Evening star., 1961-12-07

Inere are some good and obvious
reasons which support President Ken
nedy'S thesis that "a fresh approach
is essential" to our national policy on
foreign trade.
First of these reasons is the simple
fact that the foundation of present
policy - the Reciprocal Trade Agree
mentS Act, which will expire on June 80,
1962-dateS back to 1884 If twenty
eight years does not seem an overly long
time in the span of history, events in
that period certainly have re-shaped
virtually all international relations
economic, as we'll as political. In that
circumstance, a formula that has served
a useful purpose in giving to the Presi-
dent of the United States a limited
authority to negotiate piece-by- piece
tariff concessions and trade agreements
has reached point of diminishing
effectiveness. Mr.. Kennedy is asking
now that this formula be replaced, not
renewed.
Throughout approximately fifteen
years OF cold war" between Communist
and anti Communist forces in the world,
the greatest preoccupations, on our side
at least, have been directed first at the
political conflict and secondly at the
military potentialitieS. The economics
of world affairs have received less con-
centrated attention. AS Mr.. Kennedy
pointed out to the National Association
OF Manufacturers yesterday, the Com
munist bloc has been building up it's
own economic power in setting of self
containment and relative isolation. In
an area of totalitarian authority, armed
with substantial resources of manpower
and materials, this has not been an
unduly difficult or complex problem.
In the free and developed sectors
OF the world, however, economic affairs
have taken a different course. One of
our own first concerns was to help re-
build the war-damaged economies of
both friends and former foes in Western
Europe and in the Far East. With our
help and by their own efforts, this has
been accomplished-tos such degree, in
fact, that Mr.. Kennedy is now justified
in describing fresh approach of our
own as essential.
Implicit in this fresh approach are
TWO requirements One, that we must
assure ourselves, If we can, of the
privilege and capacity to engage in large
scale and expanding trade with other
parts of the free world and, two, that
the economic strength of the free
nations, and perhaps particularly of the
United States and Western Europe,
should, as Mr.. Kennedy said, be COM
bined and co-ordinated rather than
divided and in conflict.
Much of Western Europe is now
Joined in powerful and Surging eco
nomic association through the So-called
Common Market Neighboring free ma
tionS already are seeking admission to
this bloc and we have, in fact, en-
couraged its creation and expansion.
We must, however, be prepared to live
with it competitively-to accept the
challenge of its goods in our own market
in order to have access to its markets.
Mr.. Kennedy is aware, and he has said
so, that this adjustment to a new order
may bring transitory dislocations in
employment and production at home.
He has promised to spell out some steps
by which the Federal Government may
help ease this impact. He is only being
realistic, however, in his awareneSs that
times have changed, and that our own
concept of international economic policy
must be shaped to fit this change.