concerned with the removal of the duties on the goods that come in here if it includes tobacco, assuming it includes tobacco, we think we will be better off than we would even though the other country doesn't lower them than we would otherwise be because then they could sell in this country and get foreign exchange to buy tobacco and other export crops.

I don't see the relation you are pointing out there between price supports on domestic commodities-Î agree it is a restrictive measureMr. SIMPSON. That is it.

Mr. HUTSON. I agree but it is not the same kind of restrictive measure as a quota on imports or an import duty.

Mr. SIMPSON. Thank you, sir.

The CHAIRMAN. Any further questions? If not, we again thank you, Mr. Hutson, for your appearance and information you have given the committee.

The next witness on the calendar is Mr. Stacey Bender, Jr., chairman, foreign policy committee, North Atlantic Ports Association.

Please give your name, address and capacity in which you appear, Mr. Bender.

STATEMENT OF STACEY BENDER, JR., CHAIRMAN, FOREIGN POLICY COMMITTEE, NORTH ATLANTIC PORTS ASSOCIATION

Mr. BENDER. My name is Stacey Bender, Jr. I am director of the export and import bureau of the Baltimore Association of Commerce and I am appearing before you as chairman of the foreign policy committee of the North Atlantic Ports Association.

The North Atlantic Ports Association, Inc., is comprised of public and private terminal operators of marine terminals located on the United States north Atlantic coast within the States of Maine, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, and Virginia, as well as consulting or harbor engineers, stevedores, bankers, marine insurance underwriters, shipping companies, import and export firms, commercial organizations and others. The objects and purposes of this association are to encourage and promote:

(a) World trade;

(b) Development of foreign and domestic commerce to and from all United States north Atlantic ports;

(c) Development of ports along sound economic lines, including operations and maintenance, engineering, design, construction, administration, management, and so forth;

(d) Standardization of the descriptions of rules and of services; (e) Exchange of ideas and information on all port activities.

The foreign waterborne commerce of the member ports in 1953, the latest full year of record, was 119,758,000 short tons, or 55.97 percent of the total foreign waterborne commerce of the entire United States during this same period. The value of this tonnage, however, was $11,052,400,000 or 64.6 percent of the total value of waterborne foreign commerce of the United States. A recent survey by one of the most prominent ports in the north Atlantic range indicates that

each ton of cargo loaded or unloaded produces a direct dollar expenditure in the port area as shown in the following table:

These figures are exclusive of any moneys paid for transportation outside the port area. Under detailed analysis, the main segments of this important economic factor comprise vessel disbursements, port terminal income, rail and motor freight credited to the port area, vessel crew expenditures in the port area, and auxiliary services. Subdivisions of these general headings have been scrutinized closely for individual accuracy.

It will be seen that the facilities comprising the ports of the north Atlantic range, therefore, employ many hundreds of thousands of taxpayers and represent capital investment well into the billions of dollars. It will be seen that the interest of our membership in the matter pending is substantial.

It is a well-established fact that our Nation is basically an importer of raw material and an exporter of finished products. It has been equally well determined that over the past 2 years our Nation's export business has suffered to the extent of over a billion dollars a year. It is the opinion of this association that present free world. trade stagnation can be partially ascribed to the unwillingness of previous Congresses to undertake the responsibility of leadership in a stable reciprocal trade program.

Imperative to the success of any legislation intended to partially relieve the present virtual impasse is that we attain a greater degree of foreign trade policy stability. It is respectfully urged that whatever legislation is finally determined, that such a program extend over as long a term as is deemed prudent, but in any case not under 3 years. The North Atlantic Ports Association is of the opinion that it is both desirable and necessary that the Trade Agreements Extension Act of 1955, H. R. 1, be acted on affirmatively by the Congress. The bill provides for an orderly continuation of the reciprocal trade agreements program for the next 3 years. This program has been the cornerstone of the United States' foreign economic policy, and a fundamental means of expanding trade for the past 20 years. The limited provisions for the negotiation of reductions of specific tariff duties by no more than 15 percent over the next 3 years, with no more than one-third the reductions becoming effective in any 1 year, insure that there will be no drastic changes in the levels of our import duties and that only moderate adjustments will be made.

The North Atlantic Ports Association believes strongly that enactment of the Trade Agreements Extension Act of 1955, H. R. 1, will be a measure of the good faith of the United States in seeking to reduce trade barriers and restrictions, and in the stated objective of expanding the flow of our foreign trade, both export and import. It urges passage of the act on the grounds that this will be of great benefit not only to its member ports which are concerned with the actual

movements of foreign trade, but-and more importantly-to the economic well-being of the Nation as a whole.

The CHAIRMAN. Does that complete your statement, Mr. Bender? Mr. BENDER. Mr. Chairman, I have a request to make. That completes my statement on behalf of the North Atlantic Ports Association, sir. However, I also have a short resolution by the American Association of Port Authorities who I also represent that I would like to present.

The CHAIRMAN. That is this one page?

Mr. BENDER. Yes, I need not read it. You all have it.

The CHAIRMAN. Without objection, it will be included in the record following your statement.

Mr. BENDER. Thank you, sir.

(The document referred to follows:)

STATEMENT OF THE AMERICAN ASSOCIATION OF PORT AUTHORITIES, INC.

Whereas the authority extending the reciprocal trade agreements will expire in midyear 1955; and

Whereas the President of the United States has, by authority of the Congress, appointed an Economic Foreign Policy Commission to study such agreements and the entire subject of foreign trade for the United States; and

Whereas the economy of the ports of the United States depends upon a high level of world trade, which can only be maintained by a liberal foreign trade policy which will encourage imports, resulting in dollars abroad returning to the United States to pay for exports: Now, therefore, be it

Resolved, That the Committee on Foreign Commerce be and the same is hereby authorized to use all reasonable means to support the renewal of said reciprocal trade agreements, to study the report of the President's Commission on Economic Foreign Policy, to furnish copies of this report to all United States members of this association, to advise said members of the effects this report might have upon their commerce, and finally to work with the committees of the Congress of the United States toward obtaining a liberal foreign trade policy; be it further Resolved, That the tender of support and aid made by the Committee on Foreign Commerce to the President's Commission on Foreign Economic Policy be and the same is hereby confirmed by this association.

I, Paul A. Amundsen, executive secretary of the American Association of Port Authorities, certify that the above is a true and correct copy of resolution unanimously passed by United States members only at the 43d annual meeting and convention, San Francisco, Calif., October 29, 1954, in accordance with bylaw No. 19.

(Signed) PAUL A. AMUNDSEN.

The CHAIRMAN. Are there any questions?
Mr. Reed of New York will inquire.

Mr. REED. I notice here you are speaking also for the stevedores, is that right?

Mr. BENDER. Yes, sir; there are many stevedores in the member ports that are members of our association.

Mr. REED. I was wondering to what extent and how expensive were the strikes that tied up the shipping.

Mr. BENDER. You refer to the strikes in the port of New York?
Mr. REED. Yes.

Mr. BENDER. The port of New York has estimated that the strikes have cost them about 10 percent of their total foreign commerce which I would estimate to be presently in the vicinity of 31 million tons a year, 10 percent of that would be 3,100,000 tons, 10 percent of the rough commerce itself would be hard to estimate, sir, because you don't know exactly what class of commerce they are losing so you can't tell the value of that commerce to the port.

Mr. REED. Thank you very much.

The CHAIRMAN. Any further questions?

If not, we again thank you for your appearance and the information given the committee.

(The following material was submitted for the record:)

THE AMERICAN ASSOCIATION OF PORT AUTHORITIES, INC.,
Washington, D. C., January 11, 1955.

Hon. JERE COOPER,
House of Representatives, Washington, D. C.

MY DEAR MR. COOPER: With respect to H. R. 1, which would extend Presidential authority on reciprocal trade agreements on a 3-year basis and provide for reduction of tariff rates on selected commodities by not more than 5 percent a year for 3 years, we call your attention to resolution No. 49 of the American Association of Port Authorities, attached, which is in basic support of the proposed legislation.

The American Association of Port Authorities is an organization of those public boards and bodies which as agencies of city, State, or county, are responsible for the development of the seaports of this Nation. Membership is virtually unanimous among such organizations on the North Atlantic, South Atlantic, Gulf, Pacific, and Great Lakes coastlines, including such agencies as the Port of New York Authority; Delaware River Port Authority; Virginia State Ports Authority; North Carolina State Ports Authority; Harbor Department, City of Miami; Alabama State Docks Board; Board of Commissioners of the Port of New Orleans; Harris County Houston Navigation District; Board of Commissioners of the Port of Los Angeles; Board of State Harbor Commissioners for the Port of San Francisco; and Commission of Public Docks for the Port of Portland, Oreg. These are cited simply to indicate the character of the membership.

Because the member ports of the association are the Nation's gateways for world trade, the interest of the association in this legislation and increased level of trade is obvious. Less obvious is the beneficial affect of such legislation as H. R. 1 on the economic health of large and small seaport areas with their tremendous combined population, plus the continued effectiveness of these port areas as aids to national defense through steady use as channels of trade.

Accordingly, the American Association of Port Authorities, through its committee on foreign commerce, wishes to go on record in support of H. R. 1, and requests that this communication, plus resolution No. 49 attached, remain a part of the record of the hearings. Respectfully submitted.

COMMITTEE ON FOREIGN COMMERCE,

LEWIS I. BOURGEOIS, Chairman.
LOUIS BEAUDRY.

BERNARD J. CAUGHLIN,

M. C. CUNNINGHAM.

WARREN D. LAMPORT.

FRANK W. DUNHAM, JR.
DAVID H. CLARK.

CLIFFORD B. O'HARA.

RESOLUTION No. 49-RECIPROCAL TRADE AGREEMENTS

Whereas the authority extending the Reciprocal Trade Agreements will expire in midyear 1955; and

Whereas the President of the United States has, by authority of the Congress, appointed an Economic Foreign Policy Commission to study such agreements and the entire subject of foreign trade for the United States; and

Whereas the economy of the ports of the United States depends upon a high level of world trade, which can only be maintained by a liberal foreign trade policy which will encourage imports, resulting in dollars abroad returning to the United States to pay for exports: Now, therefore, be it

Resolved, That the Committee on Foreign Commerce be and the same is hereby authorized to use all reasonable means to support the renewal of said Reciprocal Trade Agreements, to study the report of the President's Commission on Economic Foreign Policy, to furnish copies of this report to all United States members of this association, to advise said members of the effects this report might have upon their commerce, and finally to work with the committees of the Con

gress of the United States toward obtaining a liberal foreign trade policy: Be it further

Resolved, That the tender of support and aid made by the Committee on Foreign Commerce to the President's Commission on Foreign Economic Policy be and the same is hereby confirmed by this association.

(San Francisco, Calif., 43d annual convention, October 29, 1954. Unanimously adopted by United States members only, voting in accordance with bylaw No. 19.)

BYLAW 19-MATTERS INVOLVING NATIONAL POLICY

If it shall be or become necessary to take a vote of the membership to determine the action to be taken by the association with respect to any legislative proposal pending before the Congress of the United States or with respect to any other matter which involves the policy of Congress or the governmental policy of the United States, only the votes cast by or on behalf of corporate members from the United States (including its Territories, possessions, and dependencies) shall be counted. Similarly, if it shall be or become necessary to take a vote of the board of directors or of any committee with respect to any such matter, only the votes of such members of the board or of such committee as are citizens and residents of the United States shall be counted.

If as a result of any such vote, any recommendation shall be made or any opinion expressed on behalf of the association with respect to any such matter (whether to Congress or to any officer or agency of the United States or to the public press or otherwise), it shall also be stated that only United States ports, or United States citizens, as the case may be, voted upon such recommendation or expression of opinion.

The CHAIRMAN. The next witness is Mr. Samuel Nakasian. If you are present, come forward, please.

STATEMENT OF SAMUEL NAKASIAN, THE WASHINGTON BOARD OF TRADE, WASHINGTON, D. C.

Mr. NAKASIAN. My name is Samuel Nakasian. I am a legal and economic adviser on international trade and foreign investment. My offices are in the American Security Building in Washington.

I appear before this committee on behalf of the Washington Board of Trade whose membership numbers more than 6,000 business and professional leaders of the Washington metropolitan area. Many of our members represent leading American business corporations whose millions of employees, stockholders, and customers are directly affected by America's foreign economic policies.

On June 7, 1954, upon the recommendation of the world trade committee, the Washington Board of Trade adopted a policy urging the extension of the period during which the President is authorized to enter into foreign trade agreements under section 350 of the Tariff Act, as amended. That policy still stands.

However time has not been sufficient since the introduction of H. R. 1 on January 5 to permit action on the proposed amendments. contained therein.

I would nevertheless like to take a few moments to express some views which I have formulated after years of experience in the international trade field and which I trust will be of value to the members of the committee.

It seems to me, Mr. Chairman, that there are two major questions in considering the merits of H. R. 1. The first is: Would H. R. 1 be harmful to our industries and to our Nation?