Mr. SIMPSON. Thank you, sir. The CHAIRMAN. Any further questions? Mr. McCarthy, of Minnesota, will inquire. Mr. McCARTHY. Mr. Secretary, the preliminary hearings and conferences with regard to the possible Japanese Treaty are now under way, is that correct? Secretary DULLES. I believe that hearings are still being held by the Tariff Commission with reference to the list of possible articles which was published. Mr. MCCARTHY. Is it safe to assume that we hope to exchange principally agricultural commodities for Japanese manufactures, and an increased exchange will be a result of this treaty? Secretary DULLES. I would say that what we hope from this negotiation, Congressman, is to find, if we can, markets for Japanese goods primarily outside of the United States, and which will promote our trade and commerce, but primarily through triangular, multilateral operations, rather than by direct operations. There is not much in the way of Japanese manufactured goods that we really want in this country. There are plenty of places in the world which are in very great need of the kind of goods that Japan can manufacture and produce. Japan does need many of our commodities that we export, such as cotton and wheat. The art is to try to find a way whereby Japan can take from us what she needs, whereby other countries can take from Japan what they need that Japan produces and they, in turn, perhaps give us what we need. In other words, I see the future of that, or the success of it, as resulting more from the possibility of developing, broadly speaking, the world market for Japanese goods rather than upon our creating a market here to take more of the Japanese manufactures. Mr. MCCARTHY. Mr. Secretary, as a result the changes made in the Agricultural Act last year, the relationship of the agricultural attaché to the State Department has been changed, has it not? Secretary Dulles. Yes. Mr. McCARTHY. The man who was, until recently, agricultural attaché to Japan, I understand did make a report, or was called back to make a report, with regard to the disposal of agricultural commodities in Japan. Did he make that report to the State Department or did he make it to the Agriculture Department, which, in turn, decides whether it should be forwarded or not? Secretary DULLES. If he made a report to us, it seems not to have attracted so much attention because none of my advisers are aware of it. Mr. MCCARTHY. Maybe I better wait and ask the Secretary of Agriculture whether he made the report to him. Do you know whether the report would, of necessity, have to be cleared by the Secretary of Agriculture before it could have been passed on to the Secretary of State? Secretary DULLES. I am not aware of any report at all. There may have been one and there probably was one but I am afraid I cannot answer any questions about it because I am just assuming its existence, and assuming that he came back here and he made a report. I doubt if he made it to us. I imagine it has been made to the Department of Agriculture. But I cannot enlighten you about it because it is entirely speculative in my mind. Mr. DINGELL. You do not get very many reports anyway, do you, Mr. Secretary? Secretary DULLES. I get more than you think. If you said that I do not have time to read them all you would be quite right. Mr. MCCARTHY. Of course, I did not expect the Secretary to receive it personally. I would like to know whether the Department of State does receive reports from agricultural attachés, in other countries as well as Japan, to determine what the procedure is under the law as it was changed in the 1954 Agricultural Act. This may be outside of your jurisdiction. I would like to know whether or not any testimony or report from the former agricultural attaché in Japan has been received by that branch of the Executive Office which has responsibility for negotiating the reciprocal-trade agreements with Japan. Thank you, Mr. Chairman. The CHAIRMAN. Any further questions? Mr. Reed of New York will inquire, Mr. Secretary. Mr. REED. I have heard that quite a large number of the countries refuse, or have made some restrictions against Japanese goods coming into their market. Do you happen to know how many there are, and if Great Britain is one of them? Secretary DULLES. Did you say, Is Great Britain one of them? Secretary DULLES. I believe so, yes. Mr. REED. Thank you very much. Secretary DULLES. I could not give you a list of them, but there are, I believe, discriminatory provisions against Japanese goods in quite a few countries. I could make a guess as to some of them, but it might be unfair for me to guess here publicly because I might misname one. Mr. REED. I would not want you to embarrass yourself that way. I did hear that rumor and I thought if it were true possibly we could prevail upon some of these foreign contries to relax a little. Secretary DULLES. That is what we hope to do, sir. The CHAIRMAN. Any further questions? Mr. Secretary, the effect of the trade-agreements program of this country is to confer discretionary authority upon the President of the United States to negotiate and enter into trade agreements. That has been the intent and effect of the program, has it not? Secretary DULLES. Yes. The CHAIRMAN. And that is the purpose and effect of this bill, to confer discretionary authority upon the President of the United States to negotiate and enter into trade agreements with other countries as a part of dealing with our foreign economic policy. Is that correct? Secretary DULLES. Yes. The discretion is, of course, a limited discretion. The CHAIRMAN. We thank you for your appearance and the very valuable and helpful information you have given the Committee. Thank you. Secretary DULLES. Thank you. (The following information was submitted by Secretary Dulles at the request of Mr. Curtis:) EXECUTIVE ORDERS DEALING WITH TRADE AGREEMENT PROGRAM UNITED STATES TARIFF COMMISSION WASHINGTON Executive Order 10082 of October 5, 1949 TRADE AGREEMENT PROCEDURES Executive Order 10082 contains the following provisions regarding the Tariff Commission: 1. Representation on Trade Agreements Committee (par. 1) 2. Chairmanship of Committee for Reciprocity Information (par. 2) 3. Preparation, for use of Trade Agreements Committee, of analyses and digests covering all articles imported into the United States to be considered in negotiations (par. 6) 4. Special studies of import phases of proposed trade agreements, particularly with respect to competition with American interests (par. 8) 5. Investigation of injury or threatened injury to a domestic industry due to trade agreement concession (par. 13) 6. Observation of operation and effects of provisions relating to United States import duties or other import restrictions in trade agreements (par. 14) 7. Report each year to President and Congress on operation of trade agreements program (par. 14) The Trade Agreements Committee is composed of a Commissioner of Tariff Commission; representatives of Departments of State, Treasury, Defense, Agriculture, Commerce, and Labor; and Economic Cooperation Administration. The Committee for Reciprocity Information consists of same member as Trade Agreements Committee or their alternates. The Tariff Commission member of TAC is Chairman of Committee for Reciprocity Information. (Text of Executive order attached.) EXECUTIVE ORDER 10082-PRESCRIBING PROCEDURES FOR THE ADMINISTRATION OF THE RECIPROCAL TRADE-AGREEMENTS PROGRAM By virtue of the authority vested in me by the Constitution and the statutes, including section 332 of the Tariff Act of 1930 (46 Stat. 698) and the Trade Agreements Act approved June 12, 1934, as amended (48 Stat. 943; 57 Stat. 125; 59 Stat. 410; Public Law 307, 81st Congress), and in the interest of the foreignaffairs functions of the United States and in order that the interests of the various branches of American economy may be effectively promoted and safeguarded through the administration of the trade-agreements program, it is ordered as follows: PART I-ORGANIZATION 1. There is hereby established the Interdepartmental Committee on Trade Agreements (hereinafter referred to as the Trade Agreements Committee), which shall act as the agency through which the President shall, in accordance with section 4 of the said Trade Agreements Act, as amended, seek information and advice before concluding a trade agreement. With a view to the conduct of the trade-agreements program in the general public interest and in order to coordinate the program with the interests of American agriculture, industry, commerce, labor and security, and of American financial and foreign policy, the Trade Agreements Committee shall consist of a Commissioner of the United States Tariff Commission, who shall be designated by the Chairman of the Commission, and of persons designated from their respective agencies by the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Labor, and the Administrator for Economic Cooperation. There shall likewise be designated from the foregoing agencies alternates to act in place of the members on the Committee when the members are unable to act. A member or alternate from the Department of State shall be the Chairman of the Trade Agreements Committee. 2. There is hereby established the Committee for Reciprocity Information, which shall act as the agency to which, in accordance with section 4 of the Trade Agreements Act, as amended, the views of interested persons with regard to any proposed trade agreement to be concluded under the said Act shall be presented. The Committee for Reciprocity Information shall consist of the same members as the Trade Agreements Committee or their alternates. A member or alternate from the Tariff Commission shall be the Chairman of the Committee for Reciprocity Information. 3. The Trade Agreements Committee and the Committee for Reciprocity Information may invite the participation in their activities of other government agencies when matters of interest thereto are under consideration. Each of the said committees may from time to time designate such subcommittees, and prescribe such procedures and rules and regulations, as it may deem necessary for the conduct of its functions. PART II-CONCLUSION OF AGREEMENTS 4. Before entering into the negotiation of a proposed trade agreement under the Trade Agreements Act, as amended, the Trade Agreements Committee shall submit to the President for his approval a list of all articles imported into the United States which it is proposed should be considered in such negotiations for possible modification of duties and other import restrictions, imposition of additional import restrictions, or specific continuance of existing customs or excise treatment. Upon approval by the President of any such list, as originally submitted or in amended form, the Trade Agreements Committee shall cause notice of intention to negotiate such agreement, together with such list of articles, to be published in the Federal Register. Such notice and list shall also be issued to the press, and sufficient copies shall be furnished to the Committee for Reciprocity Information for use in connection with such hearings as the Committee may hold with respect thereto. Such notice, together with the list or a statement as to its availability, shall also be published in the Department of State Bulletin, Treasury Decisions, and the Foreign Commerce Weekly. 5. Any interested person desiring to present his views with respect to any article in any list referred to in paragraph 4 hereof, or with respect to any other aspect of a proposed trade agreement, may present such views to the Committee for Reciprocity Information, which shall accord reasonable opportunity for the presentation of such views. 6. With respect to each article in a list referred to in paragraph 4 hereof, the Tariff Commission shall make an analysis of the facts relative to the production, trade, and consumption of the article involved, to the probable effect of granting a concession thereon, and to the competitive factors involved. Such analysis shall be submitted in digest form to the Trade Agreements Committee. 7. With respect to each article exported from the United States which is considered by the Trade Agreements Committee for possible inclusion in a trade agreement, the Department of Commerce shall make an analysis of the facts relative to the production, trade, and consumption of the article involved, to the probable effect of obtaining a concession thereon, and to the competitive factors involved. Such analysis shall be submitted in digest form to the Trade Agreements Committee. 8. Each Department and agency officials from which are members of the Trade Agreements Committee shall, to the extent it considers necessary and within the sphere of its respective responsibilities, make special studies of particular aspects of proposed trade agreements from the point of view of the interests of American agriculture, industry, commerce, labor, and security. Such studies shall be submitted to the Trade Agreements Committee. 9. After analysis and consideration of (a) the studies of the Tariff Commission provided for in paragraph 6 hereof, (b) the studies of the Department of Commerce provided for in paragraph 7 hereof, (c) the special studies provided for in paragraph 8 hereof, (d) the views of interested persons presented to the Committee for Reciprocity Information pursuant to paragraph 5 hereof, and (e) any other information available to the Trade Agreements Committee, including information relating to export duties and restrictions, the Trade Agreements Committee shall make such recommendations to the President relative to the conclusion of the trade agreement under consideration, and to the provisions to be included therein, as are considered appropriate to carry out the purposes set forth in the Trade Agreements Act, as amended. If there is dissent from any recommendation to the President with respect to the inclusion of any proposed concession in a trade agreement, the President shall be furnished a full report by the dissenting member or members of the Trade Agreements Committee, giving the reasons for his or their dissent. 10. There shall be applicable to each tariff concession granted, or other obligations incurred, by the United States in any trade agreement hereafter entered into a clause providing in effect that if, as a result of unforeseen developments and of such concession or other obligation, any article is being imported in such relatively increased quantities and under such conditions as to cause or threaten serious injury to the domestic industry producing like or directly competitive articles, the United States shall be free to withdraw or modify the concession, or suspend the other obligation, in whole or in part, to the extent and for such time as may be necessary to prevent such injury. 11. There shall be obtained from every government or instrumentality thereof with which any trade agreement is hereafter entered into a most-favored-nation commitment securing for the United States the benefits of all tariff concessions and other tariff advantages accorded by the other party or parties to the agreement to any third country. This provision shall be subject to the minimum of necessary exceptions and shall be designed to obtain the greatest possible benefit for the trade of the United States. PART III-ADMINISTRATION OF AGREEMENTS 12. The Trade Agreements Committee shall at all times keep informed of the operation and effect of all trade agreements which are in force. It shall recommend to the President or to one or more of the agencies represented on the committee such action as is considered required or appropriate to carry out any such trade agreement or any rectifications and amendments thereof not requiring compliance with the procedures set forth in paragraphs 4 and 5 hereof. The Trade Agreements Committee shall, in particular, keep informed of discriminations by any country against the trade of the United States which cannot be removed by normal diplomatic representations, and, if it considers that the public interest will be served thereby, shall recommend to the President the withholding from such country of the benefit of concessions granted under the Trade Agreements Act, as amended. The committee may also consider such other questions of commercial policy as have a bearing on its activities with respect to trade agreements. 13. The Tariff Commission, upon the request of the President, upon its own motion, or upon application of any interested party when in the judgment of the Tariff Commission there is good and sufficient reason therefor, shall make an investigation to determine whether, as a result of unforeseen developments and of the concession granted, or other obligation incurred, by the United States with respect to any article to which a clause similar to that provided for in paragraph 10 hereof is applicable, such article is being imported in such relatively increased quantities and under such conditions as to cause or threaten serious injury to the domestic industry producing like or directly competitive articles. Should the Tariff Commission find, as a result of its investigation, that such injury is being caused or threatened, it shall recommend to the President, for his consideration in the light of the public interest, the withdrawal or modification of the concession, or the suspension of the other obligation, in whole or in part, to the extent and for such time as the Tariff Commission finds necessary to prevent such injury. In the course of any investigation under this paragraph, the Tariff Commission shall hold hearings, giving reasonable public notice thereof, and shall afford reasonable opportunity for parties interested to be present, to produce evidence, and to be heard at such hearings. The procedure and rules and regulations for such investigations and hearings shall from time to time be prescribed by the Tariff Commission. 14. The Tariff Commission shall at all times keep informed concerning the operation and effect of provisions relating to duties or other import restrictions of the United States contained in trade agreements heretofore or hereafter entered into by the President under the authority of the Trade Agreements Act, as amended. The Tariff Commission, at least once a year, shall submit to the President and to the Congress a factual report on the operation of the trade agreements program. 15. The Committee for Reciprocity Information shall accord reasonable opportunity to interested persons to present their views with respect to the operation and effect of trade agreements which are in force or to any aspect thereof. PART IV-TRANSITORY PROVISIONS 16. All action relative to trade agreements already concluded or to the conclusion of new trade agreements which has been taken by the Trade Agreements Committee or by the Committee for Reciprocity Information between June 25, 1948, and the date of this order shall be considered as pro tanto compliance with 57600-55-pt. 1-8 |