Evening star., 1934-02-06
Policy Committee Proposal
Looks to Reciprocal Nego-
tiations by Roosevelt.
PEEK OFFERS PROGRAM
AFTER SPECIAL STUDY
Latter Suggests Government
Financing, Where Necessary,
of Exports.
BY G. GOULD LINCOLN.

President Roosevelt has before him
two plans for dealing with American
foreign commerce and the tariffs.
One of these, prepared by the Com
mercial Policy Committee, looks to re-
to be negotiated by the President un-
der authority Of Congress.
The second plan has been prepared
by George N. Peek, who has made a
special study CT the problem of eX-
port surpluses. particularly agricul-
ture. This second plan includes Gov
eminent financing, where necessary,
of exports 1t contemplates also the
setting up of kind of super Govern
ment agency to deal with America S
international trade
The Commercial Policy Committee
composed of representatives Of the
various Government departments and
agencies having to do with trade and
tariff, including the State, AgrIcul-
ture and Commerce Departments and
the Tariff Commission. has laid before
the President a tentative draft CT a
bill granting to the President author
ity to make reciprocal trade and
tariff agreements.
May Pro!ong Session.
The committee has also recon-
mended to the President that this
matter of reciprocal trade agree
ments be dealt with first and sepa-
rately from any plan for Government
financing of export trade
Administration leaders on Capitol
Hill say that. while they believe Con-
gress will give to the President such
LEGISLATION as he proposes to help
carry forward his recovery program,
the tariff is always a ticklish sub
ject and if it is thrown into the ses-
sion it is likely to considerably post
pone the date of adjournment.
The extent Of the powers to be
given the President over the tariff
is expected to be principal factor
in the speed with which such meas
ure can be handled by the Congress.
If it is proposed to give the President
unlimited powers to raise or lower
tariff duties. there will be serious op-
position. If on the other hand it is
proposed that the President be given
powers to raise or lower the tariff
only when he obtains concessions
from foreign governmental quid
pro quo-the fight is likely to be less
intense. Indeed. there is reason to
believe that he would receive sup
port even from some of the Repuo-
llcan members of the Senate and
House for such a proposal.
Much Depends On Wording.
Also much may depend upon
whether it is proposed to give the
President full power to make these
reciprocal agreements. or whether II
is proposed to have the agreements
eventually subject to approval or dis
approval by Congress. after having
been arranged by the President.
The administration has two courses
at least open TO it with regard to
trade. One is tc SO forward with
plans to redevelop foreign trade,
breaking down existing trade barriers.
The other is to let foreign trade slide
and to rely on domestic commerce
alone. There may be various grada-
tions between these two courses, but
generally speaking the decision must
be made between them. The first
course will have strong backing frcm
both the Department of State and
the Department of Commerce. On
the other hand. several of the expert
mental planks in the recovery pro-
gram look very strongly to a more
nat9onalistic policy.
If the President is to go ahead with
the plan to redevelop foreign trade of
this country, as he is expected to do
in view of his statements that he
expects to send a tariff message to
Congress at this session, something
drastic will have to be done to break
down the existing trade barriers. high
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