Evening star., 1935-09-12
US. TO TERMINATE
ALL TRADE FAVORS
GRANTEDGERMANY
Tariff Will Be Raised on
Imports Because of Ber-
Inns Determinations.
ITALY AMONG OTHER
NATIONS ION WARNING"
Rome, However, Now Negotiating
for Reciprocal Pact in Efforts
to Retain Benefits.

(Copyrieht, 1885, by the Associated Press)
Germany on Ocober IS will lose
all tariff reductions granted by the
United States in reciprocal trade
pacts, official sources made known
today because of asserted persistent
and fragrant Determinations against
American imports there.
The termination of tariff benefits,
attributed to the State Department
was interpreted as institutlng new
policy in American foreign trade.
Secretary Hull, it was learned au-
thoritatively. has notified DR.. Hans
Luther, the German Ambassador,
that after October Is all German i'm
ports into the United States must
pay the highest prevailing duty rates,
Two Schedules Established
Bv that action this country eStab-
fishes for the first time in many years
a two-column tariff schedule, one with
normal rates for countries which
grant equality of treatment for
American goods, and another higher
schedule for countries which dis
GIlIllldle against AIIlel lCdlI SOOOo.
President Roosevelts formal direc-
tons to the Treasury Department 20
withhold extensions of lower dutle;
on nearly 100 articles made in the
Swedish Belgian Haitian trade pacts
from Germany are expected to be an
nounced before Sunday.
The German American commercial
treaty, the first unconditional most
favored-nation pact entered into by
this country, ends by Germany'S de-
sire and action on October IS.
The effective date of the new and
higher tariff on German goods VIII
coincide with the treaty's abrogatiOnS.
Three Other Nations Warned.
Germany, Portugal. Denmark anc
Italy have been "on warning" from
the President since July that favor
able tariff treatment they now re-
ceive is subject to cancellation on 80
days notice because of their diScrim-
lnation against American imports.
Italy is now negotiating a reciprocal
trade pact designed to remove many
of the determinations.
American trade officials have given
no hint whether action similar 20
that taken against Germany may be
taken against Denmark and Portugal
The American Governments drastic
action was understood to be in re-
taliation against reaching trade
control measures adopted by Reich3-
fuehrer Hitler which have thrott!ed
American trade and benefited the
trade Of other nations which have
negotiated special balanced trade"
and barter agreements with German.
Germany and the United States are
now carrying on discussions on the
trade questions and the Reich's only
escape from the higher duties depends
on favorable outcome of those ne
gotiations.
The German Ambassador. acting
under instructions from Berlin, for
mally announced Germany's inten-
ton of abrogating the most-favored- |
nation treaty last October and it ends |
october Is this year
Since that time. however, Germany
IldS IIlduc ONSl GllICS lOl IltSOGld llOIlS
toward a new pact under provisions of |
the trade agreements act.
Secretary Hull has offered TO nego-
tiate new pact on basis on equality /
of treatment-which the Department /
claims is not now practiced by Ger
many-but no answer has yet been
received from Ambassador Luther.
Germany Expected to Suffer.
American officials explained the
latest move as "equalizing" treatment
accorded to American goods by Ger
many, and as in no sense discrimina-
tory against German goods.
Observers here expect German trade
to suffer in those articles which were
granted reduced duties in the Swedish
and Belgian pacts because of Ger
manys industrial competition with
those countries.
Additional competition will be Of
fered German goods in this market
on the conclusion of trade pacts with
the Netherlands, Switzerland, France,
Italy and other countries, since any
reductions granted in those agree
ments could not be allowed on Ger
man goods unless a new agreement |
could be made for German goods be- |
fore those agreements go into effect. |