Show NOTES REVEAL I STEPS T TAKEN A KEN IN PARLEY ON ONI I TARIFF ISSUE I French Guns Trained on American Import Duties PROGRESS OGRESS P IS MADE J Washington i Vas Rebuked in Latest Communication tion lou on Dispute WASHINGTON Oct 3 By By The Associated Press While the most recent French tariff note Is 13 viewed by administration officials as concilia- concilia con y tp and perhaps pe opening o the way to settlement of the present pr ent dispute text of tile the first two notes exchanged shows that the French guns have been trained directly on American tariff rates from the time the Franco Ger man commercial treaty was signed These notes were made public sim aim simultaneously simultaneously today In Washington and Paris to be followed later by the cur cur- current current rent chapter of the interchange the French note received Saturday The American reply is now being formu formu- formulated and is expected to go So forward late this week WAY VAY TO PROCEED The new French note cites the equalization provisions of the Ameri Amen American American can tariff act section as authority under which treaty negotiations might proceed That section authorizes ad adjustment ad- ad adJustment of rates up or down to allow for tor any difference In American and foreign production costs of the articles Involved in order to remove remo the Uie dif dl- difference dif dif- difference ference when the articles are placed In competition here with American products The Washington government is pre pre- prepared prepared prepared pared to assure France that it will make full fuU use cf this section in deal- deal dealing dealIng ing ng with tariff rates rat against which that country may complain but It will wm noi no bind itself to reduce those rates Any change In rate will be based on study of production costs and it will go up or dovas as that study indicates Officials are in some doubt as to whether the French authorities real- real realIze Ize isa ze that In many previous cases such studies have brought tariff increases WIDE DEPARTURE DEl In any event examination of the first French note shows the new sug sug- suggestion suggestion is 15 a wide departure from the original treaty to include if necessary necessary necessary sary such reductions or adaptations of the American tariff as would permit certain unnamed French goods to a enter the American market In reply the state department implied surprise that the French government did not know that the American tar- tar It ff law dc s not envisage the con con- conclusion elusion of a treaty of reciprocity in regard to rates o o duty While the French tariff system called a a. three column system the maximum of which is now applied to American goods Involved in the dis dis- dispute dispute dis- dis pub for the specific purpose of treaty bargaining on rates the American note said American laws embody no such margin for bargaining and the proposal for central most-favored most na- na nation nation tion lon relations was reiterated as thi th best cst way of solving the problem SCHEDULES ATTACKED CRED In attacking the American Am tariff schedules the French note character- character characterIzed zed them as setting up a prohibitive regime against certain French goods to which the Washington government answered that tariff rates were a mat mat- matter matten ter ten solely of internal policy and not involved in the dispute with France rance which was c dined strictly to French tariff discriminations now in force against American products WASHINGTON REBUKED The latest and as yet unpublished French note rebukes the Washington government for a a. threatening refer refer- reference reference ence once to the penalty section of the American tariff law That remark was prompted presumably by the statement In the American note calling attention to section as authorizing counter discrimination but asserting that Washington is very loathe to tomake tomake tomake make such duty increases despite the fact that France clearly Is at the present time practicing serious dis- dis crimi and has refrained from d ing ng so In the he hope that negotiation of a most favored nation treaty and ad interim suspension sll of the French discriminatory dl rates rales will settle the Uie controversy without that recourse |