GOVERNMENT: Free-Trade Victory

Free-traders won a victory last week that brought happy news to Japanese makers of stainless-steel flatware (TIME, March 3). Though the Japanese captured a big chunk of the U.S. market last year, President Eisenhower rejected a Tariff Commission recommendation for sharp duty boosts that would have raised prices of the Japanese ware in the U.S. by an average 35%, might have kept it out entirely. Instead, the President accepted Japan's promise to hold exports to the U.S. this year to the 1956 level of 5.9 million dozen pieces (v. 7.5 million dozen in 1957). But he warned that he will ask the commission to report on the Japanese performance at the end of the year.

From a big Los Angeles maker of ceramic dinnerware, also confronted by rising Japanese imports that took over a big piece of the U.S. market in 1957. came a refreshing tactic last week. Instead of protesting to the Tariff Commission. Gladding, McBean & Co. (annual sales: $35 million) made a deal with two of Japan's biggest producers—Nippon Toki and Toyo Toki—to become sole U.S. distributors of their products. Gladding. McBean will market the Japanese dishes at prices slightly below its own products.