Evening star., 1939-11-28
Controversy RACES
As U. 5. Maps Plans
For Chile Trade Pact
Hull Issues Warning
Against Abandoning
Reciprocal Policy

keciprocol rolIcy
Heated controversy over the ad-
rninistration's reciprocal trade pro-
gram ragged today as the State De-
partment prepared to negotiate a
new pact with Chile and fight for
extension of the program In the
forthcoming session Of Congress.
While the principle Of the recip-
rocal trade policy was being as
sailed at the opening of hearings
on the proposed Chilean agreement
yesterday. Secretary of State Hull
issued a statement declaring that if
the program should be thrown over
board, I'VE will fall again into the
disorderly depression that followed
the Smoot-Hawley tariff"
Mr.. Hull's statement came in re-
sponse to request for comment on
British Prime Minister Chamber
lain's speech Sunday night. The
State Department head said he was
gratified because the British leader
had declared that full and last
inR trade between nations would
be necessary foundation for any
enduring peace.
Oppose Lowering Barriers.
The Committee for Reciprocity
Information heard American bean
growers and copper industry spokes-
men object vigorously to any lower
ing Of tarin barriers on competitive
products from Chile in the contem-
plated agreement which will be ne
gotiated after the committees find
ings are submitted to the State De-
partment.
Senator johnson, Democrat, of
Colorado, predicted Congress would
refuse to extend authority to nego-
tiate the reciprocal agreements,
which expire next June II, charg-
ing the program was IAN insidious
formula" for destroying tariff pro-
lection.
In addition to the criticism of the
program by Senator Johnson and
other legislators at yesterdays hear
ing, the Office of Senator Vanden-
berg made public letter in which
the Michigan Republican suggested
to Mr.. Hull that trade agreements
should be worked out "on realistic
basis in essentially non-competitive
commodities.
Suggests Elastic Tariffs.
Declaring he wanted no return to
"the old log-rolling process" of con-
gressional tariff-marking, Senator
Vandenberg added that elastic tariffs
might be provided which the Tariff
Commission could alter from time to
time in order to compensate accu-
rately for the difference in the cost
of production at home and abroad.
Secretary Hull told his press con-
ference he had not read Senator
Vandenberg's letter, but that 1t
would be given full consideration.
In his statement Mr. Hull said
the trade agreements program was
developed as a means of restoring
balance and prosperity to American
agriculture and industry and thus
to enable our farmers to exist salts
factorily and our workers to find
steady employment" He added:
If this point of view is put aside
and our trade policy is again to be
determined solely by the short
sighted and mistaken claims of par
ticular interests determined to win
q completely favored position for
themselves, we will fall again into
the disorderly depression that fol-
lowed the Hawley -Smoot tariff"
Grady Praises Program.
Speaking on the National Radio
Forum, sponsored by Tho Evening
Star and broadcast over Nation
wide network of the National Broad
casting Co., Henry F. Grady, AS
sistant Secretary of State, also
praised the trade agreements pro-
gram last night and warned that
war-stimulated trade could never
provide the basis for lasting pros
perity.
Far from removing the condi-
tions which have created an urgent
necessity for our trade agreements
program" Mr.. Grady declared, "the
war will surely create an even more
imperative need for agreements be-
tween nations providing for the re-
duction Of excessive barriers OF
trade.
when the war is over we will be
faced with the problem Of restoring
export outlets for many branches of
our industry and agriculture, whose
exports may be curtailed as a result
Of the war, and of creating opportu-
mites for the opening of new chan
nels OF trade