CONGRESS BLAST

Gisborne Herald, Volume LXXIV, Issue 22338, 24 May 1947, Page 5

CONGRESS BLAST

U.S. DELEGATION TRADE BARGAINING WOOL LEVY DEFENDED '(10 a.m.) WASHINGTON. May 23. The House of Representatives' debate on the controversial Wool Bill yesterday mushroomed into a broadside attack by leading Republicans against the concessions reported to have been made or contemplated by the American delegation at the .Geneva trade conference. Even before the debate opened, Mr. Knutson (Republican, Minnesota), chairman of the powerful House of Representatives Ways and Means Committee which has jurisdiction over the tarn: legislation, stated that Congressional confidence in the American delegation headed by the Under-Secretary of State, Mr. William Clayton, was “wearing.” He announced the designation of a five-man committee to "air thoroughly" the decisions thus far reached at Geneva. Would Never Be Permitted Mr Knutson specifically alleged that Mr. Clayton, who recently returned from Geneva, it is believed, is in a state of alarm over the pending wool legislation, was prepared to sacrifice the entire American wool industry “as a very definite and clear-cut concession for the price of shipping a few automobiles to Australia. Mr. Knutson expressed the opinion that Congress would never permit any such step. In this opinion, he was supported by the House leader, Mr. Charles Halleck (Republican, Indiana), who asserted it was “unthinkable.” Mr. Knutson said: “All the Geneva congress should be on notice that this Congress is in no mood to destroy one domestic industry so that another might ship surpluses abroad. Countries contemplating trade agreements with the United States should know that this Congress will not hesitate quickly to repair any damage to vital domestic industries resulting from the overenthusiasm of our negotiators.” Beginning of Open Warfare Reuter’s correspondent in Washington said that today’s proceedings marked the beginning of open warfare between the Truman Administration and Congress on the tariff issue with the fate of the current international trade conference possibly depending on its outcome. Mr.' Knutson's utterance was a vital no-confidence statement on Mr. Clayton’s work at Geneva. The bill before the House empowers the President to impose a 50 per cent ad valorem import fee on foreign wool if it should undersell domestic wool. Such a fee would be additional to the existing duty of 34 cents per lb. The deadlock between Australia and America has affected the entire range of the British Commonwealth negotiations, says the« Daily Telegraph’s correspondent in Geneva. New Zealand and South Africa, as secondary suppliers of wool, are just as interested as Australia in securing a reduction of the American .wool tariff. ' Moreover, part of America’s “request” to the United Kingdom was for a substantial reduction or elimination of preferences on such exports to the'United Kingdom in competition with the United States. Australia will not agree to give up or reduce preferential advantages unless she secures substantial compensatory advantages on the American market. The position would be eased if, as negotiations proceed on the wide range of Items in which Australia is interested as a secondary supplier, Australia is •granted concessions in the bilateral discussions the United States'is conducting with countries classed as principal suppliers.