Evening star., 1937-09-26
ANGLO-AMER|CAN
TRADE PACT SEEN
Recent English Book Swings
Sentiment There Toward
HuIl's "Keystone."
BY Fl. r. BAUKHAGE.

1Le one ana only result that Will
satisfy the business world Of America
today would be an Anglo-American
trade pact
That opinion, widely circulated in
England, is stated in book written
by Leonard j. Reid, financial editor
of the London Daily Telegraph, which
has had powerful effect in encourage
ing public demand in Britain for
trade agreement with the United
States. Foreign Minister Anthony
Eden's recent radio address undoubt-
edly reflected this demand.
Mr. Reid calls his book together
We stand" and it was written after
an exhaustive study of American
opinion and a long interview with
Secretary of State Hull, who opened
his heart and his files for the ardent
Englishman.
During the past week, after months
OF ups and downs and long and I'M
explained Interruptions, negotiations
seem to be rapidly drawing to a sue
cessful termination for such a pact.
Keystone In HulPs Arch
When and if it is signed, the cove
nant will mean much more than
another triumph of Secretary Hull
and his philosophy. 1t will mean that
he will set in place the keystone of his
arch of reciprocity agreements.
whether or not he can rear on this
beginning a structure of international
cooperation is, of course, a question.
But at least it could not be done
without the vital British trade pact.
There are some who believe that
perhaps the apex of extreme nation
alism in the world has been reached.
that the ultra -nationalistic countries
like Germany and Italy will soon have
exhausted their efforts in achieving
self-sufficiency, that war can be STAYED
off and that the pendulum will begin
to swing the other way, international
trade agreements will be followed by
international cooperation and collec-
tive security.
Whether or not this may be
achieved, signing pact with Britain
would have, from the purely material
standpoint, certain definite benefits
for the United States. Immediately
wider markets would open for the very
crops of which We have a surplus.
Trade Balance Favors Us
On the other hand, certain indus
tries would have to relinquish part
OF their protecting tariffs as a quid
pro quo. But it is Immediately urged,
in this connection, that such conces-
sions would be made up by the added
purchasing power of the domestic
market as a result of the larger
market for agricultural products in
England
The British agreement is the most
important of those We have been at
tempting to close because Great
Britain ranks with Canada and Japan
as one of our best customers, par
ticularly for cotton and other farm
products. Latest Department Of Com
merce statistics show that. in our
dealings with the United Kingdom,
the trade balance is nearly so per
cent in our favor.
In recent years, since England aban-
doned her former free trade policy.
she has been losing ground in the
international contest for supremacy in
the worlds textile trade. Japan has
been steadily cutting into the Far
Eastern markets, formerly controlled
by British merchants, and other coun-
tries have also been increasing their
textile exports at Britain's expense.
AS a consequence of this, Japan has
replaced England as our largest cotton
buyer.
Some economists say that the de-
cline of England's textile trade is only
temporary, and that a reversal of her
present tariff policy may restore her
lead. This may account, in part, for
the more favorable reception that
British officials are now giving to Sec
retary HullS persistent overtures for
q trade agreement with this country.
16 Agreements Signed.
Trade agreements have already been
signed with Is countries, namely:
Cuba, Brazil, Belgium, Haiti, Sweden,
Colombia, Canada, Honduras, the
Netherlands, Switzerland, Nicaragua,
Guatemala. France, Finland, Costa
Rica and Ell Salvador.
Public notice of intention to nego-
tiate trade agreements with this coun-
try has been given by Ecuador and
Czechoslovakia
Assistant Secretary of State Francis
Sayre, under whose supervision the
negotiations of the trade pacts are
conducted. makes it plain that their
objective is not free trade
What it does mean," says Mr..
Sayre, lis reducing on both sides such
barriers as have no economic justifica-
ton and cause injury rather than
benefit to our Nation as a whole"
Taking the straight jacket off OF
trade" tearing down tariff walls be-
hind which bayonets spring, mean.
Secretary of State Hull believes, get
ting rid of the roots of war"
tCopyrisht. 1887. by the North American
Newspaper Alliance Inc.)