Evening star., 1945-11-25
Private Foreign Trade
Begins Upward Trend
Progress Slow With Adjustment of Import Export
Controls Credit and Exchange Rates
Vital to Heavy Sales Abroad
By Joseph II. Baird

II. Baird
completely wrecked national economies
that 1t may require several years before
they attain anything like normal pro-
duction. Until then there will be little
they can export to the United States ex-
cept small amounts Of agricultural goods
and raw materials.
Even In country like Belgium where
there was relatively little damage to fac
tories, the transportation system was 50
disorganized and the capital structure of
business so disrupted that a long time
will be required to restore normal busi-
ness conditions.
Exchange Rate Retards.
typical example OF country whose
normal trade with the United States is
being retarded by an artificial exchange
rate is France. At present, on the ofd-
cial Paris market, 50 francs are given for
l dollar. whereas, economists estimate.
the actual purchasing power of the dol
lar in terms of basic commodities is 100
francs.
There have been recent reports In
which some Washington oficials place
credence,~ that the French Government
plans soon to revalue the franc at a more
realistic rate-perhaps 80 to the dollar.
One factor seeming to make this neces-
sary is that when France joins in the
Breton Woods system, as it is expected
to do, it must assign a permanent value
TO the franc, and if that value were to-
days. France would suffer permanent
disadvantage in foreign trade.
AS matters stand today, luxury ex-
ports such as perfumes, chic women's
clothes and wines, which have always
been important items In Frances ex-
ports, already are back in private trade.
But American purchases of them are
being retarded by the abnormal ex-
change rate which requires United
States importers to pay for them, in
terms Of dollars, almost twice their nor.
NAL value.
Some Private Trade Restored.
France has also restored private trade
In some few imports, notably animals,
certain replacement parts for machinery
and various small-consignment goods.
However. the great bulk of French
purchasing in the United States con-
tinues to be done through French gov
ernment agencies. This situation prob
ably will continue until currency rates
! have been readjusted and French ex-
ports to the United States are increased,
A special case in the restoration OF
foreign trade is the United Kingdom,
normally the United States best custo-
mer. During the war the British were
compelled TO adopt wide variety of
financial and economic controls and, In
supplying themselves with essentials,
to contract a l4,ooo, ,ooo, 900 debt TO the
sterling area" particularly Egypt and
| British India
Britain's future economic policies win
depend almost entirely on the outcome
| of current negotiations here where she
is seeking $5,ooo, ,0oo, 600 credit, premis-
ing in return breakdown of trade re-
| strictions within the British Empire and
scaling down of her debts to the
sterling area"
Credit Would Aid Trade.
If the credit is granted, the British
say, they will be able not only to make
large purchases here themselves, but
also to pay on part of their sterling
debt in dollars, enabling their creditors
to buy American goods.
The alternative, they maintain, Is to
continue the present restrictions, con-
fine their purchases of goods in this
| country to the barest essentials because
OF the scarcity Of dollar exchange and
| tighten their economic relations with
the sterling area" The general con-
sensus in Washington Is that the credit
will be granted-the only open question
being the amount and satisfactory
agreements on related questions of
trade and finance.
For the immediate future, trade ex-
perts agree, the most promising parts
OF the world for the resumption of
United States private trade are the
Latin-American countries and Canada,
In these areas, the question is primarily
one OF the amount Of surplus commodi-
ties, particularly industrial machinery,
which the United States can spare
them. 49,. : -.-.
| ~ Shipping Situation Easing.
Shipping, until recently problem in
the investigation of private trade
abroad, is becoming less so each week,
according to officials. Although most,
liners still are tied up in the repatria.
ton of troops, there is an increasing
surplus of cargo vessels. AS matter OF
fact, many OF the Liberty ships which
played such an important part in mov-
ing war cargo now are being tied UP.
Long-term foreign trade policies are
to be shaped at the International Trade
Conferences, tentatively scheduled for
next May. There the United States,
with the probable support of the British
Empire, France and the Latin American
countries, will work for the complete
abolition of artificial economic and
financial controls, q gradual lowering OF
world tariffs and stable international
monetary system.
Only in such world, the administra-
ton holds, can permanent peace and
prosperity be assured. s-.s
| operation Of the Fiipinos in the war
the Senate Committee on Territories
and Insular Affairs has reported q
| bill Is 16l0) .appropriatinr x3a0 O(0 nm