Evening star., 1934-04-04
COAL ruling MAY
AFFECT TARIFFS.
Court of Customs Grants
Free Entry to Britain
and Germany.
Rv the Associated Press.

By the Associated Press.
In a decision which may possibly
affect the administrations proposed
tariff reciprocity program, the Court
Of Customs Appeals has ruled that
most characterization treaties entitled
British and German coal the same
free entry accorded coal imports from
Canada and Mexico.
The decision, in effect, nullifies a
provision of the 1882 revenue law
which provided for a duty of 10 cents
hundred pounds on coal from ma
tions which in the preceding calen-
dar year shipped more to this coun-
try than they imported from the
United States.
The administration tariff program
contemplates new pacts which would
grant concessions to countries that
grant concessions to the United
States.
May Bar New Pacts.
Generally speaking. the most =
favored nation treaty pledges the
signers to give each other any con-
cession that might be allowed others
within the favored-nation group.
Some observers said the customs de-.
cision might stand as bar to new
pacts. but officials declined comment
pending study.
Instead of concern about the deci-
sion, State Department officials re-
garded it as strengthening the posi-
ton of the administration on its gen.
eral tariff bargaining policy and an
assurance to countries with which fu-
ture pacts may be negotiated that
the treaties will be valid and binding.
It was said the most characterization
principle had plenty Of fexibility in
past application and that anyhow the
case decided was still to 60 to
the Supreme Court. Anthracite in
terests were expected to press the
appeal.
The Treasury in 1882 ruled that
coal imports from Canada and Mexico
were entitled to free entry under the
1882 revenue act since the balance
of trade in coal with the two countries
had been favorable to the United
States the preceding year.
Britain and Germany Protest.
Great Britain and Germany pro-
tested that a 10 per cent tax could
not be levied on coal from their coun-
tries since the fuel from Canada and
Mexico was admitted free and the
discrimination was violation Of the
favored nation pacts with the United
States.
Unless the treaties were abrogated
or modified the decision said. "the
courts must consider their language
as we'll as the language Of the statute
and must construe the two-both
being the law of the land-together. !"
Tariff and trade agreements con-
aiming the unconditional most favored
nation clause will be negotiated with
20 foreign countries as quickly as
Congress enacts legislation to give
President Roosevelt such power.
The 20 nations have been selected
by State Department officials as each
is the chief source of supply Of two
or three products imported by the
United States. They supply approxi-
mately IS per cent Of all imports into
the United States, and this country,
in return, sells approximately so per
cent Of its total foreign trade to them.
A reciprocal treaty already has been
negotiated with Colombia, under the
terms Of which 1t is understood coffee
Is placed on the free list in return
for number of concessions advan-
tageous to American agricultural and
manufactured products.