Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-26
Country Not Directly Con-
Cerned, but Potential Dan.
gers to Europe Seen.
GERMANY AND AMERICA
NOW HAVE TRADE TREATY
Similar Pact With Austria Also
Approved Here, but Is Not
Yet in Effect.
BY CONSTANTINE BROWN.

The United States has no interest
whatsoever in the political meaning Of
the Austro-German tariff union. The
consequences Of this move are so fun
Of dangerous possibilities to the peace
Of Europe that officials in washington
are loath to discuss the situation. This
does not mean, however, that the De-
partments of State and Commerce do
not follow carefully the developments
day by day.
Reports received from Europe indi-
cate that most countries there, espe-.
cially France, consider the Austro-Ger.
man agreement exclusively from the
political angle. It's political aspects
seem to have far greater Importance
than the economic issue.
The only thing which concerns the
United States is the economic agpect.
We have commercial treaty with Ger
many, duly ratified by the Reici1stag
and the Senate, whereby the United
States and Germany agree to give each
other most favored nation treatment.
That means that both countries pledge
themselves to give each other the low
est tariff rate accorded any other
nation.
Austrian Agreement Unsigned.
This most favored nation clause is
unconditional as far as Germany is
concerned-that is to say, that it con-
tainS no reservations, while we have
made the reservation OF giving Cuba
lower tariff for certain class OF
goods than TO Germany. The American
Government has negotiated similar
agreement with Austria, but that agree
ment is not in force yet because the
Austrian President has not signed 1t.
Consequently, according to our COM
mercial treaty with Germany, we may
claim for American goods the same
privileges as given to Austrian prod
ucts. This means that If Austrian goods
are allowed to enter Germany duty free.
we may claim the same thing for all
American exports to Germany. Ire
Germans. however, cannot claim the
same privilege for their own products.
because no foreign goods can enter the
United States without paying duty.
Our interest in the Austro-Geruan
tariff union is consequently an economic
one-that is. whether the Germans are
going to honor their signature and al
low American products to enter Ger
many on the same footing as the Aus
tt4dAs II 10 PfODdDlc THAI ATEImdu lESdl
experts will try to argue the case and
they may possibly discover some legal
loophole which will prevent the dump
ing of American goods duty free into
Germany. This is fully expected here
and our legal experts are getting ready
to enter into an argument.
Indirect Political Interest.
The political side of the Austro- Ger
man agreement, II there is one, is OF no
actual interest to this country. Indi-
rectly, of course, we are interested in
political developments in Europe and
the proper authorities are watching
them carefully. always bearing in mind
the fact that we are impartial observ-
ers.
The United States has greatly at
heart the question of peace in Europe.
Should the political situation in Eu-
rope as result Of the Austro-G German
agreement, require American advice,
there is no doubt that this country viii
do all it can without, however, getting
entangled in any specific way.
The administration hopes that the
European crisis caused by the Austro-
German tariff union will blow over, al.
thought it is admitted that this move
may Offset the encouraging results OF
the settlement of the Franco-Italian
naval dispute.