SEVERE HANDICAP

Otago Daily Times, Issue 27385, 10 May 1950, Page 7

SEVERE HANDICAP

High American Tariffs EUROPEAN RECOVERY NZPA—Copyright WASHINGTON, Rec. 7.39 p.m. May 8. A Marshall Plan report submitted to Congress by President Truman today warned that High United States tariffs might prevent Europe from bridging the dollar gap through export earnings. The report, which was for the last quarter of 1949, said the existence of high tariffs on many imported items and other restrictive barriers were a severe handicap for Europeans. They might well make it impossible for Europe to “ bridge the dollar gap to the point of becoming independent of United States aid.” Most European Governments were now taking steps to encourage private exporters to use the opportunities for greater sales brought about by devaluation. Various incentives also were being provided. The repoft added: “The dollar gap, however, will not be. reduced without extraordinary action by the United States as well.” Considerable progress had already been made in lowering American tariffs through reciprocal trade agreements. The average tariff on imports had been cut from 53 per cent, in 1930-33 to 15 per cent, in 1948, but the tariffs on some items —occasionally over 100 per cent.—were prohibitive.. Customs procedures were antiquated, cumbersome, and, in many respects, inequitable, said the report. The majority of the shortcomings could only be dealt with by new legislation. A step in this direction was the Customs Simplification Bill, which had been presented to Congress.