International: Truce on Elkport'.Fillips F "a period of three months, there
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shotild be nb increase in the provision by European Governments of artificial incentives for exporters. This is the .effect of an agreement reached by the Council of European Industrial Federations, representing the industries of Austria, Belgium, Denmark, Finland, France, Germany, Holland, Italy, Luxemburg, Norway, Sweden, Switzerland and the United Kingdom.
The council 'gave recent consideration to. the problemt of 'State. export incentives, .and were unanimous that it was undesirable for there to be a race between Countries for ever bigger incentives, which had the effects of subsidizing customers and of raising.taxation in the producing countries.
It was not found possible to agree upon definitions of Governmental and fiscal practices which, were bad and those which were acceptable. . During the three-month standstill period, how-. ever, the member federations are to collaborate with the Organization for European Economic Co-operation to analyse the matter, with the object of abandoning the artificial stimulation of export trade.
The Federation of British Industries took the lead in advocating the banishment of Governmental aids to exporters —for instance, in the form of extended credits to overseas buyers—and were strongly supported by their German opposite number. The Chancellor of the Exchequer has welcomed the plan and is to propound it at diplomatic level.