Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-05-15
FOREIGN SERVICE
/. DISPUTE FLARES
Roosevelt Directs Study Of
Plan to Reorganize
Agencies.

Long-smonldering controversy be-
tween the State and Commerce De-
partments over plans for the former
to take over the Foreign Commerce
Service came to light yesterday with
revelation at the White House that
President Roosevelt is directing joint
study by the two departments of reor-
g3nixation Of the commercial attache
reporting service.
Secretary Of Commerce Roper, who
had been reported ready to resign in
irritation over proposed changes in the
foreign service. which is under the Blu
reau Of Foreign and Domestic Com
merce, issued statement confirming
the fact that transfer OF the CONNER
cial attaches and trade commissioner:
to the State Department is being con-
sidered, but added: mo conclusion
has been reached about it, therefore
no resignation Is pending"
His opposition to the proposal to
move the unit under Secretary OF
State Hull was indicated by Commerce
Department officials and a friend OF
Secretary Roper declared he had nc
idea Of resigning "as long as he i,
not disturbed"
Revealed by Early.
The reorganization plan was made
known by Stephen Early. secretary to
the President, in stating that the
present system Of commercial attaches
reporting directly to the Commerce
Department does not make for EN-
cheney.
The Presidents secretary added that
the plan ultimately produced by Mr.
Roosevelt's study probably will be for
continued appointment Of CONNER
cial attaches by the Commerce De-
partment with instructions to report
also to the State Department. This
was in conflict with Secretary Roper S
statement that transfer Of the unit
was under consideration.
The Bureau of Foreign and Domes-
tic Commerce would retain its present
statistical and commodity divisions for
the distribution to American business
men Of trade information obtained
from consular officers.
Differences between State and Com
merce officials revolve around the ef-
fectiveness of q single or double ap-
proach to foreign governments in pro-
motion and protection of American
trade.
The Foreign Commerce Service,
which took form shortly after the war
in q period of expansion of American
foreign trade, reached its peak in 1929
with SO ofices and more than 200
ofhcers abroad. That same year ef-
forts were begun for closer working
relationships between the State and
Commerce services, eliminating In
1888 in a coordination agreement
which defined the functions of the
consular service as trade protection
and Of the Foreign Commerce Service
as trade promotion.
Service Cut DrasticalIy.
A month before this arrangement
was sanctioned by President Roose-
welt. the Foreign Commerce Service
suffered a drastic reduction in per-
sonnet, approximately $50 foreign Of
ficers being called home on short
notice, avowedly for reasons. OF
economy.
Besides defining the functions OF
the two services the 1888 agreement
took from the commerce officers prac-
ticslly all their previous functions q.
promoters of trade, leaving them only
the duty of preparing abstract eco
nomic reports. Wilbur Carr, former
Assistant Secretary of State and now
Minister to C1echoslovakia, was &C
lively identified with formulation OF
the agreement.
Their principal duties of answering
inquiries Of American business men
in regard to foreign markets and OF
making market surveys to stimulate
expectation of American merchandise
were given to the consular officers, who
were required to answer all inquiries
Subsequently. many American ex-
porters and the National Foreign
Trade Council expressed dissatisfac-
ton with the system, complaining that
they were not getting prompt and
adequate responses to their queries
and February 10. 1897, the 1888 agree
ment was modified to restore to the
Foreign Commerce Service the func-
ton of answering trade inquiries and
making market surveys.
Since that time the new proposal
for complete transfer Of the foreign
commerce service to the State De-
partment has arisen.
The view held In the State De-
partment is that the foreign service
Of the United States should be unified
to facilitate the conduct of foreign
relations, which are becoming in
creasingly economic in view of the
reciprocal trade program, under which
II agreements have been concluded
with foreign countries.
Think Facilities Better.
1t Is felt that the $50 foreign Offices
Of the State Department are able tc
provide American business with more
correlated information about foreign
markets and world trade than the
foreign commerce service with its "a
foreign ofnces and personnel of about
120.
That the smaller foreign services
OF the Agriculture and Treasury De-
partment, too, should be united with
the consular service Is desired in the
State Department. The Agriculture
Department maintains foreign at
taches for crop reporting and fore
casting, while Treasury attaches make
cost Of production and consular in
voice investigations.
The consular service, it was pointed
out, would merge the new functions
with those which it already possesses,
including reporting on political, so
cial, industrial and financial condi-
tons, protection and welfare of Ameri-
cans abroad, trade protection, issu-
ance of invoices, bills of health for
vessels clearing for American ports.
passports and visas and registration of
Americans living abroad.
Commerce Department ofhcials are
Of the view. however. that the fact