Evening star., 1939-11-27
Trade Pact Program
Bitterly Attacked by
Senator Johnson
Sees 'Insidious Formula
For Breaking Down
Our I oriff Walls
BACKGROUND-

Reciprocal trade program in
aug1rdted Uith the Trade Agree
.ntents Act of 1898. Tpenty-two
agreements already in force and
Stuke Department. is negotiating
Others sbith Belgium, Argentina,
Chile and Uruguay as 1DeH as a
supplemental agreement 1Uith
Cabd. Agreements designed to
stimulate trade by lo,oering bar
riers such as tariffs, import re-
strictions, quotas and exchange.
By the Associated Press.
A bitter denunciation of the whole
reciprocal trade agreement program
was heard today by the Committee
for Reciprocity Information as it
opened hearings on proposed
trade pact with Chile.
I Senator Johnson, Democrat, of
Colorado, told the committee that
because of the "most-favored-na-
ton principle Incorporated in the
Trade Agreements Act requiring
concessions granted one nation to
be extended automatically to every
other nation, the law amounted to
nothing more than IAN insidious
formula for breaking down our tariff
walls
IF the Smoot Hawley Tariff Act
of 1880 needs overhauling," said.
Senator johnson, "it should be done
directly in constitutional way by
the Congress and not through
snlping process under the guise of
good neighborliness.
He said that the trick and the
joker in the trade agreement act
was that this country opened its
markets for unneeded raw materials
without imposing any obligation on
the balance of the world to accept
our goods"
Opposes Acts Extension.
For these reasons, among others,
l opposed the extension of this tariff
slashing act in 1887 and am hope
fully looking forward to>June next
when I believe that the Congress
will strike it permanently from our
statutes" Senator Johnson said.
The Coloradoan added that Ito
deliberately make this Nation de-
pendent upon foreign sources for
the raw materials which might cas-
lily be produced within our own bor-
ders is inviting disaster"
Among the nations of the earth"
he continued, I'VE are the only Ma
ton deliberately urging the impor-
tatlon of raw materials of which we
already have a surplus. Such a
grlevous policy makes utterly foolish
the Wage-Hour Act and the multi
tude of other legislative efforts to
raise the standards of living here"
Senator Hayden, Democrat, of
Arizona said that while he was in
agreement with the fundamental
policy of the reciprocal trade pro-
gram he did not want the State De-
partment to do anything in the pro-
posed agreement that would ma
terially injure any American indus
try"
against Copper Duty Cut.
He protested particularly against
a reduction in the 4-cent-a-pound
duty on copper imports. telling the
committee that such action would
create far-reaching economic dis
turbances il. the copper-producing
areas and likewise would be of little
benefit to Chile because of compe-
tition which would Immediately de-
ve!op from Canada
Senator Johnson's opposition to
the general trade agreement pro-
gram drew from Oscar B. Ryder,
committee chairman. the statement
that the committee was hearing
only the Chilean agreement pro-
posal
Mr.. Ryder said also that when
benefits under one trade agreement
became available to other nations
automatically, that this occurred
only when they likewise made avail
able to the United States benefits
they granted to a third nation.
Representative woodruff, Repub-
lican, of Michigan suggested that
(See TRADE, Page A-30