Evening star., 1934-03-16
NAz|S EXPECT NEW
i. S. TRADE PACTS
Reciprocal Tariffs Due to
Be Basis for Renewed
Treaties.

Copyright. 1884 bv the Associated Press.
BERLIN, March 16.-German Of
ficial circles expect new trade agree
ments with the United States soon, 1t
was learned yesterday.
The 1925 treaty, with its most
favored nation" clause, is subject to
notice of denunciation by either coun-
try this year, and it is believed here
that President Roosevelt intends to
replace the pact with an agreement
calling for reciprocal tariffs.
Some preliminary conversations
have been held by Mr.. Roosevelt and
Or. Hans Luther, German Ambas-
sador to Washington, it was stated,
but no conclusion has yet been
reached.
The idea of reciprocity is accepted
with mixed feelings here. One official
declared that the more the reci-
procity principle is insisted upon, the
more difficult it will be for Germany
to pay her standing Indebtedness to
the United States"
Foreign Office attaches hold that
Washington is pursuing an economic
policy toward one of her greatest
debtors-Germany-which not only
precludes an improvement of mutual
trade relations. but is calculated to
render uncertain the hope of Ger
many's repaying her obligations.
May Solve Debts.
THE moment that America liberal
ICES the conditions for the importa-
tion OF German goods" a foreign Of
f1ce spokesman said, mutual COM
mercial relations will improve and
the debt question will, in turn, auto
matically solve ITSELF
Arthur E. Dunning, executive Sec
retary of the American Chamber of
Commerce here, suggested that the
United States turn to barter as the
way to stimulate American trade with
Germany. Dunning has been with the
chamber since 1918 and knows all
phases of the trade situation.
The idea of reciprocal tariffs ap-
peals strongly to Dunning, who be-
ueves there can be no improvement
IN the American trade situation here
unless there is thorough reconsid-
Grafton Of the tariff question.
But even barter on reciprocity will
not materially improve trade unless
the boycott against German goods in
the United States is discontinued"
Dunning asserted.
Boycott Claimed.
irrespective of the reasons for II.
which I will not go into the fact re-
mains that a boycott is being car
ried on at the cost of the American
people" he observed
Germany now buys three times the
amount of American goods that the
United States buys from Germany. he
said. In addition. the United States
has about So 900, 100000 invested in
Germany upon which prompt and
regular interest payments are ex-
pected
These payments are largely de-
pendent upon Germany doing a rea-
sonahle amount of export trade" he
stated.
There is a growing resentment in
Germany against the continuance of
the boycott and it is perfectly obvious
that, If we wish to improve our trade
with Germany. We can't start while a
boycott Is in full swing"
There are between 400 and 1,5OO
various representatives of American
companies in Germany. Business is
carried on in three different ways.
Some firms import goods under their
own names through companies organ
lied under the German law.
Others manufacture their products
In Germany under their own name.
These manufactures are sold in Ger
many and are exported to adjacent
countries.
A third group. large in number,
intrust their business to German
agencies.