page.
Page image
OCR
Belgium, like most other countries of Europe, resorted to such bilateral arrangements
as expedients to maintain the level of its production and trade. Thus, despite transfer
and exchange problems, essential imports were obtained and markets sustained for
key export industries. Most of these arrangements were of the "trade and payments
type" wherein the respective governments agreed to facilitate the exchange of desig-
nated commodities more or less on a compensatory basis. They were usually accom-
panied by "payments" agreements establishing clearing accounts in the respective
national banks to facilitate compensatory transactions. These accords enabled the
Economic Union to trade with all the countries of Western Europe and most of the
Eastern European countries.
An important difficulty encountered in concluding trade treaties has been the
desire of most countries to limit their imports as much as possible to raw materials
and essential supplies and to re-establish their commercial trade balance and balance of
payments, especially with hard-currency countries. The Economic Union's most im-
portant barter-clearing agreements are with neighboring countries. Those with Latin
American and Eastern European nations have not been particularly successful. How-
ever, the Economic Union finally concluded a commercial agreement with the USSR in
February 1948, which provides, among other things, for the exchange of Belgian ma-
chinery and finished and semi-finished products for grains and small amounts of other
raw materials.
During 1947 the Economic Union began to experience resistance in foreign
markets to the high prices of its products, especially of luxury and semi-luxury articles.
Price competition, particularly in the Western Hemisphere, as well as foreign resistance
to the importation of non-essential items, is making it more and more difficult to sell
abroad. The slowing down of production in the diamond-cutting, textile, and shoe
industries because of decreased domestic and foreign demand is viewed as a forerunner
of the difficulties with which most of the Belgian industries will eventually be faced.
Although certain Government, business, and labor groups view with approval the pos-
sibility of a mild business recession and deflation, the rapid rise of prices during the
first four months of 1948 is likely to be checked by a more violent deflation than is
desired.
The Economic Union's prospects of increasing exports are, except for high
Belgo-Luxembourg prices, largely dependent upon factors over which the Union has no
control. The rigid import controls retained by Belgium's normal customers since the
end of the war and the foreign exchange difficulties in which most of them are involved
have decreased considerably Belgian exports to some Western European nations, par-
ticularly since the beginning of 1948. World-wide shortages of important raw mate-
rials, such as coal, iron and certain non-ferrous metals, have made it impossible for
some of Belgium's industries to operate at capacity levels. Belgium and Luxembourg
are endeavoring to obtain ERP dollars for their exports to the participating countries,
and, in conjunction with the Netherlands are pressing for a multilateral system of
foreign exchange to reduce payments difficulties among the ERP countries.
26
Page data
- Page
- 35
- Source index
- 0
- Type
- photo
- Media ID
- ff3e8339a941d0fc
- Size
- unknown
Document data
- ID
- 486500096
- Core
- doc
- Type
- document
DTO data
{
"id": "486500096",
"sourceUrl": "https://catalog.archives.gov/id/486500096",
"contentType": "document",
"title": "Report, Central Intelligence Agency, Belgium and Luxembourg, Situation Report 19",
"citationUrl": "https://catalog.archives.gov/id/486500096",
"collections": [
"President's Secretary's Files (Truman Administration)",
"Intelligence Files"
],
"iiifBase": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875506/875506-02-001.tif",
"thumbnailUrl": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875506/875506-02-001.tif",
"largeImageUrl": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875506/875506-02-001.tif",
"imageCount": 75,
"hasImages": true,
"source": "import",
"hasTranscription": false
}
Context sent to Scholar
Document identity
{
"localId": "486500096",
"label": "Report, Central Intelligence Agency, Belgium and Luxembourg, Situation Report 19",
"core": "doc",
"dtoType": "document",
"citationUrl": "https://catalog.archives.gov/id/486500096"
}
Document source metadata
{
"id": "486500096",
"sourceUrl": "https://catalog.archives.gov/id/486500096",
"contentType": "document",
"title": "Report, Central Intelligence Agency, Belgium and Luxembourg, Situation Report 19",
"citationUrl": "https://catalog.archives.gov/id/486500096",
"collections": [
"President's Secretary's Files (Truman Administration)",
"Intelligence Files"
],
"iiifBase": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875506/875506-02-001.tif",
"thumbnailUrl": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875506/875506-02-001.tif",
"largeImageUrl": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875506/875506-02-001.tif",
"imageCount": 75,
"hasImages": true,
"source": "import",
"hasTranscription": false
}
Document source extras
{
"url": "https://catalog.archives.gov/id/486500096",
"naId": 486500096,
"levelOfDescription": "item",
"productionDates": [
{
"day": 16,
"logicalDate": "1948-11-16",
"month": 11,
"year": 1948
}
],
"recordType": "description",
"ocrSource": "nara-archive"
}
Page context
{
"seq": 35,
"pageIndex": 0,
"type": "photo",
"url": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875506/875506-02-035.tif",
"mediaId": "ff3e8339a941d0fc",
"ocrText": "Belgium, like most other countries of Europe, resorted to such bilateral arrangements\nas expedients to maintain the level of its production and trade. Thus, despite transfer\nand exchange problems, essential imports were obtained and markets sustained for\nkey export industries. Most of these arrangements were of the \"trade and payments\ntype\" wherein the respective governments agreed to facilitate the exchange of desig-\nnated commodities more or less on a compensatory basis. They were usually accom-\npanied by \"payments\" agreements establishing clearing accounts in the respective\nnational banks to facilitate compensatory transactions. These accords enabled the\nEconomic Union to trade with all the countries of Western Europe and most of the\nEastern European countries.\nAn important difficulty encountered in concluding trade treaties has been the\ndesire of most countries to limit their imports as much as possible to raw materials\nand essential supplies and to re-establish their commercial trade balance and balance of\npayments, especially with hard-currency countries. The Economic Union's most im-\nportant barter-clearing agreements are with neighboring countries. Those with Latin\nAmerican and Eastern European nations have not been particularly successful. How-\never, the Economic Union finally concluded a commercial agreement with the USSR in\nFebruary 1948, which provides, among other things, for the exchange of Belgian ma-\nchinery and finished and semi-finished products for grains and small amounts of other\nraw materials.\nDuring 1947 the Economic Union began to experience resistance in foreign\nmarkets to the high prices of its products, especially of luxury and semi-luxury articles.\nPrice competition, particularly in the Western Hemisphere, as well as foreign resistance\nto the importation of non-essential items, is making it more and more difficult to sell\nabroad. The slowing down of production in the diamond-cutting, textile, and shoe\nindustries because of decreased domestic and foreign demand is viewed as a forerunner\nof the difficulties with which most of the Belgian industries will eventually be faced.\nAlthough certain Government, business, and labor groups view with approval the pos-\nsibility of a mild business recession and deflation, the rapid rise of prices during the\nfirst four months of 1948 is likely to be checked by a more violent deflation than is\ndesired.\nThe Economic Union's prospects of increasing exports are, except for high\nBelgo-Luxembourg prices, largely dependent upon factors over which the Union has no\ncontrol. The rigid import controls retained by Belgium's normal customers since the\nend of the war and the foreign exchange difficulties in which most of them are involved\nhave decreased considerably Belgian exports to some Western European nations, par-\nticularly since the beginning of 1948. World-wide shortages of important raw mate-\nrials, such as coal, iron and certain non-ferrous metals, have made it impossible for\nsome of Belgium's industries to operate at capacity levels. Belgium and Luxembourg\nare endeavoring to obtain ERP dollars for their exports to the participating countries,\nand, in conjunction with the Netherlands are pressing for a multilateral system of\nforeign exchange to reduce payments difficulties among the ERP countries.\n26"
}