Evening star., 1955-01-10

The Ie1L OIL fTeSt0eut EtSeH-
hoDer,s message to Congress
on foreign trade policy follotDs-
TO THE CONGRESS OF THE
UNITED STATES:
For the consideration Of the
Congress, ! submit my recon-
mendations for further develop
ing the foreign economic policy
of the United States. Although
largely based upon my Special
Message to the Congress OF
March 80. 1854, these proposals
are the product Of fresh review.
The Nations enlightened self
interest and sense Of RESPONSE
bility as q leader among the free
nations require a foreign eco
nomics program that wiz stinu-
late economic growth ID the free
world through enlarging oppor-
tunities for the fuller operation
of the forces Of free enterprise
and competitive markets.
Our own self interest requires
such q program because ~ eco
nomic strength among our allies
is essential to our security; t2)
economic growth in underdevel-
oped areas Is necessary to lessen
international instability growing
out Of the vulnerability Of such
areas to Communist penetration
and subversion: and t3) an in
creasing volume OF world pro-
duction and trade will help as
sure our own economic growth
and a rising standard OF living
among our own people.
In the worldwide struggle be-
tween the forces of freedom and
those OF communism, we have
wisely recognized that the Sc
scurity of each nation in the free
world is dependent upon the Sc
curity of all other nations in the
free world. The measure OF that
security in turn Is dependent
upon the economic strength OF
ali free nations, for without eco
nomic strength they cannot sup
port the military establishments
that are necessary to deter COM
munist armed aggression. Eco
nomic strength is indispensable,
as well, in securing themselves
against internal Communist SUBJ
version.
Source Of Strength.
For every country in the free
world. economic strength is de-
pendent upon high levels OF
economic activity internally and
high levels of international trade
No nation can be economically
self-sufficient. Nations must buy
from other nations. and in order
to pay for what they buy they
must sell.
It is essential for the security
of the United States and the
rest Of the free world that the
United States take the leadership
in promoting the achievement OF
those high levels of trade that
will bring to all the economic
strength upon which the Free
dom and security of all depends.
Those high levels Of trade can
be promoted by the specific
measures with respect to trade
barriers recommended in this
message, by the greater flow of
capital among nations of the
free world. by convertibility of
currencies, by an expanded inter-
change Of technical counsel. and
by an increase In international
travel.
From the military standpoint,
our national strength has been
augmented by the overall mill
tary alliance Of the nations con-
stituting the free world. This
free world alliance will be most
firmly cemented when its asso-
citation is based on flourishing
mutual trade as we'll as common
ideals, interests and aspirations
Mutually advantageous trade re-
lationships are not only profit
able, but they are also more bind
ing and more enduring than
costly grants and other form,
of aid.
Many Trade Barriers.
Today numerous uneconomic
man-made barriers to mutually
advantageous trade and the flow
Of investment are preventing the
nations Of the free world from
achieving their full economic po-
tential. International trade anc
investment are not making theiI
full contribution to production
employment and income. Over
a large area Of the world cur
rencleS are not yet conVerClOle.
We and our friends abroad
must together undertake the low.
ering of the unjustifiable bar.
riers to trade and investment
and we must do it on q mutual
basis so that the benefits may
be shared by ALL
Such action will add strength
to our own domestic economy
and help assure a rising stand.
ard Of living among our people
by opening new markets for ouI
farms and factories and mines
The program that ! am here
recommending is moderate, grad.
ual and reciprocal. Radical OF
sudden tariff reductions woulc
not be to the interest of the
United States and would not &C.
complish the goal we seek. A
moderate program. however. car
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