ECONOMIC POLICY

Greymouth Evening Star, 6 February 1947, Page 8

ECONOMIC POLICY

NEW ARMAMENT PLAN NORTRADE AGREEMENTS NEW YORK, Feb. 4. “The Administration, in an effort to avoid a domestic partisan fight, oyer American economic policy, has decided to/.adopt a new. procedure for negotiating and amending reciprocal trade agreements,” reports the Washington correspondent of the New York Times. “Under the plan, which will probably be adopted, regardless of opposition in the House of Representatives, the Administration will undertake to write into every trade agreement with foreign countries an escape clause under which each party could modify or withdraw any tariff cut-which was found to be working undue hardship-to any enterprise. “The plan was proposed by Senators Arthur Vandenberg and Eugene Millikan, both Republicans, and . has been appr.oved-by the Under-Secretaries of State, -Messrs,.William Clayton and Dean Acheson... ; t .1 -“Senator Vandenberg; it is reported, believes that the political peace settlement would be threatened if the economic life of Europe Regenerated and the Republican Party would be split unless's'ome compromise was achieved between the State Department, which favoiirs' low tariffs,’ and the powerful Republican wing favouring high tariffs. The most powerful members of the House Ways and Means Committee strongly oppose the plan, but attempts are being made to persuade them r-that. the plan protects them against tariff cuts which might damage American- industry and commerce.-”- ? - - .