NAVAL MESSAGE
                       (NAVY DEPARTMENT)
 
PAGE 7
 
 
UP A BROADER DISTRIBUTION OF GOODS AND RAW MATERIALS IT WOULD
 
BE BETTER TO HEAD IN THIS DIRECTION GRADUALLY THAN TO MAKE 
 
ANY GREAT RADICAL CHANGES, THERE MUST BE A GRADUAL AND
 
ORDERLY TRANSITION BETWEEN PEACE TIME ECONOMY THROUGHOUT
 
THE WORLD. THE PRESIDENT BELIEVES IN PROMOTING THE ACCEPT-
 
ANCE OF THE MOST FAVORED NATION PRINCIPLE AS A GROUND WORK
 
FOR RECONSTRUCTING INTERNATIONAL TRADE. HE RECOGNIZES HOWEVER
 
THAT CERTAIN PRATICAL POLITICAL AND ECONOMIC CONSIDERATIONS
 
WILL REQUIRE INTERMEDIATE DEVIATIONS FROM THIS PRINCIPLE. IN
 
CONNECTION WITH THE ABSORPTION OF THE UNEMPLOYED AND ARMAMENT
 
WORKERS THE PRESIDENT SAID HOWEVER TARIFF BARRIERS MUST BE
 
CUT DOWN AND TRADE RELATIONS CONSIDERABLY IMPROVED IN EUROPE
 
BECAUSE IN ANY DISCUSSION OF RECONSTRUCTING AN ORDERLY WORLD
 
IT IS NECESSARY TO PROVIDE SOME WAY FOR GIVING EMPLOYMENT 
 
TO THE PEOPLE WHO ARE NOT BEING USED FOR ARMAMENT PROGRAMS.
 
DURING RECENT YEARS AND ESPECIALLY DURING THE LAST YEAR OR TWO