Evening star., 1935-01-13
SHIPMENT
IS SEEN
eGood Neighbor'' Policy and
I Currency Adjustment
! Held Likely Cause.
BY ROBERT C. GRAHAM.

BY hObEhI y. unAuAMs
chairman. Export Committee. Automobile
Manufacturers Association.
Sales Of American-designed motor
vehicles in countries outside OF the
United States reached the 435, ,000-
mark In 1884, as compared with 242,-
l35 in the preceding year.
I. There were several reasons Tor this
inprovement. One was the alignment
of our money to the currencies exist
ing today in the biggest part Of the
world. Another was an increasing
friendliness being shown towards
United States business as a result Of
the "good-neighbor" principle which
has been applied generally to inter-
national relations by our Government.
Still another factor was the progress
made under the Governments new
reciprocal tariff policy-the actual
conclusion Of one trade agreement
Wtth Cuba and the definite opening Of
negotiations with IS other countries
III different parts Of the globe.
Advance Not Surprising.
Under the circumstances. it has not
been Surprising to find Americas over
seas automotive business continuing
tn attractive volume with hardly any
seasonal recession through to Novem-
her On the basis of shipments made
then and if applied as an average
month for the coming year, the over
seas business in American motor ve-
hicles in 1885 would be 80 per cent
greater than in 1884 and possibly
reach the 100000 mark.
The forecast of this future business
Il especially warranted by various de-
velopments to be expected next year.
Reciprocal negotiations are expected
to be completed during that period
and If acted upon by the governments
concerned in the particular cases will
tend to create more favorable sales
conditions in markets that represent
more than 26 per cent of our overseas
outlets.
Even prior to the conclusion Of
treaty with Spain, the American Gov
eminent has endeavored to improve
two-way trade by modification of
quarantine rules which adversely az
fected certain Spanish products. A
change is therefore likely under the
present arrangement whereby the duty
on cars Of American origin is twice
that applied to competing makes from
other nations. An adjustment of this
situation may consequently be ex-
pected to have very favorable effect
on direct automotive sales from the
United States.
= 1t is also hoped that as result Of
the Brazilian treaty, rate Of duty
lower than the present one of 81 per
cent may be obtained. Under these
conditions, American cars have to be
priced at levels which, If applicable
in the United States, would limit
sales to only 2 per cent Of the buyers.
Any adjustment downward in the
duty, however. would bring about
more satisfactory pricing of cars to
Brazilian purchasers and would auto
matically expand the number of peo-
pie within buying reach Of motor
vehicles. A step indicative of this IA
vorable trend is seen in the recent
action Of the Brazilian government
according to American shippers large
amount Of exchange In payment for
the American products generally.
Vogue in Australia.
The "good-neighbor" policy is also
acquiring vogue in a country far re-
moved from the United States, but
equally as large in area, namely, Aus
tralia. Not only have the registrations
Of new passenger cars and trucks dur.
ing the third quarter Of 1884 reached
the highest levels that have prevailed
since 1929, but definite recognition has
been taken by the Australian govern.
ment of international trade as pre-
requisite to general well-being.
This new policy is reflected by a
large number Of tariff reductions on q
variety of goods approved recently.
This action has particular signif1-
canoe as it confirms the general feel
ing that more and more nations are
resorting to policy of international
trade cooperation rather than an
tagonism. It is sincerely hoped that
out of this step by Australia, the grow
Ing sentiment In Canada favoring reci-
procity trade arrangements, the down.
ward adjustment of automotive duties
In Newfoundland, and the ideal busi-
ness conditions existing in the Union
OF South Africa today, there may come
closer cooperation with the entire
British Empire in efforts to speed up
world recovery.