Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-05-29
SOUTH AMERICA AROUSED
BY HIGHER i. S. TARIFFS
Recent Gains From More Friendly Policy
at SOLICITATIONS Already Set
to Withdraw Trade.

vious year by five billions Of dollars. and
the reduction this year was probably
going to exceed that amount
Two indefensible revsions of the
United States tariff upward had taken
place before the depression started.
And now the penalty of the excessive
rates inflicted upon the American peo-
pie and upon the buying power of for
eign peoples was being paid by the
whole country.
The purpose of the Democratic tariff
bill, it was acknowledged by the press,
was to give to the negotiating branch
Of the Government a mandate to seek
tariff reciprocity arrangements with
foreign countries that would end the
tariff war against the United States,
revive American foreign trade and
hasten the return to prosperity.
Lower Tariffs Urged.
This policy seemed to be in accord
ance with what economic authorities all
ever the world were preaching. Several
international conferences in the previ-
Gus few monthS-the International
Chamber of Commerce, the Foreign
Trade Council, the Fourth Pan-Amer-
lean Commercial Conference, etc.-had
recommended lower tariffs and the
elimination of trade barriers as requi-
site indispensable to recovery.
For Latin America the measure had
particular significance. If carried
out, it might be the beginning of the
general system of reciprocity among
American republics which Secretary of
State Blaine Intellectually endeavored
to establish 40 years ago. at the outset
OF the pan-American movement.
And yet, only few months after the
reciprocity-tarif bill was passed, the
same Congress enacts new customs
duties and threatens with new tariff
increases.
In the meantime press reports an
nounce that Great Britain is exerting
pressure, through diplomatic and COM
mercial channels, to induce some of
the Latin American countries to enter
into preferential trade arrangements
with her.
Great Britain receives a large share
OF South Americas exports, and in the
face of high customs duties elsewhere
her suggestions of reciprocity agree
ments sound very attractive to Latin
Americans
Argentina, which is the largest buyer
Of United States and British products
in South America, is beginning to con-
slider seriously the possibilities of COM
pleting mutual trade arrangement
with Great Britain. This was first
mentioned when the United States in
corporated high duties on Argentine
products in the Hawley-Smoot tariff
act of 1880.
Aware of Advantages.
Now, when further tariff increases
are being enacted. and when Great
Britain itself is confronted with the
demands of the Dominions to buy
agricultural products from them, the
Argentine government is well aware of
the advantages which reciprocal
arrangement with John Bull would
bring.
Argentine newspapers make no secret
of the detriment which preferential
bi-lateral or multi-lateral arrangements
would cause to the protectionist princi-
pie. To this end. Of course it would
be necessary to previously abolish the
Observation-Disclosures" treaties, which
Argentina has at present with several
countries.
Abandonment or denunciation of such
treaties is already frankly discussed by
the Argentine press. La Nacion, the
great Southern daily, said recently in
an editorial that those treaties are an
Gent and contemplated requirements
which are no longer sufficient"
StreSSing the fact that Argentine
products were being penalized by high
customs duties in foreign countries, and
that world conditions had changed
enormously in respect to transportation
commercial relations and the order OF
production, La Nacion declared:
This state of affairs shows the ne
cessity of readjusting che terms govern
ing commercial rels. ions with foreign
| countries. either by expressed denuncia-
ton OF the existing treaties or through
diplomatic eXpedients to negotiate re-
vision with view to their improvement
Britain Is Best Customer.
"If Great Britain now proposes a re-
ciprocity agreement, the reformation OF
our treaties will, of course, be even more
necessary and such an initiative will
find the Argentine Republic disposed to
receive it with great pleasure"
The minister of finances of Argentina
expresses the hope that these prefer
ences will not offend other countries
And adds significantly: But We must
consider the salient fact that Great
Britain is our best customer"
Which is very much the same Ian
guage that former Ambassador Malbran
of Argentina used when, upon his ar
rival in New York, he was interviewed
by reporters on the commercial rela-
tons of the United States with his
country.
1T is not logical" he said. ito expect
us to pay for all of our foreign require
ments in gold. We must try to pay at
least in part with our exportable prod
ucts. Those interested in selling to us
the products of their factories should
also be most interested in our success in
disposing of our products, thus increas-
ing our purchasing power"
The argument is still good. Indeed
it is more so than ever.
| Copyright, 1922