Evening star., 1953-06-07
Trade Act Extension
Seen as Reed Calls
Committee MeetinQ
By Robert K. Walsh

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Ways and Means Committee yes
terday opened the door for ex-
tension of the Reciprocal Trade
Act for another year but raised
further doubt about continuing
the excess profits tax for six
months.
On the strength of "air tight
assurance" he said he received
from the White House, Mr.. Reed
called committee meeting for
early Tuesday to consider the
trade agreement authority ex-
tension requested by President
Eisenhower.
The assurance, he explained.
was that the White House and
Senate and House Republican
leaders would oppose any move
to add a tax extension provision
to the reciprocal trade bill.
Mr.. Reeds announcement ap-
parently cleared the way for
favorable committee action on a
measure continuing for one year
the authority of the President
to negotiate lower tariffs on
goods coming into the United
States in return for trade con-
cessionS by foreign nations.
Tax Approval Less Likely.
The chairman's statement,
however, gave no hint as to
whether or when the committee
intends to report out a bill on
the excess profits tax. If any,
thing, it showed that chances
of committee approval of the tax
extension are DINNER.
Mr.. Reed apparently stands in
stronger position than ever in
view of the "air tight assurance"
that his committee. in reporting
out the trade act. would not be
by-passed if it chose to take it's
time on the tax legislation.
The excess profits levy expires
June 80. The Reciprocal Trade
Act expires June IL. The Eisen-
hover administration wants an
extension in each instance. It
urges that the tax be kept in
effect until January to raise an
other $500 million. 1t regards
the trade agreements act as a
necessary tool to stimulate
free world trade. It seeks an
expansion of the present act for
a year and suggests an overall
study of the entire program.
Republican congressional
chieftains are confident the
trade authority extension will go
! through before the deadline Fri
day They worked out a COM
promise agreement in Republi-
can ranks last week. They believe
it will be as acceptable to the
committee as it is to the White
House. The 10 Democrats on
the 25-member committee yes
terday urged quick action on the
extension. !
Influence of Reed.
Republican leaders, however,
are not so optimistic about the
excess profits tax extension. This
depends largely upon the Ways
and Means Committee and the
votes of the Democratic mem
bers. It hinges also to a great
extent on the influence of Mr..
Reed. He not only opposes such
an extension but advocates a
10 per cent individual income tax
cutback on June 80 instead of
December 81.
Senate Republican Leader Taft
commented yesterday that it is
strictly a House problem" He
predicted that the Senate would
approve the tax extension if
such a measure came over from
the House. Speaker Martin said
earlier last week that the House
would overwhelmingly pass the
extension proposal if it came to
a vote on the floor.
The committee plans to hear
witnesses every day this week
on the question of continuing
the controversial tax. AS with
most of those who testified last
week, a majority of the spokes-
men for business and manufac-
turing concerns listed for this
week have indicated opposition
to an extension.
Korea Watched Closely.
Mr.. Reed gained ground last
week when directors of the Ma
tional Association of Manufac-
turers and of the United States
Chamber of Commerce report
adly voted in favor of letting the
tax die on schedule" June 80.
Still another factor being
watched closely by members of
the committee is the possibility
of a truce in Korea. Treasury
officials told the committee that
such a truce would not lessen