U.S. Republicans Declare War on Truman’s Tariff Plans

Grey River Argus, 24 May 1947, Page 5

U.S. Republicans Declare War on Truman’s Tariff Plans

(Rec. 6.30). WASHINGTON. May 22. The U.S. House of Representatives’ debate on its controversial Wool Bill to-day mushroomed into a broadside attack, by leading Republicans, against concessions that are reported to have been made or to be contemplated by the American delegation at the Geneva Trade Conference. Even before the debate opened, Mr Knutson (Republican. Minnesota), who is chairman of the powerful House Ways and Means Committee, which has jurisdiction over tariff legislation, stated that Congressional confidence in the American delegation, which is headed by the Under Secretary of State, Mr William Clayton, was “wearing”, and he announced the designation of a five-man committee to “ail’ thoroughly” the decisions thusfar reached at Geneva. Mr Knutson specifically charged that Mr Clayton, who has recently returned from Geneva, and. is report-

ed to have done so in alarm over the pending wool legislation, was prepared to sacrifice the entire American wool industry “as the very definite and clear cut price of shipping a few automobiles to Australia”. Mr Knutson expressed the opinion that Congress would never permit any such step, and, in this opinion, he was supported by the House Leader, Mr Charles Halleck (Republican, Indiana), who asserted that it was “unthinkable”. Mr Knutson said: “All of the Geneva confrees should be on notice that this Congress is in no mood to destroy one domestic industry so that another might ship surpluses abroad. Countries contemplating trade agreements with the United States should know that this Congress will not hesitate quickly to repair any damage to vital domestic industries resulting from the over-enthusiasm of our negotiators”.

(Rec. 10.5). LONDON, May 23. Reuter’s Washington correspondent said: To-day’s proceedings marked the beginning of open warfare between the Truman Administration and Congress on the tariff issue, with the fate of the current International Trade Conference possibly depending on its outcome. Mr Knutson’s utterance was a virtual no-confidence statement on Mr Clayton’s word at Geneva. The wool bill before the House empowers the President to impose a fifty per cent, ad valorem import fee on foreign wool if it should under-sell U.S. domestic wool. Such a fee would be additional to the existing duty of 34 cents per lb.

U.S. NOT IMMOVEABLE WASHINGTON, May 23. Mr Clifford Hope, chairman of tne Agriculture Committee of the U.S House of Representatives, said that although the proposed amendment to the Wool Bill would make the imposition of an import tax on foreign wool discretionary rather than mandatory, the effect would remain the same. An} import tax would probably conflict with some provisions of the existing trade agreement with the United Kingdom. The proposed amendments authorise the President, at his discretion, to impose an import tax above existing tariffs, cither temporarily or indefinitely, with the object of preventing the sale of foreign wool on the American market at prices below Government supported price of approximately 42 cents per 'lb for domestic wool. Mr Hope said the President would be able to reduce oi eliminate the import tax if reasons for it ceased. WILL BRITAIN CUT PRICES? AUCKLAND, May 23. The serious implications to New Zealand of Britain’s economic crisis was emphasised by the acting Dominion president of the Federated Farmers', Mr H. E. Blyde, addressing the annua! Auckland provincial conference. It was vital for New Zealanders to examine the position most carefully, he said. So long as Britain paid, the subsidies for food would remain high, but if Britain could not maintain them, the prices would drop and New Zealand would be materially affected.