Great Dream

After seven months of weary dickering, the world's great trading nations, led by the U.S., took a long step toward improving the channels of free world trade. This week the State Department published a massive (230-page) report, summarizing the results of the 23-nation Geneva conference on tariff barriers (TIME, Feb. 3).

Tariffs on thousands of products were reduced. The U.S. won cuts in 2,952 foreign tariffs. They ranged from aircraft frames (import rates reduced from 20% to 15% by Canada) to canned beans (cut 50% by the British). They included lowered rates on agricultural products, automobiles, industrial machinery, office appliances and false teeth.

The U.S. also gave as good or better than it got. Import rates now imposed by the U.S. were nailed to present levels on 20% of the nation's dutiable imports; they were cut from 25% to 50% on the rest. Some reduced duties: P: Whiskey, from $2.50 to $1.50 per proof gallon.

P: Raw wool, from 34-c- to 25.5-c- per lb. P: Tungsten ore, from 50-c- to 38-c- per lb. P: Chinaware, from 45% to 25% of the value of the decorated items; from 40% to 25% on undecorated ware.

But the Geneva conference did more than just slash tariffs. It chopped hard at the hedgerows of other national restrictions which impede trade. One basic principle adopted by the conferees was the provision that all the negotiators would benefit from, any tariff cuts granted. They also put a ceiling on such restrictive regional agreements as the British system of lower rates within the Empire.

Discriminatory taxes on exports, and taxes within any nation which discriminated against imported goods, were prohibited. So were such transportation hobbles as the Canadian law preventing trucks from carrying U.S. goods in bond across Canada.

The agreements, good for three years, will be put into effect provisionally on Jan. 1 by eight nations, including the U.S.; will become final when countries controlling 85% of the trade involved deposit their acceptances with the U.N.

These accomplishments were the nearest approach yet to the great dream of free world trade, long plugged by Cotton Millionaire Will Clayton, who resigned last month as Under Secretary of State for Economic Affairs. But despite the Geneva agreements, Will Clayton's dream was still little more than a dream.

The agreements were studded with escape clauses. If tariff cuts caused "serious injury" to U.S. domestic producers, they could be suspended or withdrawn. Any nation short of dollars could still resort to exchange controls, import quotas and other dollar-saving devices. In a world where dollars are short everywhere, that meant that tariff reductions now would probably not amount to much more than a one-way street into the U.S. for foreign exporters. If a rebellious Congress fails to renew the Trade Agreements Act next June, the other end of the road will soon be closed again.

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