Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-03-08
CZECH TRADE PACT
TERMS ARE HAILED
U. S. Officials Rate 1t as
Among Most important
of II Negotiated.
n the Associated Press.

VI - UC9UlIolCus
~ the Associated Press.
Innovations In the newly-signed
trade treaty with CSechoslovakia,
State Department officials said to-
day. place it among the most i'm
portant of the II which Secretary
Hull has negotiated.
Probably no other country" the
State Department announced, has
gone as far In attempting to
open the way for an expansion Of
trade by the removal or relaxation Of
special controls of imports"
Under the treaty, signed last night
By Mr. Hull and Czech Minister vlad-
imir Hurban, tariff benefits will be
granted on 1877 per cent Of Czech
imports from the United States and
on IS per cent of American imports
from Czechoslovakia. Trade between
the two countries last year totaled
$74,6s0,000.
Cheap Shoes Issue Settled.
The controversial question of duties
on cheap shoes was settled by fixing
an upper limit on their introduction
into the United States-a new fea-
ture ir the treaty system.
Observers noted that the document
was signed only few hours after
Secretary Hull said he would be happy
to receive German proposals for bet
ter trade relations. II American prin-
ciples Of trade were accepted.
Germany denounced the most
favored-nation clause in her CONNER
cial treaty with the United States
and has been deprived of the benefits
Of American trade agreements with
other countries.)
Public hearings will begin Monday
on proposed pact with Great Britain.
Several others also are in preliminary
stages.
Czechoslovakia's major concessions
to the United States were in removing
import quotas on all but few items
concerned in inter-Danubian trade.
in placing raw cotton, copper and GER
tain other products on the duty free
list, and in lowering duties on 7.s per
cent of imports from America.
Farm Product Duties Cut.
Principal duty reductions were made
on agricultural and fishery products.
including fresh apples and pears, nuts,
dried and canned fruits, canned vege-
tables and canned salmon.
Other items benefited were lubri-
Twin
abrasives, resin, wood, sulphur, auto
mobiles, office equipment and electrical
fefrigerators.
The United States granted appre-
ciable reductions on cotton gloves,
leather gloves, hops. glassware. max
manufactures. imitation beads, beaded
handbags, linen napkins, linen table
damask, cotton table damask and but
tons.
Public hearings had brought out
considerable opposition to cutting
duties on cheap cement-soled Czech
shoes. The duty, in fact. was not
lowered on these, which constitute 80
per cent Of the Czech shoe exports to
the United States, but was reduced on
the 10 per cent Of other categories Of
shoes.
Limit Is Fixed.
Moreover, the agreement provides
that imports Of cheap shoes from al
countries (Czechoslovakia is the prin-
cipal supplier) cannot exceed ~ per
cent Of the annual American produce
ton Of shoes during the last five years,
without being subject to increased
duties.
This limits the number of shoes that
may be imported to about 100000
pairs, which would be an increase of
between 100000 and 100000 over last
year. There were 10000. 900 pairs of
shoes produced in this country last
year.
The accord is for one year (auto-
matically extended unless six months
advance notice is given, whereas the
usual trade agreements are for three
years.
Another feature is that the most
favored-nation treatment is winked at
sufficiently to permit the continuance
Of preferences accorded by Czecho-
slovakia to Austria, Hungary, Yugo-
slavia, Rumania and Bulgaria for
closer economic cooperation among
the Danubian countries.
Preferences between the United
States and Cuba also are excepted.
A separate agreement with regard
b motion pictures is being negotiated.