Evening Star Newspaper, October 3, 1927, Page 4

FRENCH NOTE HITS S, TARIFF RATES 18 sy 17878 ifiitt;‘Shows Purpose of Pro- ‘\,g;d!ug American Imposts &% Unfair to France. ZAn . fContinued from F Instituted of thef Franco-German treaty. limit of this reform, consequence and wit Department on September 19 to pre-| ing with the United States in the sent to the French foreign offic “The Government of the United of the French government on subject of possible tariff arrangements to be made between the two govern- ments pending the negotiations of a definitive treaty. This alde-memoire touches also on the French concep- tion of certain principles which might be included in such treaty. The Gov- crnment of the United States is both surprised and disappointed at the atti- tude of the French government as therein expressed. It had supposed that the French government fully unde: t the American law which the tariff on imports does not env ge the conclusion of a treaty of reciprocity in regard to rates of duty. Passing, indeed, beyond the mere limitations of the law into the broader {fleld of international trade re it is the profound belief of the A\mml tion which resulted from the simu neous acts of 1910. “It welcomes, on the other hand, | 1 the offer nment of th United tute for these aimulta Hh o between the two coun v giving to_individua ons of each of the two rade French govern- within a few | tre: of however “Today, ¢ gotiations ¢ 1910, the that it is not po mame level the ir tion of the cc ticed by the cludes any p being grant positive adva vored nation granting of ta tages of xhc most fa- treatment and of th the minimum French| | he found in the don time: the only satis. uch relations is to n of equal treat- ment of the trade of ail nations. An) ther policy can lead only to confu- sion and misunderstanding, and, in the opinion of the American Govern- opposed to the soundest of world economics and of world good will. Unless le of equality of treatment 1 is admitted, there can be no contidence in the stability of trade re- |lations. and_ the beginning of such i i action can only lead to basis of thus cr tions and a I nomic inst weaker natle : train of politi nd eco- The principle of gen- avored nation ~treatment s of “va an a principla 1o be Tollowel. principle_there had the indors t of the French member: “It is the understand: of the can Government that the prin- les on which the French govern- nt fixes its tariff are those ex- d in_ 1891 by M. Meline in } on March 3 to the Chamber of Deputies. M. Meline said at that French market. “While the rates of duty of the American tariff rest upon the same theory of protection as do the ‘mini- mum’ rates of the French tariff, it may be pointed out that the so-called ‘general’ or ‘maximum’-rates of the French tariff, in the words of the re- port of French commission on tariffs and commerclal conventions, ~sub- mitted to the Chamber of Deputies on March 1927 (Document No. 4220), are devised ‘in order to leave to the negotiators of commercial agreements the margin between the duties in the two columns as the essential counter- part which they may give in ex change for the advantages which they * The existing rates American tariff. it should be embody no such margin for of the noted, to entertain the view that France is justified in discriminating against American trade because it considers that the erage rate of duty imposed by the United States on imports from nce is higher than the av rate fmposed by France on imports from the United States. not discrimination. Our r: form on these import same for others as for argument, moreover, by the Government of the United States, which, as stated above, con siders tariff rates a domestic matter and at the same time considers all discrimination to be unjustified. “If the rates of duty on articles im ported into the United States from France ave proportionally higher than on those exported from the United States to France, the reason is merely large part of American imports of manufactured articles and whereas an equally large on of French imports from are raw materials. Further more, the higher duties in the present ta law charged in the United on the imports from amounted to $141.885,000, hey _amounted to BTAR, WASHINGTON, Moreover, In .any’ consideration’ of trade relations between France and the United States it is necessary to bear in mind the very large invisible exports of France by reason of expen- ditures of American tourists, amount- ing to well over $200,000,000 annually. “The American Government points out’ that it is entirely impracticable for countries to apply to each other's trade exactly or even approximately the same average rates of duty, which appears_to be the logical conclusion of tho French cohtention, in view of the varying commodities entering into international trade, as well as the differences in price levels, purchasing power and other conditions of the re- spective_countries. In the trade be- tween the United States and m the position of the United States i the reverse of that existing with France. About 95 per cent of the im- ports into the United States from T are entirely free of duty, while a large proportion of all American ex ports to Brazil are dutiable. Yet the American Government does not, for this reason, contend that 95 per cent of the goods from the United States which are imported into Brazil should be admitted free of duty. On the con- the Government of the United cannot objeet to whatever duty v be levied by France or B ¢ other nation, when there is no 4 between the United * countries, Absen imination is a cardinal prin- ciple of clean-cut and friendly trade relations. “The policy of the American tariff law makes no d mination whatso- T)‘ ,(’u' different countries. Furthermore, dis- crimination in world trade against the United States has practically ceased. It is France alone at the present time which seriously discriminates against American products. Article 317 of the present American tariff law gives the Executive the right to impose addi- tional duties on goods coming from a country which discriminates in f{ts tariff against the trade of the United States. The American Government s loath to increase its tariff on articles imported from France, which is clearly at the present time practic- ing serious discrimination as con- trasted with its treatment of similar goods importéd from other nations which are competitors of the Unitéd States. It has so far refrained from doing so, since it belleves that upon recongideration the French govern- ment will realize the essential justice of the American principle already, as noted ahove, indorsed by representa- tives of the othef nations of the world assembled in conference at Geneva, that it wlill hesitate to discriminate a_mnation which has always ined an intimate friendship h ca, and will therefore see its vay clear both to the negotiation of a '0 ity guaranteeing general most-fa- vored-nation treatment and to sue- pending in the interim its manifest diserimination against American products.” Disquieting Outlook. From the New York Tribune. Soon there will not bé pedestrians enough left to give motorists a decent ever between articles imported from Cathedral Mansions—South 2900 Connecticut Avenue Northwest Corner Conn. and Cathedral A Attractive Apartments s Attentive Service amount of target practice. MONDAY, OCTOBER 93, 1927. ELECTRICAL HEADQUARTERS 14th & C STS. N.W. Commencing TOMORROW 54 i Brand New MODEL 9 List Price ACUUM CLEANER- Only $39.75 Complele set of “High- Vacuum” attachments at no extra cost Fully guaranteed Delivered and demonstrated This great offer ends Saturday, October 8 ““The producer demands, as is his ht, that account be taken of the costs whioh burden his labor and of the disad tages to which he should not be subjected. In the for- mation of a customs tariff he asks that the legislature measure exactly the differential which separates him from his foreign competitor, and that the tariff rate inscribed in the act be the representation of this differential. Your commission believed this de- mand proper, and it is upon this basis that it has tried to perform the diffi- cult work which you have intrusted to It has searched for the exact rate ich seemed indispensable for each branch of industry and agriculture to assure its existence and free develop- ment. It has considered that to give to the tariff a real value and to give courage and confidence to French pro- duction, it is important, above all, to fix the minimum rate which will be assured to them and below which in future there will be no concessions. It is upon this fundamental principle that our minimum tariff policy is based; it is this that determines its real character.’ “This theory was restated in 1906 by M. Morel, who sai 'We have been entirely guided by the fundamental rules I down by the founders 0! the customs regime of 1892. * “‘Your commlnion Bt . Tuisl tried to measure exactly the differ- ences which exist between the French producer and his foreign competitor by reason of the costs which burden his work and the disadvantages which exist through no fault of his, and it has placed in the minimum tariff the figure representing this difference.’ “It is precisely on this theory of pro- tection that the rates of duty of the Ameriean tariff law rest, and it is believed that a tariff designed for the protection of producers and the rais- ing of revenue is not open to objec- tion by other governments when it is applied equally to all. The Govern- ment of the United States would therefore not criticize non-discrimi- natory tariff rates imposed by France, since it considers that rates are a matter solely of internal policy. It feels, however, that a protest is justi- fied when these rates do not apply equally to all nations. The American Government is not now making any criticism of the mnon-discriminatory rates France has adopted, but objects only to the fact that France is dis- criminating against the trade of the United States by applying to many lents hope for.” categories of American goods rates The following is the alde-memoire|in some cases four times as high as thich the Amer an charge d'affaires | upon si r articles imported from Paris was instructed by the State' Germany and other countries compef K&iifi%&i&ifigfzgfiifigfliiiifl To a splendidly designed building such as Cathedral Mansions, SOUTH—with every comfort and facility for home- making; we have added su- perior service. On the other hand, the French vernment is of the opinion that th prohibitive regime resuiting for cer- tain French products from the par ticularly high tariffs which the United States has in force at present and the moderate rates of the French mini mum tariff, which offers to American exporters generous possibilities on the French market, cannot be considered s equivalent. . “The French government cannot, therefore, consider that Article the preliminary draft presented American embassy, under date of Beptember 12, constitutes a favorable | it basis for the negotiations which it is disposed to_undertake. It would like to receive the assurance of the Amer- lcan Government that it agrees to consider that the negotiations which are about to be undertaken must, on the one hand, guarantee to America & treatment of more complete equal- Ity with its most favored campetitors bn the French market under the re- gime of granting the minimum tariff to the principal exported products, and, on the other hand, guarantee to French exports advantages of the rme nature on the American mar- et, not only by the application with- ut discrimination of the tariff of the Jnited States but also, should there occasion, by such reductions or daptations of this tariff as might Appear necessary to permit the sale pf certain specific French goods on the American market. “If the French government were to feceive this preliminary assurance, Which appear to it to be the indis- nsable starting point for the elabo- tion of a treaty consistent with dquity and the interests of the two sountries, it would be disposed, in prder to facilitate the negotiations and o permit of their development in an Ltmosphere of active cordiality, to en- t immediately a decree diminishing y 50 per cent the surplus rates insti- ted by the decree of August 30 for e benefit of products originating in d coming from the United States which, not being covered by the ftatute of 1910, find themselves at resent subjécted to the maximum of the said tariffs. “This highly conclliatory measure fould take place immediately after an ghlnge of letters specifying the ob- The Bank that makes you a Loan with a Smile. 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