Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-06-20
AnaIo-Americon Sore Point

Reports that the Anglo-Argentine trade
pact will not be signed tomorrow. as sched-
uied, suggest that the British are giving
sober second thoughts to the vigorous
objections raised against 1t by the United
States. If so, that Is all TO the good, for
the agreement in its present form appar-
emily could have the most serious effect
at the worst possible time-on our rela-
tons with Britain.
Although the text of the pact has not
yet been published, its main provisions are
understood to be % that 1t would be
effective for five years and CD that 1t
would establish bilateral system of trade
"a kind of barter deal-under which Brit
ain would supply the bulk of Argentina's
imports of oil, coal and machinery in ex-
change chiefly for shipments of Argentine
meat, plus cereals and similar items.
Through Undersecretary of State Webb,
the United States has strenuously pro-
tested against the pact on three main
grounds First, because of fear that its
long duration would enable the British to
monopolize Argentina's markets In a way
that would freeze out American business
in the future; second, because the agree
ment might have the immediate effect of
wiping out our large shipments Of oil to
the Argentine, together with our sales of
farm equipment, autos and other manu-
featured products; and third-most i'm
portant of all-because 1t appears to do
violence to Britain's pledges (under the
Geneva Treaty Of 1947. the International
Trade Organization Charter signed last
ND
to promote reciprocal, multilateral COM
merce by cooperating to do away with
just such exclusive trading arrangements
as the one worked out at Buenos Aires
In defense of the pact, British spokesman
have argued that its five-year duration
which is what the United States Is chiefly
opposed tbs necessary because of Argen-
tine meat production schedules and that
actually, in practice, 1t will not have the
effect of freezing out American business.
They have also argued that the Labor gov
eminent Is still very much for reciprocal
trade but that present conditions make 1t
inevitable that Britain and Argentina
should have such bilateral arrangement
that the other sorely needs.
4NcSc AISuncltS, NoWcFcI, nave HOL
convinced our officials. Indeed, In the
opinion of Paul g. Hoffman, chief of the
Economic Cooperation Administration,
the pending pact, If accurately reported,
is so much at variance with the principles
of the Marshall Plan that a suspension of
ECA aid to Britain conceivably might be
justified. Such a suspension, since 1t would
wreck the European Recovery Program,
seems unthinkable. Nevertheless, the
mere fact that it has been suggested indi-ss
Gates what might happen to Anglo -Ameri-l
can relations If the agreement is put into
effect without change
Accordingly, 1t must be hoped that Brit
ain will be able to persuade both itself
and Argentina to make revisions in the
pact to overcome the objections of the
United States. On their face, particularly
as regards British pledges in connection
with the Geneva, ITO and ERP agree
ments, those objections seem altogether
valid. To ignore them would be to invite
bad feeling between our two countries at
a moment when good feeling between us
is of crucial Importance to the whole free
world