Evening star., 1947-02-16

nothing OF the spread OF colilIiu-
nism.
Republicans counter that behind
the debate also lies the much more
immediate worry over a flood OF
cheap foreign goods into United
States markets, which they say
would cut down American sales and
throw Americans out OF jobs.
The immediate log-jam is this:
The State Department has in
vited 18 other nations to an April
conference at Geneva, Switzerland,
for a horse trading session in which
they all expect to cut down trade
barriers.
The State Departments object is
TO needle world trade into brisk
business that will keep workmen on
Jobs everywhere and hence, it hopes,
lay a secure foundation for peace
Further, it wants to open more
markets for American goods by re-
ducing the trade barriers other
governments have set up, such as
import and export quotas, import
duties, blocked currencies. To get
such concessions at Geneva the
United States must be ready to cut
Its tariffs somewhat.
PostpOnement Is Sought.
But in Congress there is move
ment, in the form of two resolu-
tions, to request" the Government
to postpone further tariff reduc-
ticns" until the Tariff Commission
can make a study of the whole
subject and to postpone the Geneva
conference.
Should the resolutions pass both
Senate and House before April, the
State Department would not have
to call off the Geneva Conference
but it would appear wise to do SO.
Should Republican majority
successfully oppose further tariff re-
ductions, State Department men say
they fear much of the worlds drive
to rebuild would be blocked.
The United States right now is
the major source of machines. But
foreigners can only buy here If they
have American dollars to pay. They
can get dollars in two. ways-sell
here, or get loan. Even with a
loan, they would have to sell here
to repay.
State Department experts point
out that reduced tariffs would cut
the price of foreign goods here and
increase their sales. Greater sales
would mean more American dollars
in the hands of foreigners to buy
the machines, cotton, coal, Oil and
electrical equipment they want and
need.
Further, they argue, since the re-
duced tariffs would be made only in
return for reduced trade barriers
In other countries, more American
goods could be sold abroad.
Costs of U. S. Goods Uncertain.
To that Senator Hawkes., Republi-
can, of New Jersey replies that there
is great uncertainty right now over
the costs of production and so there
can be no certainty over the amount
of tariff reduction that would be
safe.
He says "the legitimate purpose
of tariffs is to protect our national
wage standards. Rates should be
high enough for domestic products
to compete on equal terms with pro-
ducts produced abroad under lower
labor standards than we would
tolerate here"
Senator Hawkes., who is sponsor
ing the resolution postponing tariff
cuts, would like to see board OF IL
Americans, selected from industry
labor and farmers, sit in with Gov
ernment experts when they deter
mine United States tariff rates.
The debate reaches into United
Nations machinery. This Nation has
not only pledged in several Unlteo
Nations agreements to work with
other nations to reduce trade bar
riers, but it has taken the lead.
Under American drive the United
Nations set up the World Bank anc
the World Fund The State Depart.
ment is now urging an international
trade organization which would re-
duce trade barriers all over the world
and enforce its agreements.
Fear Dearth of World Trade.
Foreign trade experts fear that
unless there is an ITO to keep world
trade active the world will &C
through another period like the sos
when world trade dried up. That
they think, would make the bank
and fund almost useless.
What is worse, say the experts
slowed-down buying would near
continued unemployment and unrest
in war wrecked nations. They point
to the growing good fortunes Of
French and Italian Communists anc
credit part of it to lack of machines
coal, raw materials-and lack o.
work.
Beyond, for the experts, lies a majo1
worry over United States markets
American industrial capacity ha'
doubled through the war. There il
no certainty Americans can sell al
they produce, but foreign market!
would help. The hope is to doubl'
exports to help prevent surpluse
and Unemployment.
Great Britain is in the sam
spot, but the conditions are wors'
because of her huge war debt He
economists say British exports mus
increase rs per cent to pay off th'
debt and feed the British. French
Dutch, Norwegian, Italian economist
el1 COW tho Gonna fbipC-tbnv mis-