As a further step to stimulate investment abroad, I recommend approval by the Congress at the appropriate time of membership in the proposed International Finance Corporation, which will be affiliated with the International Bank for Reconstruction and Development. This Corporation will be designed to increase private investment in less developed countries by making loans without Government guaranties. Although the Corporation will not purchase stock, it will provide venture capital through investing in debentures and similar obligations. Its operation will cover a field not dealt with by an existing institution.

The executive branch will continue through our diplomatic representatives abroad to encourage a climate favorable to the private enterprise concept in investment.

We shall continue to seek other new ways to enlarge the outward flow of capital.

It must be recognized, however, that when American private capital moves abroad it properly expects to bring home its fair reward. This can only be accomplished in the last analysis by our willingness to purchase more goods and services from abroad in order to provide the dollars for these growing remittances. This fact is a further compelling reason for a fair and forward-looking trade policy on our part.

TECHNICAL COOPERATION

The United States has a vast store of practical and scientific knowhow that is needed in the underdeveloped areas of the world. The United States has a responsibility to make it available. Its flow for peaceful purposes must remain unfettered.

United States participation in technical cooperation programs should be carried forward. These programs should be concerned with know-how rather than large funds. In my budget message next week, I shall recommend that the Congress make available the funds required to support the multilateral technical cooperation programs of the United Nations. The bilateral programs of the United States should be pressed vigorously.

INTERNATIONAL TRAVEL

The United States remains committed to the objective of freedom of travel throughout the world. Encouragement given to travel abroad is extremely important both for its cultural and social importance in the free world, and for its economic benefits. Travel abroad by Americans provides an important source of dollars for many countries. The executive branch shall continue to look for ways of facilitating international travel and shall continue to cooperate with private travel agencies.

One legislative action that would be beneficial in this field is the increase of the present duty-free allowances for tourists from $500 to $1,000 exercisable every 6 months. I recommend the passage of such legislation.

TRADE FAIRS

International trade fairs have been of major importance to foreign countries for many years, and most of the trading nations have strengthened the promotional aspects of their industrial displays in

many fairs with a central exhibit designed to emphasize the industrial progress and achievement of the Nation.

Soviet and satellite exhibits, for example, have been costly, wellplanned, and housed in expensive structures designed to convey the impression that the U. S. S. R. is producing on a large scale for peace. and is creating a paradise for workers.

The United States, which has a larger volume of international trade than any other nation, until recently has been conspicuous by its absence at these trade fairs. American visitors and participants have pointed out the failure of their Government to tell adequately the story of our free enterprise system and to provide effective international trade promotion cooperation.

As a result, I have undertaken an international trade-fair program under the direction of the Department of Commerce. Since the inauguration of this program in August, participation has been authorized in 11 fairs to be held before June 30. Sixteen additional fairs are being considered for exhibition purposes in the latter part of the year. The first fair in which the United States presented a central exhibit is that at Bangkok, which opened December 7, 1954. At it our exhibit was awarded first prize. Over 100 American companies supplied items for inclusion in it.

I shall ask the Congress for funds to continue this program.

CONVERTIBILITY

Convertibility of currencies is required for the development of a steadily rising volume of world trade and investment. The achievement of convertibility has not been possible in the postwar period due to dislocations caused by the war, inflation and other domestic economic difficulties in many countries, which have contributed to an imbalance in international trade and payments. However, steady progress, particularly by Western European countries, is being made toward our mutual objective of restoring currency convertibility. The foreign economic program proposed here will make an important contribution to the achievement of convertibility.

AGRICULTURE

No single group within America has a greater stake in a healthy and expanding foreign trade than the farmers. One-fourth to onethird of some major crops, such as wheat, cotton, and tobacco, must find markets abroad in order to maintain farm income at high levels.

If they are to be successful, programs designed to promote the prosperity of agriculture should be consistent with our foreign economic program. We must take due account of the effect of any agricultural program on our foreign economic relations to assure that it contributes to the development of healthy, expanding foreign markets over the years.

CONCLUSION

The series of recommendations I have just made are all components of an integrated program, pointing in a single direction. Each contributes to the whole. Each advances our national security by bringing added strength and self-sufficiency to our allies. Each contributes to our economic growth and a rising standard of living among our people.

DWIGHT D. EISENHOWER.

TEXT OF H. R. 1 (84TH CONG., 1ST SESS.)

84TH CONGRESS

1ST SESSION

H. R. 1

IN THE HOUSE OF REPRESENTATIVES

JANUARY 5, 1955

Mr. COOPER introduced the following bill; which was referred to the Committee on Ways and Means

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

SECTION-BY-SECTION ANALYSIS OF H. R. 1, 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

SECTION 1: The legislation may be cited as the Trade Agreements Extension Act of 1955.

SECTION 2: The President is authorized to enter into trade agreements for an additional period, from June 12, 1955, through June 30, 1958. The present authority of the President expires June 12, 1955.

SECTION 3: This section would amend section 350 of the Tariff Act of 1930, as amended, which establishes the basic authority to enter into and carry out trade agreements.

Subsection (a) of section 350, containing six paragraphs, is set forth in full in its proposed amended form. Amendments are also proposed for subsections (b), (c), and (d), and a new subsection (e) would be added.

Paragraph (1) of subsection (a) sets forth the purpose for which the President may enter into trade agreements. The text preceding subparagraph (A) repeats existing law.

Subparagraph (A) of paragraph (1) authorizes the President to enter into trade agreements with foreign governments containing general

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