Evening star., 1933-04-28
EXPORTERS TO ASK !
TRADE GUARANTEES
Convention Envisions Period
of Reciprocal Tariffs With
South America.
BY the Associated Press.


PITTSBURGH, April 28.-A happy
family of nations, trading together with
reciprocal tariffs in an era of harmoni-
GUS prosperity, was envisioned today as
the annual convention of the National
Foreign Trade Council neared a close.
BOlstered by messages from Presi-
dents of practically every South Amer
ican country giving whole hearted sup
port to reciprocal trade between the
Americas delegates went into their final
session with every indication of voting
to support President Roosevelts new
DEAL with foreign countries. and Of
asking the government to guarantee
long-term credit abroad.
The new deal" as explained by Fred
I. Kent, foreign exchange controller OF
the Federal Reserve Bank. pictured
Uncle Sam as agreeing to drop specific
trade barriers in exchange for other
countries-particular In South Amer
ica-taking American goods.
Want Export Guarantees.
National Trade Council ofncials said
that rs per cent Of 700 exporting firms
have voted in favor Of the Government
forming a foreign trade insurance cor
poration to guarantee exporters against
loss in long-term loans to purchasers,
and predicted that resolution lndors-
ing this step will be adopted this after
noon.
Department Of Commerce speakers
indicated that the administration Is not
averse to such an organization, suggest
ing that the Reconstruction Finance
Corporation be given the organizing job.
Questions of currency imitation, eX-
change restrictions and credit expan-
sion, which have been submitted by
delegates and are to be answered In
open forum by experts. will be debated
prior to the closing session this after
noon. They were postponed late yes
terday because of protracted discussion
Of South American problems
Senator David A. Reed. Republican.
of Pennsylvania, sent word that he will
be unable to address the convention
because Of the press Of legislative mat
ter in Washington.
Explains Brazilian Situation.
Answering a question BY representa-
tives of several firms. asking what was
being done to permit them to withdraw
sums tied up in Brazil. Kent said:
The Brazilian situation in South
America is very difficult one. Their
debt charge ranges between $3.50 000.-
900 and 5000. 100000 a year. 1t can
only be paid by means Of investments
by other countries at this time.
Brazil has no gold. having shipped
her last to London recently as debt
payment. I understand she is nego-
tiatmg with England fer another loan.
But her repayments Of this and former
loans is der endent upon Brazils ex-
ports.
Il believe the Department Of State,
and possibly Of Commerce, are present.
ing to Brazil a proposition to find a
way whereby foreign exchange control
can be made to dovetail in operating.
If We can help her find a market for
her products. we hope that the extra
dollars of trade balance which might
be accumulated can be used to recover
American funds segregated there and
to repay some investors"
Mutual Cooperation.
Kent said that other South American
countries are being dealt with SIM
ilarly. mentioning Brazil's condition
as probably worst" with Argentina
Chile and Peru next in order
we are going to have the power to
eliminate many Of the Ills" Kent
said, 'and I mean ills on both sides.
We are approaching the subject in a
complete spirit Of mutual cooperation,
Of good will