Evening star., 1933-12-24

Policy Committee, consisting Of repre-
sentatives of the Departments of State,
Treasury, Commerce and Agriculture;
the Agricultural Adjustment Admins
tration, the National Recovery Admin
istration and the Tariff Commission.
The Assistant Secretary of State was
made temporary chairman. The pur-
pose of this committee was to "co-
ordinate" all our foreign trade activi-
ties and make easier the solution Of
pre- olems connected Herewith.
For some time, it will be remembered,
former Senator Brookhart has been
working at the Department of Agricul-
ture on farm commodity exports. The
new Assistant Secretary of State,
Francis Sayre, has been engaged in
formulating a new foreign economic
policy. At the Reconstruction Finance
Corporation Harvey Payer, formerly an
Assistant Secretary Of State, has been
busy on the question of the extension
Of credits for the commodity purchases
which Mr. Brookhart has been push
ing Now the President has put the
eign trade machinery by appointing Mr..
Peek as a special assistant" to him.
self and making him head Of a tenn
and recommend the form Of the per-
manent new machinery designed to de-
velop export trade. This committee in
cludes departmental subcommittee on
reciprocal treaties and certain other
individuals whom Mr.. Peek may select
In a general way the President has
indicated that our foreign trade policy,
as formulated by this new organiza-
ton. will be tWofold. First, the search
the world over for markets in which
to dispose of our surplus staples, such
as grain, cotton, tobacco; second, to
ascertain what commodities we need,
hut which we do not produce at nome,
and which we must import, but which
offer little or no direct competition 10
American products, such as coffee, tea,
rubber, silk and tn-prov1dlng these
imports may be made the basis for
concessions from the eX-
porting countries, with view to Sc
curing favorable treatment for our own
cotton, tobacco and other specialized
manufactures. Already an offer has
been made to lower import taxes on
French wines and liquors in return for
lower tariffs on American farm prod
ucts.
The question is naturally complex
one which will take much tact and
diplomacy to solve even in its first
phase. that of accepting imports of
wines and liquors from foreign coun-
tries in return for trade concessions.
Some of the producing countries are
a bit resentful, 1t was reported, be-
cause it has been intimated to them
that, in return for permission to send
us wines and liquors, they must pur-
chase from the United States, not the
things they actually need, but those
of which the United States has the
surplus. Some countries, like
Great Britain, are able to absorb sizable
amounts of American farm products.
Others, France and Argentina, for ex-
ample, do not need apples, hogs or
wheat, but would prefer industrial
products.
A far-reaching phase of this sub
ject concerns the change that the
new idea makes in our historic foreign
policy as to tariff bargaining. While
our traditional system of uniform tarin
schedules, applied without discrimina-
tion to all countries, has been Softened
a bit by most characterization privi-
leges," the present tendency abroad
10 adopt rigid quota systems and mu-
tually exclusive tariff pacts has had
the effect of isolating us more and
more. We are now, it would seem,
about to begin to regulate our foreign
trade by direct bargaining and have
been forced to this largely by world
economic conditions such as unstable
broken down price struc-
lures, and lowered wages and living
standards. These governmental restric-
tions have played havoc with interna-
tional commerce and there are many
who believe the world must get rid Of
them before we can have a return to
economic prosperity anywhere.
Secretary of State Hull believes that
tariff bargaining. quota arrangements
and other regional agreements are quite
feasible within the limit set by our
as q creditor Nation. At the Pan
American Conference at Montevideo,
Uruguay, Mr.. Hull called on the ma
lions of the Western Hemisphere to
lower their tariffs and to inspire the
rest of the world to follow their ex-
ample. 1t is understood that the Sec
.etary spoke with presidential approval
and that the new policy Of regional
agreements for barter and other trade
particularly with Latin
has been under considera-
lion by President Roosevelt from the
Of his term, as one Of the
necessary factors in recovering our own
economic prosperity.
We have just put the finishing
touches to such treaty with Colombia.
This is the first of five which the
United States Is arranging with Co
ombia, Brazil, Argentina, Sweden and
Portugal. A clause In the Colombian
treaty provides latitude to other ma
tons to obtain the same mutual con-
,essions.
(Nnnvrinhk