Evening star., 1937-06-17
BY FRANCIS P. CARAVAN.

BY FRANCIS P. CARAVAN.
NEW YORK, June IT (N.A.N.A).-
This is the Case of the Canadian
Coup.
Not the most important incident in
.the story of the reciprocal trade agree
ment act. which we are renewing for
another three-year priod. it is one Of
the most interesting and illustrates
Aptly enough that the delegation by
Congress of its tariff making powers is
resulting in British stranglehold on
american business and enterprise.
Treaties and trade agreements be-
tween nations commonly contain an
unconditional m t-favored- nation"
clause, by which each of the con-
tracting parties guarantees that the
other shall receive the same benefits
and concessions which may have been
or may subsequently be allowed to all
other nations.
Canadians Score Heavily.
In making a ''reciprocar' trade
agreement with Canada, the State De-
partment readily agreed to admit it to
all the reductions, rights and privileges
granted by us to other nations. But
the Canadians were not so stupid,
They managed to slip into the con-
tract single word which has already
cost the United States millions of dol
lars in duty payments and may cost it
Imany more.
For the Canadians agreed only to
admit the United States to the status
Of observation-disclosures nation
Thus, If the State Department re-
duces the duty. up to so per cent, on
any article and with respect to any
country, Canada, the British Empire
and all other countries with which we
have trade relations may benefit
equally. But, under the Ottawa
agreements. Canada as unit of the
British Empire, may make concessions
to other units of the Empire which
do not apply to us. In this case, We
become merely the foreign"' nation,
the barbarians beyond the imperial
pale.
Figures Reveal Cleyerness.
The overwhelming significance of
Canadian cleverness is readily seen
from the fact that, in 1896, exactly
43.3 per cent of our total exports went
TO the British Empire and enjoyed no
Empire preference"
Just what does this mean to us?
In 1885, we generously applied
unconditional "most-favored-nation"
ftreatment to 904 per cent of all goods
Emported by us, but We received the
tsame treatment only on SAT per cent
OF the wares we sent to foreign
janarkets. For 1896, approximately 90. S
tper cent Of our imports came in under
unconditional most favored nation"
treatment, but only 81 per cent of our
exports were similarly treated.
, The great American jackass brays
lh welcome to all comers, or at least
g out OF 10, but the British lion ad.
mlts none save its kind to the markets
OF quarter of the earth. Others pay
full fee.
1t is something of comic relief to
.talk OF making trade agreement with
the United Kingdom Our main i'm
ports from the British Empire are
rubber. tin, nickel ore, tea and spices,
ana they are already on the free
list. Other goods and commodities
enter at the same reduced tariff
applied to all nations with which we
have agreements. Thus. the United
Kingdom already has most of the
concessions 1t may hope to get-and
British economists freely admit 1t.
British Hint Discovered.
II vas Senator Vandenberg of
Michigan, member of the Finance
Committee, who spotted the following
IN an editorial of the solid London
Economist:
1T is fully possible that Great
Britain has already gained more from
the concessions made by the United
states and her treaties with other
countries than could be obtained in a
direct Anglo-American treaty"
Mr.. Vandenberg asked Francis B.
eayre. Assistant Secretary of State,
what he thought the London Econo-
mist could possibly mean by such
statement. Mr.. Sayre said he thought
1t had. something to do with con-
eesslon on spirits made to Canada!
Still others admit that the United
states is victim of squeeze play,
out are complacent, even jubliant over
the situation. Such an individual is
Henry F. Grady, who as chief of the
division of trade agreements in the
state Department, published the fol-
lowing in the journal of Foreign
Affairs for January, 1886:
The United States is not under the