Evening star., 1934-12-02

Beneficial results already are being
felt as the result Of the negotiation
of the first of the special trade agree
ments fomented by Secretary Of State
Hull. Ever since his entry into the
cabinet, Secretary Hull has preached
the doctrine of economic salvation
through the breaking down of arti-
fetal barriers to trade. 1t will be
recalled that this was the chief point
of his program at the London Con-
ference of June, 1888, the conference
which failed because Of inability OF
the powers to act in concert.
Largely at the instance of the Sec
retary of State, the President urged
upon Congress a new tariff policy,
producing greater flexibility in trade
arrangements. Congress provided the
necessary legislation. Cuba being so
near a neighbor and one of the more
important Of our customers, 1t was
natural that the first treaty under
the new policy would be made with
that republic and now it appears,
according to special study made by
c. F. Wells of the Bureau Of Agri-
cultural Economics, the American
farmer is an outstanding beneficiary.
The treaty did not take effect until
September 3, but the very first work.
ings of it indicate that, during its
agreed three-year term, 1t will stimu-
late the Cuban market for American
farm products as well as being Of
assistance to exporters Of such Cuban
specialties as sugar, tobacco, Winter
vegetables and many other items.
At the end of the three-year term,
either nation can denounce the
agreement on six months notice.
Opinion now Is, however, that so
much will be done for both Cuban
and American recovery during the
three-year period that no effort will
be made to restore the barriers which,
it is claimed, have worked hardshipS
to both countries.
Cuba has always been an inviting
market for American food products.
1t may seem an anomalous thing that
a country so situated that the people
may almost live on what grows wild
should import food. Such, neverthe-
less, has been the case because Of the
intense preoccupation Of the Cuban
population with one crop-sugar
Cuba does raise cattle and grain,
but sugar has been the great source
Of agricultural wealth. With prices
at all good, Cuba can export vast
quantities Of sugar, produced at low
labor cost, and make so much money
that other crops have seemed not
worth while.
Cuba Goes Broke.
This was all very well so long as
the price of sugar remained fair. But
all the world had been producing
sugar since the war, the beet crops as
well as the cane, piling up unbeliev-
able surpluses. In Cuba, for exam
pie, the crops were so huge that
there was not sufficient sheltered stor-
age space and one saw tons upon
tons of sugar piled in sacks in the
open fields with nothing but tarpau-
lins for cover. Sugar that had sold
up to 25 cents pound in the United
States in war days, could be pur-
chased for less than / cent a pound
This situation deprived the Cubans
Of their normal income. Cuba was
the sugar bowl of the United States
and exported to other countries as
we'll. Crop diversifcation was not
practiced With the large amount OF
American cash received for her sug-
ar, Cuba purchased food from the
United States. Imports of -four, lard
meat. canned goodS-all manner OF