Tariff Armistice

FRANCE

Tariff Armistice

The Franco-U.S. tariff dispute (TIME, Sept. 19 et seq.) came to a definite if temporary head last week when Premier Raymond Poincare, functioning as Minister of Finance, caused a note to be written to Washington expressing France's willingness to revert to the status quo ante for U. S. imports pending the negotiation of a new commercial treaty.

This means that U. S. goods will be admitted to France on the terms that they enjoyed prior to Sept. 6 when the new French tariff law went into effect.

The note made it clear that France would and does insist that the most-favored-nation treatment can be accorded to the U. S. only if the U. S. is willing to give reciprocal treatment to France.

There the matter rests until the negotiators for the two countries meet, probably in Washington some time soon, to work out a compromise, which is the most that can be hoped for, between reciprocal and nonreciprocal commercial treaties.

Meantime, however, it remains to be noted that M. Poincare has at least succeeded in obtaining the sanction of the Washington Government to the refunding of French obligations in the U. S. with 6% instead of 8% securities, thus effecting a great saving to the French taxpayer.

Also, a pertinent question arises as to whether M. Poincare's stand on the tariff is not derived from a desire to bargain for a safeguard clause* in the debt disaccord with the U. S., which the French Parliament refuses to ratify.

*Payment to the U. S. to stop if Germany fails to pay reparations.