Evening star., 1948-03-05
Republicans and Reciprocity

The Presidents latest message to Con-
gress on the Reciprocal Trade Agreements
Act has met with such cool and hostile
reception among a number of influential
Republicans-particu in the House
that the whole program seems to be men
aced. Coming at this time, In world
where free nations must work together
economically as well IS politically II they
are to be safe, few pieces OF news could
be more discouraging. One can only hope
that it Is grossly exaggerated, or that wise
counsel and sober second thought will
prevail when the showdown comes.
What the President has asked for Is an
other three year extension of the act. II
Congress refuses, then the fourteen-year-
old reciprocity program will automatically
begin to fall apart on June II. Such an
event would have depressing effect
throughout the world It would deliver q
hard blow to the hopes aroused by the
history making trade pacts negotiated at
Geneva last year. 1t would undermine the
International Trade Organization now be-
ing worked out at Havana. 1t would sig
nify an American drift back to the days
of high protectionism. Above all, 1t would
indicate that the foreign policy OF the
United States, though bipartisan and in
ternational- minded in a political sense,
was trending toward isolationism in an
economic sense.
The net effect of all this would be to
encourage confusion and division among
non-C Communist nations at period IN
history when they need to achieve as
much unity as possible, not merely
through the exchange OF ideas but the
exchange of goods as well-a freer now OF
commerce designed to prevent cutthroat
competition, eliminate retaliatory tarln
wars, and help to promote sound peace
by promoting mutually enriching trade on
a fair quid- d-pro-quo basis. To be sure, TINS
kind of reciprocity is only one OF the many
things required to build a better world,
but it is highly important. AS the Presl-
dent has said, it is an essential part OF
our foreign policy-a key economic ele-
ment that must be integrated with the
political element If the policy itself Is to
be effective.
Despite all that can be said in favor
of reciprocal trade, however, most Repub-
licans in Congress have consistently voted
against it, except in 1s43. And now that
they are In control of both the Senate
and House, they are in \ position to kill
it off altogether. But If they do so, they
will be running counter not only to popu-
lar opinion, as indicated in the polls, but
also to what seems clearly to be common
sense. For If the United States heads back
toward high protectionism, our markets
abroad will shrink. They will shrink be-
cause our customers there, II seriously re-
stricted in selling to us, will not be able
to acquire the dollars they need to buy
goods from us or to pay back at least
some of the money we have loaned them
At the moment, since we are far from
being in need OF enlarged foreign markets,
it may seem academic to stress the fact
that trade is a two-way proposition. But
we have over fifty per cent of the worlds
productive capacity, and when the ex-
traordinary current buying demand at
home and abroad tapers of, we will want
as many overseas outlets As possible to
prevent factory shutdowns and large-scale
unemployment. The reciprocity program,
which amply protects our domestic pro-
ducers, is designed to operate to that end.
The Republicans will be making griev-
GUS mistake If they fail to renew it.