The New York herald., 1921-07-12
OPPOSES
TARIFF DUTY ON OIL
Writes Fordney That Levy
Would Conflict With
Foreign Policy.
ASKS ITS ELIMINATION
Desires to Encourage Amer
lean Development of Re-
sources Elsewhere.
Special Despatch to THE New YORK HERALD.
New York Herald Bureau,
Washington, ID. c., July IL.

Spec1dl despatch to THE NEW YORK HERALD.
New York Herald Bureau.
Washington, ID. c., July IL.
President Harding is opposed to any
tariff duties on Gil imports on the
ground that such charges would inter-
fere with the development by Ameri-
can citizens of oil resources in foreign
lands, it became known to-day.
The opposition Of the President to
oil duties has been expressed in a let
ter to Chairman Fordney of the House
Ways and Means Committee, who re-
Gently reported the permanent tariff
BILL which is now being considered by
the House. The Ways and Means
Committee, despite strong objections
among House members and by close
vote, has included two oil duties in the
bill These, inserted just before the
bill was made public, place a duty of
80 cents a barrel on crude oil and 25
cents barrel on fuel oil. Under the
existing law all oil is on the free list.
'rhe Presidents letter said:
Il cannot refrain from expressing the
hope that your committee will take note
of the foreign policy to which We are
already committed. under which the
Government is doing every consistent
thing to encourage the participation o.
American citizens in the development of
OIL resources in many foreign lands.
This course has been inspired by the
growing concern Of our country over the
supply of crude oil to which we may
turn for our future needs. not alone for
our domestic commerce. but in meeting
the needs of our navy and our merchant
marine.
ITO levy a protective tariff on crude
petroleum now would be at variance
with all that has been done to safe
guard our future interests. I can read
lily recognize the claim of some oil pro-
ducers for protective tariff on their
product but such course of temporary
relief would be thoroughly out of har-
mony with the larger policy which
have had in mind. that shuld be more
than disappointed II Congress decided
to levy a tariff on import oil.
The oil industry Is so important to
our country and our future Is so utterly
dependent upon an abundance Of Pc
troleum that I think 1t is vastly more
important that we develop an abundance
of resources rather than temporary
profit to few producers who feel the
pinch of Mexican competition. I thank
you very sincerely for your considerate
attitude In the matter"
The action of the Ways and Means
Committee in placing duties on crude
and fuel oil has been embarrassing to
the State Department particularly in it's
handling of the Mexican situation. The
department in behalf of American pro-
ducers in Mexican fields has sided with
N N ef
Mexican export duty on oil. which It Is
claimed is confiscatory. The oil inter-
ests in virtually stopping exports from
Mexico state that the duty amounts to
100 per cent. Should the duties in the
F'ordney bill be enacted. the United
States would be to a lesser degree vir-
tually adopting the Mexican policy and
would be in no position to make further
protests But already the action of the
committee has proved embarrassing to
those conducting negotiations with the
Obregon Government.