Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-11-28
|BRITAIN-U. S. TRADE PACT
no CINCH HULL POLICIES
Agricultural Interests Stand to Share
More Fully in Harvest Resulting
From Seeds of Reciprocity.

the simultaneous announcement that
negotiations are contemplated with
Canada for a new agreement, prep
aratlon TO compensate our Northern
neighbor for what she may surrender
to facilitate the Anglo-Americap
agreement. but this connection NAV
be authoritatively denied. There is
a relationship between the two series
of negotiations, but the Canadian
| agreement will contain no remunera-
ton for sacrifice of preference in the
British market
The exploratory discussions with
| Canada included specific understand
ing that the United States would not
be required to give quid pro quo fol
Canadas deals with England. The
new Canadian American agreement
Will be broadening of the existing
pact as result of the success which
has marked its operation since Janu-
airy l, 1886.
An analysis prepared by the Inter-
departmental Trade Agreement Com
mlttee earlier this year showed that
during the first year of the Canadian
agreement American exports to Can
ada increased S57,439000, of which
$50, $4,000 was accounted for by COM
modltles on which Canada had re-
duced her duties.
During the same period American
imports from Canada increased s9l.-
$4,000, of which s29, 76l 900 was ac-
counted for by items on which this
| country reduced duties.
Regardless of which side reaped
major benefit from the agreement
substantially increased trade on both
sides have led both American and
Canadian authorities to seek a ia,
more extensive agreement.
Wide Range for Negotiation
Reahrmatlon of the doctrine Of
principal supplier in the preliminary
understanding with Britain leaves a
wide range of items for negotiation
A recent bulletin of the American
Iarld League analysed British Amer
lean trade in anticipation of an agree
ment, and showed that in 262 dutiable
classifictions under the American tar
III Great Britain supplied more than
5o per cent of our imports during
1886. In many other classifcations
where the percentage was less than
90, Great Britain would be the prin-
clpal Supplier because of the wide
distribution of imports among a num-
Der of countries.
OF these 1852 items, IA were In tey-
tiles, 81 in inedible animal products
'hldes, skins, leather, etc., 81 in
| metals and manufactures, % in chemi-
| Gals and related products, 20 in non
| metallic minerals, 10 in machinery
and vehicles, IA in inedible vegetable
| products rubber, Oil and fats, to-
bacco, etc., IA in wood and paper
9 IN edible vegetable products grains,
fruits, etc.. 2 in edible animal prod
ucts (meats and fish and "a miscel-
| laneous.
The neeotiators have additional lee
way by granting duty concessions on
particular grades or types of commodi-
ties or within value brackets
All this is being made possible bv
the sharp reversal of British position
within the last six months Strong
economic and political forces have
been at work since the imperial con-
ference in May and June to nullifv
England's old argument that there
was no basis for an agreement with
the United States because America
tarlf1s were too high to reconcile wit
moderate British rates. England he.
| found basis in fear of the future
Specter of Recession Present.
On the economic side the specter C
new recession in world trade trou-
bles industrial England, fresh fror
| the terrors of great depression an.
Just now experiencing reviving pros
perlty. There is also live apprehen-
sion Of what the arms race will bring
when 1t reaches its inevitable end
War or depression.
The release of thousands OF men
from jobs artlflcially stimulated by
pressure Of $500 100000 rearma-
ment program. it is realized, is fraught
Win the peril OF vast new unemploy-
ment. which in turn always carries
the implication of internal unrest ano
potential upheaval.
On the political side Britain sees
herself helpless to meet the threat to
her securlty-national and imperial
from the aggressive march of the DIV.
manic nations, which desire change
because they need-or merely want
to possess more.
Inc japanese invasion of China, the
Hltler-Mussolini parleys in Berlin. the
| extension of the German-Japanese
antl-Communist pact to include Italy.
expressions of solidarity between japan
and Italy, The demise of non-inter-
vention in Spain and the failure of the
Brussels conference to stop the Japa-
nese aggression in China all have forced
London to an inventory of her situa.
ton in world of violent change
Britain has no illusions that a trade
agreement implies or will lead to
defensive alliance with the United
States, but she discerns need for an.
basement of basic economic malad-
Justments. This the Hull program
offers.
Hulls Influence Strong.
In the background stands the DOW.
erful influence of the Secretary OF
State himself over the British. MISSING
never an opportunity to impress upon
their representatives the need for Their
support in destroying bilateralism ano
its impediments to world commerce
Mr.. Hull has convinced the British OF
his sincerity as an exponent of peace
through removal of the economic dis.
contents which breed war.
The moment is propitious also TO,
the settlement of differences with an.