The Gisborne Times PUBLISHED DAILY THURSDAY, APRIL 6, 1933. THE UNITED STATES’ PLEA FOR RECIPROCAL TARIFFS.

Gisborne Times, Volume LXXIII, Issue 11913, 6 April 1933, Page 4

The Gisborne Times PUBLISHED DAILY THURSDAY, APRIL 6, 1933. THE UNITED STATES’ PLEA FOR RECIPROCAL TARIFFS.

Ib is important to- note that- Mr. Roosevelt has now definitely mac.e an offer to scale, down Britain’s war indebtedness to the United States and, at the same time, has decided against the p°l* c y hi high tariffs adopted by his predecessor. Uc says that he will soon ask Congress for legislation to enable the United States to break down tariff barriers and to establish reciprocal trade agreements with other nations. Mr. Roosevelt suggests that his aim is to assist botli tho primary and tho seconclafy industries of the great republic. Tile general opinion'will, of cdtirse, be that this decision is closely associated with the war debts negotiatforis that are proceeding with Britain. It may be recalled that- in December Inst the Home Government pointed out to the Government of the United States that resumption of payments of war debt interest and principal would mean the further restriction of British purchases of American goods. In this regard, • mention . was mado of the fact thrit '.in 193.1 Britain spent more upon American goods than tho United States expenddc] on British goods.As far as can be made out,, Britain is to-day doing only half as ‘ much Hade with the United States as she did three years ago, and it .is wellknown that other nations have also cut down the amount of their busi-

ness with the United States to- a very appreciable extent. The British Enipiro has, as is well-known, been, for many years? America’s best customer rind, in 1923, for exfimplc, Britain alone made, purchases from the United States to the extent of £211,000,000.' The, only official return available for 1.932 is incomplete, for-it: deals only with the first nine months of the year, and it seeiris ttuit the value of British purchases from America uj? to tliab date was only £59,000,000. To-day, America is most concerned On account of the heavy fall un the voihihe of exports of her agricultural products. It is difficult- to believe that the intended change in the American policy arises from sympathy with Britain on account of her heavy war debt burden. The Hoover Government was,'for instance, well aware of tile fact' that Britain had passed on all .her war debt receipts from her debtors to the United States. In other words, the United States had received front Britain for their taxpayers £434,000,000 and that Britain, on the other hand, had hot only received nothing for her taxpayers but was also out of pocket to the extent of £134,000,000. But all that the Hoover Government would offer by way of relief was the postponement of a single year’s payments from Britain. What has since, happened is just what the United States authorities might have J expected. Britain in December last went to* tho trouble to inform the United States that, if relief were not afforded* in the matter of war debts payments, the market in the United Kingdom for American farm products especially would continue to wane and, to-day, the Roosevelt Administration finds it necessary to embark on fiirrn relief to the extent of £400,000,000. Unquestionably, that is the real reason which the new American Government was so anxious to enter upon negotiations for a fresh inter-trade treaty with Britain and it is To be trusted that Britain will refuse to extend appreciable trade concessions to the United States unless she is satisfied with the •offer by the great republic to reduce very considerably her war debts claims.