Evening star., 1908-01-28
CHAMPAGNE DUTYCUT
Franco-American Reciprocity
Agreement Signed.
TARIFF ON WINE REDUCED
This Country Already Enjoying the
Minimum Rates.
PORTO RICAN COFFEE FAVORED
Demands of Olive Growers and Shoe
Manufacturers Resisted for Years
by French Government.

Secretary Root and Ambassador Jusse-
rand this forenoon signed the Franco
American reciprocity arrangement. drawn
under section 3 of the Dingey act. The
agreement comedies to France an apate-
ment of 20 per cent of the duties on
champagnes and sparkling wines i'm
ported into the United States. For its
part, the French government confirms
the minimum tariff rates now accorded
to certain American products. Provision
is also made for an appointment OF a
commission of three members on each
side to consider and report upon possi-
BILE amendments of existing trade rela-
tions between both France and the
United States.
Will Prevent Manipulation.
The new agreement differs substantially
in form and scope from the various trade
ARRANGEMENT drawn under section ) of
the Dingley act. which have preceded 1t.
method employed to protect each party
from that form of tariff manipulation
which consists in arbitrarily increasing
the duty on certain articles as a basis for
securing additional concessions from the
other side. Therefore. 1t Is provided i'll this
new arrangement that the abatement OF
duty on French champagne shall be con-
ditional only. and that the old rates may
be restored whenever the President shall
become convinced that France is increas-
ing the duties on imports from the United
States. The French government Is grant
ed a similar privilege: namely OF apply
ing maximum duties on American
products when satisfied that this country
is increasing the duties on French goods.
Reductions Already Enjoyed.
1t is explained at the State Department
that no considerable reductions of French
duties on American products are recorded
in this new arrangement for the simple
reason that the United States government
has already been enjoying minimum tar
iff rates in many cases, solely by specldi
concession of the French government. In
other words, the American exporter was
not legally entitled to claim the benefits
of these lower duties; they were merely
extended as a favor by the French govern
ment in anticipation of the reduction on
champagne duties and the amelioration
of certain customhouse regulations and
certain provisions of the new pure food
law, about to be applied to French ali
mentary products.
In the preceding Franco-American reci-
procity agreement made in 1902 the duty
on American coffee (neary altogether
from Porto Rico) was suspended for one
year, at the expiration of which time
heavy duties were TO be applied. The
French government at that time was de-
sirous of obtaining a reduction of the duty
on champagne, but that was denied by
our government on the ground that the
agreement of 1902 practically contained in
itself that degree of equvalency contem-
plated by the Dingley act; to make fur
ther concessions to France would be to
bestow upon her a preponderance of ia
vors exchanged. But our governme mt
promised that if in the future reduced
duties on champagnes were granted to
any other nation the same privilege would
be extended to French champagne.
French Friendship.
So the French government has delayed
the application of the duties on Porto
Rican coffees. and 1t has done more, in
the opinion of the State Department Off
cials. 1t has resisted the demand of the
French olive growers for the applicable
of maximum duties on American cotton
seed OIL which eompeteS with olive oil,
and it has refused to accede to the de-
mands of Russia Frances ally, for in
creased duties on American petroleum
in the interest of the Baku product.
There has also been strong demand for
additional duties on American shoes and
many other articles In the interest of the
French manufacturers. The French gov
these internal demands for discrmina-
tion against the United States.
Brought to a Focus.
But the conclusion of the reciprocity ar
rangement with Germany whereby Ger
man champagnes and sparkling wines
were granted an abatement of 10 per
cent of duty brought matters to a focus
and the French government. pointing out
the extent of the concessions afforded to
American trade and recalling the promise
heretofore made. suggested that French
charpagnes also should be granted the
same rates of duties accorded to German
champagnes and that is basis for the
arrangement concluded today between the
two Governments Not being a treaty
but merely an arrangement under section
2 of the Dingley act. which delegated to
the President power to effect limited re-
ciprocal exchanges. this new arrangement
will not require the approval OF the
United States Senate and will become ef-
fectiye February l.