Evening star., 1938-10-24
British Trade Pact.

Negotiations tor an Anglo American
reciprocal trade agreement have reached
a critical stage, it appears, but there is
no reason to fear that all doors are
closed to a successful conclusion of the
discussions carried on in Washington
for more than six months, although it
may be some little time yet before an
agreement is signed.
Revelation last week that obstacles
have arisen in the reluctance of Great
Britain to reduce tariff duties substan-
tially-on hams, lard, bacon, automo-
biles and several other exports impor-
tant to American industry and agricul-
ture-Was nothing more than confirma-
ton of growing suspicious in recent
Last summer the American Govern
ment transmitted memorandum to the
British cabinet setting forth the minimum
concessions necessary for this Govern
ment to SELL the agreement to the
American people, and nothing has been
heard in reply. But the cabinet has
been busy with the Czechoslovak crisis,
Palestine, rearmament and other mat
ters, and it is expected that it will now
see its way to take up the trade agree
ment, for negotiations have progressed
as far as possible on the minor points.
Throughout the negotiations to this
point the State Department has pre-
served scrupulous silence, for fear of
affecting the bargaining adversely by
forcing a premature showdown on con-
troverted issues. Apparently the Ameri-
can negotiators feel that a showdown
must come now on the basis of the de-
mands last summer.
At this juncture are heard intimations
from Berlin that Germany wants to
share in the Anglo-American agreement
by making it tripartite, and an in
genious scheme of payment by Germany
for desired American raw materials is
offered Germany would take large
quantities of American cotton, wheat
and tobacco, payment being made to
this country out Of the favorable trade
balance which results in the Reich's
trade with England.
Although from the standpoint of some
American producers that would be fine,
in the long run it would have serious
effect upon American trade expansion,
and thus react against American COM
merce as a whole. The present German
plan varies only in form from earlier
proposals for an agreement along the
lines of Germany's other barter agree
ments. This would amount to three
cornered barter, merely variation of
the Reich's usual bilateral arrange
ments.
The United States, fostering the
broadest possible multilateral trade, has
consistently rejected these overtures
from Germany, and it is certain that the
latest, If officially presented, would meet
the same fate. This is true not only be-
cause any agreement with Germany
would be impossible without most-favor-
ed-nation treatment for the United
States-which the Reich is in no posi-
ton to give-but because of the roper
cussions such an agreement would have
upon the success of the reciprocal trade
program. That success depends, in the
aggregate, upon the acceptance by other
governments of the American concept
o. generalizing the benefits of lowered
barriers to trade. German commercial
policy seeks to promote trade by dis
elimination. The two are mutually ex-
elusive and irreconcilable.
The moral effect Of barter agree
ment with Britain and Germany upon
this countrys world campaign against
barter would certainly be disastrous,
for those governments which have begun
to see the light from our point of view
would be quickly disillusioned.