Tariff Reverberations

To the official protest of the U. S. government against the now tariff law (TIME, Sept. 19), the French government countered skillfully. It declined to entertain the U. S. proposal for a treaty of amity and commerce modeled on the one recently concluded with Germany (TIME, Aug. 29). In other words France refused to give the U. S. most-favored nation treatment (rates equal to the lowest accorded to any other nation) because the U. S. makes no similar concession to any country.

Instead, Finance Minister & Premier Raymond Poincare suggested that a treaty be negotiated on the principle of reciprocity, or mutual concession. Thus France would agree to admit certain U. S. imports at a lower tariff rate than prescribed in the new law if the U. S. would admit such French exports as perfumes, soaps, laces, etc., at a correspondingly lower rate.

During the period of negotiations the French also offered to admit all U. S. goods at a 50% discount. But even with the tariff thus cut in half, U. S. goods would still be at a serious disadvantage as compared to German products.

Much talk of a "tariff war" ensuing was heard. Washington prepared its reply, which was held certain to reject in toto the French proposals since the U. S. tariff law does not permit most-favored nation treatment.

However, to ease the situation, the French government advised U. S. distributors in France that the new tariff rates would not be applied to any U. S. goods shipped under bills of lading dated prior to Sept. 6, the date of which the new schedules went into effect.