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10/28/1948 - Belgium by John R. McCarthy

INSTITUTE OF CURRENT WORLD AFFAIRS JRcC Hotel Delavigne Rue Casimir Delavigne Pa VI Frsce October Walter S Rogers Institute Cub Wo Affa Fifth Avenue Yor Y Dear Rogers Recently Bruges Belgium I watched Winston Churchill represents anyone twentieth century depict canvas house which unmistakably represented fifteenth century Both house Churchill appeared shape considering undergone I reflected could preserve wsdom statesmen serve structures stone timber should easier making important political decisions Surely Belgium which playing increasingly vital affairs western Europe wishes Leopold I could resurrected place Spaak Leopold regaded uling country ofession mastered fession known entor Europe could present current Brussels Pact signatories which Belgium getting usual share attention Weste Union might Belgium enhanced position inter European relations arises causes status creditor nation vigoous determination being battleground other people The London Treaties recognizing perpetual neutrality protect WWI French British German guaran worthless during WWn Belgium therefore reservations other nations Wes Union absolute necessity throwing weight influence direction The material aspects influence apparent anyone spends Brussels probably looking expensive capital Euz The streets crowded American shops luxury items radio phonographs electric cocktail shakers miracle miracles chocolate available without sidewalk vending machines everywhere butter supply gasoline rationed there queues The people I taled seemed optimistic Their timism reflected premzere which I attended French The presented endings happy The audience asked ending preferred happy victor The Pa ending The colored comes easily people compa atively France usual chaos It population colonies England heavily Nether lands deriving instead East ldies couzties encies stable value world market Belgium other boasts glitte fagade nished inteio furnishings bought instalmert They bought fortune partly fruits clever headed economic instituted immediately after liberation September The arrived person Amez enough bills billeting guided tours office space milita expenditu Lend Lease account Belgium favor By account settled Belgium immediate supplies stead cozsume goods nylons chewing tobacco towels By floodig domestic ketwith these desired articles inflation morale The confide housewive alfred issue equipment bonds valid purchase household utensils Wage creases inevitable acoss board raises avoided wherever possible favor broad extension social insur fringe benefits A particularly ingenious device existing provision vacations double event serious deflation provision modified eliminated without affecting overall rates The present level wages prices determine because Belgian statistics The methodical Dutch thodical Germans constantly fustated Belgium occupation efficiezcy inveto duction indices personnel records In addition great Belgium industry hands limited partnerships which required publishyfigu oreover certain amount political jocEeying ounds compilation living index aspersions accuracy against similar U S It possible estimate however retail price index number about wages somewhat lower industrial duction which seems dropping slightly recent months about Almost subsidies removed consumption articles hoped wages prices remain stable One important reason considerably lower index figures Netherlmds subsidies there retained Belgium financial policies since liberation based called Gutt piece expersurge without benefit anesthesia which reduce circulation money while financing extraordinary postwar expenditures All currency notes larger francs worth about called accounts frozen capital imposed The currency released gradually counts unblocked gradually Over frozen assets remain unthawed havin invested ne6ot bonds onetary Refom Los These measures undid damage which manipulation Germans caused moneta circulation level roughly corespoding general index Businessmen complain coz0se virtual confiscation their toether taxes discouraged capital investment efore brake nation irdstrial redevelopmet effect seems nonetheless One countries enjoyi favorable balance trade Belgium hopes arshall Plan enabling debtors dollars favorable balance something bookkeeping entry She extended credits neighbors amounting about OO0 worth francs Belgian officials Bssels pointin proportion national income amount least great U S contribution E R P When I That interesting comparison This finest official declaration I heard Belgium doesn expect payment those credits The official blushed coughed You misunderstand We salogy But Belgian credits represent largesse still certainly importat European recovery Belgium nation almost materials except economic destiny importing materials porting finished goods which today great demand There market Belgian steel U S She necessity advocate trade convertibility Crrencies network import restrictions which srrounds countries including U S decidedly liking another reason Belgium inteested Western Union immediately Benelux The latter nomic umion enlarge domestic market sting German trade eliminate extent incredibly complex system tolls rebat freight differentials which goverm water transportation Low Countries putting firmly competitive basis etherlands tighten economy She considerably aided Belgian Congo fabulously soarce materials probably Condition start thinking about izdependence least another generation In field labor relations campaign waged workers syndicates translated structual reform brought forth first fruits passed Hose Seate Au The creates defines functions series organizations similar industry councilsi advocated U S C I O Henceforth every emterprise industy commerce agzicultu employing people council which representatives management workers serve equal footing These councils according somewhat vague primarily advisory inspecting bodies They attempt reach agreement rights duties personnel which enterprise should within proper economic sphere requireme licenses times vacations security benefits general problem social professional which affects enterprise whole When requested councils furnish mation recommendations parent councils discussed below The provides enterp submit council regular production financial statements latter least detailed stockholder report The basic function councils emphasized create climate cooperation between labor management The existing workers syndicates remain sepax gizaions presumably continue xercise their tions bargaining wages callin6 In addition councils government authorized approve indstry councils industx icultural commercial activity importance On these councils representatives management equals industry council acting information discussion center group Finally there Cent Economic Council representatives management workers impartial advisors chosen The Central Council possess jurisdiction other councils advisory informative downward toward indust councils upward toward government It worth noting affects worers industry comme agriculture although require great administrative explication royal decrees carefully avoids structural reform transfer power employer employee bitterly contested employers conservative press taken seriously syndicates which training months theix seats On What workers 0estion ection enterprise labor ement stocholdex aking secondary veyors capital I objected discussing these stockholders shorn their prerogatives there might flight capital dimensions 8swered first number places which getting smaller second syndicates eventually capital selves their immedia goals share profits realized Obviously objection really wered obviously movement toward 90gestion making headway It esting politi attempt resolve class warfare little socialism inasmuch envisage nationali zation rather insists control productive facilities private groups little common theory corporate state since General Economic Council expected remain merely advisory without decretal powers Less spectacular social movements perhaps biting deeper cultu shift takin6 place Bel6ium Fo Flemish speaking Belgians u661ed their lsdish cultu accepted equal French cultu south language roblem pla6ued successive govez ments Flemish which written Dutch officially administrative purposes state uziversities Ghent Flemish institution since The other state university Lege Catholic uiversity Louvain Freemason university Brussels lin6ual But French still langua6e classes everywhere regarded artistic polite lan6ua Bel6ium The Flemish ovement which inated during years Bel6ium etherlsds united seeks change state affair Flemish seaking people outnumber F speakie cultu swing liely place The Flemish ovement tends become tical reunion letherlands which aditi onally turned tures World Wars contributed traitors ently seems political At University Ghent I Flemish population seeks closer unity southern Belgians At University Louvain which cated strongly Flemish I leaders Flemish ovement hands people hands demagogues And I asked I heard latest about Jesuits It seems beautiful Jesuit church Louvain bombed durin demolished except charming fagade which untouched stands alone today empty That Jesuits informant Nothing charming fapade Sincerely Received Nw York