Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-09-01

won foreign friendshipsf Where
Is the solution. Immediately and
for the long run? What about
the Iron Curtain countries?
The Eisenhower administration
is reviewing the whole monu-
mental question at this time. It
has to, under constant congress
Sional pressure to do something
and faced as 1t Is with the
changing mood Of the cold war.
Indeed, the warm wave flow
ing from this summers Geneva
summit conference might melt
through the East West trade BAR
riers and thereby bring "a solu-
ton, for the short run At least.
Hardly a week goes by that some
member of Congress doesn't pro-
pose selling wheat to Russia or
dropping it by the bagloads on
Red China whether Peiping
wants it or not. :
Meanwhile. the Government
chips away with the tools it has
and plans hopefully for the long
haul.
Its chief tool FOR disposing Of
farm SURPRISES abroad is Pub
lie Law 480. This permits their
sale. barter or give-away to
friendly countries" Russia and
Red China are specifically barred.
The law would have to be
changed to bring them in.
Amounts Limited
As Of last June 30, a total Of
81 agreements involving nearly
$470 million in goods had been
signed with II foreign govern
ments under this legislation. To
avoid dumping, the amounts are
limited and controlled.
A major provision is that sales
may be made for foreign cur
rency. This money never reaches
the United States, however. It
is simply plowed back into eco
nomic development of the coun-
try. gift of Uncle Sam, or used
to pay of United States bills,
such as for troop camps in Japan.
f., A Hoover Commission task
force took q swipe at q COM
panion law in q report made
public this month. It COM
planned:
THE earmarking Of dollar aid
for surplus agricultural commodi-
ties leads to the appearance il
not. the reality Of pressure on
recipient countries to take Amer
lean surplus commodities.
This is hard to distinguish
from dumping. in its effect on
world prices, world trading re-
lations, and the distribution Of
agricultural production world
wide"
But officials who administer the
law defend it as way out Of the
shortage of dollars abroad. They
see the long-range solution in
ultimately getting enough dollars
in the hands of foreign buyers
SO they can pay the high price Of
United States farm goods.
Tariff Manipulation
Meanwhile. economic develop
ment lets the foreigners build
factories which can earn dollars.
Manipulation of the tariff rates
to favor countries in need Of
dollars is another way to help
them get greenbacks.
English bicycles are q case in
point" said one Agriculture De-
partment ofiicial. They really
have caught on in this country.
They can make lots of dollars
for Britain"
But the same day this state
ment was made President Eisen-
hover granted O so per cent in
crease in the tariff rate on Eng
fish bikes. The increase had been
sought by the American bicycle
industry.
Secretary OF Agriculture Ben
son refused to take no for an
answer when he tackled the
chronic cotton export problem
this year.
He proposed q two-pfice plan:
Sell it on the world market at
the going price, with the United
States Government making UP
the difference between that and
the higher domestic price it had
paid in acquiring the cotton In
the first place. A special presi-
dental advisory group turned
this idea down, 81.
Undaunted. Mr.. Benson an
nounced August Is he may put
practically the same plan In ef-
feet after the first Of the year.
He is limited the exports. how
ever. to low grade cotton-which
probably accounts for the lack
Of cutlery from high quality cot
ton Egypt.