VETO BY U.S. PRESIDENT

Press, Volume CIII, Issue 30338, 14 January 1964, Page 15

VETO BY U.S. PRESIDENT

Protectionism Checked

“Those Who are seeking a clue to President Johnson’s intentions during the forthcoming ‘Kennedy Round’ of trade negotiations may find one in his veto of a measure to restrict imports of lumber,” said the “New York Times” in a recent editorial. “This proposal, Which would have required a mark showing the country of origin on each piece of imported lumber as well as on other products, was a thinly disguised attempt to reduce imports from Canada. “If it bad been successful, is would have paved the way for other discriminatory moves, camouflaged or open. “Domestic protectionists are not likely to give up their attack on freer trade because of Mr Johnson’s action, but the veto, one of the first two be has made, is a significant gesture. “Invite Retaliation”

“The President’s strong accompanying statement, bls declaration that the bill “would raise new barriers to foreign trade and invite retaliation at a time When we are trying to expand our trade and improve Western unity,” makes it clear that he is prepared to withstand protectionist pressure. “In effect, the President has opened the door to liberalisation of trade barriers. If the governments of Western Europe show as mueh awareness and courage in, combating their own protectionist forces, the prospects for an expansion in world trade will be materially enhanced,” the paper added.