Evening star., 1946-12-08

The most ambitious proposal in mod
ern history for worldwide reduction in
tariff barriers cleared it's first hurdle
recently when delegates from 1S nations,
meeting in London, unanimously ap-
proved report of the Preparatory Com
mittee of the international Conference
on Trade and Employment.
AS the report stands, it is draft Of
about 80 per cent of a charter for con-
templated international trade organi-
zation, and statement of agreed prin-
ciples on the remaining 10 per cent.
The delegates ended their six-week
task on note of high optimism despite
the fact that in the midst of their de-
liberations the United States, which in
itiated the program, elected Republic
can Congress. But as the Republican
party is traditionally high tariff the
election necessarily leaves the situation
uncertain.
Makes Cautious Offer.
Although Undersecretary of State
William L. Clayton expressed the hope
recently that the tariff reduction effort
would not be upset by partisan consider
ations, Senator Kenneth Wherry (Re-
publican) Immediately issued a state
ment that he was pretty strong for the
protection Of American labor and Amer
ican markets" Senator Wherry made
a cautious offer of cooperation, but
said there should be lot of research
before any further tariff reductions are
made.
Our proposals for tariff reduction and
fostering international trade are pro-
ceeding along two parallel courses which,
according to the plan, were to have
blended about this time next year. BY
then it had been hoped that agreements
would have been reached on both pro-
posals.
One resulted in the London Conference
Just adjourned, preparatory meeting
to consider charter for an 1nterna-
tional trade organization which would
be a component of the United Nations
Economic and Social Council.
The other was our invitation to the
same nations which met in London with
our delegation for a round-table session
next spring to talk over tariff reductions
which this country could make under the
Reciprocal Trade Agreements Act. I'm
der that act, tariffs which have already
been reduced by an average of 81 per
cent from the 1880 Hawley-Smoot levels,
could be cut by as-much as SO per cent
of present levies. On the face of the
matter these reductions could be made
by the executive branch, without sub
mission to Congress. But there is
catch to that.
G. o. p. Can Repeal Act.
It needs to be remembered that
majority Of Republicans in each house of
Congress voted last year against extern
sion OF the Reciprocal Trades Act. Con-
ceivably VI q Republican Congress could
repeal the act before any new agree
ments could be reached under 1t.
On the other hand, while the act has
been used so far to reduce tariffs, its
language gives the President authority
not only to reduce, but also to increase
tariffs-50 per cent up or down. The act
expires in June, 1948, and a Republican
Congress is not likely to renew it, un-
less there should be prospect that
there might be chosen that year Re-
publican President who might be ex-
pected to use its powers to increase
rather than reduce tariffs.
Slated to be chairman of the next
Ways and Means Committee in the
House is Harold Knutson, Republican,
of Minnesota, who voted with all his
party colleagues on the committee
against the Reciprocal Trade Agreement
Act extension when the matter was be-
fore Congress last year. Mr.. Knutson
went so far then as to say that this
country's imports should be restricted
to commodities that could not be pro-
duced here at any price.
The other approach, through United
Nations international trade organiza-
ton, if 1t eventuates, probably would be
Submitted to the Senate in the form of
a treaty which, to become effective,
would require approval of two-thirds of
those voting. Alternatively, it might be
submitted as an agreement requiring
approval of simple majority in the
House and Senate by joint resolution.
So in any event, a Republican-con-