Evening star., 1938-09-20
CESS|ON HOLDS
TRADE PACT FATE
Sudeten Annexation Would
Alter Relations With
Czechs and Nazis.
By the Associated Press,


The United States will have to re-
wise its fve-months-o reciprocal
trade agreement with Czechoslovakia
If the latters Sudeten territory is
eeded to Germany.
Experts listed this today as one Of
three prospective changes in American
relations with both Germany and the
little, war-born Czech republic, in the
event the British French peace plan Is
adopted. The others are:
l. Adding the Sudeten area to this
country's economic blacklist.
2. Revising the immigration quotas
Tor both Germany and Czechoslo-
vakia.
If the Hungarian and Polish mi
norities in Czechoslovakia are per-
mitted to break away from Prague
and there has been agitation for such
moves-still further adjustments will
have to be made
The procedure to be followed in re-
casting the trade treaty with Czecho-
slovakia would be similar to that taken
when Austria was absorbed by Ger
many. Informed persons said it would
take much longer, however, because
the State Department would have to
wait until the boundary of the new
Czech state was determined.
Many Exports Would Suffer.
The reason the Sudeten area would
be blacklisted economically If taken
over by Germany, officials said. is that
Germany does not accord American
goods INSTRUMENTATION treatment.
Therefore, it is not privileged to re-
ceive the tariff reductions granted by
the United States to other nations in
trade agreements.
Experts said many Of Czechoslo-
vakia's principal exports to the United
States, including textiles, glass, leather
goods and cotton knit gloves, would
suffer by transfer Of the Sudetenland
to Germany.
Likewise, they explained, Czechoslc-
vakia could not be expected to main
tain the quotas she has granted Amer
ican exports Of automobiles, sodium
nitrate. prunes, lard and apples be-
cause her capacity to buy would be
reduced
Czechoslovakian shoes, a large ex-
port item to the United States, would
not be affected by a partition of the
country, experts said, because most of
the Czech shoe factories are in terri
tory that would not be turned over to
Germany.
Watchful Waiting.
While these and other possible
changes in American dealings with
Central European powers were under
consideration. President Roosevelt and
Secretary of State Hull continued their
watchful. waiting study of the interna-
tional crisis.
A guarded silence about the situa-
ton was maintained in executive
circles, but some congressional leaders
offered divergent observations.
Senate Majority Leader Barkley ex-
pressed belief special session Of Con-
gress would be hard to avoid in event
Of major European war.
He predicted demands for revision
OF the Neutrality Act would be an i'm
mediate result Of such a conflict. He
said the demands would come both
from persons favoring a less rigid
statute and those desiring to curb the
discretionary powers given the Presi-
dent by the present law.
Nye Disagrees.
In the latter group is Senator Nye,
Republican, of North Dakota, q mem
Der Of the Senate Foreign Relations
Committee, who said there was a grow
ing sentiment for strengthening the
law.
Il wouldn't think that special ses-
sion of Congress would be necessary,
though" Senator Nye said, "if it is our
intention to stay out of a European
war"
A traditional isolationist, Senator
Borah, Republican, of Idaho criticized
a suggestion by Leon Blum, former
French premier. that President Roose-
velt intervene in the Czechoslovakian
crisis
What such suggestions really
mean" Senator Borah said, lis that
the United States involve itself in
European controversies and furnish
the money and men which may be
necessary in case of war;
Suggesting that NJ Blum might bet
ter have devoted himself to advising
his own people to "courageously stand
by their treaty" to aid Czechoslovakia
If the latter were attacked, Senator
Borah added:
The people of the United States are
not interested in European boundaries
or IN the plans of European nations in
regard to European matters"
Reynolds Optimistic.
Senator Reynolds, Democrat, of
North Carolina, optimistic about the
chances for averting hosilities, ex-
pressed the belief, however, that if
Hitler prevailed in his plan to protect
Germanlc mlnorities in other countries
other ambitious nations will raise the
same question"
Another development touching on
the international situation was the pri-
Vate declaration of one of the Nations
ranking financial officers that Ameri-
can stock markets would not be closed
In event of major war.
Only a financial panic demoralizing
exchange trading would justify such
action, the official said, adding:
There is no indication, no sign, no
reason why we should have a panic"
Bolivia shipped nearly 100000
pounds OF tin ore to other countries