BECAUSE of their bearing on postwar planning in the field of trade rela­

tions, the present reciprocal trade agree­ments are worth attention at this time. Their advent introduced a new phase to traditional American trade relations with other countries, and the support behind them indicates that a substantial element in the country feels that they should be retained. Equally important interests are opposed to their retention, either in the postwar period, whenever that time arrives, or now. Chemical interests have a large stake in the issue, both as to its postwar outcome and at present.

The present trade agreement law expires June 12. It will be recalled that it was extended from June 12, 1940, and if it remains in effect, this will be due to an­other extension which at this time is the subject of controversy. If it is main­tained, a dominant reason for its con­tinuance will be that at this stage of the fight no effective substitute has been offered.

The present outlook is for a protracted debate in Congress on the whole subject. In advance of a final decision it is possible only to sum up the highlights of the fight, both with reference to the present war period and speculatively, to postwar possibilities.

There is a great deal of hostility to an outright return to the old-style tariff policies, coupled with a manifest re­luctance in Congress to leave the whole matter in bureaucratic hands. There is also some feeling among the agencies concerned with tariff-making, such as the Tariff Commission, the State Depart­ment, and other bureaus and depart­ments, that overlapping is to be found. From all of these conflicting views have come the various proposals for further operation of the system of tariff-making and reciprocal trade agreements, as it is conducted under the present law. Con­gressional opponents of an extension of the law want several modifications of the present law which, if approved, probably would soften opposition con­siderably.

One proposal would be to write in a provision for Congressional veto of any trade agreement by concurrent resolution of the House and Senate, when such action appeared desirable. This follows a similar proposal made at the time the Act was extended in 1940, but such an idea failed of adoption at that time. Another propo­sition would restrict the next extension to one or perhaps two years. Should either of these suggested amendments be ap­

proved, it would go a long way toward expediting Congressional approval of the law itself.

The latter amendment particularly would appeal to the opposition, for the obvious reason that two years hence a greatly changed picture may confront the whole world, and if i t appeared expedient to go to some other form of tariff policy, or if opposing strength had gained at home meanwhile, the way would be open for making a shift.

This possibility brings up certain post­war aspects of the discussion. Whatever may be the outcome of the war, so far as retention of various territories in their prewar trade spheres is involved, a vast upset in markets and market conditions may continue into the postwar period. It is for this reason doubtless that English spokesmen are found already considering, more or less out loud, what is to happen to their general trade interests then, and they are found suggesting that their country's import and export business may be closely tied to governmental controls approximating those now found essential because of the war. The reason they appear willing to accept such controls after the war is an apparent realization that markets will be disorganized as compared to prewar, and many elements in foreign trade will be new.

Reports from abroad from time to time have indicated that English paint, varnish, chemical, and other industries have been forced to develop certain home products formerly imported. This bears on the American interest in the subject. From an English viewpoint, which is shared somewhat by American exporters, Aus­tralia, New Zealand British East India, and other overseas markets were rapidly developing home industries in chemicals, medicines, drugs, chemical industrial commodities, and other products. Prior to their seizure by the Japanese, similar developments were reported from other Far Eastern areas. Other countries, as in Canada, have acquired new industries or greatly expanded smaller ones, including chemicals and related commodities that may also throw a new light on trade pros­pects when revisions become in order at a later date.

For all of which reasons the future of foreign trade, reciprocally-governed or not, is somewhat hazy. The present status is dominated by war conditions. However, Secretary of State Hull has made something of a fetish of these re­ciprocal agreements and in this he has the implied sympathy and backing of the

President. Their general purpose is to substitute economic cooperation for pro­longed economic warfare, as they have indicated from time to time.

In this it is not possible to say that either Republicans or any other faction are the sole opposition. The President has manifested concern at the growing opposition to the general program not only among Republicans in Congress, but also among influential Democrats.

The immediate issue would affect re­ciprocal trade agreements with 27 nations; failure to renew the law would deprive the Administration of the right to modify existing agreements or make new ones.

Salvage Survey Closer home, meanwhile, the Salvage

Division of WPB, which has been con­cerned with augmenting chemical re­sources from re-used materials when practicable, is enlarging its chemical products reclamation program, which covers solvents, cleaners, cutting and lubricating oils, paints, and chemical by­products.

This branch is now engaged in a survey of salvage possibilities among some 1,000 manufacturing plants, mostly engaged in war production of all kinds. The purpose is to gage the degree of reclamation under­taken in each. Chemicals are especially adaptable to such efforts.

Many plants already have developed practical chemical salvage methods, and it is planned to pass these on to interested concerns which may not have given the matter the same care or attention. The survey will determine which plants are salvaging in excess of 5,000 gallons per year of solvents, cleaners, cutting and lubricating oils, and government-speci­fication coatings in excess of 2,000 gallons annually, and in what amounts. Where it is possible to build up this reclamation activity, the branch will endeavor to help the plant officers do so. I t is recognized that many chemicals are not susceptible of reclaiming processes, but the branch feels that much so-called "scrap" from use of paints and lacquers, or plastics, can be recovered for practical use.

564 C H E M I C A L A N D E N G i N E E R I N G N E W S

Potomac Postscripts by LYNNE M. LAMM