Evening star., 1935-05-02

at the time when the disturbed inter
national relations of the postwar
period called for the broadest devel-
opment of world trade as a means of
minimizing shocks and creating a
new international balance, we adopted
an unduly high protectionist policy
which played its part in the subse-
quent worldwide collapse and con-
tributed in so important a measure
to the present breakdown in inter-
national commercial and financial re-
lationS."
Coupled with this, Hull said, was
policy of wild and reckless lending"
Asserting that international rela-
tions are no longer incidental to ma
tional life. but have become an essen
tial factor in the existence Of all ma
tions," Hull said a point has been
reached where every country must
go forward both on a domestic and
internati economic program. so
that the buoyancy of an expanding
world prosperity will develop to sus-
tain and promote the expansion of
uOIilCSII ltSONCIy- ALS AiAVNA
al aspects of such combined pro-
gram are far broader than the mere
readjustment of limited number of
tariff rates in this country. 1t en-
visages, broadly speaking. that impor-
tant nations throughout the world
will proceed gradually but simulta-
reously to readjust to a more reason
able level the existing excessive tar
ifs, quotas and other trade bar
riers. and to abandon the chief forms
of discrimination in international
finance and commerce. and to adopt
fair. equal and friendly trade methods
and practices.
Fundamntal Aspect.
while this and other countries
have made a very conside rable recov-
cry in production and prices and, un-
der its constructive domestic program
this country will make considerably
more. the limita tions encountered by
reason of the extreme isolationism
throughout the world are more and
more pressing themselves upon the
national consciousness OF this and
to give thought to the permanent
and fundamental aspects Of the situ-
alton in which our recovery policies
as a whole must function. While it
would be difficult to eXaggerate the
importance of domestic and internal
measures for recovery. it is neverthe-
less true that the collapse of world
trade is beyond any doubt one of the
most important factors prolonging
the depression. The breakdown Of
the international structure has Gre
ated uncertainty and fear. and holds
in check the tens OF billions OF dollars
of investment which today are most
urgent owing to capital depreciation.
obsolescence, renewals. repairs and
the need for new structures. What Is
required. at this juncture is to move
forward both on the domestic and the
international fronts toward full and
stable measure of trade expansion
and industrial prosperity"
Going into detail on trade malad-
justments, the Secretary of State
listed them as manipulation of tariff
rates. quotas, exchange controls and
other devices designed to exclude for
eign products, and in exclusive BIZ
lateral arrangements, rather than tri-
angular or multilaterai trade pacts.
In this connection he hit at the self
ish interests" in this country which
argue for adoption of like policies.
Foreign Policy Defined.
Defining, finally, Americas for
eign policy, Hull said: I'VE oppose ex-
elusive or preferential arrangements
the effect of which would be to i'm
pose discriminatory tariff rates against
other countries. On the other side,
this country does not intend to accept
discriminate ton against American COM
merce in foreign countries. 1t desires
to extend equality of treatment to all
nations and it seeks to obtain fair
and equitable treatment from all ma
tions. The unconditional most
favored-nation policy, as already in
dicated, is the one which almost uni
versal experience since the middle of
the last century has demonstrated to
be the best suited for the attainment
of these purposes. This Government
is convinced that only If it makes the
most determined attempt to stem the
degeneration of international COM
mercial intercourse into a network of
bilateral arrangements of an exclusive
and restrictive type with their accom-
panying determinations and retalia.
tions, can international trade be re-
stored"