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United States import quotas or embargoes on agricultural and related products in effect Mar. 1, 1956—Continued SEC. III.-CURRENT QUOTAS ON SUGAR AS OF MAR. 1, 1956, UNDER THE SUGAR ACT OF 1948, AS AMENDED :
Quantity in short tons, raw value
4, 355 Unallotted
Quantity in short tons, raw value
Approximately 4s of their total quota
Quantity in terms of wine gallons of 72 percent total sugar content
SEC. IV.-UNDER THE PHILIPPINE TRADE AGREEMENT REVISION ACT OF 1955 AND THE EXCLUSIVE TRADE AGREEMENT BETWEEN THE
UNITED STATES AND THE REPUBLIC OF THE PHILIPPINES OF 1946, AS REVISED, IMPORTS OF THE FOLLOWING "PHILIPPINE ARTICLES"
Commerce import class No.
n. s. p. f., containing soluble nonsugar solids
502 Part of 1630.480-1630.000.
830, 894 British West Indies 4
Cigars (exclusive of cigarettes, cheroots of all 605.
2621.000 (part). kinds, and paper cigars and cigarettes, includ.
ing wrappers). Scrap tobacco, and stemmed and unstemmed filler 601 and 603.- 2603.000, 2604.000, 2009.000.
tobacco described in par. 602, Tariff Act of 1930. Coconut oil..
2242.500. Buttons of pearl or shell.
6,500,000 pounds. 200,000 long tons. 850,000 gross.
801 Cordage, including yarns, twines (including 1005 (a), binding twines), cords, cordage, rope, and cablo,
1005 (b), tarred or untarred, wholly or in chiel value of 1622. manila (abaca) or other hard fiber.
Absolute quota 962,000 short tons, of which not over 66,000 short tons
may be refined sugar. 3417.500. 3411.000, 3412,000, 3417.020-3417.199, Absolute quota of 6,000,000 pounds,
0705.000, 0707.000, 0710.000, 0713.000, The entry, or withdrawal from warehouse for consumption, of all such furs
0714.000, 0717.000, 0726.000; part of and skins which are products of the U.S.S. R. (Russia) or of any part of 0737.800, 0737.820, 0737.900, 0737.920, China which, at the time of entry, or withdrawal, is under Communist 0738.200, 0738.600, 0738.700, 0738.800. domination or control is probibited.
The importation of canned crab meat, manufactured or produced wholly
or in part in the U. S. S. R. (Russia) or manufactured or produced
NOTE.-In addition to the quotas and embargoes described herein, a number of re-
A restriction of imports from Communist China and the Communist-dominated areas
1 The aggregate quantity entitled to the 178 cent reduced rate in any calendar year shall
For the purposes of this note, “apparent consumption” shall be the sum of (a) the pro-
? The minimum annual tarifi quota is 1,000,000 bushels (60 pounds each). If for any
3 Rates of duty not shown in this table for sugar. • Other foreign countries can ship no liquid sugar into the United States.
Provision is made for gradually decreasing proportions of this amount to be entered
(a) During each of the calendar years 1956 to 1958, inclusive, 95 percent.
(9) On and after Jan. 1, 1974, nil.
• Provision is made for assessment of a rate of duty on this article in gradually increasing proportions to the lowest rate of duty assessed on other like foreign articles. The proportions are as follows:
(a) During the period from Jan. 1, 1956, to Dec. 31, 1958, both dates inclusive, 5 percent.
(b) During the period from Jan. 1, 1959, to Dec. 31, 1961, both dates inclusive, 10 percent.
(C) During the period from Jan. 1, 1962, to Dec. 31, 1964, both dates inclusive, 20 percent.
(d) During the period from Jan. 1, 1965, to Dec, 31, 1967, both dates inclusive, 40 percent.
(e) During the period from Jan. 1, 1968, to Dec. 31, 1970, both dates inclusive, 60 percent.
During the period from Jan. 1, 1971, to Dec. 31, 1973, both dates inclusive, 80 percent.
6) During the period from Jan. 1, 1974, to July 3, 1974, both dates inclusive, 100 percent.
Mr. HARRISON. Our next witness is Harold C. McClellan, Assistant Secretary for International Affairs, Department of Commerce.
Mr. Secretary, we are very happy to have you and we will ask you to take a seat and proceed in your own way, sir.
STATEMENT OF HAROLD C. MCCLELLAN, ASSISTANT SECRETARY FOR INTERNATIONAL AFFAIRS, DEPARTMENT OF COMMERCE; ACCOMPANIED BY HAROLD P. MACGOWAN, BUREAU OF FOREIGN COMMERCE, DEPARTMENT OF COMMERCE
Mr. MCCLELLAN. Thank you very much, sir. I have asked, Mr. Chairman, that Mr. Macgowan of the Bureau of Foreign Commerce join with me today, because some of the questions here may be of a technical order.
Mr. HARRISON. Yes, sir. Will you identify him for the record, sir?
Mr. McCLELLAN. Mr. Chairman, I brought with me a prepared statement which has as its specific purpose reporting on the operation of our section of the Department of Commerce in its work with the BDSA, on the domestic side of the Department of Commerce, and with other departments in the procedures having to do with trade agreements and the reciprocal trade agreements program.
I am prepared either to read the statement—that might be advisable, if you wish it, in order to point out the specific ways in which we operate
or to file this for the record and review and submit to questions.
Mr. HARRISON. Well, Mr. Secretary, we would be happy to have you do it either way you prefer.
Mr. MCCLELLAN. I think, Mr. Chairman, it would be better if I read it.
Mr. HARRISON. All right, sir. We would be happy to hear it.
Mr. McCLELLAN. I think in itself it would answer some of the questions more quickly than would otherwise be the case.
Mr. HARRISON. Thank you very much, Mr. Secretary. Mr. McCLELLAN. Trade-agreement procedures in the Department of Commerce.
Committee structure: The Department of Commerce participates in the work of the interdepartmental trade agreements organization largely through the Interdepartmental Committee on Trade Agreements and its subcommittees, and the Committee for Reciprocity Information. The subcommittees of the Trade Agreements Committee are for the most part country committees established to develop trade and tariff data to serve as a basis for formulating trade agreements with specific countries. However, from time to time special subcommittees are created to deal with important commodity or technical tariff problems.
Representation: The Department is represented on the Trade Agreements Committee and the Committee for Reciprocity Information by the Director of the Office of Economic Affairs (Bureau of Foreign Commerce), and an alternate. In addition, during periods immediately preceding and during tariff negotiations, a representative of the Business and Defense Services Administration (the Commerce organization, composed of 25 industry divisions, which main
tains contact with the country's industries and is staffed by commodity specialists and industrial technicians) customarily attends the Trade Agreements Committee meetings, so as to insure the effective participation of that agency in the proceedings of the Committee. The Commerce representatives on the Trade Agreements Committee are assisted as occasion requires by commodity experts and technicians from the Business and Defense Services Administration, the Bureau of Foreign Commerce, and, at times, other bureaus, such as Census and the Patent Office. (Other agencies represented on the Trade Agreements Committee also follow this practice of calling in technicians to supply technical information and advice.)
Commerce representation on the country subcommittees is drawn from the geographic divisions of the Office of Economic Affairs and consists usually of desk officers specializing in the economic affairs of individual countries. These country specialists are assisted by Business and Defense Services Administration personnel drawn from its industry divisions who serve primarily to maintain liaison between the country committees and the Business and Defense Services Administration. Through these contact men commodity experts from the Business and Defense Services Administration are invited to attend meetings at which products in their field of competence are under discussion.
In the case of the occasional special committees, commodity specialists from the Business and Defense Services Administration or qualified technicians from the Bureau of Foreign Commerce are designated.
CONCESSIONS TO BE REQUESTED (EXPORTS) The basic work of preparing the list of concessions to be requested from the foreign country is primarily a Commerce responsibility: The foreign trade background and tariff know-how of the Bureau of Foreign Commerce regional specialists and the specialized commodity knowledge of the Business and Defense Services Administration industry divisions are brought to bear on the problem. Individual commodity digests are prepared on each item considered for listing, giving trade and production figures, tariff data, and commodity background. (The commodity data is supplied by the Business and Defense Services Administration.)
The initial selection of commodities is made on a statistical basis, taking into account volume of trade, supplier position of the United States, and tariff levels. This list is then reviewed, screened, and supplemented on the basis of the tariff and commodity information supplied respectively by the Bureau of Foreign Commerce and the Business and Defense Services Administration. The result of this operation is again reviewed in the light of requests from the public. Every effort is made to incorporate suggestions made by industry, in briefs and oral testimony before the Committee for Reciprocity Information, as well as suggestions received directly in the Bureau of Foreign Commerce and the Business and Defense Services Administration by correspondence and personal contact with industry and trade associations.
The refined list embodying the Commerce position is then reviewed by the country committee. In this way the specialized knowledge of the other agencies assists in the development of a preliminary interdepartmental selection, which is subsequently reviewed by the Trade Agreements Committee.
CONCESSIONS TO BE GRANTED BY THE UNITED STATES (IMPORTS)
Development of published list: On the import side, the responsibility for developing the basic statistical and tariff studies rests with the Tariff Commission. As soon as this information is made available to Commerce through the country committees, the Bureau of Foreign Commerce and the Business and Defense Services Administration undertake independent studies to determine what items should be recommended for inclusion in the list of products to be published with the announcement of intention to negotiate, as the items on which the United States would consider granting tariff concessions.
The Business and Defense Services Administration circulates the basic material to its industry divisions for study by the appropriate commodity experts who, aside from their own practical background, being in constant touch with industry, can advise on the attitude of the industries which would be affected by tariff concessions on individual products.
The Bureau of Foreign Coinmerce review is undertaken by its country officers in the light of their knowledge of the economy of the foreign country, its actual and potential production and trade in the items, and other factors which would indicate the value which the foreign country would attach to the individual concessions by the United States.
The next step is a series of intradepartmental meetings at which the results of the two independent reviews are reconciled and a departmental position on each item developed. Again at this stage, the Business and Defense Services Administration commodity experts explain their position with respect to the listing of individual items. Such disagreements as may arise between the Bureau of Foreign Commerce and the Business and Defense Services Administration are, of course, readily resolved by the bureau directors and Assistant Secretaries, if necessary.
The net result of this careful screening is that Commerce recommends to the Trade Agreements Committee the dropping of numerous items.
Determination of United States offers: Once the announcement of the proposed negotiations and the list of import products have been approved by the Trade Agreements Committee and the President, anu published, the work of determining what concessions, if any, should be offered by the United States on the items appearing on the “published list” begins. The Bureau of Foreign Commerce and the Business and Defense Services Administration conduct independent reviews of the listed items and reconcile their differences at a series of intradepartmental meetings. If necessary, the differences are referred to the bureau directors and Assistant Secretaries. These departmental positions are then presented to the other participating agencies by the Commerce representatives on the country committee and the Trade Agreements Committee.
In this second stage of the preparations the briefs and oral testimony submitted by industry and others interested in foreign trade before the Committee for Reciprocity Information become available. Both the