65° - 01.11.1969, Qupperneq 11

the increase noted for 1967 may be attributed to
Alcan’s acquisition of shares in Ardal and Sunn-
dal in exchange for the take-over of Alcan shares
by the Norwegian state.
The major investments have taken place in
industry, but in commerce too, foreign interests
have played an increasingly important role, among
other things in the setting-up of sales offices. No
figures are available to illustrate recent trends,
but it is obvious that considerable investments
have been made by American and Swedish inte-
rests.
A great many of the foreign firms are engaged
in producing for export, and consequently much
of their activity results directly or indirectly in
foreign currency earnings.
At present the level of company taxation is
very high. This is an important point which for-
eign investors must take into account, and yet in
the 'laist few years this factor does not appear to
have acted as much of a deterrent. The flow of
capital from abroad had been so considerable that
is has sufficed not only to cover the working
deficit right up to last year, but also to effect a
marked incease in Norway’s foreign currency
holdings. Owing to the favourable foreign trade
development and the relatively liberal amount of
foreign currency available, economic policy for
1969 will try to ensure that the financing of in-
vestments will to a greater extent be carried out
in the domestic capital market. This might well
produce a situation in which supplies of foreign
capital may actually exceed what is assumed to
be required. It is, however, clear that there will
still be room for foreign participation in the deve-
lopment of our economic resources, and that there
are still potential fields which are likely to attract
foreign investors. Economic intergration inter-
nationally will continue, not least among the
Nordic countries, and this in itself will stimulate
foreign capital to participate in Norway’s eco-
nomy, particularly if Norway should become a
member of a larger European economic comm-
unity.
In the report submitted by the Vindsetmo Com-
mittee (“Report on Norway and the European
Community”), published in 1967, an attempt has
been made to investigate the problems that would
arise in the event of Norway j oining the European
Common Market. It emphasizes that the rate of
economic development has presupposed a net in-
fusion of foreign capital on a long-term basis,
and that Norway will still need to maintain a
high level of investment, among other reasons
because so many of her natural spheres of ex-
pansion make such heavy demands on captial
investment. The problem in the future will
be, among other things, to what extent it will be
possible for Norway to influence the scope and
natures of foreign investments. The EEC aims to
effect a gradual abolition of all currency restric-
tions on the transfer of capital from one member
country to another, and to do away with all
discriminatory treatment based on nationality.
Today, on the basis of either the currency law or
the concession laws, the authorities can impose
certain conditions in connection with investments
by foreigners in Norway. In the event of Norway
joining EEC the right to demand that financing
of business enterprises shall in part be carried
out by the infusion of capital from abroad might
possibly be maintained on a nondiscrimininatory
basis as far as investments subject to concession
laws are concerned. In the case of investments not
subject to the concession laws no such demands
could be made.
Viewed in perspective it might be said that so
far foreign investments have not really involved
any special problems, but have in fact exerted a
favourable influence on the Norwegian economy.
Future developments will still entail the need for
foreign investments with all the advantages these
involve, but there is a certain measure of proba-
bility that the problems this may bring in its wake
will grow, both politically and nationally speaking.
ESSfed
65 DEGREES
9