of Appeals for the District of Columbia Circuit in the manner prescribed in chapter 158 of title 28 of the United States Code and to the provisions of section 706 of title 5 and section 2112 of title 28 of the United States Code.

"(c) Whenever the Commission has reason to believe or suspect from information presented to it that the purchase price is less, or that the exporter's sales price is less or likely to be less, than the foreign market value (or, in the absence of such value, than the constructed value), it shall forthwith publish notice of that fact in the Federal Register and shall direct the withholding of appraisement reports as to such merchandise entered, or withdrawn from warehouse, for consumption not more than one hundred and twenty days before the question of dumping has been raised by or presented to it, until the further order of the Commission, or until the Commission has completed its investigation in regard to such merchandise.

"(d) Whenever the Commission determines that the continued imposition of a special dumping duty imposed under this section on any class or kind of foreign merchandise is unnecessary, it shall issue an order cancelling such duty.” (b) Section 202 (a) of such Act (19 U.S.C. § 161) is amended to read as follows:

"(a) Upon information of the issuance of an order by the Commission providing for the imposition of a special dumping duty, and prior to information of the issuance of an order by the Commission providing for the cancellation of such duty, the Secretary of the Treasury (hereinafter referred to as the 'Secretary') shall, through the proper officers, impose the special dumping duty on all imported merchandise, whether dutiable or free of duty, of a class or kind prescribed in the Commission's order, entered, or withdrawn from warehouse, for consumption, not more than one hundred and twenty days before the question of dumping was raised by or presented to the Commission, and as to which no appraisement report has been made before such order was issued."

(c) The first sentence of sections 208 and 209 of such Act are each amended— (1) by striking out "as to which the Secretary has made public a finding as provided in section 201" and inserting in lieu thereof "as to which the Commission has issued an order under section 201"; and

(2) by striking out "such finding has been made public" and inserting in lieu thereof "such order was issued".

(d) Section 407 of the Act of May 27, 1921 (42 Stat. 18) is amended by striking out "for the enforcement of this Act" and inserting in lieu thereof "to carry out his functions and duties under this Act."

Sec. 2. Section 303 of the Tariff Act of 1930 (19 U.S.C. § 1303) is amended to read as follows:

"Sec. 303. Countervailing duties

"Whenever any country, dependency, colony, province, or other political subdivision of government, person, partnership, association, cartel, or corporation shall pay or bestow directly or indirectly, any bounty or grant upon the manufacture or production or export of any article or merchandise manufactured or produced in such country, dependency, colony, province, or other political subdivision of government, and such article or merchandise is dutiable under the provisions of this Act, then upon the importation of any such article or merchandise into the United States, whether the same shall be imported directly from the country of production or otherwise, and whether such article or merchandise is imported in the same condition as when exported from the country of production or has been changed in condition by remanufacture or otherwise, there shall be levied and paid, in all such cases, in addition to the duties otherwise imposed by this Act, an additional duty equal to the net amount of such bounty or grant, however the same be paid or bestowed. The United States Tariff Commission is hereby authorized to investigate on complaint or upon its initiative and, within 120 days after the commencement of an investigation, to issue orders to effectuate the provisions of this section. Whenever the Commission determines that the continued imposition of an additional duty imposed under this section on any article or merchandise is unnecessary, it shall issue an order cancelling such duty. Orders under this section shall be made on the record after opportunity for a Tarff Commission hearing. Upon information of the issuance of an order by the Tariff Commission providing for the imposition of an additional duty under this section, and prior to information of the issuance of an order by the Commission providing for the cancellation of such duty, the Secretary

of the Treasury shall, through the proper officers, impose the additional duty prescribed therein. Tariff Commission proceedings and actions under this section shall be in accordance with the provisions of subchapter II of chapter 5 of title 5 of the United States Code, and any final order entered in any such proceeding shall be subject to judicial review in the United States Court of Appeals for the District of Columbia Circuit in the manner prescribed in chapter 158 of title 28 of the United States Code and to the provisions of section 706 of title 5 and section 2112 of title 28 of the United States Code."

Sec. 3. (a) Section 337 of the Tariff Act of 1930 (19 U.S.C. §1337) is amended to read as follows:

"Sec. 337. Unfair practices in import trade

"(a) UNFAIR METHODS OF COMPETITION DECLARED UNLAWFUL.-Unfair methods of competition and unfair acts in the importation of articles into the United States, or in their sale by the owner, importer, consignee, or agent of either, the effect or tendency of which is to destroy or substantially injure an industry, efficiently and economically operated in the United States, or to prevent the establishment of such an industry, or to restrain or monopolize trade and commerce in the United States, are hereby declared unlawful, and when found by the Commission to exist shall be dealt with, in addition to any other provisions of law, as hereinafter provided.

"(b) INVESTIGATIONS OF VIOLATIONS BY COMMISSION.-The Commission is hereby authorized to investigate any alleged violation under this section on complaint under oath or upon its initiative.

"(c) EXCLUSION OF ARTICLES FROM ENTRY.-Whenever the existence of any such unfair method or act shall be established the Commission shall, within 120 days after the commencement of an investigation, direct that the articles concerned in such unfair methods or acts, imported by any person violating the provisions of this Act, shall be excluded from entry into the United States, and upon information of such action by the Commission, the Secretary of the Treasury shall, through the proper officers, refuse such entry.

"(d) ENTRY UNDER BOND.-Whenever the Commission has reason to believe that any article is offered or sought to be offered for entry into the United States in violation of this section but has not information sufficient to satisfy itself thereof, the Secretary of the Treasury shall, upon its request in writing, forbid entry thereof until the Commission's investigation shall be completed; except that such articles shall be entitled to entry under bond prescribed by the Secretary of the Treasury.

"(e) CONTINUANCE OF EXCLUSION.-Any refusal of entry under this section shall continue in effect until the Commission shall find and instruct the Secretary of the Treasury that the conditions which led to such refusal of entry no longer exist.

"(f) ADMINISTRATIVE PROCEDURE AND JUDICIAL REVIEW.-Commission proceedings and actions under this section shall be in accordance with the provisions of subchapter II of chapter 5 of title 5 of the United States Code. Any final order entered in any such proceeding shall be made on the record after opportunity for a Commission hearing and shall be subject to judicial review in the United States Court of Appeals for the District of Columbia Circuit in the manner prescribed in chapter 158 of title 28 of the United States Code and to the provisions of section 706 of title 5 and section 2112 of title 28 of the United States Code.

"(g) UNITED STATES DEFINED.-As used in this section and section 338, the term 'United States' means the several States, the District of Columbia, and Puerto Rico."

(b) Section 1543 of title 28, United States Code, is repealed.

Sec. 4. (a) Section 301 (d) of the Trade Expansion Act of 1962 (19 U.S.C. § 1901) is amended to read as follows:

"(d) Any investigation under subsection (b) or (c) of this section shall be in accordance with the provisions of subchapter II of chapter 5 of title 5 of the United States Code. The final determination of the Tariff Commission entered in any such investigation shall be made on the record after opportunity for a hearing and shall be subject to judicial review in the United States Court of Appeals for the District of Columbia Circuit in the manner prescribed in chapter 158 of title 28 of the United States Code and to the provisions of section 706 of title 5 and section 2112 of title 28 of the United States Code."

(b) (1) Section 302 (a) of such Act is amended to read as follows:

"(a) Within sixty days after receiving a report from the Tariff Commission containing an affirmative finding under section 301 (b) with respect to any industry, the President

"(1) shall provide tariff adjustment for such industry pursuant to section 351; and

"(2) may provide

"(A) that firms of such industry may request certification by the Secretary of Commerce for eligibility to apply for adjustment assistance under chapter 2;

"(B) that the workers of such industry may request certification by the Secretary of Labor for eligibility to apply for adjustment assistance under Chapter 3; or

"(C) for the application of both subparagraphs (A) and (B).” (2) Section 302(c) of such Act is amended by―

(A) striking out "After" and inserting in lieu thereof "Within sixty days after"; and

(B) striking out "the President may” and inserting in lieu thereof “the President shall".

(c) Section 351 (a) of such Act (19 U.S.C. § 1981) is amended to read as follows:

"(a) Within 30 days after receiving an affirmative finding of the Tariff Commission under section 301(b) with respect to an industry, the President shall proclaim the increase in, or the imposition of, the duty or other import restriction on the article causing or threating to cause serious injury to such industry which the Tariff Commission has found under section 301 (e) is necessary to prevent or remedy such injury."

(d) Section 352 of such Act (19 U.S.C. § 1982) is repealed.

Sec. 5. Section 330 of the Tariff Act of 1930 (19 U.S.C. § 1330) is amended by— (1) adding at the end of subsection (b) the following: "Upon the expiration of his term of office a commissioner shall continue to serve until his successor has been appointed and has qualified.";

(2) striking out "Whenever" in paragraph (1) of subsection (d) and inserting in lieu thereof "Except as provided in paragraph (3), whenever"; and

(3) adding at the end of subsection (d) the following new paragraph: "(3) For the purposes of determining

"(A) whether a special dumping duty should be imposed under section 201 of the Antidumping Act, 1921;

"(B) whether an additional duty should be imposed under section 303 of this Act;

"(C) whether there exist unfair methods of competition and unfair acts in the importation of articles, and whether such articles should be excluded from entry, under section 337 of this Act; or

"(D) whether there is injury or threat of injury from the increased importation of an article under section 301 of the Trade Expansion Act of 1962;

if the commissioners voting are evenly divided on such determination, the determination shall be considered as having been decided in the affirmative." Secs. 6. (a) Except as provided in subsection (b), the amendments made by this Act shall

(1) take effect on the 90th day after the date of the enactment of this Act; and

(2) shall apply to any proceedings of the Tariff Commission commenced on or after such 90th day.

Notwithstanding any other provision of law, the Tariff Commission may terminate any proceeding before it commenced before such 90th day and order such proceeding to be recommenced on or after such 90th day.

(b) For purposes of enabling the Tariff Commission to prescribe necessary rules and regulations and to enable it to prepare to exercise the functions and duties conferred on it by the amendments made by this Act, such amendments shall take effect on the date of the enactment of this Act.

The CHAIRMAN. If our colleague from the State of Virginia, the Honorable Watkins M. Abbitt, will come forward, we will be happy

to hear your statement at this time. We are glad to have you here today; please proceed as you wish.

STATEMENT OF HON. W. M. ABBITT, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF VIRGINIA

Mr. ABBITT. Mr. Chairman and members of the committee, I appreciate this opportunity to appear before you to give you my views on the bills I have introduced, together with many other Members, to limit the importation of woolen and manmade textiles as well as leather footwear.

The story is by now well known to this committee. Imports of textiles have grown greatly in recent years and are causing hardship to our domestic industry. While cotton textile imports are already limited, no limitations have been placed on manmade and woolen textiles. Imports of these items are a menace to the welfare of our manufacturers and to their workers and will work yet greater havoc if the imports are not also placed under a reasonable limitation.

What is true of textiles applies in even higher degree to leather shoe imports. These have mounted rapidly in recent years and now account for about a third of our total consumption.

I have joined in introducing the legislation designed to maintain the imports of both textiles and footwear within reasonable limits. This legislation is the same as H.R. 16920, the Mills bill. I strongly urge the favorable support of this legislation by this committee.

Mr. Chairman, I feel, as I am sure numerous other Members feel, that we owe to other industries and their workers substantially equal treatment, at least to the extent of opening the way for an administrative remedy through the Tariff Commission that will bring them relief. For this purpose I am introducing the Fair International Trade bill that has been introduced by over 70 Members, including four committee chairmen, to place a ceiling on imports if they have penetrated the market to the extent of supplying at least 10 percent of domestic consumption of particular products, and if imports have increased appreciably since 1960, as much as 50 percent or 100 percent, for example, thus demonstrating their sharp competitive advantage over domestic producers.

This legislation would permit imports to grow in proportion to the growth of domestic consumption, thus avoiding a straitjacket effect. A special feature of the bill is that import quotas would be imposed only if imports should break upward through the ceiling.

Congress would under this bill say what constitutes serious injury or a threat of serious injury, thus relieving the Tariff Commission of making the determination, other than finding and affirming the sustaining facts. We have seen a number of our industries shrink almost to the vanishing point under the escape clause. The clock and watch. industry is down to a shadow of what it was. The same is true of household sewing machines, portable typewriters, household electronic goods, our fisheries, binoculars, fine chinaware, cordage, and other items while the escape clause was on the statute books.

I have no faith in the adjustment assistance approach as a remedy because it actually represents little more than a requiem. We want our industries to live; not to be buried at Government expense.

The Fair International Trade bill would, however, not eliminate these remedies. It would add the ceiling on imports as a third option to be available to any and all industries that would seek that remedy if they qualify under the criteria spelled out in the bill.

By making this alternative remedy available I feel that we would not be discriminating in favor of the two industries, textile and footwear, as provided for in the Mills bill. The latter also has some general provisions but these would still leave the discretion, first, to the Tariff Commission and, second, to the President. We should in Congress lay down the criteria of injury so that any industry meeting these conditions would be assured of a remedy rather than depending in the end on the judgment of the Executive or especially the State Department.

Mr. Chairman, I strongly recommend this approach as the most suitable, which is to say a combination of the Mills bill and the Fair International Trade bill. Thank you.

The CHAIRMAN. Are there any questions of Mr. Abbitt? If not, we thank you for appearing before us with your testimony.

The Honorable Harold D. Donohue, our colleague from the State of Massachusetts, is the next witness before the committee today. We are pleased to have the testimony you will present to us at this time. STATEMENT OF HON. HAROLD D. DONOHUE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MASSACHUSETTS

Mr. DONOHUE. First, I would like to thank the distinguished chairman and the diligent members of this esteemed committee, on behalf of my constituents and myself, for initiating these timely hearings on the vitally important subject of urgent, sensible import quota regulation.

For many years, the United States has enjoyed a healthy international trade surplus. In the early 1960's, our exports exceeded our imports by $5 billion to $6 billion a year. But such a trade surplus is only a memory, Mr. Chairman. The figure for 1968 was less than a billion dollars, and experts agree that we will soon, if indeed we are not already, be confronting a trade deficit.

If international bankers and the balance of payments were the only concerns in this matter, important as they are, I would be inclined to view it more dispassionately. But this rising tide of imports has had and is continuing to have a severe disruptive effect on the market development of certain American industries, with inescapable and intolerable consequences for the workers employed in those industries. The secretary of commerce has estimated that, "If imports of textiles and apparel continue to grow at the present rate there could be a loss of 100,000 jobs a year in this country." The Labor Department has reported the loss, over the past 2 years, of 48,000 jobs in the manufacture of radio and TV sets and components. Similar concerns have been voiced by those in such industries as steel, chemicals, shoes, and flat glass.

Of course, Mr. Chairman, I would hope, even at this late point in time, that those abroad would take notice and heed the worsening situation in America, especially as it is being documented at these very