U.S. WOOL TARIFF RISE VETOED

Grey River Argus, 28 June 1947, Page 5

U.S. WOOL TARIFF RISE VETOED

Truman’s Action Heartens Trade Negotiators

WASHINGTON, June 26. President Truman to-d'ay vetoed the Wool Bill.

In a message to Congress • the President said he was vetoing the bill because it would have “an adverse effect on our international relations. The enactment of a law providing for additional barriers to the importation of wool at the very moment this Government is tiking a leading part in the United Nations conference at Geneva to reduce trade barriers would be a tragic mistake. “It would be a blow to our leadership in world affaire. It would be interpreted around the world as the first step in that same road to economic isolationism, down which we and other countries travelled after the First World War with such dis--astrous consequences. I cannot approve of such action..”

Mr Truman said he would fully approve the bill without the objectionable import quotas’ and import fee provisions and which merely authorised continued price support for the domestic wool producers. The original Senate Bill contained such provisions only, but the House inserted the clauses authorising quotas and import fees which a conference of the Senate and the House failed to eleminate. Mr Truman said the American woolgrowers were entitled to the “support price” provisions and declared that there was ample time for Congress to pass wool legislation “consistent with ' our international responsibilities and the interests of our economy as a whole. I urge Congress to do so promptly.” This was President Truman’s third veto within a fortnight. It is considered virtually impossible for either House or the Senate to muster the required two-thirds majority to over-ride the veto. Reuter says that although Mr Truman’s action may avert the contemplated adjournment of the Geneva conference and restrengthen the hands of the Under-Secretary of State, Mr William Clayton. it. is realised that high tariff sympathies of the present Congress have been amply demonstrated. (Rec. 6.30). WASHINGTON, June 27.

The Senate did not try to override the President’s veto. It sent the Wool Bill to the Senate Agriculture Committee.

Mr Cliqord Hope, Chairman of the House Agriculture Committee, said that any effort by the House Republicans to repeat their effort to enact high tariff legislation would be silly. He indicated this would be ligeslation s-imply authorising the continuation of the Government purchases of domestic wool production until December, 1948, as an indirect subsidy. This would be pushed through Congress. Senator Edward Robertson (Republican, Wyoming) has introduced a new Bill in line with President Truman’s proposals. The new Bill would merely continue the present price s-upport programme, and authorise the Commodity Credit Corporation to dispose of its wool holdings at less than parity prices if necessary. LONDON, June 27.

Reuter’s Geneva correspondent says: President Truman’s veto of the wool tariff Bill has produced relief in international trade circles here. The decis-ion, it was felt, had cleared the air, and opened the way for a resumption of negotiation between Australia and the United States. Australian circles again pointed out, however, that Australia still required a reduction of the existing American wool tariff.