Evening star., 1946-12-08
Future of Tariff Reduction
Rests With G. O.P.Congress
World.W Wide Effort to Make Reciprocal Trade Pacts
Gets Only Cautious Offer of Cooperation
by Senator Wherry
By Joseph Hanlon

f7UntOU
trolled Congress, traditionally hostile to
tariff reductions, holds the veto power
on our participation in whatever agree
ments may be reached. The only cir
cunstances which might change that
attitude would be a realization of Amer
ica's changed economic status with re-
gard to the rest of the world.
Wilcox Outlines Goal.
The administration goal in the Lon
don Conference was given by the head
of our delegation there, Clair Wilcox,
director of the Office of international
trade policy of the State Department,
in these words:
First, we believe that the volume OF
international trade should be large
larger certainly than it was between
the wars. Second, we believe that inter-
national purchases and sales should be
made, at our end of the transaction at
least, by private enterprise. Third. we
believe that trade should be multilateral
rather than bilateral. And, fourth, we
believe that it should be nopdiscrim-
inatory"
Wilcox pointed out that we need large
exports because we have always relied
on foreign demand to market a con-
siderable segment of our agricultural
production, and because our industrial
plant is now geared to potential out
put which far exceeds the domestic
demand.
On the import side, he took notice of
the fact that war made great inroads
into our natural resources so that we
will become increasingly dependent on
foreign supplies of basic materials.
Abundant world trade, he thought should
be fostered not only in the self lf-interest
of this country, but because it would
benefit all other countries, raising living
standards and contributing to domestic
stability and international peace.
Meeting Next April.
The 18 nations participating in the
London conference are the United
States, Australia, Belgium, Brazil, Can
ada, Czechoslovakia, Chile, China, Cuba,
France, India, Lebanon, Luxembourg,
the Netherlands, New Zealand, Norway,
South Africa and Great Britain.
The recent meeting was preliminary
and is to be followed next April at
Geneva by final preparatory meeting
looking toward full-scale international
conference late next year at which, it
is hoped, the proposed charter for the
International Trade Organization will
be ready for adoption.
AS working basis for the recent
meeting in London the conference ac-
,cepted for discussion suggested charter
drafted this summer by an interde-
partmental committee of the United
States cooperating with the State De-
partment.
That draft states the general purposes
of the proposed organization as:
TO promote national and interna-
tional action for the expansion of pro-
duction, exchange and consumption Of
goods, and for the elimination of all
forms of discriminatory treatment in
international commerce, thus contrib
uting to an expanding world economy,
to the establishment and maintenance in
all countries of high levels of employ
ment, and real income, and to the crea-
ton of economic conditions conducive
to the maintenance of world peace"
Tariff Reduction Sought.
simultaneously with the contemplated
second preparatory meeting next spring
there is to be held, at the invitation of
the United States, conference of the
same Is nations to seek tariff reductions
under our Reciprocal Trade Agreements
Act. So far Russia has not accepted
the invitation to that meeting
Agreements negotiated hitherto under
the Reciprocal Trade Agreements Act
have each required a year or more Of
discussion. But it is the hope of the
State Department that the process can
be speeded by meeting with many
participants. The theory is that when
two nations sit down to negotiate q
trade agreement they are apt to cut the
cloth pretty close to the pattern and a
lot of haggling results. But if third
or fourth nation is introduced into
the situation, the theory goes, the pro-
cess may be speeded. Then if Nation A
doesn't get what it wants from Nation
B, it may get it from Nation C or D
because c. or D will have something to
offer that will make the deal between
"A and B acceptable,
So the hope is that the reciprocal
agreements may be reached in time for
adoption by the proposed international
trade organization when it is set up
late next year. That would be where the
two parallel efforts of this country to
reduce tariff barriers would merge.
Before negotiations with other coun-
tries could have been undertaken under
the Reciprocal Trade Agreements Act, it
was necessary for our Committee for
Reciprocity Information, made up of
representatives of several government
departments. to give notice that such
action was contemplated.
Hearings in Washington.
This notice was given recently when
the committee made public list Of
more than 1000 items on which tariff
changes may be considered Along with
the notice, the committee set Decem.
Der 81 as the final date on which briefs
may be filed by interested persons, and
January 13 as the date when public
hearings will start in Washington.
The list of commodities which may be
considered for tariff changes is being
distributed by the State and Commerce
Departments to trade associations,
chambers of commerce and business
men and others so that those who may
be affected one way or another will have
opportunity to be heard before a final