The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-13
COL. HOUSE SEES
new DEAL ON
FOREIGN POLICY
Adviser Contrasts Roose-
veIt's Realistic Spirit With
'ParoChiaI' G. 0. P. View.
BIZ Times Special

elgn policy of the coming Demo-
cratic administration is given by
Presidential Franklin D. Roose-
velt's close adviser, Colonel z. M
House, in the January number of
Foreign Affairs, to be published here
today.
Colonel House takes up in turn
the tariff, the war debts, disarma-
ment and Manchuria, and contrasts
Roosevelt's realistic spirit Of inter-
), national cooperation with the pa
rochial" Republican policy which
he asserts, frustrated all attempts
at a general and lasting settlement
of the problems Of postwar reha-
bilitation.
The first task Of the Democratic
administration, says Colonel House
will be to liquidate the war and free
world trade of its shackles. He
begins, then, with a statement of
his views on the tariff problem, in
the light of the fact that the war
made the United States creditor
country.
Turning to remedial measures,
Colonel House writes as follows
THE past three administrations
have been interested only in adj
justing individual schedules. But
the true tariff problem is a general
one-the problem of how to enable
foreigners to earn enough dollars
here to pay their debts and take
our exports without the necessity
Of foreign loans.
Make Foreign Lending Safe
According to present schedules,
foreign countries must pay us some
thing like $1,000, 100000 a year on
what they already have borrowed
from the American people. We must
permit them to pay us, without
having to borrow more money from
us. They can pay partly in goods,
partly in services, partly in gold.
1--WE must adjust our tariff policy
so that our foreign lending will be
safe, while at the same time our
domestic undertakings are ade-
quately protected against undue
competition.
Many schedules must be reduced
moderately, and some sharply. am
not proposing free trade, or even a
tariff for revenue only, but rather
the competitive tariff for revenue
called for in the Democratic plat
form. This will still leave us a pro-
tective tariff, but not prohibi-
tive tariff.
IF foreign goods are admitted on
a competitive basis, our farmers
will regain their foreign markets,
and our manufacturers will regain
their farm markets. incidentally,
a moderate tariff which admits for
eign goods brings in revenue to the
government, whereas prohibitive
tariffs do not"
How to Solve War Debts
The problem Of war debts, says
Colonel House, closely is allied to
the tariff problem. He writes: "I
think the new administration
should make the greatest possible
effort to put the war debts once for
all on such basis that they are no
longer a political question in the
world. How this can best be
achieved must be matter for nego-
tiation with each of the foreign
governments owing debts to the
United States.
1T is to be hoped that without
default or postponement of present
installmentS the individual debtor
governments will in the spring re-
quest conferences with the United
States government, in order to deal
with the whole problem in a sys-
tematic way.
MIR. Roosevelt has announced
that he favors a conference with
our debtors to bring about a definite
understanding with them, and has
indicated that payment can only
be expected if we permit imports
by lower tariffs"
The new spirit will transform
American foreign policy in political
>. as well as economic matters, accord
ing to Colonel House.
The great problem of govern
ment," he writes, lis how to re-
establish a sense of security in the
world If we are sincere in preach
ing disarmament, we must help to
give nations cause to feel that their
lands and possessions are safe. Dis
armament follows security. 1t can
not be achieved under any other
circumstances.
Maintain Treaty Sanctity
1.-THE Democratic platform adopt
ed at Chicago in June is one of the
plainest and most terse enunciations
of party principle in the history of
American politics.
Among the elements of the firm
foreign policy which it demands is
the maintenance of the pact of
Paris, to be made effective by pro-
visions for consultation and con-
ference in case of threatened vio-
lation of treaties. This phrase gives
recognition to the fact that on the
long and weary road to disarma-
ment political solutions must pre-
cede technical solutions.
THE degree to which nation
will agree to disarm will depend
upon the degree to which it feels
that it will be secure without the
ornaments which it is asked tc
give up.
In the Far Eastern dispute Colonel
House believes that the United
S, States has a double interest, to
maintain the sanctity of treaties,
and to uphold the traditional policy
Of the open door," On the second
point he thinks the policy of our
government is subject to negotia-
ton.
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