Evening star., 1951-07-19

I've made substantial tariff reduc-
Itions were bottles, other glassware
window glass, hops. knit. gloves
various textiles and rugs. beads
handbags. ladies' hat bodies, but
tons, buckles, imitation stones
leather gloves, pencils and certain
types of shoes.
Important Concession on Shoes.
On the most important type o1
shoe imported (cemented-sole
shoes) the duty was not reduced
but was bound" against increase
above the current rate Of 20 pei
cent of the foreign value, lie.
the value in Czechoslovakia. This
was one of the most important
concessions because 1t forestallec
"a possible substantial increase ir
the duty.
Imports of this type of shoe hac
been increasing by leaps ane
bounds at the time of the nego.
tiations and the Tariff Commits
sion was then conducting a cost
of production investigation tt
learn whether the duty should be
increased. The law provided that
II the statutory duty was not
enough to offset the excess of do
mestic over foreign costs, the duty
should be increased by as much as
so per cent. and If that was not
enough. the statutory duty might
be based on the value of domestic
shoes rather than the lower values
of shoes in Czechoslovakia.
Since the trade agreement was
signed before the Tariff Commis.
sion completed its work. the in
vestigation had to be dismissed
Although the commission did not
make any formal findings Of cost
differences. it was generally be-
lieved. both in the United States
and abroad. that the agreement
actually prevented a considerable
increase in the tariff on shoes.
During the life Of the agree
ment. imports of many products
Increased markedly and domestic
industries. particularly glassware
and shoes, felt the pinch of Sc
yerely increased competition and
complained bitterly. However. in
Ia very short time. Hitler moved
into the picture.
First the Nazis took over the
Sudetenland. American officials
scurried to their maps and geo.
|graphies to check the areas OF
production of particular articles
in Czechoslovakia, to see whether
there was a basis for continuing
the agreement in force. Mean
time, goods produced in the Sude-
ten area were considered as prod
|ucts Of Germany and, as such
were denied the reduce trade
agreement rates. However. the
agreement rates were continued in
force for other areas and Sudeten
goods. by subterfuge, may have
actually gotten reduced rates in
many cases.
Effectiveness Terminated.
Events continued at a fast pace
and, by early 1899. the Nazis had
taken over practically all ot
Czechoslovakia. The President
terminated the effectiveness Of the
agreement, but not the agreement
itself. In other words, the rates
of duty were restored to the statu-
tory leveles because the other
country was not. de facto, able tt
live up to its side of the bargain
and goods from all Of Nazi-domi.
mated Czechoslovakia were treated
Ias German when imported inte
the United States. But the trade
agreement remained as an inter.
national document which tn,
President might once more pu
into operation If the Nazis shoult
be nice enough to 60 home.
The agreement retained it!
ambiguous status-out Of opera.
ton but with the possibility OF re.
Ivival by purely executive action
until 1945. In that year tht
Congress extended and increased
the Presidents power to reduce
tariffs pursuant to trade agree.
ments but forbade reactivation o.
the 1888 agreement with Czecho.
Islovakia with these well-choser
words: mo proclamation shall b,
made pursuant to this section fol
the purpose of carrying out any
foreign trade agreement tn,
proclamation with respect tt
which has been terminated il
whole by the President prior tt
the date this subsection is en-.
acted"
It is understood that the diplo
matte coup-de-grace was givel
when, in later correspondence be
tween the United States an,
lCzechoslovakia, the 1888 agree
ment was referred to as 9TH
former agreement"
From 1899 to 1945, Czechoslo
vakia was behind the Nazi curtain
and most Of our imports from tina
country were goods that had beel
shipped out before hostilities @
World War II. With the end O
hostilities, Czechoslovakia was re
constituted as an independen
democracy-but one with a stron
Communist element hanging owe
from the Russian occupation.
In 1916, the United States in
vited 10 other countries, includin
Russia and Czechoslovakia, to en-
gage in tariff negotiations. Russi
spurned the offer, possibly be
cause she had a government mo
nopoly of trade, or because of
dearth of zeal for cooperation, O
because her exports to the Unite
States were duty-free or subjec
.1RI "a n