370, 381-383, 491-545, 557-568, 586-587, 676–689, 1253–1264, 2206-2262, 2268–2308, 2309–2326, 2571-2573. Chambers, committees, councils, leagues, trade associations, etc. - Chemical... 280- 302, 384-400, 478-480, 482-490, 545-557, 568-586, 587-614, 666– Coal (see also Petroleum)_ Miscellaneous_ Glass and glassware__ Machinery and equipment. 365-367, 480-482, 803-810, 1832-1835, 1934- 1953, 1996-2011, 2052, 2057, 2139-2155, 2573 854-857, Precision instruments. 621-652, 999-1019, 2012-2030, 2397-2424 Watches, clocks and related products- Minerals and ores. 302-365, 2116-2129, 2263–2268, 2360-2381, 2443-2453, 2573-2577 Miscellaneous services_ 932-946, 1201-1253, 1851-1853, 2357-2360 765-779, 860-864, 1522-1536, 1556-1561, 1570-1573, 2329-2333 XIX TRADE AGREEMENTS EXTENSION MONDAY, JANUARY 17, 1955 HOUSE OF REPRESENTATIVES, Washington, D. C. The committee met at 10 a. m., pursuant to notice, in the committee's main hearing room, House Office Building, Hon. Jere Cooper (chairman) presiding. The CHAIRMAN. The committee will please be in order. This morning the committee is beginning hearings on H. R. 1, a bill which I introduced. This bill embodies the tariff recommendations of the President which were made to the Congress in his message of January 10. The bill provides for a 3-year extension of the President's authority to enter trade agreements, and for the reduction of duties in the 3 alternative ways specified in the bill. Both the President and the House leadership have indicated that this measure should be the first order of business on major legislation in this session of the 84th Congress. We announced hearings on this bill on January 10. It is planned that the first 2 days will be devoted to receiving testimony from Government witnesses. It is my hope that, following the Government witnesses, we can complete the hearing by granting the proponents 5 days and the opponents 5 days for testimony. It may be that the interest in this legislation will be such that the hearings may have to run a little beyond 2 weeks. It is also my hope that the witnesses will be able to present their oral testimony within about 15 minutes. The committee will be happy to receive the written statements of witnesses and have them included in detail in the printed record of the hearings. Also, those persons desiring to may have up to 5 days from the conclusion of these hearings to submit written statements in triplicate for inclusion in the record, in lieu of an appearance. In addition to H. R. 1, there is now pending before the committee H. R. 536, which is an identical bill which was introduced by our colleague, Mr. Kean of New Jresey. It is customary for the chairman to include at the opening of our hearings the legislation on which the hearings are being held, and any supporting documents which may be available. I have had prepared for the information and use of the committee a document which includes H. R. 1 and an analysis thereof, the President's message on foreign economic policy, and section 350 of the Tariff Act of 1930, authorizing the President to enter into trade agreements, as it would be changed if H. R. 1 should become law. Without objection, I will include this document at this point in the record. Is there objection? The Chair hears none. (The documents are as follows:) [H. R. 1, 84th Cong., 1st sess.] A BILL To extend the authority of the President to enter into trade agreements under section 350 of the Tariff Act of 1930, as amended, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Trade Agreements Extension Act of 1955". SEC. 2. The period during which the President is authorized to enter into foreign trade agreements under section 350 of the Tariff Act of 1930, as amended (19 U. S. C., sec. 1351), is hereby extended from June 12, 1955, until the close of June 30, 1958. SEC. 3. (a) Subsection (a) of section 350 of the Tariff Act of 1930, as amended (19 U. S. C., sec. 1351 (a)), is hereby amended to read as follows: "(a) (1) For the purpose of expanding foreign markets for the products of the United States (as a means of assisting in establishing and maintaining a better relationship among various branches of American agriculture, industry, mining, and commerce) by regulating the admission of foreign goods into the United States in accordance with the characteristics and needs of various branches of American production so that foreign markets will be made available to those branches of American production which require and are capable of developing such outlets by affording corresponding market opportunities for foreign products in the United States, the President, whenever he finds as a fact that any existing duties or other import restrictions of the United States or any foreign country are unduly burdening and restricting the foreign trade of the United States and that the purpose above declared will be promoted by the means hereinafter specified, is authorized from time to time "(A) To enter into foreign trade agreements with foreign governments or instrumentalities thereof containing provisions with respect to international trade, including provisions relating to tariffs, to most-favored-nation standards and other standards of nondiscriminatory treatment affecting such trade, to quantitative import and export restrictions, to customs formalities, and to other matters relating to such trade designed to promote the purpose of this section similar to any of the foregoing: Provided, That, except as authorized by subparagraph (B) of this paragraph, no such provision shall be given effect in the United States in a manner inconsistent with existing legislation of the United States. "(B) To proclaim such modifications of existing duties and other import restrictions, or such additional import restrictions, or such continuance, and for such minimum periods, of existing customs or excise treatment of any article covered by foreign trade agreements, as are required or appropriate to carry out any foreign trade agreement that the President has entered into hereunder. "(2) No proclamation pursuant to paragraph (1) (B) of this subsection shall be made "(A) Increasing by more than 50 per centum any rate of duty existing on January 1, 1945. "(B) Transferring any article between the dutiable and free lists. "(C) In order to carry out a foreign trade agreement entered into by the President before June 12, 1955, decreasing by more than 50 per centum any rate of duty existing on January 1, 1945. "(D) In order to carry out a foreign trade agreement entered into by the President on or after June 12, 1955, decreasing (except as provided in subparagraph (E) of this paragraph) any rate of duty below the lowest of the following rates: “(i) The rate 15 per centum below the rate existing on July 1, 1955. "(ii) In the case of any article which the President determines, at the time the foreign trade agreement is entered into, is not being imported into the United States or is being imported into the United States in negligible quantities, the rate 50 per centum below the rate existing on January 1, 1945. "(iii) In the case of any article subject to an ad valorem rate of duty above 50 per centum (or a combination of ad valorem rates aggregating more than 50 per centum), the rate 50 per centum ad valorem (or a combination of ad valorem rates aggregating 50 per centum). In the case of any article subject to a specific rate of duty (or a combination of rates including a specific rate) the ad valorem equivalent of which has been determined by the President to have been above 50 per centum during a period determined by the President to be a representative period, the rate 50 per centum ad valorem or the rate (or a combination of rates), however stated, the ad valorem equivalent of which the President determines would have been 50 per centum during such period. The standards of valuation contained in section 402 of this Act (as in effect during the representative period) shall be utilized by the President, to the maximum extent he finds such utilization practicable, in making the determinations under the preceding sentence. "(E) In order to carry out a foreign trade agreement entered into by the President on or after June 12, 1955, to which the Government of Japan is a party and with respect to which notice of intention to negotiate was published on November 16, 1954 (19 F. R. 7379), if the President determines that such decrease is necessary in order to provide expanding export markets for products of Japan (including such markets in third countries), decreasing by more than 50 per centum any rate of duty existing on January 1, 1945. "(3) (A) Subject to the provisions of subparagraphs (B) and (C) of this paragraph, the provisions of any proclamation made under paragraph (1) (B) of this subsection, and the provisions of any proclamation of suspension under paragraph (5) of this subsection, shall be in effect from and after such time as is specified in the proclamation. "(B) In the case of any decrease in duty to which paragraph (2) (D) of this subsection applies "(i) if the total amount of the decrease under the foreign trade agreement does not exceed 15 per centum of the rate existing on July 1, 1955, the amount of decrease becoming initially effective at one time shall not exceed 5 per centum of the rate existing on July 1, 1955; "(ii) except as provided in clause (i), not more than one-third of the total amount of the decrease under the foreign trade agreement shall become initially effective at one time; and "(iii) no part of the decrease after the first part shall become initially effective until the immediately previous part shall have been in effect for a period or periods aggregating not less than one year. "(C) No part of any decrease in duty to which the alternative specified in paragraph (2) (D) (i) of this subsection applies shall become initially effective after the expiration of the three-year period which begins on July 1, 1955. If any part of such decrease has become effective, then for purposes of this subparagraph any time thereafter during which such part of the decrease is not in effect by reason of legislation of the United States or action thereunder shall be excluded in determining when the three-year period expires. "(D) If the President determines that such action will simplify the computation of the amount of duty imposed with respect to an article, he may exceed any limitation specified in paragraph (2) (D) or (E) of this subsection or subparagraph (B) of this paragraph by not more than which ever of the following is lesser: "(i) The difference between the limitation and the next lower whole number, or "(ii) One-half of 1 per centum ad valorem. In the case of a specific rate (or of a combination of rates which includes a specific rate), the one-half of 1 per centum specified in clause (ii) of the preceding sentence shall be determined in the same manner as the ad valorem effect of rates not stated wholly in ad valorem terms is determined for the purposes of paragraph (2) (D) (iii) of this subsection. "(4) In exercising his authority under this section, the President shall avoid, to the maximum extent he deems practicable and consistent with the purpose of this section, the subdivision of classification categories. "(5) Subject to the provisions of section 5 of the Trade Agreements Extension Act of 1951 (19 U. S. C., sec. 1362), duties and other import restrictions proclaimed pursuant to this section shall apply to articles the growth, produce, or manufacture of all foreign countries, whether imported directly or indirectly: Provided, That the President may suspend the application of articles the growth, produce, or manufacture of any country because of its discriminatory treatment of American commerce or because of other acts (including the operations of international cartels) or policies which in his opinion tend to defeat the purpose of this section. "(6) The President may at any time terminate, in whole or in part, any proclamation made pursuant to this section." |