Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-23
|RULE WOULDBA
SOVIET PRODUCTS
Treasury Officials Refer Draft
to Customs Bureau for
Modification.
Continued From First Page.)

lOontlnuSd from FIRST PAge)
said, and without specific discrimina-
ton
President Hoover declared last Sum.
mer that the administratton's policy
with respect to imports was not d.
rected against any particular country.
It was considered inconceivable today
that any ruling such as drafted in the
Treasury would be promulgated finally
without presidential approval. Before
that 1t must receive Mr.. Melons APP
prevail
If such q regulation should emerge
from the present deliberations in the
Treasury It would place the United
States alongside flve other powers
France. Belgium, Austria, Rumania and
Hungary-which have put restrictions
on Soviet imports. In each Of the other
cases the restrictions were an extension
of permit system TO require q special
permit for the importation of Soviet
goods.
In each instance, according to unoffi-
cial information received in Washing
ton, the Soviet promptly retaliated
under Moscow edict ordering cancel
lation of purchases In the countries
which impose discriminatory restric-
tionS" on Russian imports. France and
Belgium were the last to take the step,
Government quarters say. With the
balance against them in trade relations
with Russia, they undertook to hold
down Soviet imports to level with do
nestle exports TO Russia. Within "a
hours, 1t Is said, Belgium nickel pro-
ducers lost an order amounting to
100000.
Five TO One In Favor Of U. 3.
In the case Of the United States the
trade balance Ii more than five to one
in favor of this country.
The fact that this Government may
be unwilling to risk Soviet cessation Of
American purchases just now and
Soviet default of $35, 000, 900 in newly
lions was advanced in certain official
quarters today as one reason for going
slowly about excluding Russian products.
The Soviet government assumes no
responsibility for Amtorg dealings, al
though 1t Is tho direct beneficiary Of
them.
The situation has developed consider
able agitation beneath the surface, in
which representatives of American firms
buying Russian products are in opposi-
ton to lawyers of the American pro-
ducerS Of pulpwood, manganese, anthra-
cite coal and other products who are
insisting on Government protection
against what they call Soviet Dump
ing" in the United States.
The administration is between two
fires in q sense, and from all indica-
five other powers which have resorted
TO special restrictions against Soviet
products.
importers Insist On Warning.
If the proposed regulation should no
through substantially as projected.
American importers insist on warning
so that they can scale down their
undertakings with the Soviet without
loss TO themselves. Among the reasons
for the protest against Secretary Low
mans embargoes last Summer was the
fact that American importers of Soviet
pulpwood stood to lose some 5000, 600
IN the fact that they had 20 car loads
OF that product on the way 70 this
country or loading.
Secretary Lowman, In the hearings
which his embargoeS made necessary
last Summer, took the position that the
burden Of proof that imports were not
the product Of convict labor really
rested with the importers, but this
was disputed in the absence Of specific
Treasury regulation to that erect.
The tariff act gives the Treasury
Government officials expressed the view
today that In any event q considerable
tlgntening up Of the Treasury reglla.
ton would be made with the view to
controlling imports from Russia. They
said 1t would have to be drawn in such
q way. however, that it would appear
TO apply to imports from any source,
although directed actually at Soviet
products.
1t has already been established to
the satisfaction Of these officials. of
wnom Mr.. Lowman Is only one. that
importers OF Russian lumber could not
prove that it was not produced in part
by convict labor. One of the diflcuities
Mr.. Lowman ran into last Summer was
ms inability to prove that particular
cargoes which he had emhargoed in
cluded convict-made materials. The =.
new regulation would aim to put the
shoe on the other foot.
Demoralixe Market.
The stated reasons for most Of the
protests coming to the Treasury against
Imports from Russia Is that they
amount to dumping" or otherwise
oemorali7ing the American market.
Aside from this and similar considera-
lions. the position of the United States
Government as to commercial relations,
IS stated in 1928 by the then Secretary
of State, Frank B. Kellogg, was that
The United States would place no OBJ
'tacles in the way of the development
Of trade and commerce between the
Two countries, 1t being understood that
individuals or corporations awaiting
themselves Of the opportunity to engage
IN such trade do so upon their own
and at their own risk"
At the same time the State Depart
ment issues visas readily to Russian
nationals, even If associated with the
Soviet regime, provided that the real
purpose of their visit to the United
States Is in the interest of trade and
commerce and proved further that they
nave not been associated with the In
revolutionary activities Of
the bolshevik regime.
While the Treasury authorities are
struggling with the problem, Senator
rasker L. Oddie has served notice of
intention to introduce legislation In the
session of Congress spe-
sifica1ly to exclude imports Of Russian
manganese and perhaps other products.
Representative Hamilton Fish, chair
nan Of the House Committee Invest.
rating Communist Activities in the
United States, Is expected to intro
luce somewhat similar legislation, which
llso viii be directed ct controlling such
activities in this country.
lRHAUN AkIa FANInn