Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-11-28
BY CRESTON B. MULLINS.

wv the United States will
' enter upon negotiations
with Great Britain for a
trade agreement which, if consum-
mated, will not only break open the
closed system of British imperial trade
and drive wedge between the forces
of bilateralism in world trade, but will
cinch the position of the Hull reciprocal
trade program in the United States.
The large industrial groups have
been notable supporters of Secretary
of State Cordell Hull in his campaign
to tear down the barriers to world
commerce, and it has paid them we'll
But great organized opposition per-
sists from the agricultural districts,
whose leaders charge that the farmer
has been sold out to help industry
by letting down the bars to competitive
foreign farm products.
1t is this group which now stands
to share more fully in the harvest
from the sowing of trade reciprocity.
AS the largest foreign consumer of
American farm products, in spite of
the Ottawa preferential system, the
United Kingdom has long offered the
best single prospect of doing something
substantial for the American farmer.
If American agricultural exports to
England can be stimulated to some
where near the level of 1929, justifca-
ton for farmer complaint will dis
appear A combination of drought, de-
preston and empire preference slashed
American exports of wheat to England
from 2l,772,000 bushels in 1929 to
$4,000 bushels in 1886, flour from
1.317 900 to $4,000 barrels, barley from
1925, 900 bushels to 6,293,000, meats
and edible animal fats from 462 .099,-
900 to l39,5l3,OO0 pounds and apples
from 8,256,000 bushels to 36l7,000.
These represented millions of dollars
of loss. of which the American farmer
is now offered an opportunity to re-
cover at least part How large part
will depend upon how far American
negotiators succeed in preaching
British imperial preference, which dis
eliminates against non-empire agri-
culture in favor of the dominions.
Preference Based on Pacts.
Empire preference, as established at
Ottawa in 1882, is based upon series
OF agreements between Britain and
the various dominionS-Canada, Aus
tralia, New Zealand, South Africa and
India. Both sides were guaranteed
preference in the markets Of the other,
dominion foodstuffs and raw materials
on basis Of free entry, for most items,
into the British markets, and British
industrial products on a basis of
specified margin below the general
level of tariffs in the dominion mar
kets.
Except for the Anglo-Canadian
agreement, which was revised and re-
newed last winter, and the Anglo
Indian agreement. which is now in
process of regeneration. the agree
ments have been preserved in their
original form
The position Of non-enpire agri-
cultural products in the British market
is therefore one of subordination to
domestic and dominion producers
Non-empire industrial products face
the same handicaps in the dominion
markets.
Imperial preference, then. is the
biggest obstacle to an Anglo-American
trade agreement, although it is prob
lem of which the United States does
not have the solution. That it has been
removed as far as this country is con-
cerned was indicated by Secretary Hull
in his announcement that basis had
been found for discussion
Tht basis was an American under
taking to reduce or bind tariffs on
commodities of which Great Britain
is the principal supplier, and British
assurance that its tariffs are negotia-
BILE, in spite of guaranteed preferences
to the dominionS
Responsibility Shouldered.
BY such assurance Great Britain took
the responsibility for compromising
the commonwealth members for what
ever sacrifices they may be called upon
to make in British concessions on
American products. The understand
ing that the United States would not
be required to remunerate the do
minions was specific. Otherwise the
impediments to an agreement would
be insurmountable, for it would be
necessary to negotiate with the empire
at the same time as with Great Bri-
tain.
The assurance that Britain itself
will arrange with the dominions for
modification of the preferential system
indicates the powerful stimulus which
must have impelled it to swing to the
American philosophy of international
trade
That substantial concessions will be
necessary to win REIMBURSEMENT Of
preference appears certain from the
official attitude of the dominions that
they will not surrender their ad-
vantages to any extent which would
reduce their shipments to the British
market without an equivalent outlet
for their goods in some other direction.