U.S.S. HOUSTON 
7 August 1938 
STATE DEPARTMENT RADIO BULLETIN NO. 185 
WHITE HOUS 
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President in Canal Zone 
The President yesterday disembarked from the U.S.S. Houston for 
a tour of inspection by rail and motor of the Pacific and Atlantic 
defenses of the Canal Zone. He also crossed the line into the 
Republic of Panama and drove along several miles of the National 
Highway, a part of the Pan American road system. He lunched with 
Governor Ridley of the zone and sailed from Gatun Locks in the 
late afternoon heading for Old Providence Island off the coast 
of Nicaragua. At a press conference before his departure the 
President was reported to have mentioned the possibility of in- 
cluding in next years budget an item covering a contribution to 
the Republic of Panama for the improvement of its highway system 
as an added defense measure for the Canal Zone. 
STATE DEPARTMENT 
Soviet Commercial Agreement 
The Department announced this afternoon for publication in tomor- 
row morning’s newspapers that the commercial agreement between 
the United States and the Union' of Soviet Socialist Republics 
which became ef fee live August 6; 1937 had been continued in force 
for another year until August 6, 1939 by an exchange of identic 
notes at Bioscow yesterday between the American Charge B’Affiares 
and the Soviet peoples Commissar for Foreign Affairs. Under the 
terms of the renewal the Soviet Union continues its undertaking 
to increase substantially its purchases of American products. 
As in the previous agreement with reference to this undertaking 
the Soviet Government has Informed the American Government that the 
Soviet economic organizations intend to purchase during the next 
twelve months American goods to the value of at least forty million 
dollars. The United States undertakes to continue to accord to the 
commerce of the Soviet Union unconditional most favored nation 
treatment with a reserve tion in respect to coal (the Soviet Union 
agreeing to export to the United States during the next year not 
more than four hundred thousand tons of coal). 
The Department’s announcement stated that the successive commer- 
cial agreements between the United States and the Soviet Union have 
provided a basis for the successful expansion of trade be tween the 
two countries. Figures were given showing that Soviet purchases 
of American goods amounted to forty million five hundred thirteen 
thousand dollars during the 1936-37 agreement year and to fortj r 
million one hundred seventy eight thousand dollars during tho first 
nine months of the 1937-38 agreement year. The corresponding 
figures for Soviet exports to tho United States were twenty three 
million two hundred thirtjr thousand dollars and seventeen million 
five hundred sixty one thousand dollars. 
Foreign Ser v ice Changes 
The following changes have occurred in tho foreign service since 
July 2 9: Herbert S. Burslcy first secretary at Mexico City has 
been assigned to the Department; Raleigh A. Gibson now serving in 
the Department has been designated second secretary at Mexico City; 
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