The State Department at Washington announced on June 5, 1918, that it had appointed an economic representative, who was to join the American Embassy at Rome. This was regarded as the first step in a general policy of more active participation by the United States in preparations of the nations at war with Germany for the after-the-war trade struggle.
The new treaty of alliance between Germany and Austria to control all Central European sources of raw materials, and to exclude other nations from equal trade privileges, with similar restrictions imposed by the new treaties forced on Finland, Ukrainia, and Rumania, changed the attitude of the American Government, which at first had not assented to the proposals of the Paris Economic Conference to interpose artificial obstructions to free commerce with the Central Powers after the war.
The Italian Government recently named a commission to study after-the-war problems, and with this commission the American economic delegate will have close relations. Italian importing and exporting interests in the United States also have taken advantage of the opportunity afforded by the decision of the Italian Government to consider this important subject, and have joined in the dispatch of a committee to Italy to co-operate. Italian industries, though of great potential strength and capable of returning large profits on their capitalization, are said to require substantial assistance from America if they are to go on after the war without relapsing into the control of German financiers.
It is reported that economic representatives will be sent to the American Embassies in all the allied capitals.
On May 14 Mr. Bonar Law, British Chancellor of the Exchequer, announced in the House of Commons that, in order to leave its country's hands free for the time when peace arrived, the French Government had denounced all commercial conventions containing a general clause regarding "most-favored nations"; and that, in view of the probable scarcity of raw material after the war and the necessity for providing for the needs of the British Empire and the Allies, the British Government intended to adopt a similar course.
In answer to other questions, Mr. Bonar Law said that the British Government had not changed its policy expressed in the Paris resolutions since the entrance of the United States into the war; he had every reason to believe that America was very anxious for unity of economic control, and agreed that any useful action would be much more effective if taken in conjunction with our allies.
Lord Balfour of Burleigh's committee considered the question of the denunciation of commercial treaties and reported against it. The report contains a summary of the various commercial treaties which are in existence between Great Britain and other countries. Those with enemy countries have been terminated by the war. In the case of allied countries commercial treaties on the basis of reciprocal most-favored-nation treatment are in force between the United Kingdom and Italy, Portugal, Russia, the United States, Japan, Serbia, and Montenegro. There is a similar treaty with Rumania. United Kingdom goods have most-favored-nation treatment in France, owing to a legislative enactment and not by treaty right, for customs duties were excepted from the scope of the Anglo-French commercial convention of 1882.
Great Britain has commercial treaties on the most-favored-nation basis with Switzerland and Greece. In the case of the Netherlands and Denmark, the general principle of most-favored-nation treatment is subject to minor limitations. The position with regard to Sweden and Norway is doubtful; but the old treaty of 1826 with Sweden and Norway on a reciprocal most-favored-nation basis has continued in operation in practice, in spite of the dissolution of the union between Sweden and Norway in 1905.
Outside Europe, Great Britain has commercial treaties providing for reciprocal and unconditional most-favored-nation treatment with Argentina, Bolivia, Colombia, Honduras, Mexico, Nicaragua, Paraguay, and Venezuela. Those with Costa Rica and Liberia are conditional.