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110 Juhana Aunesluoma man” as a head of the permanent organisation in 1947-49. 19 Their approach towards internal financial problems was remarkably similar too, save perhaps Denmark's lesser preoccupation with full employment policies. 20 Otherwise the domestic economic policy of maintaining price stability in a full employment economy by Keynesian demand management using budgetary means was common to these countries. Despite disagreements from 1950 onwards on the most suitable instruments of trade liberalisation, in numerous cases, the British could find the Scandinavians on their side in OEEC discussions on economic policy. This convergence of the basic economic outlook of the British and the Scandinavians was compounded with a more deliberate policy of co-operation among the OEEC delegations in Paris. At the same time when the Treasury and the Foreign Office considered the Uniscan-scheme in October 1949, the British representative to the OEEC, Edmund Hall-Patch, suggested that their co-operation should be deepened by some special arrangement within the Paris organisation too. 21 When the Uniscan-plan was introduced in Whitehall in the autumn of 1949 enthusiasm was most pronounced at the Treasury and the Bank of England. 22 Foreign Office officials saw the merits of the plan too, and when Uniscan was established in January 1950, the Foreign Office support for it was based on calculations of the political usefulness of a special channel to the Scandinavians in policy-making, and when economic benefits failed to materialise from its work, the Foreign Office interest proved to be decisive to its continuance. Above the official level perhaps the most consistent proponent for closer Anglo-Scandinavian economic association in Britain during the Labour government was the Chancellor of Exchequer, Sir Stafford Cripps. Whereas Hall-Patch in the OEEC was an ardent supporter of closer Anglo-Scandinavian co-operation in organisational and practical questions of European economic co-operation, Cripps took a somewhat broader view. His assessment was based on what he saw to be the fundamental unity of interest Britain and Scandinavia shared towards the “general problem, which was included in the talk of “economic integration” or “unification of Europe”. 23 It seemed “that England and the Scandinavian countries had to a large degree a common conception of the question of economic policy and that we often distanced ourselves from the Latin peoples in these questions”. 24 Cripps's rather optimistic views of the fundamental similarity of outlook between the British and the Scandinavians in economic and social thinking reflected views that 19. A. S. MILWARD, The Reconstruction …, op.cit., pp.171-211. 20. 'The Internal Financial Policies of the Uniscan Countries', report by the Economic Section of the Cabinet Office, May 1950, FO 371/87090. 21. Interview with Erik von Sydow (OEEC), 7 July 1970, Harry S. Truman Library, Oral History Interview Collection, Independence, Missouri. See further on relations between Hall-Patch and Dag Hammarskjöld, I. HÄGGLÖF, Drömmen om Europa, Norstedts, Värnamo, 1987, p.51. 22. The Bank of England held that Treasury and FO enthusiasm behind the scheme was entirely based on political considerations. Lithiby minute, 8 November1949, OV 29/31, BEA. 23. Cripps minute, 2 November 1949, T 236/5370, PRO; Östen Undén promemoria, 3 November 1949, HP 64 Å. vol.HP 2216, RA. 24. Ibid.

An Elusive Partnership: Europe, Economic Co-operation and British Policy 111 were widely held amongst British socialists in particular: “On the side of the British Labour Party, illusions were rife about Scandinavia in general”, Alan Milward described the socialists' “special relationship” over the North Sea in The Reconstruction of Western Europe 1945-51. 25 When the gap between the continent and Britain seemed to widen in 1949-51, both ministers and officials in London sought consolation from the presumed unity between Britain and the “like-minded” people of the North, the “champions of the Welfare state”, or “our staunchest friends and allies in Europe”, as Roger Makins of the Foreign Office put it in the summer of 1951, witnessing that such notions were not confined to socialist circles only. 26 Besides such a heightened sense of similarities between the British and Scandinavian “mentalités”, and whatever political implications these – undoubtedly sincerely held – views may have had, the plan Cripps put forward in November 1949 was based on political and economic arguments. For Cripps, as was the case with officials in Whitehall as well, Anglo-Scandinavian co-operation was not just a tactical ploy to manoeuvre into better positions in the Ministerial Council of the OEEC or an act of solidarity among the brotherhood of socialists around the North Sea. An opening towards Scandinavia was initially hoped to be at least a partial solution to Britain's numerous problems in its economic and political position in Europe, along lines that would build up Britain's economic strength in a way not inimical to current British – or socialist – economic thinking and political traditions. The establishment of Uniscan One of the most useful political arguments in favour of further Anglo-Scandinavian economic co-operation was that Britain needed to show that it had kept to its word about its commitment to regional economic groups as a fundamentally desirable objective. The British government had confirmed this to both domestic and international audiences, but words needed to be supplemented with actions. And if actions fell short of words, something was needed to sugar the pill in Washington at least. Desperately looking for a way out, Foreign Office officials agreed that it could hardly be argued on the basis of a closer economic association between Britain and Scandinavia “that we should be acting as rather bad Europeans if we associated ourselves with a regional group which would after all be based in that similarity of outlook and economic structure which is the only logical foundation for any regional groups”. 27 In this view, there was no other serious alternative for Britain, because participation in the regional group including Belgium and Italy would be more difficult 25. A. S. MILWARD, The Reconstruction …, op.cit., p.316. 26. Henniker memorandum, 'Closer Economic Association between Scandinavia and the Sterling Area', 30 November 1949, FO 371/78137; E. A. Radice minute, undated (1949), FO 371/78136; Sir Roger Makins memorandum, "Impressions of Scandinavia", 28 June 1951, FO 371/94444, PRO. 27. Burrett minute, 8 November 1949, FO 371/78136, PRO.

110<br />

Juhana Aunesluoma<br />

man” as a head <strong>of</strong> the permanent organisation in 1947-49. 19 Their approach towards internal<br />

financial problems was remarkably similar too, save perhaps Denmark's lesser preoccupation<br />

with full employment policies. 20 Otherwise the domestic economic policy <strong>of</strong><br />

maintaining price stability in a full employment economy by Keynesian <strong>de</strong>mand management<br />

using budgetary means was common to these countries. Despite disagreements<br />

from 1950 onwards on the most suitable instruments <strong>of</strong> tra<strong>de</strong> liberalisation, in numerous<br />

cases, the British could find the Scandinavians on their si<strong>de</strong> in OEEC discussions on economic<br />

policy. This convergence <strong>of</strong> the basic economic outlook <strong>of</strong> the British and the<br />

Scandinavians was compoun<strong>de</strong>d with a more <strong>de</strong>liberate policy <strong>of</strong> co-operation among the<br />

OEEC <strong>de</strong>legations in Paris. At the same time when the Treasury and the Foreign Office<br />

consi<strong>de</strong>red the Uniscan-scheme in October 1949, the British representative to the OEEC,<br />

Edmund Hall-Patch, suggested that their co-operation should be <strong>de</strong>epened by some special<br />

arrangement within the Paris organisation too. 21<br />

When the Uniscan-plan was introduced in Whitehall in the autumn <strong>of</strong> 1949 enthusiasm<br />

was most pronounced at the Treasury and the Bank <strong>of</strong> England. 22 Foreign<br />

Office <strong>of</strong>ficials saw the merits <strong>of</strong> the plan too, and when Uniscan was established in<br />

January 1950, the Foreign Office support for it was based on calculations <strong>of</strong> the political<br />

usefulness <strong>of</strong> a special channel to the Scandinavians in policy-making, and<br />

when economic benefits failed to materialise from its work, the Foreign Office interest<br />

proved to be <strong>de</strong>cisive to its continuance.<br />

Above the <strong>of</strong>ficial level perhaps the most consistent proponent for closer Anglo-Scandinavian<br />

economic association in Britain during the Labour government<br />

was the Chancellor <strong>of</strong> Exchequer, Sir Stafford Cripps. Whereas Hall-Patch in the<br />

OEEC was an ar<strong>de</strong>nt supporter <strong>of</strong> closer Anglo-Scandinavian co-operation in organisational<br />

and practical questions <strong>of</strong> European economic co-operation, Cripps<br />

took a somewhat broa<strong>de</strong>r view. His assessment was based on what he saw to be the<br />

fundamental unity <strong>of</strong> interest Britain and Scandinavia shared towards the “general<br />

problem, which was inclu<strong>de</strong>d in the talk <strong>of</strong> “economic <strong>integration</strong>” or “unification<br />

<strong>of</strong> Europe”. 23 It seemed<br />

“that England and the Scandinavian countries had to a large <strong>de</strong>gree a common conception<br />

<strong>of</strong> the question <strong>of</strong> economic policy and that we <strong>of</strong>ten distanced ourselves<br />

from the Latin peoples in these questions”. 24<br />

Cripps's rather optimistic views <strong>of</strong> the fundamental similarity <strong>of</strong> outlook between<br />

the British and the Scandinavians in economic and social thinking reflected views that<br />

19. A. S. MILWARD, The Reconstruction …, op.cit., pp.171-211.<br />

20. 'The Internal Financial Policies <strong>of</strong> the Uniscan Countries', report by the Economic Section <strong>of</strong> the<br />

Cabinet Office, May 1950, FO 371/87090.<br />

21. Interview with Erik von Sydow (OEEC), 7 July 1970, Harry S. Truman Library, Oral History Interview<br />

Collection, In<strong>de</strong>pen<strong>de</strong>nce, Missouri. See further on relations between Hall-Patch and Dag<br />

Hammarskjöld, I. HÄGGLÖF, Drömmen om Europa, Norstedts, Värnamo, 1987, p.51.<br />

22. The Bank <strong>of</strong> England held that Treasury and FO enthusiasm behind the scheme was entirely based<br />

on political consi<strong>de</strong>rations. Lithiby minute, 8 November1949, OV 29/31, BEA.<br />

23. Cripps minute, 2 November 1949, T 236/5370, PRO; Östen Undén promemoria, 3 November<br />

1949, HP 64 Å. vol.HP 2216, RA.<br />

24. Ibid.

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