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General orders under rule VIII-Continued

Title

Reported by

Order Number and author of bill
No.

618 S. 1309, Mr. Sparkman.-- A bill to amend the Small Business Act, and for other purposes.- Nov. 8, 1963.-Mr. Sparkman, Committee on Banking and

Currency, with an amendment. (Rept. 640.)

(Minority views.) 619 S. Res. 218, Mr. Humphrey. Resolution conveying to the National Academy of Sciences and the Na- Nov. 8, 1963.-Mr. Hill, Committee on Labor and Public

tional Research Council, congratulations for its contributions to science Welfare, without amendment.
and technology.

Mr. AIKEN. The Senator from Ore- Hjelle ably and effectively sets forth his to Russia at world prices for dollars or gold, gon has made an excellent suggestion views on this wheat transaction.

or whether we want to let our allies reap sizthat the calendar be printed at this Mr. President, I ask unanimous con

able profits as the middleman. The United

States is the only nation in the world which point in the RECORD. This is my 23d sent that this editorial be printed in the

places any restriction on the sale of wheat session of the Congress. I have never RECORD as a part of my remarks.

to Russia.” known a session in which the work which Mr. President, I also ask unanimous

Russia, of course, would much prefer not has been presented to the Senate has consent to have another editorial by Mr. to have to buy U.S. wheat. It is the been kept cleaned up as promptly as John Hjelle, appearing in the November market for our wheat only because it has has been the case at the present session. 8 issue of the Bismarck Tribune and been unable to produce what it needs at As the Senator from Oregon has said, entitled "Agriculture's Budget Share”

home. It would, obviously, rather be an ex

porter than an importer. This fact in itself it is not the fault of the Senate that printed in the RECORD as a part of my

is plain proof that to sell, for dollars or gold, there are not more bills before it. I shall remarks. In this editorial Mr. Hjelle

will be to U.S. advantage. not go into that subject again today be- again illustrates his knowledge and deep

The proviso that the sale be for dollars or cause I went into it yesterday. interest and concern for agriculture,

gold, with prompt payment, is, of course, the Mr. LAUSCHE. Mr. President, will which is by far the biggest industry in crux of the proposition. In this case we hapthe Senator yield? North Dakota.

pen to be the able but not anxious seller, and Mr. AIKEN. I yield.

There being no objection, the edito Russia is the unwilling but anxious buyer, Mr. LAUSCHE. Mr. President, for rials were ordered to be printed in the

forced into this position, we are told, by

climatic conditions beyond its control. If some time I have desired to comment RECORD, as follows:

these are, indeed, the facts, it is hard to see about our majority leader. I am of the

[From the Bismarck Tribune, Nov. 7, 1963] how the sale could be anything but to the belief that if it had not been for his

RUSSIAN TRADE AND U.S. WHEAT

advantage of the United States, cold war or guidance and his fairness of treatment

The fallacy in refusing to sell American

not. of other Senators, with the controversial wheat to Soviet Russia is pointed out by bills that have been pending this year, Senator MILTON YOUNG in his current news

[From the Bismarck Tribune, Nov. 8, 1963) chaos would be dominant on the floor of letter, in which he also discusses wheat

AGRICULTURE'S BUDGET SHARE the Senate. prices and recent wheat export history.

The Department of Agriculture, which is It was only through this extraordinary Says the Senator on the question of sell one of the biggest spending units of the leadership that the vigorous crosscuring wheat to Russia:

Federal Government, is also one of those rents that were incident to those bills did However, it is interesting to note that dur

"Our trade with Russia has been limited. units most subject to criticism for its not go into violent operation, splitting ing the past 11 years we bought $92 million

spending.

But according to Senator ALLEN ELLENDER, the Senate with hatreds and animosities.

more from Russia than they bought from of Louisiana, the Democrat who heads the At least during the period that I have us. Thus they have had 92 million extra Senate Agriculture Committee, what the been in the Senate-7 years—there has dollars to help spread communism through

dollars to help spread communism through- Department spends is not out-of-line with not been a year in which so many impor- out the world. There is no magic to the spending by other branches of the Governtant and controversial bills came before Communist economic system. Their re ment. the Senate.

sources and the amount of money they can ELLENDER's thoughts along these lines are Some bills have not been passed. spend on their war machine and for other

quoted in the newsletter of the National Complaint has been made that Senators export to better their balance of payments purposes is limited. Even the gold they Association of Soil and Water Conservation

Districts. He says: have been dragging their feet. Do any

Do any with the rest of the world costs them about "The budget of the Department has inof those who complain think of the fact twice as much to mine as they can get it creased from year to year, as has the budget that probably among those bills are pro for on the world market. Russia would of every other Government agency. But it posals that ought not to be passed? have less money to spend for war purposes should be remembered that the Department Why should the presumption be in- if we trade some of our wheat for their lim still requires only 5 or 6 percent of the Feddulged in that all the bills that have been ited supply of gold or dollars.”

eral budget each year to operate all of its introduced should have been passed?

This is, or should be, fundamental even to needed and desirable programs. These pro

the most ignorant of the self-styled experts Many people throughout our country who have condemned the sale of surplus

grams include such things as meat inspec

tion, disease and pest control, research and believe that if we had passed fewer of

American wheat to Russia on grounds that to extension work, the protection of our rethe bills that have been passed, the tax sell them our wheat will aid the Red cause. sources, and many others. Its budget reppayers would generally be better off. Yet the opposition continues, to the detri

resents only about one-twelfth of what we But in any event I give credit to the Sen- ment of America's best interests.

spend each year on national defense, and ator from Montana [Mr. MANSFIELD]. The North Dakota Senator also digs into is almost exactly the yearly amount spent He has guided the Senate with extraor- another aspect of the wheat export question, for research to send a man to the moon. dinary effectiveness. A different type He writes:

"On the basis of national population, the of leadership might well lead to chaos

“Until Public Law 480 was passed in 1954 agriculture budget represents an expenditure in the Senate.

our normal yearly wheat exports were around of about $8 per person to insure the pro

300 million bushels. Since then they have duction, inspection, and marketing of the Mr. AIKEN. Mr. President, I yield

gone as high as 700 million bushels. Drought finest meats, vegetables, and other foods at the floor.

in European countries and elsewhere will in the lowest cost to the consumer of any nation

crease these exports to 800 million bushels or on earth. Also, this money helps to provide RUSSIAN TRADE AND U.S. WHEAT ports could reach 900 million bushels.

. Even without any Russian sales, ex school lunches for our children, food for our

needy, and aids in developing and maintainMr. YOUNG of North Dakota. Mr. “The truth is that if we did not sell to ing our national resources for unborn genPresident, I was greatly honored and Russia, she and her satellites would obtain erations yet to come. pleased to have the editor of the Bis- much of their wheat and flour requirements "Agriculture is a primary source of new marck Tribune, published at Bismarck, sizable amounts of our wheat--sold at bar

through the backdoor approach. In the past, wealth in our country. It is the main proN. Dak., Mr. John Hjelle, use a consider- gain prices to our allies have been trans

vider of basic raw materials which support

all segments of business and industry. Reable part of one of my recent newslet- shipped as either flour or wheat to Commu liable estimates indicate that each dollar of ters in his November 7 editorial entitled nist countries. Actually, it boils down to a wealth taken from the soil generates $7 of "Russian Trade and U.S. Wheat.” Mr. question of whether we want to sell directly income throughout the rest of our economy.

“It can easily be seen that the Department United States will have a $5 billion trade Some of your wife's clothing, and yours too, fills a very great need in our national life. surplus in 1963.

may be made of imported yarn or cloth. You Though its programs and budget have in

GOVERNOR'S CONCLUSIONS

and your kids probably use some imported creased greatly in the 100 years since it was

sporting goods. created by President Lincoln, I have little

Gov. John W. King, in a statement pre

There are few factory parking lots which regret about the money spent in this pared for this series of articles, summed up

don't contain foreign cars. And anyone from direction." the Granite State situation this way.

Detroit will recall vividly the way those im“I believe,” he said, “that the field of

ported cars forced the huge auto industry to foreign trade presents a great opportunity bring out the "compacts.” IMPACT OF WORLD TRADE ON NEW and a great challenge to New Hampshire bus So even if you work in a shoe factory or HAMPSHIRE

iness. On the one hand, we have virtually textile mill, you're benefiting from imports. Mr. MCINTYRE. Mr. President, dis- through exports. On the other hand, some untapped opportunity to expand our markets

Perhaps it's a product we don't produce cussions now in progress will result in a

at all in America. Perhaps, as has often been of our most important industries are serifoundation for the Kennedy round of ously threatened by competition from low

the case, the imported products sell for less. tariff negotiations in 1964. The United priced foreign imports."

As a consumer, you benefit in both cases.

Or, perhaps foreign competition has forced Nations will convene a world conference

King's two words~"opportunity” and the American manufacturer to increase his on trade shortly before those negotia- "challenge”-indicate the contradictions of efficiency and find other ways to lower his tions begin. Today the countries of the foreign trade. For example:

prices. Again, it's to your advantage as a European Common Market began a se

Referring to imported textiles, George A. consumer. ries of critical negotiations aimed toward Dorr, Jr., president of Dorr Woolen Co. of American manufacturers also benefit from the achievement of a common agricul- Newport, said last month: "We have an in imports. They often buy needed raw mate

tolerable situation. * * * We have impossi rials abroad, and they use much foreigntural policy. I hope that the Congress ble competition.

made machinery. will consider the means by which the

At almost the same time, David F. Put Even the textile industry, so hard pressed public shall be kept informed of decisions nam, president of Markem Machine Co. of these days, is using imported machines to made during these negotiations and the Keene, which received the E Export Award, improve efficiency, and more than half its issues they pose for us all. Senator told a reporter: "The world is our market. wool comes from overseas. HUMPHREY has proposed a Joint Com

* *
* Our target is to get 50 percent of our

BURLAP FROM INDIA mittee on Trade which could consider orders from overseas.”

A large textile firm in the southwestern many of the broad problems posed to

SENATORS PROTEST

corner of the State, Troy Mills, has carried public policy by the rapid growth in In August, New Hampshire's Senators the process even further. One of its most world trade throughout this critical

critical COTTON and MCINTYRE joined 31 colleagues profitable products is based entirely on burperiod. I should like to draw the atten- in a plea to the President to check the lap imported from India. tion of my colleagues to a thorough study avalanche of cheap (imported) shoes which Thus, competing imports may be a dagger

aimed at the heart of some of our textile of our foreign trade problems, with par- are flooding the Nation, making the future “dark indeed for this important segment of

and shoe companies, but other imports are ticular reference to my home State of our economy.”

providing substantial benefits to every New New Hampshire, written by Mr. James D.

Meantime, Donald D. Davis, treasurer of Hampshire citizen, including those in imEwing, publisher of the Keene Evening Miniature Precision Bearings, Inc., with 700 port-threatened industries. Sentinel. The issues he raises deserve employees in Keene and Lebanon, said: "The

THREE MILLION IN EXPORT JOBS our continued attention. I shall shortly success of MPB's international division has address the Senate on the particular demonstrated the desirability of developing States is the world's largest exporter.

The export picture is different. The United

We needs of our vital woolen textile indus- foreign markets. We expect continued

sell far more to other countries than we try, which I have been studying for some growth.”

buy from them-by an estimated $5 billion time. Many other matters will merit

CHICKS BUSINESS IMPROVES

this year. Roughly, we expect to export our attention, from balance of payments While poultry processors in the South have about $22 billion worth of products and to problems to proposals for expanded trade made an international issue of increased import about $17 billion worth.

tariffs on frozen chickens from the United between East and West. Mr. Ewing's

In 1960, according to official estimates, States, the same tariff increase has boosted more than 3 million American jobs were articles are thoughtful, comprehensive, sales to Europe of baby chicks and breeding supported by exports. And, suprisingly perand based on a wealth of interviews and stock for American breeders, including Hub- haps, nearly another million were supported firsthand information. I ask unani- bard Farms in Walpole.

by imports. That would mean a total of mous consent that the four articles be

Governor King has supported efforts to about 4 million jobs dependent on foreign printed in the RECORD.

halt the flow of shoe and textile imports; he trade. Today the figure is undoubtedly highThere being no objection, the articles has also just appointed a State Council on er, as both our imports and our exports have were ordered to be printed in the REC- Foreign Trade to help promote the export of increased. Granite State products.

There are no reliable figures on the numORD, as follows:

In short, much is heard-understand ber of jobs which have been lost or are di[From the Keene (N.H.) Evening Sentinel,

ably—about the import threat to New rectly threatened by imports. But there's Nov. 5, 1963)

Hampshire jobs, but very little is heard no doubt whatever that the number is far IN LONG RUN EVEN TEXTILE AND SHOE FIRMS about the jobs which depend, directly or smaller than those dependent on exports. BENEFIT BY FOREIGN TRADE indirectly, on the export sales.

Figures for New Hampshire are sketchy. While two of New Hampshire's largest in No nation on earth is completely self

It's no secret that a good many thousands dustries plead for curbs on competing im sufficient. All must buy from other nations

of jobs are in the shoe and textile indusports a special E Award flag flies over a and sell to them. And no nation these days tries, some of which are threatened by imKeene plant with 300 employees, presented can have it all one way: if it wants to sell ports. in behalf of the President for outstanding to others, it must buy from others.

But no figures are available on the numcontribution to the Nation's export expan The United States must import huge ber of jobs which depend on exports. John sion program.

quantities of vital minerals—tin, zinc, alu. F. Rowe, Commissioner of Resources and Here is the paradox of foreign trade as it minum ore and nickel. Without these im Economic Development, has estimated the affects the economy of the State: Jobs and ports our economy would be close to col State's industries are directly exporting nearprofits threatened by imports; jobs and prof- lapse.

ly $75 million worth of goods a year. But its created by exports. And always there

no one knows how many more millions of

SOME JOBS DEPEND ON EXPORTS is the knowledge that to sell abroad a Nation

sales are indirectly related to exports. must buy abroad.

Though it may sound strange to a New

A machine tool, for example, may be The State's textile and shoe industries are Hampshire shoe or textile worker, whose very shipped to Detroit to help make cars, and being hurt by imports. There have been job may be threatened by imports, the truth Detroit exports millions of dollars worth of layoffs; there is talk of mill closings. Al is that far more Americans benefit from im

vehicles every year. A component for a guidmost without exception imports are blamed.

ports than are hurt by them. Moreover, ed missile, a plane, a typewriter, or a speIt's not surprising, therefore, that foreign many more Americans hold jobs which de

cial machine may be made in New Hampshire, trade has become virtually a dirty word in pend on exports than are seriously threat

shipped to another State for assembly, and parts of the State. ened by imports.

the end product may land in Germany or But to focus on the undeniably serious

Three out of every four newspapers are Japan. No one knows how many New Hampproblems of these two industries is to dis- printed on imported paper. The coffee you shire jobs or how many dollars are thus intort the trade picture as a whole. Even drink in the morning is imported; so is the volved in foreign trade. But the figures from the point of view of New Hampshire's tea, if you prefer that. Half the sugar you would be impressive. economy, there is a bright side to the story. put into your cup is imported.

Governor King's statement said this about For the Nation as a whole, it's brighter Many of the appliances in your house exports from New Hampshire: “There is opstill. The latest estimates are that the probably contain components made abroad. portunity of almost unlimited scope in the

export field. There is almost nothing pro- mill's market to make it impossible to op Homestead and Dorr stuck with woven duced here in New Hampshire which does erate it profitably.

fabrics. not have a potential market abroad.”

Since World War II there has been a spec But they have aggressively sought out But there's a hooker. If we expect to sell tacular nationwide decline in employment products which a New Hampshire mill could abroad, we have to import from abroad. and in the number of mills in the woolen produce and still compete. They have em

It's going to be a little hard to tell the and worsted industry. But imports haven't phasized fabrics in which design and styling Italians, for example, that we want them been the only—or even the most important, gave them an edge over the domestic giants to buy plenty of goods in the United States cause. Indeed, the worst shakeout occurred and the foreign producers. but we don't want them to sell their shoes prior to 1958, when imports were not nearly They sell hard; they take advantage of the and textiles here. so great as today.

best machinery they can obtain. They try to Those two products, which are now hurt

In addition to competition from imports, stay one jump ahead of the competition. ing two important New Hampshire indus the industry has had to do battle with other But the managements of these and other tries, account for about 25 percent of Italy's materials, especially synthetics, and other

Granite State woolen companies are deeply total sales to the United States. manufacturing processes.

concerned about the rising volume of imAnd if Italy can't sell her products here, increasing competition from the giants of

Even 10 years ago, for example faced ever

ported fabrics. she won't have the money to buy from us,

Dorr, as chairman of the Northern Textile and that would hurt a good many other ting bigger. They have the resources to the industry-and the giants have been get

Association, has assumed a leading role in American businesses.

the woolen industry's battle to curtail imshift product lines more easily, bring more

ports. Paradoxically, he believes in free trade weight to bear in marketing and spend more

and opposes Government interference in [From the Keene (N.H.) Evening Citizen, money for research and development.

business, as do many other woolen men. But Nov. 6, 1963) Finally, mills have closed and jobs have

he argues that unless some sort of restricdisappeared simply because domestic and STATE'S TEXTILE MEN FIGHTING IMPORTS, ARE

tions are placed on imports (by agreement foreign competition has forced a stepup in

if possible, unilaterally if not), the casualty ADOPTING NEW PRODUCTION METHODS efficiency. New methods and new machin

list in the industry will get pretty long. If In mid-August a petition was sent to the ery-much of it imported—have meant in

it does, New Hampshire won't escape unWhite House, signed by more than 1,000 creased productivity per worker. In fact,

scathed. people from the Enfield area of New Hamp- productivity has nearly doubled in the in

So he has joined the effort to pressure shire. It "earnestly" asked the President dustry since 1947.

the Kennedy administration to seek a worldto take immediate action to limit imported For these reasons, although industry em

wide agreement for what are called "orderly woolen fabrics.

ployment and number of mills in operation marketing” arrangements. In reality this is The State's woolen industry "is threatened declined, total production actually increased

a quota system, limiting imports into counwith destruction by foreign competition,” and so did the total amount of woolens sold

tries which cannot absorb them without seriGov. John W. King said in a statement pre in this country-up 27 percent from 1958 to

ously damaging domestic producers. pared for this series of articles. 1962.

Although this is the very opposite of free A special subcommittee of the U.S. Senate,

But here's where the rub of imports was

trade, since it would curtail it instead of of which Senator NORRIS COTTON is a member, felt. A large shore of the increased market

freeing it, such an agreement is already in called upon the President in June to take was captured by imports, which zoomed

effect for the cotton industry. unilateral action, if necessary, to check “the nearly 150 percent in the same period, and are still increasing. Today imports claim

The woolen industry says it wants the unrestrained flood of imports."

same treatment. So does the shoe industry. Representative JAMES C. CLEVELAND of the nearly 25 percent of the U.S. market.

And there are other industries, including State's Second District has charged the Ken

The major reason for the spectacular rise

even the giant steel industry, waiting to see nedy administration with "callous disregard in woolen and worsted imports is a simple

how woolens make out. for the plight of hardworking citizens" in one: price. Most of our toughest foreign

Unlike any of the others, the woolen inthe industry competitors not only have highly efficient

dustry holds a sort of IOU from the adMeantime, similar pleas are being made machinery, but their wage rates are far, far

ministration. lower than ours. in behalf of the shoe industry, the State's

The President himself and

various other administration officials have largest employer.

Even after paying transportation, tariffs and other costs, they can undersell U.S.

virtually promised to do for woolens what Like the textile industry, it is calling for

Under the cir

they did for cotton. quotas on imports by agreement with other producers on many items. countries if possible; by U.S. action alone cumstances, it's a tribute to American com

At the moment, however, they seem to be if necessary. panies that the situation isn't far worse

doing their best to forget their earlier statethan it is.

ments. Though no one within the adminisCiting a 600-percent rise in imports and a 38-percent drop in exports since 1955, a

How are they competing? By taking a

tration will say so for publication, in off

the-record conversation they indicate why group of Senators from shoe-manufacturing variety of steps to offset the low-wage ad

they are unenthusiastic. States, including Senators COTTON and Mc

vantage of foreign producers. They have inINTYRE of New Hampshire, issued a demand have adopted more aggressive selling and vested boldly in better equipment. They

First, they argue that the whole concept of

international quotas is contrary to the policy for quotas last summer.

of free trade which every administration "If this situation continues—and there is marketing methods. They have sought maximum efficiency. They have emphasized bet

since Franklin Roosevelt has supported and nothing to indicate that it will change," the statement said, “it is easy to see that the product lines, and some have diversified by ter design and styling. They have shifted

which they (along with many businessmen)

believe is the key to future growth of the future is indeed dark for this important manufacturing entirely new items only re

American economy. segment of our economy and the thousands motely related to wool.

Second, they say that if woolens get such of workers it employs."

treatment, shoes will demand the same, and COTTON and MCINTYRE said New Hamp- ahead some years ago and saw not only

Troy Mills, Inc. of Troy, N.H., looked

others will be standing in line at the door. shire's shoe industry, which has 18,000 emrugged domestic competition but also im

Where, they ask, would this process stop? ployees, "must be protected from the ava

And if it didn't stop, we would soon have a lanche of cheap shoes which are flooding the

port pressure. So it embarked on a program
of diversification which required heavy fi-

shrinking instead of an expanding economy. Nation." nancial outlays, plus courage and imagina

Administration officials seem convinced But serious though the situation is for tion.

that, at least for the present, steps to restrict the shoe industry, it's worse for textiles.

woolen imports would be more dangerous

Today, Troy's woven product lines are Shoe imports amounted to about 9 percent radically different from those of even 10

to the economy as a whole than continued or of American production on 1962. Imports years ago. Perhaps more significant, it is

even increased imports. of woolen textiles last year equalled nearly also turning out things like industrial filters,

For New Hampshire and other States which 22 percent of domestic production. automobile trunk linings and plastic auto

rely heavily on the woolen industry this From the statements quoted, and others mobile seat covering. In a woolen mill such

means a rough road ahead; perhaps some mill like them issued frequently in recent months, products were unheard of a few years ago.

closings. the conclusion might be reached that New This kind of vision has paid off; it may

But significantly, most New Hampshire Hampshire's woolen and worsted industry, even have saved the company and the town

woolen men aren't rolling over and playing which employs some 10,000 people, was at which depends upon it. For, in a declining

dead. The instinct for survival is powerful. death's door-and that imports alone had industry, Troy Mills' employment is close

And behind them they have the rugged exput it there. to what is was a decade ago, although it has

periences of the postwar, industrywide crises The industry does have plenty of trouble, been forced to make some layoffs recently.

which they weathered successfully. but it is not all due to imports, although Two other examples: Homestead Woolen

One of them, Saul Greenspan of ManchesGeorge A. Dorr, Jr., president of Dorr Woolen Co. in West Swanzey and Dorr Woolen Co. in

ter's large Waumbec Mills, was quoted in late Co. in Newport, said imports could be “the Newport have also adjusted to the new

August as saying: straw that breaks the camel's back” for some

realities of the industry. Again it has been “The survivors are mainly the strong firms mills.

a case of courage, capital and ingenuity. which have kept up with the times. They By this he meant that competing imports Where Troy Mills shifted much of its pro should be able to make good progress in the could take just enough of a New Hampshire duction to entirely new types of products, future.”

[From the Keene (N.H.) Evening Citizen, of the market our southern processors es Some New Hampshire manufacturers have Nov. 7, 1963]

tablished but in which they cannot now entered world markets other than by shipENTERPRISING FIRMS IN STATE FIND PROFITABLE compete effectively because of the higher ping abroad directly from the Granite State. MARKETS ABROAD tariff.

Adopting the philosophy of joining 'em if “The world is our market," the president

Thus the South's loss has been Hubbard's you can't lick 'em, some firms have made

licensing agreements with foreign manuof a Keene company said recently and his gain. It would be difficult to provide a betfirm is acting accordingly. ter illustration of the strange ways in which facturers to produce and sell the American

product, paying a royalty for the privilege. Markem Machine Co., whose 300 employees world trade tends to balance itself off. produce machinery, type, and inks to mark

There are no reliable statistics on the Royalties add to profits here.

number of New Hampshire jobs which, diand identify just about any product imagi

OVERSEA SUBSIDIARIES nable, has always been interested in selling rectly or indirectly, depend on exports. John

Other companies have established subabroad. But about 5 years ago, President F. Rowe, commissioner of the department of David F. Putnam said an intensified program

resources and economic development, has sidiaries overseas. And still others have gone

estimated for increased foreign sales was launched.

that direct exports from the

into joint ventures with foreigners. HubAt that time about 5 percent of the firm's Granite State amount to nearly $75 million

bard Euro-Poultry, for example, is owned orders came from outside the United States a year.

half by Hubbard Farms and half by Beland Canada. This year the figure will be

But that figure does not reflect the volume

gians. Under either arrangement, all or part about 25 percent—and the target for the of business which is indirectly dependent on

of the profits can come back to New Hamp

shire. the Nation's exports. It is known that many years just ahead is 50 percent. State firms manufacture components or pro

It is undoubtedly true that not every The company has received a special Presidenial E Award for its contribution to the duction machinery for products which are

Granite State product can be sold successcountry's export expansion program. Only assembled in other States and then shipped fully abroad. But Gov. John W. King be

lieves "there is almost nothing produced here one other New Hampshire firm has received

abroad. the award.

It is also probable that for some compa

in New Hampshire which does not have a po

tential market abroad." Markem has established a British company

nies export business may be a small percentand another in Holland. They are respon

To help stimulate efforts to exploit this age of total sales, but may in fact represent sible for sales and service in most of Western the firm's profit margin.

potential, King has appointed a council on

foreign trade. It is expected to get to work Europe. Markem distributors are respon

ENCOURAGED TO SELL

soon. sible for merchandising in the rest of the

U.S. Government officials, along with in One thing seems very clear. Governments world.

dustry organizations, a number of States of the free world, with the support of most "Business abroad is not restricted to the and even some municipalities, are mounting (though not all) industry, are trying to ungiants,” Putnam told a special congressional a nationwide campaign to convince American shackle world trade by reducing the proCommittee on Small Business.

business that it can sell abroad in far larger tective tariffs and other restrictive devices "In general," he said, “there is a vast mar volume than ever before.

of the past. This will intensify worldwide ket available to firms which will investigate The Federal Government, according to competition. It will also open up vast new the potential. * * * In the final analysis, Paul G. Carney, director of the Commerce markets for producers everywhere. sales do develop and more sales are avail. Departments Boston office, offers a wide How the industries of the United States able if one accepts the challenge and is will range of free services to any business which and of New Hampshire will respond is not ing to take advantage of these many oppor. wants to boost its oversea sales or enter yet clear, but American business has always tunities (overseas)." foreign markets for the first time.

prided itself on accepting tough challenges BEARINGS PLANT LOOKS AHEAD

These services, Carney said, range from ex and seizing new opportunities. The future Another manufacturer looking abroad is

hibit space in various trade centers, to de pattern of world trade is likely to give it

tailed confidential market surveys. MoreMiniature Precision Bearings, with plants in

a chance to do both. Keene and Lebanon. About 3 years ago

over, the Government maintains commerMPB created an international division, with

cial attachés in almost every country, whose its own vice president.

primary job is to assist American business. [From the Keene (N.H.) Evening Citizen, Starting almost from scratch, according to But, Carney added: "Our services are being

Nov. 8, 1963] Treasurer Donald D. Davis, the company used mostly by larger companies, which need

TRADE ISSUE: EXPANSION VERSUS established offices in England and Holland them the least. Smaller companies tend to

PROTECTIONISM and staffed them with sales and service perassume they cannot export, but very often

Pleas for governmental protection against sonnel. they could, if they'd just try.”

foreign competition are voiced by certain inSelling MPB's line of bearings, plus related

A Department of Commerce official in

dustries in Europe as well as in New Hampproducts of other American manufacturers, Washington echoed Carney's views. “When

shire and other American States. They ask the company has watched overseas sales it comes to exporting," he said, "too many

for high tariffs, import quotas or other declimb steadily. Foreign business, Davis said, American manufacturers have a negative at

vices designed to erect barriers against imhas become a significant part of the comtitude. They think of the difficulties of lan

ported goods. pany's gross sales and the company expects gauge, tastes, transportation, and proce

Often, but not always, these voices get a further growth. dures.

rather unsympathetic hearing. The basic “Time after time it's been proved that CHICKS GO TO BELGIUM American

reason is that Western Europe's industrial

products can compete, even Breeding chicks is not manufacturing, but against low-wage competition, because price

economy is, for the most part, geared to forthe product can be exported. Hubbard isn't everything."

eign trade. Farms in Walpole, N.H., is now shipping He said American products have a reputa

"If an industry gets Government protecabout 25,000 day-old chicks a month to Bel tion for good quality and design, and often

tion, it doesn't have to meet world competigium. Another 10,000 go to other points American productivity and know-how can

tion, and often it doesn't try,” a Danish abroad. more than match the advantages of a for

pharmaceutical manufacturer, O. Hubner, A shipment of chicks hatched in Walpole eign manufacturer's lower wage costs.

told a reporter last month. on Wednesday will be on a Hubbard Euro This view is shared by Putnam and other

“The Dutch attitude is that if a company poultry farm outside Brussels early Friday Granite State manufacturers who have en

cannot compete, it might as well go out of afternoon. tered foreign markets.

business,” according to Pierre Schloesser, a Hubbard plans to push its export sales American manufacturers who want to sell

former member of the Dutch parliament who harder. Its officials, according to William abroad, especially in Europe, have other fac

is now a high official of the European ComPhipps who handles exports, are convinced tors helping them, and their European com

mon Market. there is a sizable untapped market abroad, petitors are well aware of them.

TARIFF POLICY and Hubbard intends to get its share. "Ex First, the tradition of European crafts These and similar remarks indicating opport is the most profitable part of our busi- manship is not as strong as it used to be. position to tariff barriers and other trade reness," Phipps said.

Younger workers have less pride in the qual strictions appear to reflect a general attitude. Not only are oversea sales adding to the ity of their work.

But like other generalizations, they can be company's profits, but last year increased Second, with European living standards misleading foreign business helped the company weather rising and with full employment almost European countries do have tariffs and on a slump in domestic sales.

everywhere, many employees are not work some goods they are quite high. They have a Ironically Hubbard has benefited from ing as hard as in the past.

variety of other restrictive devices as well. the recent transatlantic "chicken war." Third, these trends are coupled with ris There are sharp variations in these devices When the European Common Market boosted ing foreign wages and fringe benefits so that from country to country, and commodity to the tariff on frozen poultry meat which was the gap between U.S. payroll costs and those commodity. being shipped there by processors in the abroad is steadily narrowing.

One of the objectives of the European EcoSouth, the demand for chicks from the ECM Finally, the prestige of American products nomic Community (the Common Market) is promptly rose.

is rising overseas. We have established a rep- to agree on a single set of tariffs for the six European farmers are now increasingly in- utation for quality which often offsets a member countries-France, Germany, Italy, terested in raising broilers to take advantage somewhat higher price tag.

Belgium, Holland, and Luxembourg.

RECORD

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Meantime, however, the development of Europe knows the United States will be a to give our products greater access to their the Common Market has provided a clear les tough bargainer, but the ECM appears will markets. son for many industries of how freer trade ing to make reciprocal concessions, provided, For industries like textiles and shoes, so can stimulate growth by opening new mar as Colombier put it, there is true reciprocity important to New Hampshire, the prospect of kets and of how international trade compe of sacrifice.

less protection is a nightmare. tition can spur increased productivity and European officials are aware of the power Their determined efforts to see that the thus permit higher wage countries to com ful groups in the United States which view nightmare doesn't become a reality may be pete successfully with lower wage countries. the prospect of freer trade with alarm and successful. It is too early to tell. TRADE OR FADE PHILOSOPHY

argue that there are a number of American The choice facing the administration is

industries which must be exempted from this: If the United States wishes to get the Some small nations, like Belgium, Holland,

tariff-cutting negotiations because they can tariffs of others lowered for our goods, we're and Denmark, have always had to “trade or

not compete "with cheap foreign goods," or going to be obliged to reciprocate—and some fade,” to use one of President Kennedy's low wage countries.”

industries on both sides of the Atlantic and phrases. They have lacked the resources and

elsewhere in the world are going to be hurt. the manpower to survive except by trading.

THE SPECIAL EXCEPTION ISSUE But France was at the opposite end of the But the Europeans argue that they could scale. Before she joined the Common make a good case for treating some of their DOUGLAS CREDIT CONTROL BILL Market, France was not a major trading own industries as special exceptions, espenation. cially their agriculture.

Mr. SIMPSON. Mr. President, the Her industries manufactured mostly for Moreover, they are not unduly impressed by controversial truth-in-lending bill conthe French market and her farmers pro American pleas of inability to compete be- tinues to misrepresent itself to the duced mostly for it. She had a history of cause of higher wage levels. They say the American public even though it has never protectionism, and when the Common Mar wage gap is narrowing steadily, and also that cleared even the subcommittee to which ket began in 1958, her wage levels were gen advanced American technology has given this

it has been assigned. erally the highest of the six member nations. country a method of overcoming its wage disFor these reasons, French industry was not advantage.

The proposal was recently the subject enthusiastic about the Common Market plan They invite Americans to look at the record

of a press release by the Illinois Retail of cutting internal tariffs. The program

since the Common Market began in 1958. Merchants Association, an organization called for progressive tariff reductions within Imports from the United States have shot up which "uses credit as a constructive the ECM until they were abolished after 15 nearly 60 percent. In 1962, America had a force for essential volume.” years.

favorable trade balance with the ECM of a These merchants, all of whom conduct

whopping $2 billion. ENTHUSIASM REPLACED SKEPTICISM

their business in the State represented

Some of the country-by-country figures are But within a couple of years, according to impressive. The ratio in favor of the United

by the Senator who is principal backer of Andre Colombier, an official of the French States in trade with Germany in 1962 was

the misnamed truth-in-lending bill, Federation of Industries, business skepticism about 2 to 1; with France and Italy, slightly have labeled the measure “the most mischanged to enthusiasm. less than 2 to 1; and nearly 3 to 1 with

chievous current example of the effort The reason is not hard to find. Between Holland.

for further Federal control" over the Na1958 and 1962, French exports to her five ECM One further example: Germany imports 60 tion's leading institutions. partners jumped 140 percent, and her imports percent more machinery from the United In presenting a plaque and other from them rose 105 percent.

States than she exports to this country, ac awards to Illinois Attorney General WilThe figures for the other countries are not cording to Dr. Karl-Heinrich Rieker, chief

liam G. Clark, the Merchants Association quite as spectacular as France's and Italy's, economist of the Institute of German Inbut all have shown tremendous increases

scored the "mischievous control of credit dustry. In fact, Dr. Rieker said, automobiles despite (or perhaps because of) the fact that are the only major category of manufactured by Federal agencies as contained in the during the same 5 years tariffs were slashed goods in which Germany sells more to the Douglas credit control bill.” by 50 percent. Today they are down 60 per United States than she buys from us.

In that quotation, Mr. President, I sugcent and will probably reach zero by 1970, 3 Meantime, progress is being made in prepa- gest can be found a more appropriate years ahead of schedule.

ration for next year's scheduled world trade title for a bill which is directly concerned These trade gains were achieved because negotiations in Geneva. They will be held

with neither truth nor lending but which the reduction in trade barriers opened up vast under the General Agreement on Tariffs and new markets for manufacturers in all the Trade (GATT), to which 53 nations sub

is directed primarily at Federal control ECM countries. Consumers benefitted scribe. In trade jargon, they will be known

of the credit which is so vital to American through lower prices, a wider choice of prod as the "Kennedy round” of discussions.

business. ucts and better design.

PRECEDENT-SHATTERING EVENT

I ask unanimous consent, Mr. PresiMoreover, French industry found that, con

They will be precedent shattering so far as

dent, that the press release of the Illinois trary to its expectations, it could compete the United States is concerned. Apart from

Retail Merchants Association, dated with lower wage countries like Germany. The imperatives of competition spurred

a handful of products exempted by law, November 6, 1963, be printed in the President Kennedy has proposed that the en

RECORD. French manufacturers to sharpen up their

tire list of American tariffs be laid on the There being no objection, the press remethods, install new machinery and increase

table for negotiation of reductions of up to lease was ordered to be printed in the their efficiency. 50 percent of existing levels.

RECORD, as follows:
PAYROLL COST GAP NARROWED
Before the final talks begin in Geneva,

DOUGLAS CREDIT CONTROL BILL At the same time, the rapid improvement more products may be added to the list of in business throughout the ECM, coupled exceptions. But the administration clearly Top Chicagoland merchants who use credit with a manpower shortage, stimulated rises intends to hold the list to a minimum.

as a constructive force for essential volume, in wage levels in other countries. Today the This policy is being vigorously opposed by

today noon-November 6-honored William gap between French payroll costs and Ger various American industries, including the

G. Clark, attorney general of Illinois, for his man, for example, is much smaller than it hard pressed shoe and textile groups. They

success in setting up a Consumer Fraud was 5 years ago.

are arguing for more protection from import Bureau, at a luncheon held at the MidIn the field of consumer goods, rising competition, not less.

American Club, Chicago, under the auspices standards of living and increased purchasing But this far, the administration's position

of the Illinois Retail Merchants Association, power throughout the ECM also increased the is stanchly in favor of freer trade. In this

a major legislative backer of the essential total market for all manufacturers. it has the support of major segments of

statute. There have been some casualties. In cerAmerican industry.

In presenting a plaque and other awards to tain industries, notably the same two causing Washington appears convinced that the

the attorney general on behalf of the merso much distress in New Hampshire-shoes future growth of the American economy re

chants, John Barr, chairman of the board of and textiles-manufacturers in some coun

Montgomery Ward & Co., and chairman of quires greater access to world markets; that tries have been hard pressed, especially by substantially more businesses will prosper by

the event, struck hard at the "mischievous Italian competition. trade expansion than will be hurt by it; and

control of credit by Federal agencies as conBut the overall picture is bright, and the

tained in the Douglas credit control bill." that American consumers will benefit Common Market is hungry for still more through lower prices and greater choice of

His complete remarks are as follows: trade, especially with outside nations, in goods as a result of international compe

"I am happy to recognize and salute the cluding the United States. tition.

young, energetic, imaginative and personable

attorney general of the State of Illinois. Bill The ECM hopes to come to the world trade

THE ADMINISTRATION POSITION

Clark is the type of public servant who debargaining table in Geneva next year with a The administration is taking the position serves contemporary applause and recogniunified program and to speak with one voice. that American industry can, in fact, compete tion-and, Bill, we are happy to have an This in itself would be no mean accomplish successfully with less protection than it now opportunity to extend our share of both. ment, but Common Market officials in Brus has, provided always that other countries We, at our shop over on Chicago Avenue, sels believe it can be done.

lower their barriers to an equivalent extent are convinced that sales volume diverted

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