Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-11-19
j s. AND CANADA
PLAN NEW TREATY
Reduction of Tariff Rates
to Advantage of Both
Nations Is Sought.
BY the Associated Press.

6y tne Associated tIesS.
The State Department. setting out
on its most ambitious effort to in
crease world trade, linked negotia-
tons for new Canadian trade treaty
today with its efforts to do more busi-
ness with Great Britain.
Secretary Hull announced last night
that revision of the reciprocal trade
treaty with Canada was contemplated.
Earlier he had made known that the
United States and Great Britain at
last had agreed to work out a similar
pact. The three countries control
a major share of international trade.
The Canadian treaty went into
effect in 1885. The theory of such
pacts. which the administration saws
has been proved true, is that a low
ering Of trade barriers stimulates
business and makes for good will.
Tariff Reduction.
Signers agree to reduce tariffs on
imports from each other, the af-
fected commodities to be items which
one nation produces in excess Of its
needs and which the other nation
lacks.
The decisions of Canada and Great
Britain to carry on discussions were
heralded widely as constituting
wedge into the virtually closed cor
poration" of the British common
wealth of nations.
At least partial abrogation of the
system of empire preferences would re-
suit, observers said. if Britain agrees
to relax the restrictive duties which
it now imposes on American and other
non-empire goods.
The United States is interested pri-
marily in selling more agricultural
products in the rich British market.
1t is prepared in turn to grant con-
cessions to British manufactured arti-
Giles.
New Concessions.
Unofficial observers suggested that
Canada may be actuated by hope of
obtaining new concessions from the
United States to Offset any losses she
may suffer from deeper American
penetration Of the United Kingdoms
agricultural market.
The United States sold S384.l5l. 900
worth Of goods to Canada in 1886 and
bought s375,832,000. The comparative
figures for 1885, before the treaty went
into effect, were $323,194, 900 and
1886, 444, 900.
So far this year, the State Depart
ment said, the United States sales to
Canada are 80 per cent above 1896.
and Canadian sales to this country are
up 81 per cent
Department trade experts said the
new Canadian talks are designed pri-
marily to broaden the base Of present
trade by comforting mutual benefits
on a wider range of products in both
countries.
Some observers predicted that other
British dominions might follow the
lead of the mother country.
Hailed by Minister.
Thomas w. White, Australian min
lister Of trade and customs, said that
aside from chances of expanding bust
ness, the announcement was of "in-
estimable value" in linking 1.-The two
greatest democracies.
First congressional reaction to the
proposed British agreement came from
Senator Lodge, Republican, of Mass
achusetts, who said he would intro
duce resolution Monday to termi-
nate all trade pact negotiations for
one year.
with the mad race in ornaments
and threats of war looming large" he
said, ut Is vital that the United States
should at least not increase its en-
tanglements with other nations"