Evening star., 1940-03-07
Blockade Discussed
By Allies Advisers
And j. ). Officials
Detailed Conference
Arranged for Today
With Grady
BY GARNETT d. HORNER.


BY GARNETT d. HORNER.
Measures to ease the impact on
American foreign trade of the al
lied blockade of Germany and other
wartime restrictions on commerce
were studied today by Assistant Sec
retary of State Henry F. Grady and
British and French economic ex-
perts.
Frank Ashton -Gwatkin, adviser to
the British ministry for economic
warfare, and Charles Rist, formerly
deputy governor of the Bank of
France and now an economic ad-
wiser to the French minister of
blockade. arrived here yesterday on
their mission of Cancellation and
explanation" to assist their Ambas-
sadors in seeking to smooth out
trade difficulties with this country.
The experts conferred briefly late
yesterday with Secretary of State
Hull, Assistant Secretary A. A. Berle,
jr., and James C. Dunn; State De-
partment political adviser. arrang-
ing the more detailed conference
with Mr.. Grady for today. They
are expected to confer with numer-
Gus other officials here.
1t was understood that Mr.. Ash
ton -Gwatkin and Mr.. Rist would
seek to lay the technical ground
work in their discussions with Amer
lean officials for a possible settle
ment of the economic points of
friction between the United States
and the allies to be worked by the
British and French Ambassadors
with Mr.. Hull.
Discussion Of Normal Trade.
Maintenance of normal trade be-
tween this country and the allies
was understood to be the chief prob
lem up for discussion with Mr..
Grady today. This problem involves
the reciprocal trade agreements be-
tween the United States and the
two countries.
Britain has virtually ceased i'm
ports of American tobacco and has
sharply curtailed allotment of for
eign exchange for purchase here of
other luxury" products, such as
fruit. If such restrictions go so far
as to nullify the effect of concessions
granted this country in the trade
agreements, retaliatory action would
be possible.
Meanwhile, Chairman Harrison of
the Senate Finance Committee
called meeting of his group to-
morrow to act on the House.
approved resolution which would
continue for another three years the
administrations authority to nego-
tiate new trade agreements. Com
mittee approval of the measure is
expected, with Senate debate prob
ably beginning Monday.
Points Of Friction.
In addition to the problems in
connection with trade between the
United States and the allies, the
British and French experts were ex-
pected to take up in their discussions
here points of friction arising from
the economic warfare against Ger
many. including the blockade of
German exports to the United
States, the forcing of American ships
into allied ports within the for
hidden combat area" for contra
band search. censorship of Ameri-
can mails and other interference
with our shipping.
Mr.. Ashton -Gwatkin and Mr.. Rist
also arranged to discuss the British
system Of navicerts, through which
British authorities issue passes for
certain items of cargo through the
allied patrols. Proposed establish
ment Of a cont,aband control port
IN Canada, probably at st. John,
New Brunswick. to avoid examina-
ton of American ships in European
waters, also may be discussed.
Another problem to be worked out
Involves the allied plan for imposing
a rationing system on imports of
neutrals adjacent to Germany. The
British are said to be uneasy over
increased American exports to such
neutrals in recent months.
Su Us fAIUuSC NOHCCTHs
Great Britains restrictions on
some OF her own imports, intended
to conserve foreign exchange for the
purchase of war materials, have
aroused concern here lest closing of
the British market to some Amer
lean products may change the Brit
ish consumers tastes and prevent
resumption of normal sales after the
war.
Britain now is purchasing its to-
bacco from Turkey, partly as a
means of enabling Turkey to repay
huge loans and partly for its po-
litical effect on Britain's new ally.
If only Turkish tobacco is smoked
In England throughout the war, the
average Briton's taste might be di-
rected permanently toward the
Turkish brands.
This, in the inverse, was what
happened in the World War. Brit
ish smokers, who then favored
Turkish tobacco, were cut off from
1t entirely, because Turkey was an
ally of Germany. American to-
bacco captured the British market
so thoroughly that it dominated it
right up to the time war began last
September.
Britain and France argue that
they are greatly increasing their
purchases of war materials, particu-
larly airplanes, in the United States,
and thereby augmenting prosperity
here which will be reflected in added
domestic sales of the American