Haberler Favors New Trade Proposals

The tariff-reduction authority President Kennedy requested in his State of the Union message is receiving wide support among members of the Government and Economics Departments.

Gottfried Haberler, Galen L. Stone Professor of International Trade, said in an interview yesterday that the freer trade Kennedy proposed would contribute to American economic growth. American exports are primarily from high-wage industries, so freer trade would encourage a higher wage level, Haberler said.

Carl J. Friedrich, professor of Government, called Kennedy's tariff-cutting requests "a major act of statesmanship," but said it is "anyone's guess" whether Congress will give him the authority he requested over tariff rates.

Friedrich acknowledged that some elements of American economy would be temporarily disturbed, but said the economy as a whole would be strengthened in a few years.

Arthur Smithies, Nathaniel Ropes Professor of Political Economy, added another reason for low tariffs, saying that the "development of African and Latin American countries is highly dependent upon low tariffs both in Western Europe and the United States." Agreements to lower import duties with the Common Market nations would soon extend to Africa and Latin America via "our most favored nation" tariff policy.

Haberler and Friedrich both said that the present high level of unemployment and the balance of payments deficit would lessen the chances of Kennedy getting the requested legislation at the present time.

The United States entering into any degree of membership in the Common Market is "quite impossible and quite undesirable," said Friedrich. "What we need is a partnership agreement, not entrance into their very elaborate and complicated economic and political arrangements," he added.

Haberler emphasized that Kennedy has a right to expect large concessions from the Common Market. The import duties of the Common Market are generally higher than the United States' tariff rates.

Smithies noted that the 20 per cent tariff reduction agreed upon this week with the Common Market is the extent of Kennedy's tariff-cutting power under existing laws. Congress can set new limits to the President's tariff-negotiating powers by modifying the Reciprocal Trade Act which expires this year.