Evening star., 1949-01-24
Hearing Gets Truman
Plea 10 Restore Trade
Act, ,DropG.0.P. P.Curbs
BY the Associated Press

SASoo oSAoJ w FAoAAAPoAJ 1SfSSSA
the 1948 Republican, sponsored
Tariff Act and to restore the ole
reciprocal trade law without
"hampering restrictions"
The President made the request
in a letter to Chairman Doughton
Of the House Ways and Means Com
mittee at the opening of hearings
on the reciprocal trade program.
Mr.. Truman said the "hamperine
restrictions" put in the reciprocal
trade law by the Republican-con-
trolled 80th Congress threaten the
effectiveness of world trade nego-
tiations set for this spring.
Soon after the hearings began
with the reading Of the President.
letter, Representative Reed, Repub-
lican, of New York. brought in the
name Of Alger Hiss.
Mr.. Reed said Mr.. Hiss testified
last year before a Senate committee
in support of the Administrator
trade program and sent out propa-
ganda" for it.
Sees Right to Fear Program"
Then Mr.. Reed asked:
when a man has record o1
peddling information to enemies
doesn't that give the people the
right to fear this program?"
During hearings by the House
n-American Activities Committee
Mr.. Hiss was named by Whitaker
Chambers as a Government officia,
who turned secret papers over to g
Red spy ring before the war. Mr.
Hiss no longer with the Govern
ment, has been indicted on a charge
that he lied under oath when deny
ing he let the Communists have
such papers.
The COP bill extended the trade
act for only one year, but included
a provision that the Federal Tariff
Commission must review every
tariff change proposed in trade
pacts with foreign countries.
Moreover, it provided that the
President must send detailed ex-
planation to Congress if he reduced
q tariff rate after the commission
said the reduction would injure the
national economy.
Complained in Campaign.
Mr.. Truman complained abou
those changes during the campaign
He had asked for a three-year eX-
tension of the old law.
Under that law, the State Depart
ment could negotiate tariff cuts OF
as much as so per cent when other
countries agreed to make reductions
favorable to American trade.
In his letter today. made public
by Mr.. Doughton, the President
said:
NEGOTIATIONS will begin in April
to extend the benefits of the gen.
eral agreements on tariffs and trade
to 13 countries that did not particl-
pate in the original agreement.
This general agreement. con-
cluded in the autumn of l947, is
the most important and compre-
hensive trade agreement in history
Under it. the United States and q
other nations agreed to reduce their
tariffs, or to maintain low tariffs
or none at all, on a wide variety
of products.
Half of World Trade Affected.
THE products affected accounted
In 1888 for over half of the worlds
international trade.
UNLESS nations can sell each
other the products of their agricul.
ture, labor and industry to the
greatest possible extent, there car
be no sure foundation for economic
peace.
Unless world trade is increased
the tremendous investment we are
making toward economic recovery
will be largely wasted. Unless trade
restrictions are relaxed, the lot OF
the private trader in international
trade will become increasingly diff
cult.
The President concluded: "The
trade agreements program has
proved itself to the people of the
United States. 1t has just earned
their Overwhelming support. We
must be in a position to press that
program with vigor."
COP Opposition Expected.
The Presidents proposal is ex.
pected to run into stout resistance
from Republican lawmakers. But
the President apparently has suff1.
cient backing to get the kind o1
trade act he wants.
Willard L. Thorp, Assistant Secre.
tary of State for Economic Affairs
gave the committee the administra-
tons detailed views on the matter
He called the Reciprocal Trade
Act one of the fundamental ele-
ments of United States foreign eco-
nomic policy He said the 194e
amendments undermined" it's ef-
fectiveness because other nations
interpreted the changes as weak
ening of our determination to con-
tinue the policy in full force as a
long-range instrument of economic
AO-ORCI dI1Oll.
He argued that the procedures set
up by the Republican measure made
trade negotiations cumbersome and
returns to the old protectionist
theory that only the prosperity of
an individual industry is affected by
a tariff or quota"
3-Year Extension Asked,
The General Federation of Won.
ems Clubs filed statement with
the committee asking three-year
new life for the reciprocal trade
law, without Gripping amend
ments." 1t said this act is vital
to the success of the European Re-
covery Program" and necessary to
the continued welfare and pros
perl5y of the United States"
Russell Smith, speaking for the
National Farmers Union, also told
the committee his group hopes Con-
gress will reinstate the old program
and that the administration will
use its authority far more boldly
and extensively than it ever has In
the past
GarfioId Turnr cIin;r