Evening star., 1947-02-25
Truman Orders
Escape Clause
In Trade Pacts
Modification in Line
With Vondenbere and
MiIIikin Proposals
By Joseph A. Fox

moved to strengthen this Gov
ernment's position under the
Reciprocal Trade Agreements
Act by issuing an executive order
making it possible for the United
States to revoke or modify any
tariff concession threatening
serious injury to domestic pro-
ducers."
Insertion of this so-called escape
clause in any reciprocal trade agree
ment heretofore has been optional
with the Interdepartmental Com
mittee on Trade Agreements Un-
der the new order, the committee is
bound to insert it in all pacts, the
State Department explained.
The or&i:ar also makes it possible
for any interested party to call on
the Tariff Commission for an in
veStigation in any situation where
a flood of imports coming in under
a trade agreement threatens the
American producers "of like or SINH
lar articles"
Would Safeguard Interests.
Mr.. Truman issued the order to
make "doublv sure that American
interests will be properly safe
guarded
The President said in a statement
that the changes are in line, with
recommendations made by Chair
man Vandenberg, of the Senate
Foreign Relations Committee, and
Chairman Millikin, of the Senate
Finance Committee. They had
urged modification of the trade
agreements program after Republi-
can leaders in the House had threat
ened to apply curbs before the June
80, 1948, expiration date of the act.
Mr.. Truman said this Government
and 18 other Nations would meet
at Geneva on April 10 to negotiate
world trade policies and setup an
international trade organization, and
he warned against "partisanship"
in this field
Satisfied at Support.
He expressed satisfaction that
Senators Vandenberg and Millikin
favor the Geneva Conference.
The text of the Presidents state
ment follows:
II wish to reaffirm the faith of
this administration in the Cordell
Hull reciprocal trade agreements
program which became effective in
1884 and which has been extended
by Congress all these years. This
program is based on the principle
of negotiation between this and
other countries for the reduction of
trade restrictions and elimination
of discrimination on a mutually ad-
basis; for each eonces-
sion granted the United States, a
corresponding concession is received.
This program has become an integ-
raj part of our foreign policy, and
has widespread support from indus
try. labor and the farmers.
Formalizes Procedures.
IT am today issuing an executive
order which formalizes and makes
certain existing trade
agreements procedures and which, in
addition, makes some procedural
changes. I wish to make clear that
the provisions of the order do not
deviate from the traditional Cordell
Hull principles. They simply make
assurance doubly sure that American
interests will be properly safe
guarded.
"This order is the result of con-
versations between Undersecretaries
of State Acheson and Clayton and
Senators Vandenberg and Millikin
and has been carefully considered by
the interdepartmental trade agree
ments organization. This organiza-
ton is composed of representatives
of the Departments of State, War,
Navy, Treasury, Agriculture and
Commerce and the Tariff Commits
sion.
"The United States is preparing
to meet with 18 other nations in
Geneva on April 10 to negotiate on
policies affecting world trade. We
plan to complete the draft of a
charter establishing common prin-
ciples of world policy and setting up
an international trade organization.
We shall also negotiate the reduc-
ton of tariffs, the removal of other
barriers to trade and the elimination
of discriminatory practices. I am
very happy that Senators Vanden-
berg and Millikin agree that we
should 60 forward with the Geneva
negotiations.
Says Cooperation Is Necessary.
"All of us must recognize that BIZ
partisan support of our foreign eco
nomic policy as we'll as of our for
eign policy in general is essential.
If we are to succeed in our efforts,
through the United Nations, to Or
ganize the world for peace, we can
not refuse our cooperation where
economic questions are involved.
Here, as elsewhere in our foreign re-
lations, we must abandon partisan
ship and unite in our support of a
foreign policy that serves the inter-
ests of the Nation as a whole"
The escape clause" provision of
the order provides that it shall be
invoked whenever "as a result Of
unforeseen developments" the i'm
ports of any article flow "in such in
creased quantities and under such
conditions as to cause, or threaten,
serious injury to domestic producers
or like or similar articles"
The United States then may with
draw this particular concession in
whole or in part or modify it to
the extent or for such time as may
be deemed necessary.
Bulletin
n NJ