GERMANY: Big Small Power

“But we are only a small power,” Germany’s Chancellor Konrad Adenauer protested to Russia’s Premier Nikolai Bulganin during his recent visit to Moscow. Bulganin shook his head gravely. “No, no,” he said, “you are a big power, whether you like it or not.”

Last week an official West German report to the Organization for European Economic Cooperation (OEEC) demonstrated in part what Bulganin meant. On the basis of present trends, West Germany expects its gross national product to be 10% higher this year than last. West German industry will produce about 15% more, exports will be up by $880 million, total foreign trade by 20%. As a result, tax yields will increase 5%, enough to allow the government to plan reductions not only in consumer taxes but also in personal income taxes.