Evening star., 1943-05-09
Voiding Of Trade Pact!
Would Be Blow 10
Peace, We|Ies Says
Tells Forum at Toledo
Agreements Did Not
EneireIe Germany
By the Associated Press.

by the hSSOCldteu Press.
TOLEDO, Ohio, May 8-Sumner
Welles, Undersecretary of State, de-
clared tonight that reputation of
the Trade Agreements Act in Con-
gress would strike "a heavy blow" at
hopes for an everlasting end of war
"If the United States repudiates
the Trade Agreements Act, either
outright or by crippling amend
ments, if it thus repudiates the idea
of economic nonaggression, it will
have destroyed the stuff of which
peace is made, it will have struck
heavy blow at the hopes of man.
kind for Kidding this world of the
scourge of war and for creating a
just, workable and a lasting
peace" he told a forum on peace
problems.
Mr.. Welles spoke only 36 hours be-
fore the opening of general debate
in the House of Representatives on
a measure to renew the Presidents
authority to negotiate reciprocal
trade agreements, providing for mu-
tual tariff adjustments. The au-
thority first was granted in 1884 and
has been twice renewed for three
year periods. Some members of
Congress are insisting that the cur
rent renewal carry with it a con-
gressional power to veto any agree
ments it does not approve.
Encirclement of Germany Denied.
The Undersecretary, referring to
what he called the amazing al
legation that the trade agree
ments program had the effect of
encircling Germany" said:
Far from restricting or encircling
Germany, the trade agreements pro-
gram by its very philosophy and
techniques opened new vistas of
legitimate and peaceful economic
lemensraum for Germany if Hitler
had chosen to make that country
one OF the family of nations which
were honestly seeking to remedy
past mistakes and safeguard peace"
He added that it would be "un-
fortunate and might even prove
tragic if thoughtless people should
confuse or becloud this issue"
Mr.. Welles termed the reciprocal
trade treaties with 27 countries
economic non-aggression pacts.'
If our country repudiates the
doctrine of economic non-aggres-
SION" he declared, every other
country will repudiate it and we will
drift back into the conditions of
trade warfare which brought all
countries to the verge of ruin in
the early sos, into conditions under
which international cooperation
cannot survive.
Hitler's Economic Policy.
THE facts are that Hitler had
drawn his blueprints of aggression
long before the Trade Agreements
Act began to operate" Mr.. Welles
said, recalling that Hitler had re-
nounced the principle of most
favored-nation treatment and en-
barked on system of bilateral trade
based on barter, blocked and com
pensation' marks and political pres
sure"
Admittedly the United States had
by its increased tariffs helped to
create conditions in Germany and
elsewhere which led to the more
ready acceptance of Hitler and his
gang of criminal racketeers who
termed themselves the government
OF Germany" Mr.. Welles said. But
our trade agreements program was
an implicit recognition of our for
mer short -sightedness and evidenced
an honest desire to e-establish
greater opportunity in foreign trade
for all nations, including Germany.
Our trade agreements with Euro
pean countries, instead of encircling
Germany, may have helped to some
extent to ease the situation of some
countries toward which Hitler di-
rected his economic and political ag-
gression. They may have helped to
prevent some from falling COM
pletely within the German orbit.
They may in some degree have
helped to prevent Hitler from draw
ing within his own encircling power
some of the countries that he hoped
to absorb"