The San Francisco call., 1905-04-27
GERMANY
TO CANCEL
TRADE PACT
Kaiser's Government Plans to
4 End Agreement With the
: United States on Tariff
Question Early Next Year
NEW RECIPROCITY
TREATY FAVORED

BERLIN, April 26.-The imperial
Government, preparatory TO excluding
the United States from the privileges
b OF the new reciprocity treaties signed
recently with seven European states,
has formally notified the American
Government that the tariff agreement
between Germany and the United
States Of July 10, 1900, will terminate
on March 1, 1906. the day the new
treaties so into effect. but that Ger
many stands ready 10 negotiate reci-
procity treaty with the United States.
This notification says that the
treaties concluded with Russia, Italy.
Belgium. Austria-Hungary, Roumania
and SerVia form q new basis for the
commercial relations OF Germany and
the imperial Government holds itself
prepared TO enter into negotiations for
= new commercial treaty with the
United States
The German view, as held at the
Foreign, Office and at the Ministry Of
the Interior, is that the United States
cannot reasonably expect a share in
special benefits given by Germany to
certain European states in exchange
FOR other specific tariff reductions.
Should the United States have the
came advantages without giving any
thing in return. the treaty countries
could justly complain that they were
IN effect Disseminated against Wash
1ngton has not yet replied to Ger
Dany's proposal
OPINION IN WASHINGTON.
b WASHINGTON, April 2e.-It is ad-
mitted at the State Department that
pourparlers have been in progress
for the last three months between the
American embassy at Berlin and the
d German Foreign Office respecting the
effect upon the existing reciprocity
agreement between America and Ger
many OF the new trade treaties con-
cluded between Germany on one side
and Belgium, Italy, Austria Hungary
Roumanis, Russia, Switzerland and
Eervls on the other, but so far EN-
department that the German Govern
ment has decided to terminate the
existing arrangement
The effect Of a formal declaration
or that kind would be very serious, II
IS feared, and Tower is now engaged
. IN one Of the most difficult and com
plex tasks which he has vet been
called upon TO discharge. If the ar
rangement is denounced and no SUBJ
stitute is found. then it may be that
the United States and Germany will
soon become involved in q tariff war
which would certainly prove disas-
troUs to one or both Of the principals,
IN view Of the vast amount OF trade
between the two countries which
would be affected.
HISTORY OF THE CASE.
In July, 1900. a reciprocity arrange
ment was entered into between Amer
lea and Germany under section 9 Of
the Dingley act, whereby in return
for 2 reduction of duty on German
sbrandies, still wines and works of art
entering the United States Germany
agreed 70 give United States products
the benefit Of tariff reductions accord
ed 10 the European countries above
named Germany now has drawn new
conventions with those countries
changing the tariff rates and is dis
posed to refuse the United States the
benefit Of these special rates under
the old Dingley convention. The State
Department holds that the new con-
rentions are really nothing more than
amendments Of the original treaties
and that therefore the spirit Of the
Dingley act agreement would seem TO
cause II 10 apply with equal force to
the new conventions. Correspond
ence is now passing to clear up this
difference of views
In the background is a well recog-
nized purpose on the part OF the Ger
man Government to cause the United
States 70 greatly enlarge the list of ar
ticles named in the Dingley agree
ment but as these are limited special
~ IN the Dingley act that object can
be attained only by the negotiation OF
an entirely new reciprocity treaty.