Evening star., 1953-05-03
Trade Act Extension
Plea Due This Week
From Administration
By Eroncis ?. DouaIas


The Eisenhower administra-
ton will give Congress this week
its arguments for a simple r.
month extension of the Recipro-
cal Trade Act instead of the
pending bill with its restrictive
amendments.
Congress also will have before
1t President Eisenhower formal
proposals for a commission to
make thorough eXaminatin of
the Nations foreign trade
policies. Gen. Eisenhower sent
a letter yesterday to Vice Presi-
dent Nixon and House Speaker
Martin asking for the appoint
ment of an 11-member COM
mission.
Five Cabinet members and
Mutual Security Administrator
Stassen are scheduled to appear
before the House Ways and
Means Committee. That COM
mlttee is holding hearings on
the bill introduced by Repre-
sentative Simpson. Republican.
of Pennsylvania, extending the
trade act but making substan-
tial amendments. Some of the
amendments are opposed by the
administration.
Hearing Scheduled.
Secretary of State Dulles and
Secretary of the Treasury
Humphrey are scheduled to ap-
pear before the committee to-
morrow. Secretary of Com
merce Weeks and Secretary of
Agriculture Benson are listed to
testify Tuesday, and Secretary
of the Interior Mckay and Mr..
Stassen on Wednesday.
The Presidents letter to Con-
gressional leaders generally con-
tanned a statement of liberal
foreign policies. This, and the
strong protectionist leaning on
the part of many members of the
Presidents party will mean
careful scrutiny of those to be
named to the commission.
Congressional leaders already
have agreed to the establishment
of the commission. to be made up
of three members each from the
Senate and House and five to be
appointed by the President.
Presidents Letter.
The text of the Presidents
letter:
In the message which I sent
to the Congress on April re-
Questing a one-year extension of
the present Reciprocal Trade
Agreements Act, I referred to the
need for a thorough re-examina-
ton of our whole foreign eco
nomic policy.
Il now recommend that a COM
mission be established to make
this review. The review should
provide the basis for action dur
ing the next session of the Con-
RreSS.
1T is my belief that the pro-
posed commission should be
made up of members OF the Con-
gress appointed by the Vice Pres
ldent and the Speaker OF the
House, and members appointed
by myself from outside the Con-
greSS. 1t should be representative
of both major parties. This is
appropriate since commercial
policy is an integral part of our
total foreign policy for which
broad national support is vital.
Maintain LiaiSOn.
"ThiS commission naturally
should work within the frame
work of our foreign policy and
our global defense plans. Close
liaison should be maintained
with the group set up under the
auspices of the State Department
to follow up the economic and
financial talks held earlier this
spring between the United States
and various European countries.
THE commission should study
all existing legislation and the
regulations and administrative
procedures Stemming from it
which bear directly on our for
eign economic relations. This re-.
view should seek to determine
how these laws can be modified
or improved so as to achieve the
highest possible levels of interna-
tional trade without subiecting
parts of our economy to sudden
or serious strains.
"An inquiry of this nature is
imperative. The economic policy
of this Nation exercises such a /
profound influence on the entire
free world that we must consider
carefully each step we take.
Changes in foreign economic pol
icy-even those which at first
have relatively slight conse-
ouences within this country
may either strengthen our allies
or plunge them into a downward
spiral of trade and payment re-
strictions. lower production. and
declinino living standards.
"Our foreign economic policy
also has important implications
here at home. Declining imports
will necessarily mean falling ex-
ports. resulting in serious loss
of markets for our agriculture
and other industries. Expanded
imports may require some ad-
iustments in our country. We
must make sure that changes in
foreign economic policy conSon-
ant with our position as the
worlds greatest creditor nation
DO not benefit particular groups
at the expense of the national
welfare. but we must also make
sure that such changes do not
place unequal burdens on partic-
ular groups.
Trade to Replace Aid.
"As I indicated in my previous
message, the achievement of