Evening star., 1932-11-09
NEW DEAL LIKELY
|NFORE|GN AFFAIRS
Most Countries Optimistic as
Result of Democratic VIC
tory at Polls.
BY CONSTANTINE BROWN.

BY CONSTANTINE BROWN.
The election Of Gov. Roosevelt has
raised the hopes in most foreign coun-
| tries for q new deal' and and on ac-
count of these hopes the coming into
power Of the Democratic party has been
hailed with Joy in most countries of
| the world
Two questions interest the world
powers more than anything else. One is
a possible readjustment of tariffs, the
other one is the repeal of the Volstead
act.
| Foreign diplomats for the last few
weeks have been sounding their friends,
close to Mr.. Roosevelt or to the Demo-
cratic headquarters, on the question of
what the future President of the United
States may do to give new life to the
| now OF international trade Neither Mr.
Roosevelt nor those close to him were
willing to express my definite ideas as
to how that could be achieved, but it
was said privately that the policy Of
the United States at the coming Inter-
national Economic Conference might be
somewhat different from that Of the
Republican administration.
Refused to Discuss Issues
When the invitation of Great Britain
to the United States was issued last
July the State Department accepted 1t,
| on the definite understanding that
| neither tariff rates nor international
debts would be discussed at that
meeting
The European nations argued that II
such a conference should achieve any
actual success and not confine itself to
plous wishes and resolutions expressing
hopes for an economic recovery, it was
essential that the very things which
seem to hamper business recovery
should be discussed by all nations This.
the State Department refused to do.
1t IS stated now that certain diplomats
have expressed the opinion to their
governments that the policy of the
Democratic party will be much more
liberal and while. naturally nobody in
that party Is willing to pledge himself
as to what the future tariff policy OF
the United States will be, the new Gov
ernment will not be afraid TO at least
discuss these important matters. The
delegates at the coming economic con-
terence have not yet been appointed.
and 1t is believed Mr.. Hoover will ap-
point men who will meet with the ap-
proval of the President-elect. It is also
believed the American delegates will
have the slogan that the sky is the
limit when they meet In the course Of
the next few weeks at Geneva In
Democratic quarters it has been indi-
Gated that, if Europe is in a position to
make any propositions which might be
beneficial to the United States trade.
they will be carefully considered.
But 1t IS mainly France. Italy. Czecho-
Slovakla and Germany which are hail.
ing with JOY the victory Of the Demo-
cratic party because they know that at
least light wines and beer will become
legal beverages in the United States.
Severely Hit by Dry Law.
In all these countries the wine and
beer trade Is important. The wine
producers in France and Germany have
been severely hit by the Volstead act.
Both those countries have a tremen-
oous overproduction OF wines which
must be practically thrown away for
lack OF markets. In France the over
production Of wine is such that the
price has fallen to less than cents q
quart, and most of the cheaper res
taurants throughout the country are
serving free wine with every meal Ger
many Is in slightly better position,
since 1t does not produce the same tre-
mendous quantities as France and her
North African colonies. The prospects
of the American markets being opened
again is likely to put this trade on its
feet and is likely to increase the rev.
enues of the French and German
treasury which, it is reported. intend to
place Immediately an export duty on
wines. The cost of production is so
low that, even with an export tax in
the wine producing countries and an
import tax in the United States. the
wine producers in those countries will
be able to make a substantial profit
and yet sell their wines at a reasonable
price here.
The attitude of the Democratic ad-
ministration in regard to international
war debts is about the same mystery to
the debtor nations as that of the pres
ent administration That is to say that
| they realize the settlement of this ques-
tion depends more on Congress than on
| the President But the hopes Of the
European nations for a settlement are
raised by the fact the Roosevelt ad-
ministration will have the full support
OF both Houses and they believe that.
on account of the present deficit, Mr..
Roosevelt might be induced to accept IN
| the name of the American people q
lump sum which would more than cover
| the budgetary deficit of the United
States for the next fiscal year. 1t Is
on account of this hope that the debtor
nations are prepared to pay the De-
cember Is installment they hope the
amounts thus paid will be considered as
an advance on the global sum which
| they are willing to pay this country IN
| lieu Of the annuities which they owe at
| present.
Little Change on Arms.
In regard to the disarmament ques-
| ton, It is felt in Eur ope that the Demo-
cratic administration will proceed very
much along the lines of the Repub-
licans That is to say that President
Roosevelt will press with all his might
| the question of reduction OF armaments
and will make about the same conces-
sions regarding consultation amongst
nations as Mr.. Hoover has been pre-
pared to make. According to reliaoie
/ information, the Republican admins
! tration is willing in order to encourage
effective progress of the disarmament
| conference. to agree to consultative
pact without America giving any guar
antee as to how it would act in case
of a conflict between two nations. It
is though in well-informed government
| tai quarters that the Senate might
agree to ratify a treaty whereby the
United States merely would agree to
consult in case Of emergency, main
tanning at all times, however, its free
dom of action.
1t also is believed that Congress might
agree to pass a bill authorizing the
President to place an embargo on the
expectation Of arms, ammunitions and
raw materials which might be used
| for the purpose Of war at any time he
would feel justified In doing so. Such
a bill, together with a consultative pact
without tags" would give the necessary
confidence to the European countries to
proceed with the reduction Of arms
fully confident that America will play
the game in case Of an international
conflict
In Russia the belief Of the govern
ment is that Mr. Roosevelt will be
less adamant regarding the question