(b) The last sentence of section 350 (b) of the Tariff Act of 1930, as amended (19 Ú. S. C., sec. 1351 (b)), is hereby amended to read as follows: "No rate of duty on products of Cuba shall be decreased

"(1) In order to carry out a foreign trade agreement entered into by the President before June 12, 1955, by more than 50 per centum of the rate of duty existing on January 1, 1945, with respect to products of Cuba.

"(2) In order to carry out a foreign trade agreement entered into by the President on or after June 12, 1955, below the applicable alternative specified in subsection (a) (2) (D) or (E) (subject to the provisions of subsection (a) (3) (B), (C), and (D) ), each such alternative to be read for the purposes of this paragraph as relating to the rate of duty applicable to products of Cuba. With respect to products of Cuba, the limitation of subsection (a) (2) (D) (iii) may be exceeded to such extent as may be required to maintain an absolute margin of preference to which such products are entitled." (c) Subsection (c) of section 350 of the Tariff Act of 1930, as amended (19 U. S. C., sec. 1351 (c)), is hereby amended by inserting "(1)" after "(c)", by striking out "(1)" and inserting in lieu thereof "(A)", by striking out "(2)" and inserting in lieu thereof "(B)", and by adding at the end thereof the following new paragraph:

"(2) For purposes of this section

"(A) Except as provided in subsection (d) and subparagraph (C) of this paragraph, the terms ‘existing on January 1, 1945' and 'existing on July 1, 1955' refer to rates of duty (however established, and even though temporarily suspended by Act of Congress or otherwise) existing on the date specified, except rates in effect by reason of action taken pursuant to section 5 of the Trade Agreements Extension Act of 1951 (19 U. S. C., sec. 1362).

"(B) The term 'existing' without the specification of any date, when used with respect to any matter relating to the conclusion of, or proclamation to carry out, a foreign trade agreement, means existing on the day on which that trade agreement is entered into.

"(C) In applying paragraphs (2) (D) (i) and (3) (B) (i) of subsection (a), the rate of duty on an article included in a foreign trade agreement with respect to which notice of intention was published on November 16, 1954 (19 F. R. 7379), if such agreement is entered into before July 1, 1955, shall be considered to be the rate 'existing on July 1, 1955'." (d) Section 350 of the Tariff Act of 1930, as amended (19 U. S. C., sec. 1351), is hereby amended by adding at the end thereof the following new subsection:

"(e) The President shall submit to the Congress an annual report on the operation of the trade agreements program including information regarding new negotiations, modifications made in duties and import restrictions of the United States, reciprocal concessions obtained, modifications of existing trade agreements in order to effectuate more fully the purposes of the trade agreements legislation (including the incorporation therein of escape clauses), and other information relating to that program and to the agreements entered into thereunder."

SEC. 4. Subsection (b) of section 6 of the Trade Agreements Extension Act of 1951, as amended (19 U. S. C., sec. 1363 (b)), is hereby amended by striking out the second sentence thereof.

SEC. 5. (a) In the case of any article which the President determines is not being imported into the United States or is being imported into the United States in negligible quantities, the President is authorized to decrease by proclamation the rate of duty by not more than 50 per centum of the rate existing on January 1, 1945. The President may take action under this subsection, notwithstanding that such action is not required or appropriate to carry out any foreign trade agreement, if he finds as a fact that the purpose of section 350 of the Tariff Act of 1930, as amended, will be promoted thereby.

(b) The President shall take action under subsection (a) in conformity with the applicable statutory provisions relating to the entering into and proclamation of foreign trade agreements (such as public notice, public hearings, "peril points", limitations on amounts and timing of decreases, and other applicable provisions). The applicable statutory provisions relating to the carrying out, modification, suspension, and termination of foreign trade agreements and proclamations made pursuant thereto shall apply to proclamations made pursuant to subsection (a), and to decreases in rates provided for therein, as though such proclamations had been made to carry out foreign trade agreements and as though the decreases

reflected concessions granted under such agreements. Appropriate procedures for carrying out this section shall be established by the President on the basis of his determination as to the details of the statutory provisions which are applicable.

(c) For purposes of this section, the term "existing on January 1, 1945" shall have the meaning given to such term by section 350 of the Tariff Act of 1930, as amended.

(d) No proclamation shall be made pursuant to subsection (a) of this section after June 30, 1958.

TRADE AGREEMENTS EXTENSION-1955

H. R. 1

THE TRADE AGREEMENTS EXTENSION ACT OF 1955

THE PRESIDENT'S MESSAGE ON

FOREIGN ECONOMIC POLICY AND RELATED MATERIAL

Printed for the use of the members of the Committee on Ways and Means

NOTE. This document has been printed for information purposes only. It has not been considered or approved by the committee or any member thereof.

JANUARY 17, 1955

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