The Daily Alaska empire., 1936-06-01
The Franco American Treaty
tNew York Times)

(New York Times)
 The trade treaty between France and the United States is in several ways the most important trade agreement negotiated by Secretary Hula fine vndicaton of the reciprocal tariff policy of the Roosevelt Administration It will not affect so large volume of trade the treaty concluded with Canada last November. But is the first treaty with major Power which exercises strict control of i'm ports through quota system; it is the first compre- hensive trade agreement made with France by the United States in than century and it promises to put end to determinations which have caused so much misunderstanding and ill will that at one time there was talk in both countries of reprlsals and open tariff
 In order to understand the bargain MT Hull has struck it is necessary to recognize that France and the United States have pursued radically differ ent commercial policies in recent years On the whole, French tariffs have been moderate and many of our best exports-cotton tobacco and copper for example l-have actually been admitted duty free, for the benefit of French industry. On the other hand, France has imposed rigid quantitative restrictions. or quotas" the amount of goods imported from other countries Our policy has been just the reverse of this in all respects We have imposed quotas on goods imported from France. But we have admitted very few of her goods duty free, and our rates many of her best exports-"luxury" goods-have been extremely high.
 The essence of the new trade agreement is that both countries make concessions at those points where they have most to concede. The United States re- duces it's high tariff rates on items representing about Onethlrd Of it's total imports from France last year, and among the important luxury goods af- fected by this action are lace broadsks cigarette paper, champagne still wines and brandy. France in turn, reduces some of her already moderate tariff duties but her most important concession sists of granting larger quotas to such American ports automobiles agricultural machinery radios, electrical refrigerators and certain fruits The mu- tual concessions thus arrived at to remain in force until July of next year and indefinitely there after until six months notice has given by country Here certain escape clauses" provided for example the treaty may be modified or termin- ated in devaluaton of the franc should adversely affect the commerce of either country But it is inevitable that such safeguards should be set up in times unsettled the present and it is reasonable to believe that the treaty be altered if nec- essary, without sacrificing all it's gains
 No doubt many American producers will feel that the treaty exposes them disadvantageously to French competition. It cannot be denied that fl American consumers are given opportunity to purchase French laces French wines lower prices they may buy more of them, at the expense of do- mestc products But the whole argument for foreign trade rests the theory that all nations inevitably gain in the long if those countries which possess some special skill or some natural advantage in the production of certain goods are permitted to ex- change these goods in the worlds markets for other goods which they cannot produce well con- veniently or as cheapy Secretary Hull is profound believer in this philosophy and persuasive expon- ent of the theory that too intensive nationalism the primary cause of depression from which the whole world has suffered simultaneously, The new French treaty is the product of his persistent and politically courageous effort to free international trade of some of its worst barriers