TRADE FIASCO

Timaru Herald, Volume CXLVIII, Issue 21555, 18 January 1940, Page 7

TRADE FIASCO

Speculation As To

Cause

Allied Discriminations Alleged

United Press Association—By Electric Telegraph—Copyright • Received January 17, 6.30 p.m.) WASHINGTON, January 16. Speculation as to the true cause of the suspension of trade treaty negotiations between the United States and Argentina was redoubled when a member of the Tariff Commission, Mr Manuel Fox, told the House Ways and Means Committee, which is holding hearing on the Extension of the Trade Agreements Act, that the State Department protested against Anglo-French trade discriminations against the United States in Argentina if such discriminations existed. This cryptic statement on which the Assistant Secretary of State iMr Henry Grady), who had been waiting two days to testify, refused to comment, raised the question of whether there had been undisclosed diplomatic exchanges regarding the Argentine situation between Britain. France and the United States, also the question of whether the United States holds Argentina or Britain and France responsible for the Argentine fiasco.

The extreme reticence of everyone concerned seemed to indicate the delicate nature of the situation. Mr R. O. Woodruff, a member of Congress, pointed i-t that Argentina announced she would buy from no other country anything she could obtain from Britain and France. “That indicates she had an agreement with Britain and France which was so favourable that she could not afford to accept any United States proposition.” Mr Fox then stated that negotiations wit s Argentina collapsed because no assurances were given that the discriminations would be stopped, but he declined to amplify the statement. The State Department later announced that it discussed the exchange situation between Britain, France and Argentina with Britain and France la . December for the purpose of obtaining Information. Such discussion, how-

| ever, was not diplomatically regarded I as a protest and the negotiations con- | tinned thereafter.