Evening star., 1943-04-30
Sayre Explains
Trade Pacts to
Democratic
State Department
Official Calls Them
Peace Foundation

The present congressional debate
on renewal of the trade agree
ments act is the "first great Amer
ican referendum on the new foun-
dations Of the peace" Francis B
Sayre, Special Assistant to the Sec
retary of State, told members and
guests of the Woman's National
Democratic Club at q dinner meet
ing last night.
The decision to be made by Con-
gress on the pending bill, he con-
tended, will indicate to us and to
the world. and indeed in = large
measure will determine. the direc-
ton in which we as a Nation plan
to move in International affairs
after the victory is won"
Must Lift Trade Barriers.
Mr. Sayre pointed out that the
winning of the peace will require
many forms of international COL
laboration, political, humanitarian,
financial.
But so far as commerce goes,
our course is clear" he asserted.
I'VE must move in the direction Of
reducing barriers to trade, and Of
removing all Determinations.
"And we must do it by a method
that will work. We have no margin
for error now as we had in 1919.
We must decide our course in the
near future and we must make the
right decision"
The speaker gave special attention
to criticisms and "misunderstand-
ing" of the feature of the program
commonly known as the most
favored-nation" policy.
THE policy means nothing more
nor less than treating each nation
upon a basis Of absolute equality
provided only each one does the
same to u.s." he explained.
Senses misunderstanding.
Most of the opposition which has
been directed against the most
favored-nation policy in connection
with the trade agreements program
has been due to a complete misun-
derstanding of what that policy
really is, he contended.
1T does not mean giving away
something for nothing" he said
I'VE do not extend trade agreement
concessions to third countries for no
return. We extend them only if the
country in question does not dis
criminate willfully and seriously
against our products. In other
words, we give our lowest tariff and
freedom from discrimination in re-
turn for the other country's lowest
tariff and freedom from discrimina-
ton.
From the policy of non -discrimi-
nation comes decided advantage" he
continued. Experience has proved
that the freedom from foreign dis
elimination which our own practice
enables us to demand and to receive
is of enormous value in dollars and
cents to American exports"
Fewer Determinations.
No claim is made that all dis
examinations have been wiped out
as a result of the trade agreements
program, he said, but added: "One
thing is sure. Fewer Determinations
exist against American exports than
would be the case were there no
trade agreements program"
Mr.. Sayre asserted that the only
alternative to the most-favored-
nation policy is that of granting
exclusive preferences in return for
exclusive preferences
But every exclusive preference
constitutes in its very essence dis
elimination against all other ma
tions," he maintained. "And dis
elimination inescapably leads to re-
taliation and mounting trade bar
riers since nations whose income
and whose economics are dependent
upon the sale abroad of their sur
plus products cannot remain passive
II these sales are menaced or pre-
vented by preferences granted to
their competitors or by ,discrimina-
tions directed against them.
Such a policy makes for sudden,
arbitrary and uneconomic shifts in
the currents Of trade, for unending
business uncertainty and instability,
for bitter struggles to hold onto di-
minishing foreign markets, for tariff
warfare and increasing economic
conflict. Upon such foundations no
peace can ever be made secure"