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Additional information submitted for the record by—Continued

Columbia River Packers Association, Inc., letter from James H.

Cellars, public relations officer ----

Commerce Department:

Bureau of Customs survey of dutiable imports, showing effect of

change under new legislation in valuation provisions of the

Tariff Act..

Statement showing Budget Bureau recommendation and final

appropriation for statistical services item --

Committee for Economic Development, statement of J. D. Zellerbach,

chairman, board of trustees.-

Cordage Institute, letter from DeWitt C. Schieck, secretary-

Council for Social Action of the Congregational Christian Churches,

letters from Herman F. Reissig---

Cundy-Bettoney Co., Inc., letter from Arthur E. Hastedt, vice presi-

dent, transmitting statement.-
Detroit Board of Commerce, letter from Carlos E. Toro, manager,

world trade department, transmitting statement.-

Elliott Co., letter from W. A. Elliott, president, enclosing additional

letters and information...

Empire State Petroleum Association, Inc., statement of Harry B. Hilts,

secretary

Export Managers Club of Chicago, Inc., statement of.

Friends Committee on National Legislation, letter from Edward F.

Snyder, transmitting statement of Joseph D. Coppock.

General Federation of Women's Clubs, letter from Genevieve H.

Oslund, legislation research director, transmitting statement.

Gulf Oil Co., memorandum of.----

Holton, Frank, & Co., letter from Elliott Kehl, executive vice

president,

International Chamber of Commerce, Inc., letter from Thomas J.

Watson, Jr., transmitting statement of United States Council.-
International House, New Orleans, statement of..
Keating, Hon. Kenneth B., letter from..
Labor Department:

Letter and statement from Hon. James P. Mitchell, Secretary,

with respect to H. R. 5550, January 25, 1955.
Letter from J. Ernest Wilkins, Acting Secretary, transmitting

additional information...
Loos, Karl D., statement of -
McKeldin, Hon. Theodore R., Governor of Maryland, letter from..
Merritt, John A., & Co., letter from G. E. Roper, Jr., traffic man-

ager..
Monsanto Chemical Co., letter from E. J. Putzell, Jr.-
National Association of Photographic Manufacturers, Inc., statement

on behalf of American photographic manufacturing industry--

National Association of Wool Manufacturers, statement of..

National Creameries Association, statement of Otie M. Reed, Wash-

ington representative..
National Electrical Manufacturers Association, letter from A. F.

Metz, chairman, import committee
National Grange, letter from Lloyd C. Halvorson, economist, trans-

mitting statement.

National Lead and Zinc Committee, statement of Otto Herres, chair-

National Paint, Varnish, and Lacquer Association, Inc., statement of..

New York Board of Trade, Inc., letter from J. Morton Curran, Jr.,

chairman, textile section...

North Pacific Frozen Products Co., letter from E. P. Bayley, presi-

dent..

Northwest Horticultural Council, statement of Ernest Falk.

Office of Defense Mobilization: Formal requests for investigation

under sec. 7, Public Law 86, table-

Pacific American Steamship Association, letter from Ralph B. Dewey,

vice president...

Reynolds Metals Co., letter from Maxwell Caskie, assistant vice

president, transmitting statement...

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Additional information submitted for the record by-Continued

Rubber Manufacturers Association, Inc., letter from C. P. McFadden,

chairman, footwear division, transmitting statement-

San Francisco Area World Trade Association, letter from James P.

Wilson, secretary, transmitting statement.--

Scientific Apparatus Makers Association, statement of Kenneth

Andersen, executive vice president, laboratory apparatus and optical

sections.

Simpson, Hon. Richard M., letter from, enclosing letter from G. S.

Tompkins, president, American Viscose Corp-

Society of the Plastics Industry, Inc., letter from William T. Cruse,

executive vice president.

Southern States Industrial Council, statement of Tyre Taylor,

general counsel..

Standard Oil Co. (New Jersey), statement of..

Textile Fabrics Association, statement of Arthur M. Klurfeld, execu-

tive director.

Tile Council of America, Inc., statement of Norris E. Phillips.

Tobacco Associates, Inc., letter from J. B. Hutson, transmitting

statement.

Tuna Fishermen's Wives Emergency Committee, letter from Laura

Tocco, chairman.--

Tungsten Institute, letter from James A. White, executive secretary,

transmitting statement of W. Lunsford Long, president -

Typerwiter Manufacturers Export Association, statement of..

United States Austrian Chamber of Commerce, Inc., letter from

Paul A. Goldschmidt, executive secretary, transmitting statement.
United States National Fruit Export Council, letter from Harold

Angier, secretary

United States Wood Screw Service Bureau, statement of

Utah Mining Association, letter from Miles P. Romney, manager,

transmitting statement.-

Wildlife Management Institute, letter from Daniel A. Poole, editor,

Outdoor News Bulletin, transmitting statement.

Williams, Hon. Harrison A., Jr., letter from, transmitting statements

of Gerald J. Holton and Sanford C. Brown, on behalf of American

Association of Physics Teachers..

Wine Institute, letter from Edward W. Wooton.

Wollensak Optical Co., letter from Robert E. Springer, treasurer..

Zildjian, Avedis, Co., letter from R. Zildjian.

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ADMINISTRATION AND OPERATION OF CUSTOMS AND TARIFF LAWS AND THE TRADE AGREEMENTS PROGRAM

TUESDAY, OCTOBER 2, 1956

HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE ON CUSTOMS, TARIFFS, AND
RECIPROCAL TRADE AGREEMENTS OF THE
COMMITTEE ON WAYS AND MEANS,

Washington, D. C. The subcommittee met at 10 a. m., pursuant to recess, in the committee room of the House Committee on Ways and Means, Hon. Burr Harrison (acting chairman) presiding.

Mr. HARRISON. The committee will please come to order. first witness this morning, we are happy to have with us Dr. Arthur S. Flemming, Director of the Office of Defense Mobilization.

Good morning, Doctor. I wish you would please identify for the record your associates.

Mr. FLEMMING. Thomas R. Baldwin, Deputy General Counsel, Office of Defense Mobilization, and Harold Gresham, Special Assistant to the Director on Foreign Trade.

Mr. HARRISON. You may proceed in your own way, Doctor.

As our

STATEMENT OF ARTHUR S. FLEMMING, DIRECTOR, OFFICE OF

DEFENSE MOBILIZATION, ACCOMPANIED BY HAROLD GRESHAM, SPECIAL ASSISTANT TO THE DIRECTOR ON FOREIGN TRADE, AND THOMAS R. BALDWIN, DEPUTY GENERAL COUNSEL, OFFICE OF DEFENSE MOBILIZATION

Dr. FLEMMING. Mr. Chairman and members of the committee, I am glad to appear before this subcommittee in connection with its broad study of our customs and tariff laws and the trade-agreements program. I understand that you desire a description of the duties and responsibilities of the Office of Defense Mobilization which might contribute to such a study and the procedures followed by us in discharging our responsibilities.

As you know, the Director of the Office of Defense Mobilization has been charged with the responsibility for the coordination of all mobilization activities of the Government and for the direction and control of operations under certain mobilization statutes. That responsibility includes the determination of a mobilization base adequate and adaptable to varieties of emergency conditions ranging from mobilization without an attack on continental United States to mobilization accompanied by damaging attacks on the continental United States. When we refer to the mobilization base, we refer to

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that combination of people, materials, facilities, and equipment that would be available to deal with an emergency situation.

It is clear, of course, that mobilization base requirements for an emergency that involved an attack on continental United States would be drastically different from those for an emergency that did not involve such an attack. We are authorized to use various forms of Government assistance to encourage private industry to install additional capacity necessary to complete and to maintain the mobilization base.

While it can hardly be questioned that the development and maintenance of a well rounded and flexible mobilization base is an important national objective, no one would seriously argue that efforts to achieve any single national objective can be made without due regard for the requirements of other basic national programs. That mobilization programs should be considered in the light of other executive programs was recognized by the President in the Executive order outlining the responsibilities of the Director of the Office of Defense Mobilization. This order created a Defense Mobilization Board to advise the Director consisting of the heads of the Departments of State, Treasury, Defense, Interior, Agriculture, Commerce, and Labor, the Federal Reserve Board, and the Federal Civil Defense Administration. All mobilization programs having national impact are discussed and reviewed by that Board, assisted, when appropriate, by heads of other affected agencies. As with other national considerations the effect of mobilization programs on our foreign economic policies has always been carefully considered in this forum.

Because foreign trade policies and practices strongly affect our total national security position and have a bearing on the development and maintenance of our mobilization base, ODM engages in a number of activities in which this subcommittee may be interested. These arise generally from our efforts to maintain the mobilization base or from defense responsibilities that have been placed upon the executive branch by a foreign trade law.

In our efforts to increase productive capacity and supply we have a variety of activities that affect foreign trade in one way or another. For example, we have built a stockpile of strategic and critical materials to avoid dependence on foreign sources of supply in time of war. Many of these materials are purchased from foreign sources and are brought into the United States duty-free in accordance with an express provision of law. We have found it appropriate from time to time to sponsor or support legislation to suspend duties on imports of materials which were scarce in the United States because of defense requirements. The President has assigned to us the job of advising the Department of Agriculture in connection with the barter of surplus agricultural commodities for strategic and critical materials under the Agricultural Trade Development and Assistance Act. This advice is given after receiving recommendations from appropriate interagency groups.

Ordinarily we become involved in issues regarding imports of commodities because of the relationship of those issues to the maintenance of the mobilization base.

Under the Buy American Act we have been directed by the President to provide advice to procuring agencies upon their request whenever they propose to reject a foreign bid in order to protect essential

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