New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-27
TARIFF WAR THREATENED
GERMANY TAKES ACTION.
To DenOunce Reciprocity Agreement
-NeU Treaty Proposed.

Berlin. April 28.-The imperial government.
preparatOry to excluding the United States
from the privileges OF the new reciprocity
treaties signed recently with seven European
States. has formally notified to the American
government that the tariff agreement between
Germany and the United States Of July TO- 1900
will terminate on March 1. 1906. the day the
new treaties 80 into effect but that Germany
stands ready to negotiate reciprocity treaty
with the United States.
This notification, given by Foreign Secretary
Won Richthofen on March II. after the decision
of the Cabinet said that the treaties concluded
with Russia, Italy. Belgium. Switzerland. Au-
stria- Hungary, Rumania and Servia form a
new basis for the commercial relations of Ger
many, and the imperial government holds itself
prepared to enter into negotiations for the con-
clusion of a new commercial treaty with the
United States
The view held by the Foreign Office and by
the Ministry Of the Interior is that the United
States cannot reasonably expect to share in
special benefits given by Germany to certain
European States in exchange for other specific
tariff reductions. Should the United States have
the same advantages without giving anything
in return the treaty countries could charge
discrimination because from them certain
things we're exacted by bargain which were
freely given to the United States. If the United
States. however. desires to take UP the gen
eral tariff question and arrange reciprocal
agreement Germany will be glad to do So
Otherwise Germany's new general tariff, which
also goes into effect on March 1. 1906 will be
applied to imports from the United States.
The government. in terminating the present
modus Vivendi. has done what the Agrarians
have steadily asked since the new commercial
many has also been fully prepared for the gov
ernment's act by publications of the CONNER
cial Treaty Association. the Central European
Industrial League and by articles in the prin-
cipal financial periodicals. Washington has not
yet replied to Germany's proposal
Washington. April 26.-It is admitted at the
State Department that pourparlers have been
going for the last three months between the
American Embassy at Berlin and the German
Foreign Office respecting the effect on the ex-
listing reciprocity agreement between America
and Germany OF the operation of the new trade
treaties. The situation m brief at present is as
follows
In July, 1900 reciprocity arrangement was
entered into between America and Germany
under Section of the Dngey act. whereby in
return for reduction of duty on German argols
brandies still wines and works of art entering
the United States Germany agreed to give
United States products the benefit of the tariff
reductions accorded to the European countries
above named. Germany now has drawn new
conventions with those countries, changing the
tariff rates. and is disposed to refuse the United
States the benefit of those special rates under
the Dingley convention.
The State Department holds that the new
conventions really nothing more than
amendments of the original treaties and that
therefore the spirit of the DingIey act agree
ment would seem to cause 1t to apply with equal
force to the new conventions. Correspondence
is now passing to clear up this difference Of
view. In the background is a we'll recognized
purpose on the part of the German government
10 cause the United States greatly to enlarge the
list OF articles named in the Dingley agreement
but as these are limited specially in the Dingley
act, that object can be obtained ONLY bv the
negotiation of an entirely new reciprocity treaty
If the German government denounces the
present agreement. the United States either
must conclude such a reciprocity treaty or sub
NIT to the withdrawal of the most favored ma
ton privilege and the imposition on American
rates, which in many would be practi-
caly prohibitive and probably would cause an
cutlery from the great exporting interests of this
country, which would force Congress to retalia-
tory legislation and mark the beginning of a
great tariff war.
If Mr.. Tower is finally impressed with the
soundnesS Of the German contention respecting
the inapplica bility of the existing arrangement
to the new European treaties and proceeds to
draft reciprocity treaty the issue will be trans
ferred squarely to the United States Senate at
its next session. This outcome. it is stated, is
probable