Evening star., 1953-08-24
Lewis Douglas
Proposes Freer
Foreign Trade
Report to President
Urges Liberalization
Of U. S. Policies
BY the Assoeiated Press

Vt y. ,. TOIICISS
By the Associated Press
DENVER, Aug. 24.-President
Eisenhower today made public
an administration advisers re-
port declaring free world unity
will remain precarious and fra
gile" unless the United States
liberalizes it's foreign trade poll
cies.
The report to the President by
Lewis w. Douglas, former Am
baSsador to Great Britain, says
that for 80 years this country
has erected import barriers
which have operated against "re-
establishment of international
economic and financial health
and equilibrium.
America long ago became the
worlds greatest creditor and can
mo longer pursue the protect
ioniSt policies of a debtor nation
and hope to escape x X dis
elimination against American
products in the international
markets." the report adds.
Prompt Action Urged.
Time is of the essence" in
moving toward freer trade, Mr..
Douglas says in a review of cur
rency and trade relations be-
tween the United States and
Britain. He urges the adminis-
tration to make a prompt an
nouncement it is determined to
work toward "a progressive, Wig
orous and consistent relaxation
of our restrictive foreign trade
legislation"
In a letter dated July 81, Pres
ident Eisenhower termed the re-
port-Submitted to him July IA
"a most valuable contribution
toward Illuminating the still dark
corners of this highly significant
matter" The President wrote
further:
1T (the report) has in it a
vein of candor, both with respect
to the United Kingdoms posi-
ton and our own, which is,
think, refreshing and very use
full"
Without committing himself
Gen. Eisenhower turned the re-
port over to the new government
study commission on United
States Foreign Economic Policy,
a group headed by Clarence E.
Randall of Chicago, board chair
man of the Inland Steel Corp.
The group soon will begin a
survey to determine whether this
country'S trade policies should
be revised.
Act Recently Extended.
At Gen. Eisenhower's request,
Congress recently extended the
Reciprocal Trade Act for a year
without major change, pending
the outcome of the commission
study.
From his vacation headquar-
ters here, Gen. Eisenhower
wrote Mr.. Randall today that
the Douglas report is "a real
contribution" to thinking in the
field of dollar-sterling currency
relationships of the United
States and Britain.
In his report, Mr.. Douglas
dealt with the progress Britain
has made toward resolving
many of the causes of the un-
balance between the dollar and
Sterling"
And he defined the issues
(which we, on our side, must
face if we are to enjoy the fruits
of an enlarged volume of trade,
more stable currencies and an
expanded area of economic free
dom"
1t was on that score that Mr..
Douglas said the United States
for 80 years has been erecting
barriers operating against re-
establishment of international
economic health. He also said:
1T is doubtful whether the
world can recover a high degree
of economic freedom or whether
American eXportS-So important
to large Segments Of our country
can enter foreign markets
without benefit of continued
American Subventions and sub
sides, unless sterling makes
further progress toward its own
emancipation.
IF further progress is not
made toward the removal of
restrictions on trade and a more
unfettered exchange of curren-
cies, it is quite likely that,
despite international political
institutions that have been
erected or that may be erected
in the future, the unity of the
free world will remain precarious
and fragile.
"On these points American
national interests are vitally
concerned"
Serving as a special deputy to
Secretary of State Dulles, Mr..
Douglas began his study for the
President shortly after the talks
which American and British off,
cialS held in Washington last
March on economic and financial
problems.
In his report, the former Am
baSsador says American mainte-
nance of trade policies more
appropriate to a debtor than a
creditor country" has been one
of the factors contributing to
the unbalance between sterling
and the dollar.
AS another factor he lists the
change in the United Kingdoms s
position from the worlds big
gest creditor to the worlds big
geSt debtor"
Mr.. Douglas notes it will take
time to enact legislation revising
United States trade policies.
But he says a prompt an
nouncement by the administra-
A.. %LoE - ;e Jo&or,,oi~ooI - ~,o,,1-