4 percent below the first 6 month of 1956. In making a request of that kind it is clear that we were asking some companies which had conformed to the Cabinet committee formula to cut even further, and on the other hand we were, you might say, being a little easier on companies which had not conformed. In other words, we were saying to the whole group right straight across the board:

We feel that in order to bring about substantial conformity with the Cabinet committee recommendation that there should be a 4-percent cut across the board. Mr. MORRISON. Is it permissible to ask, Dr. Flemming, what the other 10 petitions

Dr. FLEMMING. Yes.

Mr. MORRISON. Which you do not refer to specifically, cover as to the commodities they related to?

Dr. FLEMMING. I would be happy to give that. I have the list here. It is a published list. I would be glad to supply it for the record. It indicates the industry; it indicates who presented the petition; it indicates the date that the petition was presented; and also indicates the two industries that presented petitions and then withdrew them.

The only other one that we scheduled for a public hearing so far was fluorspar. At the request of the industry itself we have postponed that hearing. In fact, they have given us some indication that they may ask us either to suspend the petition or they might even withdraw it. I do not know just what they are going to do along that line. I have not yet set the date for the oil hearing, but I will set it very shortly.

Mr. MORRISON. Would a suspension of the petition be considered an end of the matter?

Dr. FLEMMING. So far as I am concerned it would. I mean, if the industry voluntarily said:

We do not care to go to a hearing on this.

At least at the present time I would regard that as in effect canceling the proceeding for the time being. They could revive it any time they wanted to, so far as I am concerned, and if they did revive it and ask for a hearing we would have a hearing on it.

Mr. MORRISON. I wonder if you have any trouble, such as I understand the Commission has had, in identifying what is the industry, when some of the concerns involved are both importers and domestic producers?

Dr. FLEMMING. The answer is that there are some difficulties there in connection with a number of the petitions that have been filed. To a certain extent, of course, you are going to get that in the oil case. You certainly get it in the watch case. You might possibly get it in the fluorspar case.

Mr. Chairman, would you like to have me insert this list of formal requests for investigation under section 7, Public Law 86, in the record?

Mr. HARRISON. Yes.

(The information is as follows:)

EXECUTIVE OFFICE OF THE PRESIDENT, OFFICE OF DEFENSE MOBILIZATION Formal requests for investigation under sec. 7, Public Law 86

Mr. HARRISON. Doctor, we are very grateful for your appearance and the information you have given this committee. Thank you very much.

Dr. FLEMMING. Thank you, Mr. Chairman. It is a pleasure to

appear.

Mr. HARRISON. Thank you, sir.

Our next witness is Mr. Gustave Burmeister, Assistant Administrator for Agricultural Trade Policy and Analysis, Department of Agriculture.

We are very happy to have you, sir. We will ask you to identify yourself and your assistant for the record and you may proceed in your own way, sir.

STATEMENT OF GUSTAVE BURMEISTER, ASSISTANT ADMINISTRATOR, FOREIGN AGRICULTURAL SERVICE, DEPARTMENT OF AGRICULTURE; ACCOMPANIED BY A. R. DeFELICE, DIRECTOR, TRADE POLICY DIVISION, FOREIGN AGRICULTURAL SERVICE, DEPARTMENT OF AGRICULTURE

Mr. BURMEISTER. I am Gustave Burmeister, Assistant Administrator for the Foreign Agricultural Service. The Foreign Agricultural Service is assigned the primary responsibilities for matter pertaining to agricultural trade and relationships with foreign countries.

This is Mr. A. R. DeFelice, Director of our Trade Policy Division of the Foreign Agricultural Service, which has much to do with these problems in the trade-agreements field.

My statement to the subcommittee is for the purpose of describing the participation of the Department of Agriculture in the tradeagreements program and related legislation and the procedures followed in the Department in regard to these matters.

TRADE AGREEMENTS PROGRAM

The functions of the Trade Agreements Committee and the Committee for Reciprocity Information and the procedures applicable to their operations have already been described to the subcommittee. The part played by the Department of Agriculture, which is represented on both committees, is apparent in the functions and procedures outlined for the Trade Agreements Committee and Committee for Reciprocity Information.

The Department's representative on the Trade Agreements Committee is designated by the Assistant Secretary for Marketing and Foreign Agriculture, and acts under the direction of the Administrator, Foreign Agricultural Service.

Within the Department there has been informally established at working levels a trade-agreement group made up of representatives of the Foreign Agricultural Service, as chairman, the Agricultural Marketing Service, the Commodity Stabilization Service, and the General Counsel. This group develops recommendations with respect to the Department's position on tariff negotiations and other matters relating to the trade-agreements program. Members of this group consult specialists in their own agencies in order that all facts and points of view within the Department may be fully considered. These specialists are officials who are in constant touch with domestic trade groups on matters of trade problems. When policy decisions are required or when it is not possible to reach agreement, the matters are referred to the Administrator, Foreign Agricultural Service, and the Assistant Secretary. Representatives of other agencies in the Department participate in the discussions at this level.

In its day-to-day operations the Foreign Agricultural Service endeavors to keep informed on tariff and trade problems through developments in domestic trade and reports by its attachés in foreign. countries. Whenever it appears that trade problems are developing or have developed a solution is sought within the framework established for handling problems arising out of the trade agreements program and through other available means.

TARIFF NEGOTIATIONS

When tariff negotiations are scheduled the Department informs interested persons of these negotiations primarily through publication of notices in the Department's Foreign Agricultural Trade Digest, which reaches all important agricultural organizations and groups. These notices are supplemented by discussions between trade groups and Department officials.

In preparing for tariff negotiations, the Trade Agreements Committee sets up a country committee for each country which may be involved. This committee consists of representatives of the Department of Agriculture and other agencies on the Trade Agreements Committee who are experts in the trade of the particular country concerned. The Department's representatives is chiefly con

cerned with the agricultural items on which the United States may offer and may request concessions in the negotiations. He prepares a list of the important agricultural items in the trade with that country. This list is reviewed in cooperation with the commodity specialists and the trade and agricultural program analysts in the several agencies within the Department to develop recommendations on the items to be negotiated. These specialists and analysts, through their daily work, are in close touch with trade organizations and others who might have an interest in the negotiation and, therefore, are aware of the potential problems which arise out of the negotiation.

This list is then examined item by item for each country by the intradepartmental trade-agreement group referred to above. On the basis of this examination, an initial position is formulated for the Department's representative in the country committee.

In the event the representations are not accepted by the country committee a further review by the intradepartmental trade-agreement group is held to formulate the Department's position before the Trade Agreements Committee when that Committee considers the list of United States import items to be recommended to the President for inclusion in the public notice of Committee for Reciprocity Information hearings.

The Department's trade-agreement group again considers each agricultural item listed in the public notice after the Committee for Reciprocity Information hearings are completed. This examination is for the purpose of deciding which items should be included in the Trade Agreements Committee recommendations to the President, and the nature or extent of the concession to be negotiated. The representations made to the Committee for Reciprocity Information are given careful study. Copies of the written statements and briefs submitted are circulated by the Department's representative to the persons in the Department developing the Department position. The Department also has a considerable amount of correspondence and personal calls by interested individuals when preparations for tariff negotiations are underway. The Department also arranges special meetings of Department personnel concerned with negotiations and individuals or commodity groups. Information developed by such means is transmitted to the other members of the Committee for Reciprocity Information.

In any case where the Department recommendation is not adopted by the Trade Agreements Committee the Department representative brings the matter to the attention of the intradepartmental tradeagreement group, the Administrator, Foreign Agricultural Service, and the Assistant Secretary for consideration as to whether a formal dissent should be made to the President under the Trade Agreements Committee procedures.

The procedure outlined above is also used in the Department in developing Department recommendations on the concessions on agricultural products to be requested from other countries.

The Department is represented on the United States delegations to negotiating conferences. These representatives serve as members of the negotiating teams. They are designated by the Assistant Secretary of Agriculture. Since they are selected from Department personnel who participated in the preparatory work for the negotiations, the Department representatives are quite familiar with the trade problems involved.

ADMINISTRATION OF GENERAL AGREEMENT ON TARIFFS AND TRADE

The Department participates in the administration of the general agreement through its membership on the Trade Agreements Committee, which formulates the position of the Government of the United States on matters to be discussed at the annual meetings of the contracting parties to the general agreement. The Department's position in the Trade Agreements Committee discussions is developed through the use of the intradepartmental trade-agreement group. The Department is also represented on the United States delegation to the meetings under the general agreement.

ESCAPE-CLAUSE ACTIONS

The Department does not generally participate in escape-clause actions before the Tariff Commission, except in the case of perishable agricultural commodities. When perishable agricultural commodities are involved, the Secretary of Agriculture is charged with the responsibility of determining and notifying the President and the Tariff Commission of the need for emergency action. Also, the Department, as well as other interested agencies, submits its views and comments on the Tariff Commission's report and recommendations for consideration by the President in making his decision.

SECTION 22 OF THE AGRICULTURAL ADJUSTMENT ACT, AS AMENDED

Section 22 authorizes the President to impose quotas or fees on any imported article whenever he finds, pursuant to appropriate investigation and proceedings by the Tariff Commission, that the article or articles are being or are practically certain to be imported into the United States under such conditions and in such quantities as to render or tend to render ineffective or materially interfere with any price support or other program of the Department of Agriculture. The Secretary of Agriculture has the responsibility of advising the President regarding the need for action under section 22. The Secretary is also charged with the responsibility of determining the need for emergency treatment under section 22 and, with respect to perishable agricultural commodities, the need for emergency treatment in actions under section 7 of the Trade Agreements Extension Act of 1951. The primary responsibility within the Department on matters for which the Secretary is responsible under section 22 and section 8 (a) of the Trade Agreements Extension Act is assigned to the Administrator, Foreign Agricultural Service.

The procedures followed in discharging this responsibility are published in the Federal Register and copies are being furnished to the subcommittee. The application of those procedures may be briefly summarized as follows: When the Administrator of the Foreign Agricultural Service determines, on the basis of information contained in a request from an interested person, or from information available to the Department, that there are reasonable grounds to believe that the imposition of import quotas or fees may be needed to protect programs or operations subject to section 22 protection, an investigation is undertaken. A committee or working party is established consisting of representatives of the Agricultural Marketing