Evening star., 1953-05-05
Larger Perspective Wise

SOUND ana pracClcaI pOSltlOn IN IaVOr OF SlmPle
one-year extension of the Reciprocal Trade
Agreements Act and in its opposition to legisla-
ton which would increase certain tariff barriers.
The matter of American foreign trade
policy in this period of cold war is not an iso-
lated and single question of importing and ex-
porting. It is instead basic factor In the
cold war itsef-closely related to the con-
tinuing problem of building up the economic
strength of the free world and to the amount
of direct aid which it may be necessary for us
to extend to the friendly nations. The final
shape of this policy will constitute one answer,
effective or otherwise to the temptations now
being displayed by the Communist powers for
an increase in East-West trade
Secretary of State Dulles ably summed up
this point of view in his testimony before the
House Ways and Means Committee. Friendly
foreign governments have taken in good spirit
he said, the probability that direct aid from
this country is to be reduced, but their eco
Monies are too fragile to absorb multiple shocks.
Tariff lifting action not co-ordinated with
other governmental policies designed to permit
balancing the budget, stabiizing the currency
and eventually cutting taxes (the reduction of
foreign aid is an important item in such poll
cies) would jeopzfdize, he warned, the inter-
national relationship on which our security
largely depends.
BY itself, he went on, the enactment of
higher tariffs would be interpreted as an Amer
ican policy making it increasingly impossible
for the free nations to live without a closer
association with and dependence upon the
Communist powers. Mr.. Dulles weakened his
position in answers to questions but his formal
statement of the administrations policy was
clear and persuasive.
The breadth of this whole problem, and
sensible approach to 1t, were outlined in Presi-
dent Eisenhower's letter last week to Vice Presi-
dent Nixon and Speaker Martin. At that time
the Chief Executive followed up his original
recommendation for extension of the trade act
with the suggestion that both branches of Con-
gress join in the naming of six bipartisan rep
resentatives on an eleven-member commission
to make Thorough re-examination of our
whole foreign economic policy" Such a study,
he proposed, should be within the framework
of our foreign policy and our global defense
plans and should give proper consideration to
our own economy and that of the free world.
AS Mr.. Dulles did later, the President also re-
minded the high-tarif advocates that barriers
to imports are sure to mean foreign counter
action against our exports-a circumstance
that should bear heavily upon the congressional
decision.
While the higher-tarif proponents have
implied impatience with this study approach,
there Is valid justification for it. The Eisen-
hover administration is seeking to apply new
perspective to the whole field of foreign policy,
in which the economic element is most i'm
portant part. The Soviet peace offensive" makes
caution even wiser on our part Hasty action
here that could be interpreted as discouraging
free Europe's trade with the United States
might play directly into Communist hands.
There u.s. furthermore, no Immediately critical
threat to American industry in extension of
the trade agreements act pending such an
overall review and coordination of economic
policies. Congress, and particularly the high
tariff bloc of the Republican Party, should view
the problem in this larger and longer-term
perspective.