Up to the Mark

In a Europe caught up in restrictive trade barriers, West Germany's hardhitting Economic Affairs Minister Ludwig Erhard is a rarity: an influential man who wants to lower barriers. Erhard's energetic free-enterprise policy has had a lot to do with West Germany's sensational boom. If he had his way, neighboring countries would junk their restraints on currencies and trade, and everyone would benefit. For a starter, Dr. Erhard called last week for a whole sale revaluing of inflated West European currencies. Only three European currencies, said Erhard, are now valued correctly in terms of the dollar. The three: West Germany's Deutsche Mark, the Belgian franc, the Swiss franc.

"The real trouble," said Erhard, "is that we still do not have a true international price system. Prices in various countries are permitted to develop differently, and then existing exchange rates become unrealistic and governments take measures to defend them." In Erhard's own country, exports flow at a booming $6.1 billion a year, and the currency is almost fully convertible. "If Britain had a fully convertible currency today, she would not have a lot of the difficulties she is experiencing," said Erhard.

Last week the West German Government lifted practically all remaining quotas on dollar-import manufactures, and the Cabinet approved an Erhard plan to slash tariffs, and hold home prices down by letting more imports in. He had asked for a 30% tariff cut, but got only 10%. Even in his own country, powerful pressure groups (mainly the farm lobby) keep Erhard from practicing all he preaches.

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