Evening star., 1951-07-19
Treats as Most Favored Nation Despite Abuse and Jnq Of Oats

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to very low rates, or maybe for
other reasons. Czechoslovakia ac-
cepted.
The Czech position was technic-
ally different from the Russian.
Although some industries were
already nationalized and plans for
placing trade under government
monopolies were progressing, most
Czech exports to the United
States were highly competitive and
subject to tariffs well above our
average levels of import duties.
Accordingly. the Czechs had much
to gain from substantial cuts in
our tariff.
| Substantial Reductions.
In the conference at Geneva in
1947, substantial tariff reductions
were negotiated with Czechoslo-
|vakia on most of her exports to
this country. AS in the earlier
agreement, the rate on cemented-
sole shoes was bound" at 20 per
cent. Duty reductions were made
on practically everything that had
been included in the earlier agree
ment, frequently on broader class
|ifications and at even lower rates
In addition. reductions were
made on pottery, tableware. Zip
pers, folding rules. bentwood fur
niture. woodenware, dolls and toys
artificial flowers and rubber boots
Furthermore, many rates were re-
duced in negotiations with other
on products shipped us
in large quantities by Czechoslo-
vakia, including burlap and wool
en- fabrics. All these reductions
were applied. of course. to Czecho-
slovakian products.
BY conservative estimate, based
on the principal imports in 1850,
Czech products pay 81 million to
IS million dollars less per year
under GAIT than they would pay
If denied the benefits of trade
agreements. as Congress has di-
rected they shall be-. Perhaps
theoreticians may challenge this
estimate on the ground that. If
the higher rates were applicable
we wouldn't get the imports. That
may be sound, or it may not.
Anyhow, this method of computa-
ton is probably the best method
of illustrating to non-technicians
the significance of tariff changes.
and is standard practice.
AS stated above. GAIT was ne
gotiated in 1947. Most Of our con-
cessions were made effective by
the United States on Januray !,
1948. However. some of the con-
cessions negotiated with certain
countries. including Czechoslo-
vakia. were withheld at that time
because these other countries had
not yet signed the agreement.
The Communists usurped con-
troll of Czechoslovakia in February
1948. Many persons in the United
States thought that because Rus
sia had refused to participate In
GAIT, they would not permit the
Czechs to sign the agreement. This
was naive.
Maintains Membership.
Czechoslovakia signed GAIT In
March. shortly after Communists
took over. Perhaps the Kremlin
preferred to have an agent on
the inside. especially since it didn't
cost Russia anything and might
give them more dollars for propa-
ganda. At any event. Czechoslo-
vakia became contracting
party" in April. l94s. when her
concessions were made effective
She has since maintained mem
bership. with full rights OF CON-
plant.
At the time OF the Czech sign
ing, some wondered If the United
States might not refuse to make
its concessions effective, since the
friction between East and West
had already generated consider
able heat. However, this country
had given its word in the agree
Iment to apply the concessions and
lit proceeded to honor its obliga-
tion literally. With a single excep-
tion. all the concessions we
initially negotiated with Czecho-
Islovakia are in force today. The
exception is ladies hat bodies or
which the concession was with
drawn under the escape clause
after the Tariff Commission found
imports were seriously injurine
the domestic industry.
There have been five forma
meetings of the contracting partie.
Iof GAIT since the Geneva nego.
Itiations. These meetings are con.
voked to review the operation OF
the agreement, consider amend
ments. admit new members and
in general, to see how the indi-
Ividual members are living up te
their obligations.
/ At these meetings. the Czechs
have amiable representative,
whose conduct Is quite correct dip
lomatically. In at least three i'm
portant instances, they have ac-
cused the United States Of pro-
ceeding illegally.
Along about 1949. the United
States implementing the North
Atlantic treaty policy, begar
restricting exports of goods hav.
ing a military potential when des-
tined for Iron Curtain countries
The Czechs charged this violated
GAIT as an unlawful discrimina
ton against them and also as &
contravention of the commitment
against quantitiative restriction.
on trade. The United States de-
Iftnded its action as authorized BY
1.-The security exceptions" of GAIT
The matter was argued for sew
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