Evening star., 1933-12-17
TRADE
ACCORDSI SOUGHT
Business Through Govern.
mental Agencies Will Be Fu-
ture Basis of Agreements.
BY CONSTANTINE BROWN.

International trade through govern
mental agencies, based on reciprocal
trade agreements, rather than collec-
tive treaties, will form the basis of the
future trade agreements and may also
solve, in the case on some Of the minor
debtors. the problem Of paying debts to
the United States.
Unofficial approaches toward that end
will be made in the course Of this year
by the representatives OF some lesser
European nationS.
These countries, worried about the
possible consequences of an eventual
reputation of their war debts. are de-
vjsing means at present to enter into
reciprocate commercial agreements with
the United States, with the object Of
improving their trade with this coun-
try, and also find solution of her debt
problem under agreements, which ap-
peared difficult some time ago appear
feasible at present when the general
trend Of international trade seems TO be
drifting toward state control under one
form or another.
Czechoslovakia Is First.
The first country to investigate the
possibility Of such agreements is Czecho-
slovakia. This Central European coun-
try owes the United States about $780,
10000
Under the present circumstances It
appears almost impossible to refund
that debt, even If it were substantially
sliced. But Czechoslovakia believes that
under a reciprocal trade agreement, the
economic situation of that country
could improve sufficiently to enable it
to meet a revised scale of payments.
CZechoslovakia purchases among other
III
cotton every year. 1t is not purchased
direct from the United States, but from
Bremen, Germany, where cotton spe-
cialists have sample stores. The Czecho-
slovakian buyers go to Bremen, select
the grades which are most useful to
them and pay price which is generally
higher than the American market price.
The consequence is that the American
cotton grower receives the ordinary
market price, the Czechoslovakian gin
ner pays a much higher price and the
international broker makes the profit at
the expense Of the producer and the
consumer.
Brokers Are Spectators.
Furthermore, these brokers are specu-
lators and it happens frequently that
the consumer pays much higher price
than necessary.
Under a new set-up, profits could 60
into the pockets of the consumer and
the producer and also, by the imposing
Of a processing tax, would help the
Czechosloyakian treasury create sink
ing fund for the payment of the debt
to the United States.
The sale of cotton and other Amer
ican products and the sale of Czecho-
slovakian goods in this country will be
made, If the ideas of certain high
officials materialize, by governmental
agencies.
The brokers in Bremen have large
warehouses where all grades of cotton
can be seen and purchased at once In
order to enable the CZechoslovakian
induStrialists to purchase what they
want, the suggestion has been put forth
that the American cotton growers estab-
lish warehouses in the important in
dustrial centers in Czechoslovakia,
where the industrialists can pick their
wares
AS long as rugged individualism pre-
vailed in the United States such
scheme would not have been possible.
But, today when under the various
codes, agriculture and industry can
work for the disposal of their products
abroad in harmony. without throat
cutting competition, semi-ofhcial agen-
cies could be set up for the purpose
Of dealing direct with one country or
another.
Expect to Sell Here.
Naturally. the Czechoslovaks expect
to be able, under an eventual reciprocal
trade agreement, to sell some of their
products in the United States. The
Czech shoe industry has been greatly
developed during the last few years.
This industry appears to be in compe-
tition with the American shoe industry.
but it is explained, special kinds Of
fancy shoes for the luxury trade could
be produced at cheaper rate than in
the United States, and yet not compete
with the American shoe industry.
1t is realized that it will be more
difficult to conclue similar arrange
ments with the principal European
powers, but there is a good chance Of
reaching satisfactory commercial trea-
ties with the lesser states, which are
today to certain extent the economic
vassals of the big powers.