Evening star., 1947-11-30

|tain an indispensable minimum of economic sef-suf-
fciency in a world where has not been outlawed.
or for other which at the time seem equally
compelling
After the First World War; the delegates of Western
European nations agreed, on numerous occasions at
various international conferences that trade barriers
should be reduced. Equally often, the diplomats re-
turned to their respective countries only to bow to
the pressure for restrictive trade barriers With
shrinking markets and world wide depression,
the situation became more and more impossible. Ex-
change controls blateral balancing between pairs OF
countries preferential and discriminatory agreements
and other devices all served by 1892 to the flow
of world trade to trickle What seemed so
obvious the international conferees when the world
picture viewed whole seemed utterly i'm
possible when considered in the light OF political
pressures at home.
A Political Necessity
Similarly in the United States it became politically
necessary to heghten the barriers against imports
Although We sparng in our use of such dscrim1-
natoy devices clearing arrangements and preferen-
tal agreements, generous in upping our
tariff rates. In 1921 and 1922 raised rates to
new highs and, for good measure topped it off in
1880 with the Smoot- -Hawley Act which raised many
of them still higher.
Outstanding students of economics and few states
men with appreciation of the broader isues involved
deplored publicly which going 1t was to no
avail however, the political pressures too great
The United States already the worlds most i'm.
portant creditor nation and yet it was doing its level
best to make it difficult for it's debtors to sell their
goods and thus acquire the dollars with which to pay
their debts.
Out of all this arises simple but profound truth
To lower barriers against imports is always difficult;
to lower them effectively in time of economic depres
sion is all but impossible.
Hence the Importance of the Geneva trade agree
ment, in which the nations have agreed, in advance
of the group for tighter restrictions that
certain to arise in many quarters to reduce their
rates and other barriers to reasonable levels. The
world only hope that 'when economic recession
does appear the parties to the agreement will not
be too hasy in invoking the escape clause of the
agreement. This clause which had to be included
If there to be any agreement at all, in this
of worldwide shortages, provides that T through
unforeseen developments, particular tariff reduction
should increase imports sharply to cause or
threaten serious injury to domestic producers. the
country granting the concession may withdraw or
modify it in whole or in part
A Simple Explanation
Obviously the wholesale and indiscrimnate use
Of this escape clause might we'll wreck the letter and
spirit of the agreement. The only force that
prevent such Wrecking is the judgment and good will
of national leaders everywhere when foreign trade
meaning imports as we'll as expo-ts-recovers.
Why might we'll ask, as it that what seems
so elementary the nsed for trades in a world Of
international specialization economic interde-
penoence is difficult of practical attainment? No
one would expect the manufacturers merchants in
his own town locality to prosper if they should
invent all sorts of devices to prevent the purchase Of
each others merchandise while themselves persisting
in their efforts to sell their specialized each
other Why is 1t that nations behave in this fashion,
The explanation is as logically simple as the
solution is politically complex Nations consist Of in
diyiduas and groups and that which call the
national interest does not exist apart from the in
n
nation. group of nations to act in way that Is
apparently in conflict withtne immediate self-interest
of any politically important groups within their
boundaries is to expect a Gegree of enlightenment
that is far from common as to be stratospheric.
One has but to through list Of some of the
groups in the United States that dependent upon
tariff protection for their continued existence to be
of how such restrictions warp the economic
Oh powerful nation when they persist
over period of time Certain producers of sugar,
wool and host of lesser products such as hand,
blown glass tableware gloves and pottery according
(see EUROPE, Page C-5l