RECIPROCAL TRADE ACT

Otago Daily Times, Issue 26791, 7 June 1948, Page 5

RECIPROCAL TRADE ACT

ONE YEAR’S EXTENSION ONLY LINE OF SENATE ACTION INDICATED WASHINGTON, Rec. 11 p.m. June 6. Senator Eugene Millikan (Republican, Colorado), chairman of the Senate Finance Committee, said to-night, that it was “a good speculation” that the Senate would agree with the House to extend the reciprocal trade programme for a year only. Senator Millikan commented just after the committee had completed its hearings on reciprocal trade legislation. The last witness, Mr William Clayton, former Under-secretary of State, told the committee that under the House Bill, it would be impossible to negotiate any trade agreement of significance. The United Press says it appears that both the House and Senate may so alter the Reciprocal Trade Act that President Truman will veto it. The Republican-sponsored Bill to extend the Act for a year from June 12 instead of three years as requested by President Truman, would curtail the President’s power to negotiate agreements with other nations to cut tariffs. The President can now cut tariffs by as much as 50 per cent, of the 1945 rates. The Administration’s supporters have described the House Bill as the first step back to traditional Republican high tariff policy. President Truman, speaking at Omaha (Nebraska) said: “American farmers cannot expect to be prosperous if our trade with other nations is strangled by high tariffs and other trade barriers. The President said the Reciprocal. Trade Act should be extended for three years in its present form. He also called on mid-western farmers to help him push Congress into action now to avoid an agricultural depression for which one of the principal counters should be a permanent system of flexible price supports for agricultural commodities.