Evening star., 1943-05-02

of the Reciprocal Trade agreements Act
by the narrow margin of IA to IL.
Insiders, however, have for some time
realized that the Hull program. as the
operations under this Act are generally
and appropriately designated is in def
mite jeopardy. The Secretary # State
himself admitted as much in his rather
defensive testimony before the Ways and
Means Committee on April q. In con-
Guiding this he declared that the mech
anism of the Trade Agreements Act is
"the central and indispensable point in
any feasible program of international CO.
operation"
BY this statement Mr.. Hull has himself
defined renewal Of the Reciprocal Trade
Agreements Act as major issue. 1t must,
he said in effect, be extended for another
three years without substantial change
Otherwise it will be idle to talk about
American participation in any regulated
system of international cooperation.
Without the basis already laid down
such system would not be feasible"
The Secretary of State has therefore
suggested that continuance of the recip-
rocal trade policy should be regarded by
Congress as tantamount to a vote of
confidence in the administra tons as yet
undisclosed postwar policy. Yet in spite
of-perhaps because of-thiS challenge,
congressional opposition has flared to
unexpected heights. The close vote in
the Ways and Means Committee, where
the administration retains three-to-two
majority, is indication of an even closer
division on the floor of the House
For this strong opposition, to what
has seemed one of the most promising
and least controversial of administrative
accomplishments, there are underlying
reasons. And these reasons help to ex-
plain why Walter Lippmann has accused
Secretary Hull of making "a grave error"
In arguing that renewal of the Trade
Agreements Act is the test case of
American foreign policy in the postwar
world"
Central Idea Simple.
The reciprocal trade agreements pro.
gram was inaugurated in 1884, largely
at the personal instigation of Secretary
Hull. in order to counter the swing to-
ward economic nationalism which even
then was materially increasing the whole
complex of dislocations which led to the
present war.
The central idea, from which there has
been no deviation in the nine years the
program has operated, is simplicity itself
Foreign markets for American products
are expanded by negotiating commercial
agreements which simultaneously enlarge
the American market for foreign prod
ucts. Since the give-and-take process is
the essence of the program it is wholly
accurate to call it reciprocal"
The act of 1884 gave the President
authority to negotiate these trade agree
ments only under certain specific re-
strctions.
Thus, the administration cannot re-
duce any duty by more than so per cent.
1t cannot transfer any article on the
dutiable list to the free list. There is
full opportunity though the justifica-
ton for the adjective is sometimes ques-
tioned-for the presentation of views by
any interested citizen. No agreement is
binding for more than three years. And
Congress must renew its consent to the
program every three years.
Under this last provision the authority
was extended, with little congressional
criticism, in the spring of 1887. This
happened again, over rather more op-
IN, ho 1f
American involvement in the war still
seemed, on the whole, unlikely. If there
is no further extension the reciprocal
trade agreements program will terminate
on June II, although the q agreements
concluded under it would still have vary
Ing periods to run.
II the requested authorization is re-
neTed by Congress, for the third time.
the program will be secure until 1916.
Then extension must again be sought,
whether or not the Nation is still at war.
Issue at Present Academic.
Since there is at the moment mighty
little competitive international trade the
Issue is seemingly rather academic.
Until the end of the war all reciprocal
trade agreements will in any case be sub
1ect to the emergency restrictions and
subsidizations of our own and other gov
erments. Consequently it would seem
that Congress might just as we'll con-
tinue an administrative authority far less
sweeping than many of those granted
the President "for the Duration
The Importance of the controversy lies
In the very fact that Congress is not
disposed to reason that way. 1t now
draws sharp distinction between pow
ers which the administration seeks in
order to wage war effectively and powers
requested to implement postwar policy
That is why Secretary Hull is accused
OF being politically imprudent in assert
ing that his program is ''the central and
indispensable point for permanent In
ternational cooperation.
Significantly enough, the opposition is
strongest in the House, the members OF
which are now engaged in trying to esti-
mate next years political trends. But
it is also strong in the Senate, among
men who do not come up for reelection
until 1946 or 1948. And for this Senate
attitude the campaign against the two
thirds rule is partly responsible.
All the reciprocal trade agreements are
OF course actually commercial treaties
and as such are properly subject, under
Section 2 of Article of the Constitution
to ratification requiring the concur
renee of two-thirds of the Senators vot-
ing. Since 1884 Congress has been will
ing to disregard this cumbersome rati-