New Trade Agreement M.y Encourage Sales of American Lumber in Argentina

Washington, October 21,---The recently announced trade agreement between the United States and Argentina should create new opportunities to sell more American lumber in the South American Republic, says Wilson Compton, secretary and manager of the National Lumber Manufacturers Association.

Although not all of the industry's recommendations as transmitted to the State Department by the NLMA were effected, Argentina has made important concessions encouraging importation of American lumber. Effective November 15, Argentine duties on unplaned lumber of Southern Pine, Douglas Fir, Hemlock and Spruce are reduced I5/o, and on oak,9/o.

It is further provided'that final duty reductions on these woods, ol 37/o and 24/o respectively, will be made when the total receipts by the Argentine customs from import duties, in a calendar year, exceed an amount r,vhich approximates the I93I-194O average and is about l7%% greater than 1940 receiPts.

The Argentine duty on uny'laned lumber of Ponderosa, Sugar, White Pines and Redwood is fixed against future increase. In the same tariff class as Douglas Fir and Hemlock are European Pine and European Spruce. Presumably these principal European softwoods and European oak will, after the war, receive the Argentine concessions by generalization.

For the woods on 'ivhich the duties are reduced or bound, the agreement changes the basis of Argentine duty assessment from valuation to measurement by square meters. A measurement basis for soft-woods was recommended by NLMA. Although not stated in the agreement, the Argentine tariff schedule provides a thickness base of 25 milli' meters for square meter units of lumber. A thickness tolerance permitting the under-assessment of over-thick sizes still favors overthick South American lumber against Standard-size American lumber, contrary to the NLMA recommendation.

A recommendation to the American agencies that they seek to secure equal or parity duties for all softwoods, all hardwoods, all cabinetrvoods, respectively, imported into Argentina was not effected but the final Argentine rates on American lumber under the agreement are higher than the Argentine duties on comparative South American woods:

Gold Pesos per Square Meter

Oak (Reduced) Chilean Hardwoods

November 15th .0.428

Final .0.358 Rauli -0.2912

Others{.208

Douglas Southern Fir, Spruce, Brazilian Pine Hemlock Pine (Reduced) (Reduced)

November lSth ...0.147 O.Ln 0.068

In an exchange of notes accompanying the agreement the Government of the United States agrees not to invoke the provisions of the agreement as to unconditional and unrestricted most-favored-nation treatment in respect of any tariff preferences which Argentina may accord to a contiguous country looking to the gradual and ultimate achievement cif a customs union between Argentina and any such country, provided such tariff preferences conform to the formula submitted jointly by Argentina and Brazil to, and recommended by the Inter-American Financial and Economic Advisory Committee on September 18, 1941, pursuant to a Resolution of the Seventh Conference of the American States at Montevideo in 1933. This forrnula stipulates:

1. That any such tariff preferences shall be made effective through trade agreements embodying tariff reductions or exemptions;

2. That the parties to such agreements should reserve the right to reduce or eliminate the customs duties on like products imported from other countries; and

3. That any such tariff arrangements should not be an obstacle to any broad program of economic reconstruction involving the reduction of tariffs and the scaling down or elimination of tariff and other trade preferences with a view to the fullest possible development of internaticlnal trade on a multilateral unconditional most-favored-nation basis.

The Argentine rates on Chilean woods were set in a protocol eifective in October , 1940. The Argentine rate on Brazilian Pine will be bound when Brazil ratifies a treaty ratified by Argentina in September, 1941.

By notes appended to the agreement, provision is made that special quota or exchange facilities granted by Argentina to contiguous countries shall cease at the end of the present war, except as otherwise agreed between Argentina and the United States. While temporary provision is made permitting exchange discriminations in favor of the so-called "sterling area," provision is made for the eventual equalization with the "sterling area" of exchange facilities.

Changes Announced bv Union Lumber Co.

Union Lumber Company announces that Ray Shannon, district sales manager at Los Angeles for the past several years, will be transferred to Fort Bragg November 1, where he will be production superintendent, and that Abel H. Jackson, production superintendent at Fort Bragg will take Mr. Shannon's place in the Los Angeles office as district sales manager, effective the same date.

A. W. Green, formerly district sales manager in the Chicago office, who has been ill for some time has now recovered and is connected with the sales department in the San Francisco office.

lssues New Home Plan Book

The E. M. Dernier Service Bureau of Los Angeles has just issued a new plan book entitled "Distinctive Low Cost Homes," which includes a selection of modern, inexpensive homes, each house being designed with the thought of combining beauty, economy and practicability with the greatest home value. Their planning and designing service is under the direct supervision of Wm. E. Chadwick, registered structural engineer.

Copper and Brass Controlled---Peace-Time Firms Get Big Delense Contract

San Francisco, Oct. 24-Copper and brass were put under rigid control this week, two additional industrial, chemicals were brought under price ceilings, and a major contract for war materials was placed with a peace-time industry which faced industrial dislocation, according to Washington, D. C., advices.

With great quantities of copper being diverted to national defense purposes, the Division of Priorities sets up the following controls over both domestic and imported metal and scrap:

1. Use of copper in more than 100 civilian articles is restricted to approximately 6O percent ol a l94O base period until January l,1942.

2. Use of copper in the manufacture of articles listed is prohibited after January l, 1942, except for non-decorative plating.

3. Use of copper in building construction is prohibited after November 1, 1941.

4. Use of copper in all items not listed is reduced to 70 percent of a 1940 base period.

Seven exceptions were made. These, and other details of the far-reaching action, are on file in the Field offices of the Priorities Division at San Francisco, Los Angeles, Seattle and Portland.

Acetone and normal butyl alcohol were brought under price ceilings, making a total of six price schedules issued thus far by the Office of Price Administration in the chemical field.

Faced with unemployment due to curtailment of nondefense production, three companies in the household washer and ironer industry were awarded a $12,000,000 contract for anti-aircraft gun mounts, the Contract Distribution Division of the Army advised the Office of Production l\fanagement. These companies will share the work with other members of the industry under subcontracts.

Fire Destroys Crane Creek Mill

Fire destroyed the sawmill of the Crane Creek Lumber Company at Willow Ranch, Calif., October 11. The mill, which had an annual production of 25,000,000 feet, had been closed for two days before the fire for machine overhaul and parts replacements.