White House Press Release, Message from President Harry S. Truman to the United States Congress

HOLD FOR RELEASE HOLD FOR RELEASE HOLD FOR RELEASE MARCH 1, 1948 CONFIDENTITI To be held in STRICT CONFIDENCE and no portion, synopsis or intimation to be given out or published until the READING of the President's Message has begun in either the Senate or House of Representa- tives. Extreme care must therefore be exercised to avoid premature publication. CHARLES G. ROSS Secretary to the President TO THE CONGRESS OF THE UNITED STATES: I recommend that the Congress extend the Reciprocal Trade Agree- ments Act in its present form for three years, until June 12, 1951. This Act authorizes the President, under well-defined procedures and limitations, to conclude agreements with other countries for the reciprocal reduction of tariffs and other obstacles to international trade. For fourteen years the Reciprocal Trade Agreements Act has been an essential element of United States foreign policy. It was first enacted in 1934, and has been extended by the Congress four times, on each occasion after thorough study of its operation and results. It is well known to the American people and has drawn their constant and increasing support, regardless of party affiliation. The basic reason for this constant popular support and repeated Congressional approval is that the Act has provided a sound method for increasing world trade through progressive lowering of trade barriers, to NARA the benefit of living standards both here and abroad. The importance of the Act is greater today than it has ever been. Together with other nations we are engaged in a mighty endeavor to build a prosperous and peaceful world. The financial assistance we have already contributed, and the further aid we shall give to nations in Europe and elsewhere, constitute a tremendous investment toward world economic recovery. The Reciprocal Trade Agreements Act, by stimulating an increasing flow of trade between nations, will contribute strongly to the achievement of this objective. Its extension is essential if we are to complete the work we have begun. The trade-agreements program contributes not only to the restora- tion of a prosperous world economy; it also contributes directly to the welfare and prosperity of the people of the United States. Our people need to import many commodities from abroad; we need equally to export many of our products. Both needs are served by agreements which reduce or eliminate obstacles to commerce between the United States and other countries. These agreements recognize the fundamental fact that trade is a two-way business, and that our foreign commerce depends upon a balanced relationship between imports and exports. Foreign countries must be able to sell to us if they are to have the dollars to pay for our exports and to repay our loans. Adequate markets for our agricultural and industrial producers depend upon the lowering of trade barriers by other countries. Imports of goods needed in this country improve the standard of living of our people as consumers at the same time that they make possible the maintenance of markets for our people as producers. Currently, we are exporting far more than we are importing. But this is a temporary condition made necessary by considerations of overriding importance. The trade-agreement's program is a sound method for achieving a more balanced relationship in the future within the broader framework of the expanding world trade SO necessary to economic reconstruction. In addition, by contributing to the lowering of trade barriers the United States can support the expansion of private trading as distinct from government trading. The existence of trade restrictions is too often accompanied by government participation in trading operations -- extending even to trading by government agencies. 3 preservation of our private (OVER)