United States exports of canned foods to Venezuela and world total, All statistics for calendar year 1952 preliminary; any revisions however would be upward. Tomato sauce included under No. 124700 for 1950 and 1951; under No. 125100 for 1952. Hon. DANIEL A. REED, RADIO-TELEVISION MANUFACTURERS ASSOCIATION, Washington, D. C., May 19, 1953. Chairman, House Ways and Means Committee, House of Representatives, Washington, D. C. DEAR MR. CHAIRMAN: I respectfully submit this letter on behalf of the RadioTelevision Manufacturers Association as an outline of the association's position with regard to tariff legislation now pending before your committee. The Radio-Television Manufacturers Association, which was formed in 1924, is composed of approximately 350 manufacturers of radio, television, and electronics equipment. The manufacturing plants of the association members are located in virtually every section of the country and they account for approximately 90 percent of this country's annual production of radio and television sets. The association's position with regard to the above legislation is twofold: First, we support legislation which will establish a commission to study the problems of foreign commerce, and second, we favor retention of the present Trade Agreements Act without change pending completion of the commission's study. The second position specifically includes rejection of H. R. 4294 which is now pending before your committee. This association, fully cognizant of the complexities involved in tariff legislation, supports the establishment of a Commission, as suggested by the President of the United States, to study the problems of foreign commerce and all of its ramifications. The rapid expansion of many industries, including the electronics industry, requires study for proper determination of the impact of their growth upon foreign commerce. As a result of such a study, the association would expect a legislative program which would acknowledge fully the dynamic nature of American industry and which would result in new consumers for the ever-growing volume of American goods. The second portion of the association's position is based primarily on the fact that, under the present act, the electronics industry has acquired an expanding and profitable foreign commerce. In 1952 the United States exported in excess of $200 million worth of electronics equipment. Figures to date indicate that the total for 1953 may be even higher. (U. S. Census Bureau, U. S. Department of Commerce). The association, of course, wishes such growth to continue and opposes any legislation which would serve to reduce or limit the foreign markets upon which such growth depends. Because H. R. 4294 would restrict imports, particularly of oil, impair foreign markets and thereby have a direct and adverse effect on electronics exports, we of the association oppose its enactment. That H. R. 4294 would have such an adverse effect can be most clearly illustrated by examining its impact upon our trade with Venezuela. At present, Venezuela is one of the largest foreign consumers of American electronic products. In 1952, among all the countries of the world, Venezuela ranked third in purchase of American radio sets and fifth in purchase of American television sets. As a result of the installation of new transmitting facilities in Caracas, Venezuelan purchases in 1953 have increased until now they rank second in both fields (U. S. Census Bureau, U. S. Department of Commerce). Venezuela's purchasing power stems, in the main, from oil exports to the United States. That purchasing power will be severely reduced by section 322 of H. R. 4294 because of its restrictions upon American importations of crude petroleum and residual fuel oil. If we do not buy from Venezuela, Venezuela cannot buy from us. I have just completed a business trip throughout South America and was most recently in Venezuela. While I was there, the harmful effects of the oil provisions of H. R. 4294 on the Venezuelan economy were brought forcefully to my attention. American industry representatives in Venezuela, not connected with oil interests, reported to me that if Venezuelan oil exports to the United States were cut as contemplated in H. R. 4294, Venezuelan national income would be reduced by approximately 25 percent. The direct result of that reduced income would be a drastic reduction of Venezuelan purchases of American goods. Thus, one of the few countries in the Western Hemisphere which has enough dollars to trade freely with the United States would be virtually destroyed as a foreign market for American industry. Today Venezuela is one of this country's best customers in Latin America, but if H. R. 4294 becomes law that country will have to revert to the system of currency and trade restrictions which have virtually ruined American industrial trade elsewhere in Latin America. In addition, the practical effect of such a law would amount to repudiation of th Trade Agreement which we signed with Venezuela on August 28, 1952. Such a repudiation would have repercussions throughout Latin America and would give additional ammunition to the Communists and other anti-United States groups in all Latin American countries. In conclusion, on behalf of the interests of the electronics industry, I urge the establishment of a Commission to study the problems of foreign commerce and the retention for the present of the existing Trade Agreements Act. Our industry opposes the enactment of any legislation which would impair our present foreign markets. Respectfully yours, W. M. ADAMS, Chairman, RTMA Export Committee. (The list of members of the RTMA Export Committee is filed with the Committee on Ways and Means.) GERBER PRODUCTS CO., Fremont, Mich., May 18, 1953. Hon. DANIEL A. REED, Chairman, House Ways and Means Committee, Congress of the United States, House of Representatives, Washington, D. C. SIR: With further reference to our telegram and letter of April 20 registering our opposition to the passage of bill H. R. 4294 as proposed by the Hon. Richard M. Simpson, inasmuch as it is not possible for a representative of this firm to attend the current hearings, we should appreciate it if the following statement be read at the hearings. We quote below our letter of April 20 verbatim: "On March 30, 1953, the bill H. R. 4294 was introduced in Congress to extend the Reciprocal Trade Agreements Act, due to expire June 12 of this year. There is included in the bill, however, a provision which would impose a quota limitation on imports of both crude oil and residual fuel oil, the greatest bulk of which comes from Venezuela. "We heartily endorse the further extension of the Trade Agreements Act, but wish to voice our strenuous opposition to the passage of that part of this proposed legislation which has for its objective the establishment of a limitation to the principal dollar exchange earning of one of the United States best markets. About 90 percent of our total imports from Venezuela consists of crude petroleum and residual fuel oil. "It is almost needless to point out that any action by the United States Government curtailing or impeding the importaion of petroleum will have deleterious effects on the economic and political relationships between these two countries, for it will deprive Venezuela of the means to produce dollar exchange, the inevitable result of which would have to be immediate curtailment of purchases of American manufactures. "Aside from that, we, as one of the free countries of the world, will be inviting Venezuela to seek other markets for her crude oil and petroleum, as well as iron ore and other minerals so vital to our economy, and thus be faced with a situation where she may sell to nations which may or may not be in sympathy with the philosophy and ideals of our Nation. "The spirit of the Reciprocal Trade Agreements Act was, and is, to liberalize United States trade and tariff policies, to foster and engender a freer movement of goods and services between the United States and other nations of the world. Almost 20 years have transpired since the inception of the act, and during this span of time it has taken added importance. "By its principles and the specific provisions added thereto from time to time, it has assured other nations a good market in the United States for many of their products, enabling them to live in dignity by trade, not aid. Those nations are not the seekers of charity but of fair treatment, in a businesslike manner, for a more active interchange of goods. This is just as essential for their economic well-being as it is for ours. "The imposition of quota limitations now will raise grave doubts as to the sincerity of the United States which with one hand lends assistance to less fortunate countries and exhorts them to become more self-helpful and, at the same time, with the other hand raises a barrier to the importation of those goods, the sale of which will help them to achieve greater self-reliance and economic stability. "Today, more than ever before, we need to think in those terms expressed by men such as John Coleman, president of the Detroit Board of Commerce, and Henry Ford II, who seek the creation of an environment conducive to free trade by reduction or complete elimination of import duties and import quota limitations. "Venezuela is the largest importer of infant goods and is this company's most important export market. Last year the United States exported to that country $573,643 worth of canned baby foods, of which Gerber's accounted for $298,473, or 52 percent of the total. That Venezuela is a market of ever-increasing importance to American manufacturers of baby foods can be evinced by the fact that 10 years ago, Gerber sales to that country were less than $7,000. And still further, in August of last year Venezuela signed a supplementary agreement with the United States, by which they reduced import duties on baby foods by 66%%% percent. "H. R. 4294 is scheduled for hearing Wednesday, April 22, before the House Ways and Means Committee. We respectfully urge that you exert whatever efforts may be required not only to prevent this bill, as introduced, from going to the floor of the House, but ask that you support the extension of the Reciprocal Trade Agreements Act as it stands at present, thus to allow sufficient time for careful and thorough study of American trade policies by the new administration." The importance of the Venezuelan market to Gerber Products Co. can be substantiated by the fact that this last fiscal year-April 1, 1952, to March 31, 1953— that country imported Gerber's baby foods totaling 338,960 dozen units, or 47 percent of this company's total export business. In terms of dollars and cents this amounted to over $298,000. Gerber's has spent a good deal of time and money to develop this excellent market for American-produced goods. In 1942, Venezuela bought from Gerber 4,016 dozen units whereas last year they bought almost 339,000 dozen units. Thus, in a span of 11 years, we shipped into that country 1,896,200 dozens. Inasmuch as our company contributes toward advertisement and promotional expenses at the rate of $0.035 per dozen, it can be appreciated that we have thus far expended $56,886, or an average of $5,171 a year, to develop the sale and widespread distribution of Gerber's baby foods in Venezuela. At this point we should emphasize that on August 28, 1952, Venezuela signed a supplementary agreement with the United States by the terms of which import duties on special foods for children and dietetic foods were reduced by 66% percent from Bs. 0.32 to Bs. 0.10 per gross kilo, i. e., from approximately 81 cents per case to 27 cents. While we are not in fear of foreign competition, there are several European baby food brands which Venezuelan importers could very well import if that market were closed to us. The European packers of those brands would be more than willing to accept payment in soft currencies, just to introduce their products in Venezuela and thereby get a foothold. European packers today are offering lower prices, more liberal credit terms, and willing to accept soft currency payments. Gerber's and other United States baby-food manufacturers are willing to meet-and are very successfully meeting-such competition because of the prestige enjoyed by our respective brand names. This prestige has been earned by uncompromising good quality in production as well as good service. Since in its defense against the effects of the proposed legislation Venezuela would be forced to curtail imports radically there is no doubt but what U. S. A. manufactured infant foods would be seriously limited or banned altogether, notwithstanding consumer preference for the Gerber brand. We respectfully ask that bill H. R. 4294 be prevented from becoming law and that the Reciprocal Trade Agreements Act be extended for at least another year as it stands at present to permit the new administration in Washington to give full review and study of American trade policies. Very truly yours, FREDERICK GONZALEZ, GREATER BATON ROUGE PORT COMMISSION BATON ROUGE, LA. RESOLUTION Be it resolved by the Board of Commissioners of the Greater Baton Rouge Port Commission, That world trade being of great importance in the peaceful settlement of the international problems of the United States and of greater importance to the prosperity and economic well-being of the State of Louisiana and the city of Baton Rouge and parish of East Baton Rouge and of particular interest to the entire area served by the Greater Baton Rouge Port Commission, that it hereby goes on record in opposition to H. R. 4294 (Simpson bill) now being considered by the Ways and Means Committee of the House of Representatives of the Congress of the United States and further that it is particularly opposed to the provisions which would impose a quota limitation on imports of crude oil and residual fuel oil and further that it stands in favor of the position taken by the President of the United States that the present legislation be renewed without change for a period of 1 year so that a temporary continuation of our present trade program will be allowed pending a completion of a thorough and comprehensive reexamination of the economic foreign policy of the United States; be it further Resolved, That Ernest D. Wilson, president of the Greater Baton Rouge Port Commission be authorized and empowered to appear before committee or committees of Congress to advocate these views and that the entire Louisiana delegation to Congress be memoralized in accordance with these views. Attest: ERNEST D. WILSON, President. CHAS. F. AVERRILL, Secretary. MAY 18, 1953. Hon. DANIEL A. REED, Chairman, Ways and Means Committee, THE GIRDLER CORP., VOTATOR DIVISION, Louisville 1, Ky., April 24, 1953. New House Office Building, Washington 25, D. C. MY DEAR CONGRESSMAN: In behalf of The Girdler Corp., the following statement is submitted with reference to H. R. 4294 and request is hereby made that the statement be made a part of the record of the hearings on H. R. 4294. The part of H. R. 4294 to which we want to object specifically is section 322. The import restrictions on residual and crude oil imposed by that section would |