Evening star., 1937-11-18

By the Associated Press.
The United States and Great Britain
agreed today to negotiate for a re-
eiprocal trade pact, decision fraught
with far-reaching economic and po-
litical implications.
1t was the first formal step toward
an objective long sought by the
Roosevelt administration as an in
dispensable feature of its program for
liberalization OF world commerce.
The decision was announced by
Secretary Hull in a statement assert
ing merely that the United States
"contemplates' such negotiations.
Actual start of the negotiations, ex-
pected within few weeks, will climax
more than year of exploratory work
by representatives of both govern
ments in London and Washington.
Plans Not DivuIged.
Hulls announcement, released stimuli
taneously with a statement to the
British House of Commons on the
subject, gave no hint of the basis of
approach agreed on or any details of
the long preliminary conversations.
There appeared good reason to be-
heVe. however, that the British gov
ernment probably consented to con-
slider granting to some American prod
ucts treatment equal to that which it
now accordS to goods from the British
domlnlons under empire preference. "
II an agreement. even in principle,
we're reached on this point, it would
be the first time that a foreign ma
ton had broken through the Ottawa
agreement of 1882, under which the
British Commonwealth of Nations
adopted schedule of preferential
tariffs favoring empire products to
the disadvantage of outside goods.
Secretary Hull has striven. since his
reciprocal trade program started in
1884. to obtain an agreement with
Great Britain in the conviction that
closer AnglO-American economic CO.
operation is essential to any general
lowering of world trade barriers.
He was represented as believing that
more intimate commercial ties be-
tween the two nations not only would
react to their own advantage through
freer exchange OF goods but would
set an example for other nations to
Join in a general movement to re-
move or adjust trade restrictive meas
ures.
Political Significance Attached.
Apart from the strictly economic
aspects, some observers attach DO
tential political significance to the
action. They express the view it
would emphasize the close co-opera-
ton already evidenced between the
two governments at the Brussels Far
Eastern Conference and that it would
constitute, in effect, an answer from
the leading exponents of democratic
government to the new alliance be-
tween Italy, Germany and Japan.
Hull invited interested persons in
the United States to submit sugges-
tions to the State Department as to
products that should be considered in
the trade negotiations. A formal no.
Clce OF intention to negotiate. to be
issued later, will contain a list of
goods on which the United States
Will consider granting concessions to
the United Kingdom. Public hear
ings will precede the opening of ac-
tual negotiations.
Largest Foreign Market.
The United Kingdom long has been
the United States largest foreign
market, while this country is second
only to Canada in the purchase OF
British goods.
For many years the balance of trade
between the two countries has beer
heavily in favor of the United States
American exports to Great Britain
in 1886 were valued at $440,122. 900
This represented nearly 18 per cent OF
this country's entire export trade with
all countries during that period. Ir
1885 the figure was $433, 1893, 900 anc
IN 1929, the last year before the
disastrous international trade reces-
sion. it was $848, 5000, 900.
Imports from the United Kingdom
IN 1885 were valued at $200,385 900
representing about per cent of this
country's purchases from all countries
This compared with $155 5,282. 900 ir
1885 and 1929, ISL 900 in 1929.
Preliminary figures for the first mint
months of 1897, the State Department
said, indicate continued expansion
OF Anglo-American trade. During tha,
period American exports to the Unitee
Kingdom amounted to $342, ,763 900
while British sales to this countr,
totaled $15s, 10000, representing gain.
of approximately 16 and IA per cent
respectively, over the similar perioe
for 1896.