 It's time for the Lawn Jean Chronoscope, a television journal of the important issues of the hour, brought to you every Monday, Wednesday, and Friday. A presentation of the Lawn Jean Wittner Watch Company, maker of Lawn Jean, the world's most honored watch, and Wittner, distinguished companion to the world honored Lawn Jean. Good evening. This is Frank Knight. May I introduce our co-editors for this edition of the Lawn Jean Chronoscope? Mr. William Bradford Huey, editor of the American Mercury, and Mr. Kenneth Cramer, executive editor of Business Week Magazine. Our distinguished guest for this evening is Mr. Eugene S. Gregg of the United States Council International Chamber of Commerce. The opinions expressed are necessarily those of the speakers. Mr. Gregg, I suppose that as a member of the executive committee of the United States Council Chamber of Commerce, you are an American who's essentially interested in promoting world trade. Is that correct, sir? That is correct, because no country of the world is self-sufficient to itself, and it's only by having an expanding volume of international trade that we can hope to have the standards of living of the various peoples of the world raised. Well, our viewers have heard a number of programs relative to the difficulties that have been caused by the iron curtains being drawn in the world. Now, sir, how does the iron curtain affect our allies in Western Europe? Our allies in Western Europe traditionally got a large percentage of their grains, tempered tempered products, coal, raw materials from Eastern Europe, and in turn paid for those materials by the export to Eastern Europe of manufactured and semi-manufactured products. Now, once again, what are the products that our friends in Western Europe need most badly from behind the iron curtain? They need wheat, they need coarse grains to feed cattle, to feed poultry, they need timber, timber products, mine props, wood pulp, coal, raw materials. And are the nations of Western Europe getting some of those products now from Russia and the other nations behind the curtain? They're getting relatively small amounts today because of two factors. First, the imperial ambitions of the Communist Russians have put restrictions on what they will permit to go to Western Europe, and our own governments, including the one in ours in the United States, have also put restrictions on what can be exported behind the iron curtain. Are you concerned, aren't we, with certain things that are being sent from Western Europe to the countries behind the iron curtain at the present time? Necessarily, if any of those products will definitely help, they warrant potential of the Communists. But on the other hand, our allies in Europe are keenly interested in getting the foodstuffs and the raw materials that they so badly need. To simplify, in Europe, it's the problem of two enemies trading with one another, isn't it? That is correct. Each one's jockeying for advantage, but our allies very badly need timber and wheat and coarse grains. Now, if they don't get it from Eastern Europe, do we have to supply it? They have had to seek alternative sources, and unfortunately the sources where such materials are immediately available are nearly all dollar sources. They already have been short of dollars, and being unable to get the cheap materials from behind the iron curtain aggravates their shortage of dollars. Now, that means that if they have to get it from us, we have to give them most of the dollars to pay for it, don't we? That is what we have been doing since the war and up to this time. To illustrate, sir, a ton of coal that Italy needs, if they get it from Poland, which is behind the iron curtain, how much does Italy pay for Polish coal? About half what they would pay if the coal came from the United States. In other words, they'd pay something like $10 or $11 a ton, and from us it would be $23 or $24 a ton. So we either have to let them get the coal from Poland, or else we have to sell it to them at $24 a ton, and we have to give them a lot of the dollars. Unless we're willing to permit our allies in Western Europe to sell more goods to us in this country and earn the dollars themselves. Well, now, that's the problem. Now, are you advocating, or is your counsel advocating that that be done, that more goods be sold in the United States? We think it would be in the interests of ourselves and of our allies if our trade barriers into this country could be lowered so that Europe could earn its way rather than to have us give money to them. Well, now, can that be done without hardship to large groups of workmen and investors in this country? If our trade barriers are materially reduced unquestionably, there will be some hardship in some industries that have a vested interest in our present tariff, or in some segments of the agricultural community. On the other hand, I think we tend to lose sight of the fact that the decade in which our tariff barriers were the highest was the decade in which we had the most massive unemployment we've ever had. Is there any other thing that we can do in order to help the situation? Would it help, for example, if Americans increased their investments abroad? It would help if Americans could do that. Americans are doing it in certain parts of the world where there is a free interchangeability of exchanges. For instance, Canada, Saudi Arabia, Venezuela, even little Liberia. But those are regions that do not in particular help the problem in Western Europe. Would it help any if we had the government guarantee some of the investments that might be made in Western Europe, for example? Our government at the present time is doing a little of that, but in general, the business community with which I am familiar is not very keen about guarantees. That would then put us back into place that the primary salvation would be in getting more imports brought into this country from Western Europe. Yes, that seems to me to be the best solution of the problem. And if it is going to be difficult politically to get our trade barriers reduced, we may have to fall back on the device which is already established in some of our legislation of paying the industries or the segments of the agricultural community which are hurt by such a lowering of our barriers, a differential. We do that at the present time for building ships or operating ships. Do I understand you to say that the International Chamber of Commerce might advocate the extension of subsidy payments in this country? It is studying the problem at this time and this is one of the possible solutions in the interest of diminishing the grants and aid in large quantities that we have been giving abroad. Mr. Gregg, I believe that our viewers would like you to repeat once again those three or four nations which seem to offer the best opportunities for American investment today. Canada, where we are making huge investments in Labrador to bring out iron ore. Venezuela, where we have huge investments in oil and are now making large investments to bring out iron ore. Saudi Arabia, where we have huge investments to bring out petroleum. And Little Liberia, we are making investments there to bring out iron ore. But there are large areas in the world today that don't seem to offer much opportunity to American capital. That's correct. Now on the point of trade, is there anything that might be done or that should be done in addition to the reduction of tariffs that would result in a lowering of trade barriers? Well, we have had in this country for a number of years the so-called reciprocal trade treaty legislation which has resulted in the lowering of some of the barriers. But there will have to be a more vigorous attack on barriers than is possible under existing legislation. If Europe is given an opportunity really to earn her way in this country. Isn't there also a certain amount of red tape in connection with customs that might be eliminated that would help to promote a freer flow of trade? Yes, the trade barriers in this country are not so much the duties that are in our tariff legislation as the procedures in our tariff legislation having to do with fixing the value on which duties are to be assessed and the way in which those duties are assessed. Mr. Gregg, we've said a good deal now about the iron curtain in Western Europe. I'm sure that our viewers would appreciate your telling us a little something about the trade problem in Japan and in Asia. There is a problem in Japan that is as serious as that in Western Europe. Japan formally got practically all of her coal, iron ore, manganese, a great part of her foodstuffs from Manchuria, North China. Today Japan cannot get these materials from those sources and the problem before the Western democracies if they wish Japan to stay with them is where can Japan get these materials? Well, sir, I believe then that to simplify, this is true, isn't it? The world is simply divided into two parts and as long as those two curtains are there, we're going to have these terrible trade problems, aren't we? Oh, yes. And do you see any chance or any indication that this problem may be lessening any, that the Russians and their group may be less recalcitrant in the future? Well, I think that the pot shouldn't call the kettle black in the restrictions, but through the iron curtain, I think we have been just about as severe as the Russians have. But at any rate, our viewers can expect that this problem will remain with us for quite a while and it's going to be a very difficult one to solve. Oh, there's no question about that. Well, thank you, Mr. Gregg, very much for being with us tonight, sir. The editorial board for this edition of the Lawn Jean Chronoscope was Mr. William Bradford Huey and Mr. Kenneth Kramer. Our distinguished guest was Mr. Eugene S. Gregg of the United States Council International Chamber of Commerce. If there's one reason above all, above all others, why so many people want to buy Lawn Jean watches, that reason is confidence. William Pitt once said, confidence is a plant of slow growth. The great confidence in the Lawn Jean watches of today matured from the excellent performance of millions of Lawn Jean watches over the past 86 years. That same performance that has won for Lawn Jean watches in open competition with the world's leading watches, ten World Fair Grand Prizes, twenty-eight gold medals and countless honors for accuracy from the leading government observatories, has also won for Lawn Jean the title of the world's most honored watch. The beauty, the good taste of every Lawn Jean watch is self-evident. The years have proved that any Lawn Jean watch can be purchased with confidence, that it will deliver in full measure the greater accuracy and longer life for which Lawn Jean watches are world-honored. Lawn Jean, the world's most honored watch, premier product of the Lawn Jean Witner Watch Company since 1866, maker of watches of the highest character. We invite you to join us every Monday, Wednesday and Friday evening at this same time for the Lawn Jean Chronoscope, a television journal of the important issues of the hour, broadcast on behalf of Lawn Jean, the world's most honored watch, and Witner, distinguished companion to the world-honored Lawn Jean. This is Frank Knight reminding you that Lawn Jean and Witner watches are sold and serviced from coast to coast by more than 4,000 leading jewelers who proudly display this emblem, Agency for Lawn Jean Witner Watch. You beat the clock on the CBS television network.