Secretary Of State Acheson Is Urging That United States Become Import Minded

Wanganui Chronicle, 4 November 1949, Page 5

Secretary Of State Acheson Is Urging That United States Become Import Minded

Policy Would Help Solve l+s Serious Balance Of Payments Problem

NEW YORK, Nov. 2 (Ree. 6 pm.).—The Secretary of State, Mr. Acheson, told the Convention of National Foreign Trade Council that if the United States spent five or six per cent, (about 4,000,000,000 dollars) of its national income on imports, it would solve its own balance of payments problem, which was serious,

lie said. Much had been heard about the balance of payments difficulties of other countries and about America’s own “favourable” balance of trade. The bald faet was the ’’nited States was in real balaner-of-payments difficulties. It haf been fortunate for the world and the United States that America’s ability to produce was so great that in times of emergency she could permit a vast export of surpluses, said Mr. Acheson. They had not been to the advantage of Americans as consumers or taxpayers, but had been to their advantage as citizens, for it had been learned that the recovery and prosperity of other countries were essential to American national security. The prosperity question was. what to do about the balance payments in the future. Mr. Acheson said four courses were open to the United States: (1) Some countries for some years would probably continue to need United States assistance. They would need it so badly and urgently and he believed the United States would continue to provide assistance for reasons of her own national Interest as well as needs abroad. (2) He expected that for many

years American businessmen would find attractive opportunities for investment abroad. (3) The United States could reduce exports. (4) The United States could greatly expand its imports. For some curious reason increasing imports had not been very acceptable to date, said Mr. Acheson. "For a variety of reasons in a variety of ways we- over the past years, have made it difficult for people to pay us for the goods we would like to sell them,” Mr. Acheson declared. The greatest obstacle to increased imports was fear—manufacturers and exporters were afraid they could not compete with American producers in the United States itself, and in the United States there was a fear that increased imports would harm the economy. There was strong pressure on the United States administration to maintain high tariffs. "Unless the American public understands that the effects of yielding to these pressures will be to wreck our chances of curing this fundamental ill from which we all are suffering, those pressures cannot be withstood and the balance of payments problem will remain unsolved.” Mr. Acheson said. Another obstacle to increased imports was United States customs procedures.