Evening star., 1933-07-16
HUNT FOR EXPORT
MARKETS PUSHED
London ParIey Failure Starts
Roosevelt on New Foreign
Trade Trail.
BY CONSTANTINE BROWN.

BY CONSTANTINE BROWN.
All hopes Of Q world agreement
at the London Conference having van
ished, President Roosevelt is now ex-
ploring the international field to reach
. number Of reciprocal trade agree
ments with those countries which could
absorb some Of Americas industrial
surplus production and sell to this
country raw materials which either are
not produced in the United States, or,
If produced, whose importation would
not harm the well-being Of the Ameri-
can producers.
A new bureau has been set up in
the State Department to study the Sit
uation and report to the President at
the earliest possible moment. In the
meantime, negotiations are being car
ried out with those foreign countries
with which the government considers
it could trade advantageously. OF the
South American continent converse
tions are being carried out with Argen-
tina, Brazil md probably Mexico, Chile
and Bolivia. F1axseed, casein, coffee,
sugar, tin, seasonal fruits, hides, quel-
bracho (bark) and manganese are some
of the commodities produced in those
which could be imported into
the United States at a much lowered
tariff, while the United States IS ready
to export in exchange for the same ad
oil
trical machinery, automobiles and man
ufactured goods.
-Four Countries Willing.
Dealings with European countries win
be somewhat more difficult because of
the political ties which determines fire.
ouently on that continent the setting
up OF economic tariffs.
For the time being there are only
four countries which have indicated
their willingness to discuss with the
American Government the possibility OF
making reciprocal trade agreements.
These are: Sweden. Norway, Finland
and Portugal CZechoslovakia, although
politically to the Little En-
tente and consequently in the French
sphere of political influence, Is reported
to be willing also to begin negotiations
with the United States on the basis OF
some arrangement whereby 1t could
export to this country some OF its in
dustrial products which are not of a
highly competitive character. and agree
to purchase from the United States
either electrical machinery or cotton.
For the time being the most promising
seem to be those which will
be started with the Nordic countries.
Sweden. Norway and Finland, which
have carefully kept away from any po-
litical entanglements, can offer the
United States pulp for the manufacture
Of paper, a product purchased at PRES
ent in large quantities in Canada, sar
dimes and other fish used in the can
ming industry. special timber used in the
furniture manufacture and other COM
modities. the list of which is being at
present carefully surveyed by American
officials.
Offer Excellent Market.
These countries offer an excellent
market for the American automotive
as well as for electrical appli-
ances. which. in spite of the distance.
can be produced in this country at
lower cost than in Europe
But the most promising dealings are
with the Soviet Republic, whose credit
has been greatly curtailed in Europe
and needs almost every kind of in
dustrial product manufactured in this
country. provided it can obtain ade-
quate credit facilities.
During the last two years trade be-
tween the United States and Russia
has decreased considerably because the
S-viet's not being recognized as a gov
ernment. credit was difficult. The
American concerns dealing with Russia
had to accept notes from the Soviet
government which were discounted in
New York to a new type of credit
bootleggerS" at a rate varying between
25-40 per cent 1t is natural that
under these conditions the price of
had to be increased in
if Russia did not have
enough liquid cash to pay for orders
within 80 days of the date when they
were placed in this country.
Recognition Has Opponents
The question of the diplomatic recog-
milton of the Soviet Republic is not
easy because Of the opposition which
still exists in many quarters in the
United States. The President and his
intimate advisers are reported to be
favorable to an immediate recognition,
but they have to 60 slowly on this sub
ject in order not t. provoke, by a pre-
mature recognition, a storm of protest
from the interested quarters who desire
to see Russia oStraclzed by the United
States.
But the administration now is taking
the necessary steps to facilitate credit
terms TO the Soviet government.
through the R. F. c. and the Amtorg.
the official Russian trading agency in
the United States. and to cut out all
the red tape which heretofore has
prevented more substantial trade re-
lations between the two countries.
The Russians. it is reliably stated.
would like to see America recognize
officially and fully the Soviet regime
as all the other leading powers have
done for years. but they realize the
difficulties which confront the admin
lstration and are reported to be salts
f1ed with an unofficial recognition. con-
vinced that the resumption of diplo-
matte relations will be a matter of a
few months after trade relations have
become normal again.
In spite of the difficult financial and
economic position of Russia. there is
an enormous field for any country like
the United States which can afford to
give easier than any other power long
term credits to the Soviets.
Russia can absorb the major part of
Americas industrial operproduction
and in some cases a good deal of the
agricultural surplus. The good faith
Of the Soviet regime, as far as paying
its own bills, is not questioned by the
American manufacturers who have had
dealings with that government for the
last seven years. The Soviets, while
repudiating the financial obligations of
the previous regimes. the Czarist and
Kerensky governments, have observed
scrupulously their own obligations.
DENIES HE SUGGESTED