Evening star., 1940-01-19
Trade Pact Benefits
Only Three Oil Firms,
Disney Complains
Democratic Member
Criticizes Agreement
With Venezuela
By BLAIR BOLLES.

American tariff concessions to
Venezuelan petroleum reached in
the trade agreement with Venezuela
benefits only three American oil
companis-Gulf, Shell and Standard
of New Jersey-Representative Dis
ney, Democrat, of Oklahoma, COM
planned today. He was the first ma
jority member of the House Ways
and Means Committee to indicate
opposition to the trade agreements
program, on which the committee
is holding hearings.
The three companies, Mr.. Disney
told Assistant Secretary of State
Grady, are the absentee controllers
of Venezuela's petroleum fields. The
Venezuelan agreement reduces by
one-fourth of a cent the excise tax
on oil. Mr. Grady pointed out that
the concession extends only to i'm
ports equivalent to S per cent of the
American domestic oil production in
1887.
Mr.. Disney indicated his deter
mination to prohibit by statute any
further reduction of excise taxes as
tariffs. Representative Robertson,
Democrat, of Virginia came to the
assistance of the trade treaty pro-
gram supporters by remarking that
Venezuelan Oil is asphaltic road oil,
Of which the United States produces
little, and that oil imports help us
conserve our own diminishing oil
reserves.
Continue in Force.
Mr.. Grady, testifying at the Ways
and Means Committee hearing for
the third successive day, observed
that the oil excise concession and
the tariff concessions in all the 20
reciprocal trade agreements con-
tinue in force even if Congress
should decide not to extend the ad-
ministration's trade agreement ne
gotiation authority beyond June IL.
The authority to reach agreements
and proclaim them without con-
gressional review expires on that
date.
When the agreements expire, or
when the President might invoke
the escape clauses in the agree
ments, then the concessions come
to an end, Mr.. Grady said. The
agreements reached cover 60 per
cent of our foreign commerce.
Mr.. Disney's objection was that
the Venezuelan oil concession in
jured the operators of American oil
fields. He implied also that q con-
cession benef1ting three American
firms fell short of the trade agree
ments programs aim at benefiting
the economy of foreign countries so
that reciprocally they may benefit
this country's.
Grady Disputes Contention.
Representative Disney served no.
tive during questioning of Mr.. Grady
yesterday that he would not support
renewal of the Trade Agreements
Act unless it was amended to pro-
hibit reductions in special excise
taxes on oil, coal, copper and lumber
Mr.. Grady disputed Mr.. Disney s
contention that reduction of the
excise tax on oil in a recent agree
ment with Venezuela "broke faith
with Congress. The Assistant Secre-
tary explained that the excise tax
was considered an import tax in
effect because it applied only to i'm
portations and not to domestic
production. Mr.. Disney argued that
Congress had intended to exclude
the special excise taxes from reduc-
tions under the reciprocal program
Mr.. Disney, who indicated several
other Democratic committee men,
bers might 60 along with him, said
he wanted to be in a position to
defend the administration s program
but that he could not unless his
proposed amendment was adopted.