The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-11-08
TRADE TREATY
between u. S.,
CANADA SOUGHT
Roosevelt and Canadian
Premier Confer Today
on Agreement.
BY HOBART c. MONTEE
Times Special Writer

WASHINGTON, Nov. 8. - Pres
ident Roosevelt and the newly
elected Canadian Prime Minister,
William Mackenzie King, today
warily approached the most i'm
portant of Secretary of State Cor
dell Hull's proposed trade treaties,
and the most difficult of negotiation.
Both hoped that a conference in
the Presidents executive Offices this
afternoon, and more informal con-
versations at the White House fire.
side this evening. would determine
whether the proposed United States
Canadian reciprocal trade agree
ment is AS great a bugbear to botn
governments as it has been touted.
Most officials here believe that by
comparison of the Importance of the
size and value of the trade involved.
or the difficulties impeding the ne
gotiationS. the State Department
Yankee Traders" have dealt mere
~ with pygmies in the trade agree
ments concluded so far.
Ten Billion Dollar Trade
During the last 10 years trade be-
tween this country and Canada had
an estimated total value of 10
billion dollars. During 1929 its value
was s1,45l 900 900. During the last
four years both volume and value
have shrunk to approximately one
third the total reached in 1929.
Canada still provides, however. a
market for American products ap-
proximately as large as the whole OF
Asia; about twice as large as Ger
many or South America, and nearly
three times as large as France or
Japan. In other words. Canada is
one of the United States best GUS
toners, second only to the United
Kingdom in the value of goods pur-
chased from this country. On the
other side of the ledger. Canada
sells about 30 per cent of all her
exports in the United States. In
terms of dollars and cents, the
United States has the better part
of the trade, Canada purchasing ap-
proximately sl.60 of American prod
ucts for each ST worth of Canadian
goods purchased by Americans.
Trade Agreement Desired
The desirability of a reciprocal
trade agreement is admitted by
officials on both sides of the border.
Notwithstanding this, however, the
first official correspondence con-
corning the proposed agreement was
exchanged Is months and a day ago
and the agreement apparently is but
little nearer actually than it was at
that time
The difficulties arise from the fact
that many of the basic products of
the two countries are similar and
compete. This is particularly true
of agricultural products, lumber.
fish, dairy products and livestock;
also several minerals, both metallic
and non-metallic. These are the
Canadian products which would
compete most severely with similar
American products if the American
tariff were reduced
Hundreds of American manufac-
tured products, if granted reciprocal
tariff concessions by Canada, would
compete with the output of the still
infant Canadian manufacturing in
dustry.
Pledged to Seek Agreement
On both sides of the border large
and politically important groups Of
producers and manufacturers are
known to be watching the trade
negotiations closely with a view TO
lodging emphatic protests with their
respective governments if their par
ticular industries or interests are
threatened by tariff tampering in
the proposed agreement.
Both governments, however, are
pledged to seek such an agreement
and are threatened with the loss Of
face" if they fail Mackenzie King,
in his election campaign, promised
Canada a trade agreement with this
country before the end of this year.
Both the President and Hull cut
short their vacations to return hero
for the Matchmaking discussions.
The Canadian official arrived yes
terday.