Evening star., 1937-12-09
j. S, BRITAIN FACE
HARD BARGAINING
Negotiators for Trade Pact
Face Task of Close
Dickerinq.
BY DEWITT MACKENZIE,


Associated Press Foreign Affairs Writer.
NEW YORK, Dec. 9.-The Anglo
American horse-swappers are prepar-
Ing for hard bargaining when England
and the United States negotiate that
projected trade pact.
Already sufficient differences of
opinion have developed to make 1t
clear that it will require = good deal
Of dickering to reach an agreement.
That isn't to say grave obstacles
have appeared in the way OF thus
furthertng Secretary Of State Cordell
Hull's dream Of achieving world peace
by lowering international tariff bar
riers.
1t may save unkind thoughts later,
however, II it is recognized at the start
that the negotiators will have earned
their suppers when they sign the docu-
ment and turn the pens over to Mr..
Hull as souvenirs Of a historic and
perhaps momentous event.
U. 8. Asked to Give Most.
Interested parties in both America
and Britain have been having their
say about the matter, but the latest
bit of preconference propaganda
comes from London. The Association
Of British Chambers of Commerce
says that the United States should
give Great Britain concessions three
or four times as valuable as those
given the United States. Says the
chamber:
"As the United Kingdom purchases
from three to four times as much from
the United States as the United States
purchases from the United Kingdom
the approximate value of the conces-
sions to be secured from America
should be three to four times the
value Of those granted to America"
1t Is true that from one angle we
seem to have some such advantage
but read this from the widely quoted
London publication, The Economist
AT first sight. 1t is true, Great
Britain appears to stand in an advan-
tageous bargaining position visa Wis
the United States, for the crude fig
ures of visible trade between the two
countries give Great Britain q heavy
adverse balance.
Britain Has Import Surplus.
"In the first half of the year, our
imports from the United States were
47,041 900 pounds (roughly $235, ,200,-
00O) and our exports of merchandise
only l6,4s0,000 pounds, giving an
import surplus Of 30,55l 900 pounds
which is reduced to 23,996 900 pounds
II $685. 900 pounds Of re-exports are
brought into the account.
But when invisible items are
taken into account, the balance in
favor of the United States is smaller,
and If American trade with British
colonies is included, then the balance
Of payments becomes slightly adverse
to the United States"
II We accept this friendly view of
The Economist, it would appear that,
from the standpoint Of trade balances,
the forthcoming parley can start
fairly well from scratch. However,
the big issues likely will revolve about
the imperial trade agreements made
at OTTAWA some five years ago,
whereby England created tariffs CIV
ing heavy preferential treatment to
her dominions.
U. s. Trade Took Tumble.
With the Inauguration OF these bar
riers the big American trade with
Britain and Canada took q terrific
tumble. For example, in 1929, before
the Ottawa agreement. our leading
exports to lain totaled about $780,
000.000 (to quote the Economist). Our
leading imports were some $3.50, ,O0O,-
900. Last year the exports had
dropped to $465, 900 600 and the i'm
ports to $l40,000,0O
At the same time our good neigh
Dor" to the north proflted correspond
ingly. Canadian exports to the
mother country mounted from $780,
100000 in 1929 to $375,O00, 900 last
year.
America has been especially hard
hit in connection with such exports
as wheat and other grains, pork and
fruit.
Presumably Britain had received the
approval of her dominions before an.
nouncing that she was prepared tt
negotiate a trade pact with America
since the Ottawa agreement is 81
heavily involved. There certainly will
have to be readjustment of thos,
preferential tariffs and that presagel
some hard shedding for the conference