Evening star., 1945-04-18
Stettinius Sees
Tariff Walls as
Threat 10 Peace
Clayton Reads Letter
As Stormy Session
Opens House Hearing
By ]. A. O'LEARY,

1ANOPCAO11 Va q PO1AIy VI GU.
nomic isolation" by the United
States after this war would again
produce worldwide economic
disaster and bring a threat of
future wars, Secretary of State
Stettinius told the House Ways
and Means Committee at the
of hearings today on
broadening of the Reciprocal
Trade Agreement Act.
Mr.. Stettinius' statement was
read by Assistant Secretary Clayton.
1t Immediately brought protests
from Republican committee mem
bers, who made it clear that the
trade agreement bill is in for a
stormy political battle.
Mr.. Stettinius wrote Chairman
a letter explaining that
conferences with Presi-
dent Truman and foreign repre-
in preparation for the
San Francisco Conference pre-
vented him for appearing in person.
Barrage of Objections.
Represent tive Knutson, Repub-
lican, of Minnesota, opening bar
rage of objections from the minority
side, said the failure of the Sec
retary to appear in person might
lead to the unfortunate impression
that he hasn't enough confidence
in the bill to defend it."
&c oy,I Dn,tih1inoy,c
gled back and forth for 10 minutes
before finally agreeing to let Mr..
Clayton read the Secretary's views
and answer questions
The Republicans, whose 10 COM
mittee members already have de-
cided to oppose broadening of the
Trade Agreement Act, insisted they
were merely serving notice on the
State Department officials that they
want information on what has hap
pened since 1884 under the act
rather than more promises about
the future.
Chairman Doughton and Repre-
sentative Cooper, Democrat, of Ten
nessee, defended the right Of Mr..
Stettinius to have his statement
read when pressing matters kept
him elsewhere, and pointed out he
could be invited to answer questions
at later date.
Provisions of Measure.
The administration has proposed
broadening of the Trade Agreements
Act to give the President discretion
ary power to cut some import duties
as much as IS per cent below the
rates fixed by Congress in the
Smoot- -Hawley Tariff Act more than
Is years ago.
The present trade agreement law
was enacted in 1884, and under it
former Secretary of State Hull made
reciprocal arrangements with %
countries for mutual tariff conces-
sions. Under that law the admini-
stration was limited to so per cent
cut in congressional rates.
The administration now is asking
that so per cent cut be permitted
in rates as they now stand. That
would mean that duties already cut
in half under the old law. could be
given another so per cent reduction,
bringing them down Is per cent
below the Smoot -Hawley level.
Where no cut has taken place, the
reduction would be limited to so
per cent or less.
40 Per Cent of Imports Affected.
About 40 per cent of American
imports are affected by the maxi
mum so per cent reductions made
heretofore, and therefore would be
subject to further cuts under the
pending bill. according to Govern
ment officials. The % existing trade
agreements made smaller reductions
in varying amounts affecting an
other % per cent of American i'm
ports. This leaves about 80 per cent
not affected by trade agreements to
date.
In his prepared statement, Secre-
tary Stettinius declared:
only two courses are open to us.
Either we cooperate with other
countries on broad basis to i'm
prove economic conditions generally
and to obtain security, or we seek
to withdraw into regimented, re-
stricted and unsatisfactory economic
isolation which will again produce
the menace of worldwide economic
disaster and war. Surely there can
be no question which course We
mean to choose. Yet the economic
pressures which would force us into
the disasters of economic isolation
ism are still active"
Hits Smoot- -Hawley Act.
Under long cross examination by
Mr.. Knutson, Mr.. Clayton insisted
the United States will not be able to
keep it's vast productive machinery
going unless it permits other coun-
tries to sell more of their goods to
America so that they can buy Amer
ica's surpluses.
At one point Mr.. Clayton asserted
that the Smoot- t-Hawley Tariff Act
passed by the last Republican ad-
ministration "deepened, widened
and prolonged the depression"
Then would you tell us why the
Democratic campaign promise Of
1892 to repeal the Smoot- -Hawley
law was not carried out?" Mr..
Knutson asked.
Mr.. Clayton said he did not know
of that promise, but that since 1884
under the Reciprocal Trade Agree
ment Act, I'VE have substantially
reduced the tariff rates on 81 per
cent of our imports"
Mr.. Knutson said administration
spokesmen repeatedly told Congress,
starting in 1894, that the reciprocal
trade agreements we're necessary to
preserve peace and asked the wit
ness why the bloodiest war in his
tory broke out five years after the
trade agreements were started.
Mr.. Clayton said he did not think
any responsible oficial of the State
Department said the program would
(see TARIFF, Page A-l80