TABLE 5.-Prices paid by the Commodity Credit Corporation under price-support program, Mar. 1, 1949, to date

Source: Announcements of the Commodity Credit Corporation, U. S. Department of Agriculture. TABLE 6.-Butter-Contract prices for butter per pound under United Kingdom purchase contracts with Australia, New Zealand, and Denmark, 1940-49 to date

1948-49.

Year

1949-50.

1950-51.

1951-52.

1952-53.

1 July 1 to June 30 contract year.

August 1 to July 31 contract year.

3 October 1 to September 30 contract year.

Source: Office of Foreign Agricultural Relations, U. S. Department of Agriculture.

TABLE 7.-Estimated CCC loss on sales and other dispositions of dairy products acquired under price-support programs, Jan. 1, 1949–Dec. 31, 1952

1 Costs have been prorated between domestic and export sales on the basis of quantities sold in each type of outlet. It must be recognized that these estimates are subject to certain limitations, including the following: (a) Export sales usually involve additional transportation costs since the commodities are ordinarily delivered to ports of export. Supplies sold for domestic use are made available at warehouses where located. (b) Average costs per unit have been utilized in determining estimated costs for different types of sales. Inasmuch as the commodities sold vary by grade, by age, and by original procurement cost, these estimates reflect approximate costs and losses.

These distributions were financed by Government funds available to the Department for use in disposing of surplus agricultural commodities.

Source: Compiled from reports of the Dairy Branch, Production and Marketing Administration, Department of Agriculture.

TABLE 8.-Exports and imports of specified dairy products, United States, 1939–52 [In millions of pounds]

♦ Condensed and evaporated milk; not reported separately prior to 1920.

Less than 50,000 pounds.

• Preliminary.

Source: The Dairy Situation, BAE, September-October 1952 issue.

TABLE 9.-Milk and dairy products—Imports for consumption into the United States, calendar years

1 Any ice-cream mix imported would be included in the classification "Malted milk and compounds."

? Prior to 1950 sheep-milk cheese import quantities were listed as Pecorino cheese.

Any dried whey imported would be included in the classification "Dry buttermilk."

Source: United States imports of merchandise for consumption, Bureau of the Census, Department of Commerce.

TABLE 10.—United States foreign trade, average, 1935–39, and fiscal years, 1947-48 through 1951-52

Source: Reports of the Office of Foreign Agricultural Relations, U. S. Department of Agriculture.

PROPOSED AMENDMENT of SECTION 22 OF THE AGRICULTURAL ADJUSTMENT ACT, As DEVELOPED BY THE DIC SUBCOMMITTEE ON IMPORT CONTROL, NOVEMBER 25, 1952 Section 22. (a) It is the policy and the intent of the Congress that, notwithstanding the provisions of any other law and operations thereunder, imports of agricultural commodities or products thereof shall be controlled through import fees or quantitative limitations, to the extent necessary (i) to achieve the purposes of titles I, II, and II of the Agricultural Act of 1949, or the Soil Conservation and Domestic Allotment Act, as amended, or section 32, Public Law 320, 74th Congress, approved August 24, 1935, as amended, or the Agricultural Marketing Agreement Act of 1937, as amended, or any loan, purchase, or other program or operation undertaken by the Department of Agriculture or any agency operating under its direction, and authorized by the laws enumerated in this paragraph (a), or (ii) prevent any substantial reduction in the amount of any product processed in the United States from any agricultural commodity or product thereof with respect to which any such program or operation is being undertaken. In no event shall imports of any agricultural commodity or product thereof be permitted to exceed, during the marketing year for which a program to support prices to producers directly or indirectly is in effect under any of the laws enumerated herein, average annual imports of such commodity or product thereof during the 5-year period immediately preceding the current program year, unless and until the United States farm price of such commodity or product, except for milk and butterfat and the products thereof, in which case the United States farm price of butterfat shall govern, reaches (a) parity prices as seasonally adjusted for such commodity or product and remains at such level for three consecutive calendar months, or (b) such higher levels as the Secretary may determine pursuant to section 402 of the Agricultural Act of 1949; Provided, however, That the volume restriction set forth herein shall apply during any period when farm prices are below parity; Provided, further, That the Secretary of Agriculture is authorized to impose such additional quantitative limitations of imports as the Secretary may find necessary, during the operation of any price-support program for any agricultural commodity, to minimize the cost of such purchases, or losses that would be incurred in the disposition of any commodity in Government inventory; and provided further, That the procedure set forth in paragraphs (b), (c), and (d) hereof shall be applicable to the establishment of import fees, but shall not be applicable to quantitative limitations except in case the Secretary deems it necessary to limit imports to levels below the level established pursuant to this paragraph (a).

(b) Whenever the Secretary of Agricultural deems it necessary to apply import fees, or quantitative limitations designed to limit imports to lower levels than those authorized in paragraph (a) of this section, he shall so advise the President, and, if the President agrees that there is reason for such belief, the President shall cause an immediate investigation to be made by the United States Tariff Commission, which shall give precedence to investigations under this section to determine such facts. Such investigation shall be made after due notice and opportunity for hearing to interested parties, and shall be conducted subject to such regulations as the President shall specify.

(c) If, on the basis of such investigation and report to him of findings and recommendations made in connection therewith, the President finds the existence of such facts, he shall by proclamation impose such fees not in excess of 50 per centum ad valorem or such quantitative limitations on any article or articles which may be entered, or withdrawn from warehouse, for consumption as he finds and declares shown by such investigation to be necessary in order that the entry of such article or articles will not render or tend to render ineffective, or materially interfere with, any program or operation referred to in subsection (a) of this section, or reduce substantially the amount of any product processed in the United States from any such agricultural commodity or product thereof with respect to which any such program or operation is being undertaken: Provided, That no proclamation under this section shall impose any limitation on the total quantity of any article or articles which may be entered, or withdrawn from warehouse, for consumption which reduces such permissible total quantity to proportionately less than 50 per centum of the total quantity of such article or articles which was entered, or withdrawn from warehouse, for consumption during a representative period as determined by the President: And provided further, That in designating any article or articles, the President may describe them by physical qualities, value, use, or upon such other bases as he shall determine.

(d) The fees and limitations imposed by the President by proclamation under this section and any revocation, suspension, or modification thereof, shall become effective on such date as shall be therein specified, and such fees shall be treated for administrative purposes and for the purposes of section 32 of Public Law Numbered 320, Seventy-fourth Congress, approved August 24, 1935, as amended, as duties imposed by the Tariff Act of 1930, but such fees shall not be considered as duties for the purpose of granting any preferential concession under any international obligation of the United States.

(e) After investigation, report, finding, and declaration in the manner provided in the case of a proclamation issued pursuant to subsection (b) of this section, any proclamation or provision of such proclamation may be suspended or terminated by the President whenever he finds and proclaims that the circumstances requiring the proclamation or provision thereof no longer exist or may be modified by the President whenever he finds and proclaims that changed circumstances require such modification to carry out the purposes of this sec

tion.

(f) Any decision of the President as to facts under this section shall be final. (g) No trade agreement or other international agreement heretofore or hereafter entered into by the United States shall be applied in a manner inconsistent with the requirements of this section.

The CHAIRMAN. The next witness is Mr. E. L. Morris, executive director of the Tuna Research Foundation, Long Beach, Calif. While I have stated your name, Mr. Morris, you may do so, and the capacity in which you appear.

STATEMENT OF EDWIN L. MORRIS, EXECUTIVE DIRECTOR, TUNA RESEARCH FOUNDATION, LONG BEACH, CALIF.

Mr. MORRIS. Mr. Chairman and gentleman, my name is Edwin L. Morris. I live in Long Beach, Calif. I am executive director of the Tuna Research Foundation, whose members, in 1952, accounted for 85 percent of the total United States production of canned tuna. This is a business of $150 million yearly, which gives direct employment to 30,000 workers. Representing that organization, I am appearing in support of H. R. 4294, in that it attempts to cure certain defects in the Reciprocal Trade Agreements Act which have been harmful to the canned-tuna industry of this country.

The whole complex problem of world trade and its effect on international relations is involved in present trade-agreement legislation and in H. R. 4294, which seeks to extend it for 1 year in amended form. The principle of removing world trade barriers and of free and voluntary exchange of goods and services across international boundaries is a basic one. However, in our opinion, the further activation of this principle must be closely scrutinized in light of American interest and long-range effect to the welfare of this country, its labor and its industry. We, therefore, support the administration's plan for a thorough and intensive study of the whole problem. This is certainly desirable before any further action is taken looking toward additional duty reductions. Such a study should be under the guidance of Congress. Such a study should be preceded by the enactment of such safeguards as H. R. 4294 provides so as to assure the strong economy essential to widening economic participation by other nations in this market.

Presuming equal standards of living in countries competing for world markets, there can be little fault found with the economic theory of division of labor where world trade will flow to that country which produces most economically and most efficiently. However, this pre