Evening star., 1937-11-22
BY STANLEY p. RICHARDSON,
Associated Press Staff Writer.

The administrators system of re-
ciprocal trade treaties, to which Sec
retary Of State Hull now proposes to
add Great Britain, has two objectives:
l. To improve the United States
position in world commerce
2. To increase the exchange of goods
between all nations.
The program is based on the theory
that equal treatment for all rather
than preferential practices between
nations is the most effective means of
removing discriminatory restrictions
now clogging many channels of trade
Mr.. Hull contends that only by stim-
ulating trade everywhere can individ-
ual nations attain the stabilized pros
perity needed for promotion of an en-
during peace. For. Mr.. Hull insists.
If goods do not cross frontiers, armies
will"
The Secretary's aides have labeled
his concept triangular" trade. In
effect, this means stimulation
through mutual tariff and other con-
cessions, of exports and imports in the
aggregate rather than merely as be-
tween individual or groups of nations
Equal Treatment.
The Hull program relies primarily on
the reciprocal guarantee of most
favored nation" treatment in all mat
ters connected with international COM
merce. This means that all agree to
extend to each other treatment equal
to the most favorable benefits they
accord to any other country.
But the United States goes farther
and grants such treatment to all nom
agreement countries which do not dis
crlmlnate against its goods.
This practice has been assailed by
some Americans on the contention the
United States thus gives more than
1t receives in the world marts. Mr..
Hull and his associates deny this.
Triangular" trade is illustrated by
the fact that the United States US
ually has favorable balance in its
trade with Europe, whereas it regu-
larly records an unfavorable balance
in its commerce with tropical coun-
tries. Under Mr.. Hull's theory, one
should eQualize the other
1t is not important. he contends.
that nation should strive for IA
Vorable balance in its dealings with
another individual country. What it
may lose in one quarter it probably
will gain in another
What Is important, he argues, is the
constant expansion of buying and
selling around the three corners of
such an imaginary triangle. This. in
his view, can best be achieved bv the
breaking down of determinations now
practlced by many nations in their ef-
forts at economic nationalism.
Trade Advantages.
Such methods are eXemplified by
agreements between some nations Civ
ing preferential trade advantages to
each other at the expense of the rest
OF the international family of traders.
The Reciprocal Trade Act authorized
President Roosevelt to lower tariffs up
to SO per cent in return for propor-
tlonate concessions from other coun-
tries. The first treaty was signed with
Cuba in 1894
Similar pacts with Brazil, Belgium.
Haiti. Sweden, Colombia. Canada,
Honduras and the Netherlands were
signed in 1885 and with Switzerland
Nicaragua, Guatemala France, Fin
land, Costa Rica and Ell Salvador in
1896.
Negotiations are in progress with
Ecuador, Venezuela, Czechoslovakia
Turkey and Great Britain. A revision
OF the present agreement with Canada
to broaden the application also is in
prospect