THE CADRE‘.‘ Nov.~ -5'.‘«:..»'.page B n

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Americian President Richard Nixon,it seems,does not like the winds of economic nationalism currently circulating in this country.and would like to be ' guaranteed a greater Canadian financial dependency on the U.S.

When Nixon introduced his 10% import surcharge as phase one of his new economic policies last month,many observors fore- cast a trade war between the U.S. and Canada,each of whom is the

other's largest international trading partner.

‘ The end result of this may

be that the new-international trade policies will lessen our' financial dependance on the U.S. Most nations that have struggled for their financial independence from the U.S.in recent history (Japan.Mexico,Chile,ect.)have used domestic policies to achieve their goals (i.e.-nation- alization of banks,industry.)but Canada has reached into the realm of international economics to .strengthen her world position as producer and exporter.

In his courtships of the Soviet Union,China,and the Europe ean Common Market.Trudeau is finding ready markets for Can- adian produce. And using the new Americian economic policies as a timely politicial lever,he is gradually intensifying the dip— lomatic flirtations. ‘

New markets and new trade agreements will not make Canada economically independent. But they will set up a more reason-

able and less restricted supply and demand framework in which Canada can manoueverrmore freely on the international economic front.

If these new trade partner- ships work out,it will probably -mean an independent capitalist society for Canada,given time, rather than the all-encompassing North Americian market that econ» omists talk about today.

While international markets may change,the domestic system of production shows no sign of doing likewise. After all.it is native rCanadian capitalists that the government‘s new policy is designed to help,and it is. because of the hardships they are now facinggthat it is seeking new market places. '

What steps has Canada taken? Consider these examples:

*China is Providing Canada with an advance list of its im- port requirements for 1972. This list will arrive in Ottawa in December,and will include for the first time a-request for manufac- tured goods.

This year exports to China could reach 200 million dollars, a 40% increase over 1970, with Canadian textile goods supple- menting the massive wheat trade. And,since China will not impert Americian manufactured goods, this trend toward industrial trade will be a shot in the arm to Canadian-owned business.

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*There is a growing aware- ness of Canada's economic posit- ion (and vulnerability) among officials in the European Econ- ‘

omic Community (EEC). In the past Canada has been considered part of the North Americian market accessible through the U.S.,but the recent Americian surcharge has shown quite clear- ly the differences between Canadian and Americian markets.

The president of the EEC, Mario Malfatti, visited Trudeau and senior cabinet officials recently to discuss methods of protesting the Nixon measures. At this meeting (ignored by the daily press) the possibility of a non-preferential economic agree— ment was considered.

The EEC has only two similar trade agreements at presentaone with Yugoslavia, the other with Argentina.

The Kosygin visit to Canada was also well-timed within the economic crisis. Kosygin said publicly that Soviet-Canadian trade will increase and prosper and indirectlyvattacked U.S. economic policies,whtle Trudeau forsees a new relationship with the U.S.S.R.”as friendly as Canada has traditionly had with the U.S?

_ The Soviets are interested in exchanges of technological information and in sharply increasing trade in textiles and machinery.Canada now exports

about $120 million of goods a year to the Soviet Union, again mostly wheat, while im- porting(1n{1970)only $8 million.

So, through international trade and foreign relations pol- icies, Canada is burying the hatchet that Louis St. Laurent and John Diefenbaker wielded figa%nst the Communist bloc back

n he cold war da 1950.8. YS of the

There is no doubt that the biggest winner is going to be

-intustry.But for a change, it's

going to be Canadian industry

and not Americian controlled industry that is going to benefit by the addition of_more foreign markets.

The U.S.,long Canada's major trading partner,is going to lose. And it will lose,ironically, because of its own recent econ- omic policies which started the international trade snowball.

excerpts from Ian Wiseman.