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UNITED STATES-CANADIAN AUTOMOBILE AGREEMENT

HEARINGS

BEFORE THE

COMMITTEE ON FINANCE

UNITED STATES SENATE

EIGHTY-NINTH CONGRESS

FIRST SESSION

ON

H.R. 9042

AN ACT TO PROVIDE FOR THE IMPLEMENTATION OF THE
AGREEMENT CONCERNING AUTOMOTIVE PRODUCTS BE-
TWEEN THE GOVERNMENT OF THE UNITED STATES OF
AMERICA AND THE GOVERNMENT OF CANADA, AND FOR

OTHER PURPOSES

SEPTEMBER 14, 15, 16, 20, AND 21, 1965

Printed for the use of the Committee on Finance

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1965

63-606 O

COMMITTEE ON FINANCE

HARRY FLOOD BYRD, Virginia, Chairman RUSSELL B. LONG, Louisiana

JOHN J. WILLIAMS, Delaware GEORGE A. SMATHERS, Florida

FRANK CARLSON, Kansas CLINTON P. ANDERSON, New Mexico WALLACE F. BENNETT, Utah PAUL H. DOUGLAS, Illinois

CARL T. CURTIS, Nebraska ALBERT GORE, Tennessee

THRUSTON B. MORTON, Kentucky HERMAN E. TALMADGE, Georgia

EVERETT MCKINLEY DIRKSEN, Illinois EUGENE J. MCCARTHY, Minnesota VANCE HARTKE, Indiana J. W. FULBRIGHT, Arkansas ABRAHAM A. RIBICOFF, Connecticut

ELIZABETH B. SPRINGER, Chief Clerk

II

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478

WITNESSES

Boyett, Fred, Assistant Deputy Commissioner, Bureau of Customs, De-

partment of the Treasury-

89

Connor, Hon. John T., Secretary of Commerce.,

122
Halfpenny, Harold T., counsel for the Automotive Service Industry As-
sociation

274

Holder, Frederick C., director of Corporate Planning, American Motors

Corp-

241

Kendall, David W., vice president, legal affairs, Chrysler Corp..

221

Levine, Allan L., president, Automotive Service Industry Association. 275

Mann, Hon. Thomas C., Under Secretary of State for Economic Affairs;

accompanied by Philip H. Trezise, Deputy Assistant Secretary for Eco-

nomic Affairs, Department of State; Hon. John T. Connor, Secretary

of Commerce; accompanied by Robert L. McNeill, Deputy Assistant

Secretary for Trade Policy, Department of Commerce; and Hon.

Willard Wirtz, Secretary of Labor

81

McCauley, Alfred R., representing the Industrial Committee of Paducah,

Ky

266

Middleton, Keith T., vice chairman, Antifriction Bearing Manufacturers
Association

290
Nelson, Hon. Gaylord, U.S. Senator from the State of Wisconsin.

263

Roche, James M., president, General Motors Corp-

189

Secrest, Fred G., vice president and controller, Ford Motor Co-

205

Shewmaker, Russell N., General Counsel; accompanied by G. Patrick

Henry, economist, U.S. Tariff Commission.
Strackbein, O. R., chairman, the Nation-Wide Committee on Export-
Import Policy -

302
Trued, Merlyn N., Assistant Secretary of the Treasury.

366

Weinberg, Nat, director, special projects and economic analysis, United

Automobile, Aerospace & Agricultural Implement Workers of America

(AFL-CIO)

246

Wirtz, Hon. Willard, Secretary of Labor..

133, 311

COMMUNICATIONS

Budd Co., The, telegram of R. J. Kalbfleisch, vice president, automotive
division, Detroit, Mich., to the chairman..

309
Castle Rubber Co., East Butler, Pa., letter of Lewis E. Straith, president,
to the chairman..

307

Committee for a National Trade Policy, Inc., Washington, D.C., state-

ment of John W. Hight, executive director-

261

Dana Corp., Toledo, Ohio, telegram of J. E. Martin, president, to the

chairman

262

Eaton Manufacturing Co., Detroit, Mich., telegram of F. J. Goodrich,

vice president, to the chairman..

260

Fafnir Bearing Co., The, New Britain, Conn., letter of W. E. DeCaulp,

secretary and general counsel, to Hon. Thomas J. Dodd.

309

H. O. Canfield Co., Inc., The, Clifton Forge, Va., letter of K. N. Carter,
vice president-sales, to the chairman -

308

Kelsey Hayes Co., Romulus, Mich., telegram of W. G. MacDonnell, to the

chairman.

260

Ohio Rubber Co., The, Willoughby, Ohio, telegram of P. D. McManus, Page

president, to the chairman.

309

Rockwell Standard Corp., Detroit, Mich., telegram of R. G. Wingerter,

president, automotive division, to the chairman.

260

Rubber Manufacturers Association, New York, N.Y., letter and enclosure

of George A. White, secretary, molded and extruded products division,

to the chairman..

304, 369

Wolverine Die Cast Corp., Detroit, Mich., telegram to the chairman.. 310

ADDITIONAL INFORMATION

“Big Three To Boost 1966 Car Prices,” article in the Detroit News, Septem-

ber 5, 1965.---

203

Brazilian imports..

365
Canadian-United States balance of trade (payments) for Chrysler Corp--- 233
Distribution of the employment in selected motor vehicle metalworking
operations.

354
Earnings and dividend distributions of the Canadian automotive manu-

facturing subsidiaries of General Motors, Ford, and Chrysler, 1961-64.. 108

Editorial material for Chrysler Canada, Ltd.-

225

Memorandum regarding possible modifications by the Canadian Govern-

ment of certain definitions incorporated by reference in annex A of the

United States-Canadian Automotive Products Agreement.

180

Profile of the North American automotive industry, prepared by the De-
partment of Commerce.

125

Questions of Hon. Carl Curtis and answers thereto.

104

Report on the bill from Ambassador William M. Roth, acting special rep-

resentative for trade negotiations, Executive Office of the President.-- 188

Statement of the Minister of Industry, Mr. Drury-

151

Typical automotive bearing application..

295

“VAW Urges Amendment to United States-Canadian Auto Trade Agree-
ment,” article in news from UAW.

157

United States and Canada: Average hourly earnings of production workers

in all manufacturing and in motor vehicle and equipment industries,

selected months, 1963–65.-

360

United States and Canada: Average hourly earnings or wage rates in the

motor vehicle and motor vehicle parts and accessories industries, selected

areas and occupations, 1963..

361

UNITED STATES-CANADA AUTOMOBILE AGREEMENT

TUESDAY, SEPTEMBER 14, 1965

U.S. SENATE,
COMMITTEE ON FINANCE,

Washington, D.C. The committee met, pursuant to recess, at 10 a.m., in room 2221, New Senate Office Building, Senator Harry Flood Byrd (chairman) presiding.

Present: Senators Byrd (presiding), Smathers, Douglas, Gore, Talmadge, Hartke, Carlson, Curtis, and Morton.

Also present: Elizabeth B. Springer, chief clerk, and Thomas Vail, professional staff member.

The CHAIRMAN. The committee will come to order. The purpose of this hearing is to receive testimony from both the administration and the general public on H.R. 9042, a bill which was introduced at the request of the administration to provide for the implementation of the agreement concerning automotive products between the Government of the United States and the Government of Canada.

I place in the record a copy of the bill and a copy of data relating to the bill compiled by the staff.

(H.R. 9022 and data referred to follow :)

[H.R. 9042, 89th Cong., 1st sess.) AN ACT To provide for the implementation of the Agreement concerning Automotive

Products Between the Government of the United States of America and the Government of Canada, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I-SHORT TITLE AND PURPOSES

SHORT TITLE

SECTION 101. This Act may be cited as the "Automotive Products Trade Act of 1965".

PURPOSES

SEC. 102. The purposes of this Act are

(1) to provide for the implementation of the Agreement Concerning Automotive Products Between the Government of the United States of America and the Government of Canada signed on January 16, 1965 (hereinafter referred to as the “Agreement”), in order to strengthen the economic relations and expand trade in automotive products between the United States and Canada; and

(2) to authorize the implementation of such other international agreements providing for the mutual reduction or elimination of duties applicable to automotive products as the Government of the United States may here after enter into.

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