Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-23
Treasury Officials Refer Draft
to Customs Bureau for
Modification.
AMERICAN IMPORTERS
OFFER VIGOROUS PROTEST
While Regulation Is General It
Would Place Permanent En-.
barge on Russian Goods.
BY THEODORE C. wALLEN.

Agitation over Russian trade with
American interests has broken out anew
with the disclosure that Treasury au-
thorities have drafted a proposed new
regulation which In effect would exclude
Soviet products from the United States.
In the face of vigorous protest from
American importers, the original draft
as laid before high Treasury officials
has been referred back to the Customs
Bureau for such modification as Is pos
sible without impairing the effect
sought"
Following the Treasury's embargoes
last Summer on Russian pulpwood,
lumber and other products, it tran
spires, experts of the department were
set to work drawing UP a ruling which
would overcome the obstacles to ex-
cluSion which were encountered ct
that time. The product Of that effort
was a draft which would provide that,
upon the complaint of any citizen, the
Treasury would put an embargo on any
shipment arriving at an American port
which embargo would remain In effect
until all OF the following requirements
had been met:
/. The filing of q bond covering the
value Of the cargo.
2. The production Of q consular in
voice.
3. Presentation Of definite proof that
the cargo contained no goods made n
whole or In part by convict labor.
Applies to An Countries.
While the regulation would be general
In nature, that Is, applying equally TO
imports from any country, the effect
would be to put q permanent embargo
on Soviet goods. since cargoes clearing
from Russian ports could not qualify
under all three conditions.
The fact that the Treasury was I'M
able 10 prove that certain Soviet
lumber cargoes represented convict
labor forced the lifting Of embargoes
last Summer by Seymour Lownan, AS
sistant Secretary Of the Treasury In
charge Of customs.
Under the proposed ruling, not only
would the burden OF proof be shifted
to the importer and hence 70 the Soviet
government, but Russian goods would
be barred in any event by the re-
quirement Of o consular, visa. Since
the United States has no relations with
Russia and hence no consuls there,
consular invoices would be unavailable
to Amtorg, the Russian trading cor
poration In the United States.
Importers Raise Protest.
American importers and shipping In
tereStS standing to be affected by such
ruling learned Of the proposed ruiz
ing, which they attributed largely TO
Mr.. Lowman. and raised energetic pro-
test. It was pointed out that the
United States, by imposing such "dis.
criminatory restrictions" would risk the
complete cessation of Russian pur-
chases in this country, which In the
first eight months Of this year have
imports valued at $16,529, 1853.
The draft had been forwarded, mean
time, through the regular channels to
the office of Andrew w. Mellon, Sec
rotary Of the Treasury. For some time,
according to Treasury officials, 1t was
in the hands of Secretary Melons spe-
cial counsel in the department, and
then went back to the Customs Bureau.
In explanation of the delay, Mr.. Low
man yesterday said cit was 9elt that
the regulation, as drafted, might be
being reviewed by the Customs Bureau
to see II any modification is possible
without impairing the effect sought"
He emphasized that the Treasury was
doing nothing more than to carry out
a provision of the tariff act which re-
quires the Treasury to promulgate such
regulations as will shut out products of
convict labor and, after next year,
products Of forced labor. But it had
to be done by general regulation, he
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