Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-30
EUROPE RENTERS
WORLD TRADE RACE
Rehabilitation Stage Passed
and Nations Jockey for
Favored Positions.
BY A. r. DECKER.

BY Cable to The Star.
PARIS, France, April 30.-Europe
has passed its rehabilitation stage and
IS now so far reconstructed that 1t is
striving for foreign markets TO take lts
surplus goods.
Following the World War tariff bar
TierS were made higher and restrictions
on trade were frightened to encourage
home production. Each country, es-
pecially the newly created Central
European states, tried to be self-suf-'
ficing. Factories were erected, fields
were replanted and production was
stimulated by bonuses. and subventions,
with artificially high prices.
Now internal production has sur
passed Europe's needs, while the outlet
In foreign trade is blocked by tariffs
Most governments realize that the
only way to get the 100000 or
20, 200, 900 idle workers into productive
employment again is to foster trade.
It is recognized that barriers must
be lowered and restrictions removed.
England Hits Barriers.
Statesmen feel that they are at the
beginning of an era of trade readJust-
ments and are jockeying for position,
so that when the race begins they will
Great Britain is pushing for trade
treaty. with France. Great Britain,
traditionally a free trade country, is
threatening to turn to protection I'M
less other countries lower their tariffs.
Several weeks ago Great Britain adj
dressed notes to several European
powers asking for a IS per cent re-
huction on about 500 articles. Indus
tries, particularly French textile; are
brotesting and demanding the mainte-
hance of the present high protection.
Also, in Geneva during the confer
Ance to attempt to reach a customs
armistice, the British, who fostered the
movement, said that unless the trend
toward tariff increase in Europe ,halted,
the British would have to resort to-
protection.
Already the British have succeeded
IN incorporating certain amount Of
pire, so that Americans will find it
profitable to construct factories in
Great Britain or Canada. Indeed, the
British hope, in the last resort perhaps.
TO oppose the German "Mittel Europa"
and the French Little Entente combi-
nations with a British Empire Trade
Association.
Agreements Exchanged.
The Germans and AustrianS, in a
dramatic manner by their threats of a
customs union, made sure their posi-
ton In the race for trade arrangements.
Austria has already arranged with
Hungary to adopt a system of govern
ment bonuses for exports or for local
industries affected by imports from the
other country. Banks or central
monopolieS viii see that there is an
exchange Of goods.
The French want favorable customs
treaties, primarily with the United
States, then with Great Britain and
then with its Central European friends
and allies, mostly for political reasons
In Central Europe, France and Ger
many are rivals, politically first, then
commercially. Germany is tempting
Austria, Czechoslovakia, Hungary, Ru-
mania and Jugoslavia by offers to ex-
change manufactured goods for farm
products. France is offering to finance
farmers through the Geneva Farm
Mortgage Bank now being organized.
Recently France reduced from go to
% per cent the amount Of native wheat
required by law to. besused in making
dour. This makes. # possible for France