"In Principle"

In the very bright lexicon of diplomacy, few phrases are more useful than "in principle." Last week after a fortnight of preliminary bickering, seven nations-- Great Britain, France, Germany, Italy, Belgium, Norway, Japan--accepted "in principle" the tariff truce proposed by President Roosevelt, and signed an agreement to that effect. Its second sentence:'

"The said Governments, being further convinced that immediate action is of great importance, themselves agree, and strongly urge all other Governments participating in the [World Economic] Conference to agree that they will not, before the 12th of June nor during the proceedings of the conference, adopt any new initiatives which might increase the many varieties of difficulties now arresting international commerce, subject to the proviso that they retain the right to withdraw from this agreement at any time after July 31, 1933, on giving one month's previous notice to the conference."

Britain signed with the understanding that none of her recent trade agreements--not only those signed three weeks ago (TIME, May 8) but those signed last week with Norway and Sweden and one still under discussion with Finland--is to be affected.

France signed with the understanding that it may place a 15% surtax on U. S. imports to counteract the fall of the dollar, may raise the surtax still higher if the dollar falls lower. To be excluded from France as an example of dumping is grain for which farmers receive guaranteed prices from a Government marketing agency.

Germany and Italy also reserved the right to fix surtaxes against a depreciated dollar. Last week Germany raised its duty on lard 50% to 75 marks per 100 kilos (220 Ib.).

The only country to accept the truce wholeheartedly was the U. S. which, making no reservation for new tariffs on processed farm goods, found itself obliged to postpone operation of its acreage leasing and domestic allotment plans for farm relief (see p. 17).

Such as it was however, the agreement was signed. As Chairman of the Economic Conference white-crested James Ramsay MacDonald sent invitations, to the other 58 nations invited to the conference to sign the tariff truce too.

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