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In section 3, the Senate created an addi- shall make such studies of urban and com- The first involved the Federal Houstional responsibility for the Secretary of the munity problems as the Secretary shall re- ing Administration. During debate in new Department to consult and cooperate quest, and shall develop recommendations

the House, the gentleman from Illinois with State governments with respect to State relating to the administration of Federal

[Mr. ERLENBORN] offered an amendment programs for assisting communities in de- programs affecting such problems, particuveloping solutions to community and metro- larly with respect to achieving effective co

that the House rejected which would politan problems and for encouraging effec- operation among the Federal, State, and have transferred the FHA as an entity tive regional cooperation in the planning and local agencies concerned. Subject to the di- to the new Department with statutory conduct of community and metropolitan de- rection of the Secretary, the Director shall, powers of its own. This was not in acvelopment programs and projects. It also in carrying out his responsibilities, (1) es- cord with the recommendations of the required the Secretary, upon the request of tablish and maintain close liaison with the

Hoover Commission or with modern conthe Governor of any state, within 60 days Federal departments and agencies concerned, cepts of governmental administration of such request, to hold an informal public and (2) consult with State, local, and rehearing in any community of such State with gional officials, and consider their recommen

which favor full authority and responsirespect to the manner in which any pro- dations with respect to such programs.

bility in the head of the Department. To gram of assistance to a State or local public In section 5, the Senate included an

reassure those who were concerned about body or agency administered by the Departamendment providing as follows:

the future of FHA, a committee amendment is proposed to be, or is being, carried "(c) The President shall undertake studies ment was adopted, assigning to one of out in such community. The conferees sub

of the organization of housing and urban the Assistant Secretaries supervision of stituted for the above a provision requiring development functions and programs within departmental programs relating to the the Secretary to "consult and cooperate with the Federal Government, and he shall pro- private mortgage market. This included State Governors and State agencies in- vide the Congress with the findings and cluding, when appropriate, holding informal

FHA and FNMA. The Senate, however, conclusions of such studies, together with public hearings with respect to Federal and his recommendations regarding the transfer

added on to the bill a provision that State programs for assisting communities in of such functions and programs to or from

would have had an effect somewhat like developing solutions to community and the Department. Notwithstanding any

that of the Erlenborn amendment. The metropolitan development problems and for

other provisions of this Act, none of the FHA was set up in the new Department encouraging effective regional cooperation in functions of the Secretary of the Interior with a Commissioner to be appointed by the planning and conduct of community authorized under the Land and Water Con

the President and confirmed by the Senand metropolitan development programs and servation Fund Act of 1965 (78 Stat. 897) or projects.” The holding of such public hear

ate. His duties, however, would be preother functions carried out by the Bureau ings would be entirely discretionary with the

scribed by the Secretary. The comproof Outdoor Recreation shall be transferred Secretary. The Senate managers receded and from the Department of the Interior or in

mise was as follows: agreed to this provision.

any way be limited geographically unless There shall be in the Department a Federal In section 3, a further responsibility was specifically provided for by reorganization Housing Commissioner, who shall be one of placed upon the Secretary by the Senate to plan pursuant to provisions of the Reorga- the Assistant Secretaries, who shall head a "encourage private enterprise to serve as large nization Act of 1949, as amended (79 Stat. Federal Housing Administration within the a part of the Nation's total housing and 135) or by statute.”

Department, who shall have such duties and urban development needs as it can and de

The managers on the part of the House powers as may be prescribed by the Secretary, velop the fullest cooperation with private receded from their disagreement with this and who shall administer, under the superenterprise in achieving the objectives of the

amendment and adopted the Senate provi- vision and direction of the Secretary, deDepartment." The managers on the part of sion.

partmental programs relating to the private the House agreed to this amendment.


mortgage market. The House bill included a provision in

CHET HOLIFIELD, section 4 that one of the Assistant Secretaries


The principal differences between the of the new Department shall be designated


conference language and that adopted to administer, under the supervision and


by the House and Senate are that the direction of the Secretary, departmental pro


FHA will be retained within the new grams relating to the private mortgage mar


Department; its functions, however, will ket. The Senate added a provision that

Managers on the Part of the House. "There shall be in the Department a Federal

be vested in the Secretary; it will be Housing Administration headed by a Fed- Mr. HOLIFIELD. Mr. Speaker, I headed by a Commissioner who will also eral Housing Commissioner who shall be ap- yield myself such time as I may require.

be an Assistant Secretary; the Assistpointed by the President, by and with the advice and consent of the Senate. The Fed

Mr. Speaker, as Members of the House

ant Secretary-Commissioner will have

such powers and duties as the Secretary eral Housing Commissioner shall have such will recall, this bill in essence creates a

may prescribe; and will administer, unduties and powers as may be prescribed by new executive Department of Housing the Secretary." The conferees agreed to and Urban Development. It transfers

der the supervision and direction of the eliminate both provisions and substitute the to the Department the presently existing

to the Department the presently existing Secretary, departmental programs refollowing: functions of the Housing and Home

lating to the private mortgage market. “There shall be in the Department a Fed Finance Agency and gives the Secretary

We believe that in this compromise eral Housing Commissioner, who shall be one additional duties in the area of urban the essential principles of good adminof the Assistant Secretaries who shall head

development. We are making a start at istration have been preserved. The a Federal Housing Administration within the Department, who shall have such duties and doing for the cities what the Depart

powers and functions are in the Secre

tary who may delegate them as his repowers as may be prescribed by the Secre- ment of Agriculture has done so long tary, and who shall administer, under the and so well for our farmers.

sponsible judgment may dictate. The supervision and direction of the Secretary, First of all I want to commend my possibility of conflict or obstruction has departmental programs relating to the pri- fellow conferees of both Houses on the been reduced to a minimum. vate mortgage market.” positive spirit in which the discussions

The second major difference involved The Senate added an additional subsection to section 4 creating within the new

were conducted. We sought diligently a responsibility the Senate imposed upon Department an Office of Urban Program to uphold and make prevail the positions the new Secretary to hold an informal Coordination headed by a Director, to be of our respective bodies but we also en

public hearing, within 60 days of a reappointed by the Secretary, who will assist deavored to reach reasonable compro

quest by a Governor for such a hearing, the Secretary in achieving maximum coordi

in any community of a State with remises always keeping in mind the obnation of the programs of the various de

spect to the manner in which any propartments and agencies of the Government jectives of the bill.

gram of assistance to a State or local which have a major impact on community

I especially wish to commend my col- public body or agency administered by development. The conferees agreed that leagues: Chairman DAWSON, Mr. FASCELL, the Department is proposed to be or is such an Office would not be created, but the author of the bill; Mr. REUSS, Mr. being carried out in such community. that a position in the Department would be ROSENTHAL, Mr. ERLENBORN, and Mr. Our major concern was the mandatory established called the Director of Urban Program Coordination, to be designated by the WYDLER.

requirement for the public hearing Secretary, to assist the Secretary in carrying The Senate made a number of addi- whenever a Governor requested it. We out his responsibilities to the President with tions to the House bill, many of which saw all sorts of possibilities for delay in respect to achieving maximum coordination had no substantial effect on the purposes carrying out programs already planned of the programs of the various departments and agencies of the Government which have

of the legislation. There were three and approved by the Federal, State, and a major impact on community development major changes by the Senate with local agencies involved. Our comproIn providing such assistance, the Director which we disagreed.

mise directed the Secretary to consult and cooperate with State Governors but ment of Housing and Urban or Com- that this is more acceptable to me than public hearings would be held only when munity Development would bypass the if it were not in the bill. he deemed them appropriate.

State and county agencies and go direct- Mr. Speaker, I now wish to yield to The third major difference involved ly to local communities, ignoring the the author of the bill, the gentleman a Senate provision creating an Office of real function of the States in the solu- from Florida (Mr. FASCELL), such time Program Coordination within the new tion of the problems in the urban areas. as he may consume. However, before I Department to assist the Secretary in Some lipservice has been given-as a do yield to him I want to say that I just carrying out his responsibilities to assist result of one of the amendments adopt- want to congratulate him for taking the the President in achieving maximum co- ed in the other body and agreed to by initiative in carrying the burden for this ordination of the programs of the vari- the conferees—to this problem, in that bill through the hearings and granting ous departments and agencies which one of the functions and duties of the every witness who wanted to come behave a major impact on community de- Secretary is to consult and cooperate with fore him the right to testify. I believe velopment. We felt the creation of such State governments with respect to State that he has achieved a very important a statutory office within the Department programs for assisting communities. legislative result in the creation of a would not accord with sound adminis- As I say, this was agreed to by the con- new Cabinet department. I do not share tration. We achieved a compromise ferees.

the fear that this Cabinet-level departwhich set up a position called Director

Along the same line was a provision ment may be something we do not need. of Urban Program Coordination who that the Director of the new Department The shift of population from the agriwould be designated by the Secretary.

consult and cooperate with State Gov- cultural areas of our country to urban We urge the House to accept the re

ernors and State agencies, including centers has been tremendous in the last port of the conferees so that the great when appropriate, the holding of in- few years, and it will undoubtedly conpromise of this legislation can be realized. formal public hearings. This, I believe, tinue. We are soon to have between 75

Mr. Speaker, I move the previous was not as strong as the provision the and 80 percent of our people in these question.

other body would have liked to have had great urban areas, community areas, and Mr. ERLENBORN. Mr. Speaker, I

in the bill, but at least it gives considera- densely populated areas. They will thank the gentleman for yielding.

tion to the fact that the Governors of have all of the problems that we are so

the various States and State agencies do familiar with. Certainly the recogniThis morning, prior to a meeting of have a role to play in the solution of tion of the importance of 75 to 80 perthe Committee on Government Opera- the problems of our urban communities.

cent of our population, by giving them tions, I was discussing with the gentle

For my own part, the most important a Cabinet-status department and a repman from Georgia (Mr. CALLAWAY] the amendment which was offered in the resentation close to the ear of the Presconference committee action on this bill

. House and in substance adopted in the ident and a prestige before the Congress, I explained to the gentleman how the other body-and I believe also in sub- is something that I think none of us substance of the Senate amendments, stance approved by the conference ccm

will regret. which I believed made a better bill out mittee report

is the one which recog- Mr. Speaker, I now yield to the genof this bad bill, had been retained by nizes the somewhat autonomous nature tleman from Florida (Mr. FASCELL), the action of the conference committee.

of the Federal Housing Administration, author of this legislation. Subsequently, during the meeting of the independence of the Federal Housing the Committee on Government Opera- Administration.

Mr. FASCELL. Mr. Speaker, I thank .

the distinguished gentleman from Calitions, the gentleman from California

I am pleased with the provision in the fornia for the remarks he has made con[Mr. HOLIFIELD] announced to the mem- conference report that the Federal Hous- cerning this legislation. I must say that bers of the committee that this confer- ing Administration shall be considered in the 10 years I have been here the genence committee report would be brought to some extent a separate agency within tleman from California has been one up on the floor today and explained that the new Department, and that there of the most outspoken advocates of dealthe position of the House had been sus- shall be a Federal Housing Commissionering with the problem of our urban comtained and that we had won a victory in to head the Federal Housing Administra- munities and has given great leadership the conference committee. tion within the Department.

to legislation in this area. I want to exAfter the meeting the gentleman from

On the whole, the action of the con- press my appreciation also to the gentleGeorgia [Mr. CALLAWAY] took me aside ferees, I believe, admitted the shortcom- man from Wisconsin [Mr. REUSS] who is and asked me if I had attended a differ- ings of the bill as it passed the House. a sponsor of this legislation. He has long ent meeting from the meeting the gen- I believe that the action of the conferees been in the forefront of dealing with the tleman from California [Mr. HOLIFIELD] makes a better bill of this bill to create problems of our urban communities. I had attended. I assured the gentleman the new Department.

thank him for his cooperation and comfrom Georgia that we had attended the

For my own part I still think the ap- mend him for his outstanding leadersame conference committee.

proach of creating an office within the ship in this body on this very important Mr. Speaker, there were many amend- Executive Office of the President to deal matter. ments adopted in the Senate. As the with these problems is a better approach. I want to make some remarks with gentleman from California pointed out, However, being a realist, I know that respect to the very fine compromise the some of these were noncontroversial and this bill was thoroughly debated on the House conferees achieved on the rather were accepted without debate on the part floor of the House before and was difficult question that appeared at first of the House conferees.

adopted on a rollcall vote. I know that with respect to the problem of the FHA. One of those amendments was the in- this new Department will be created in Yet in conference this problem was resertion of the word "community” in lieu this session by the adoption of this bill. solved in a manner which was extremely of the word “urban” throughout the body Being a realist and knowing that this will satisfactory to both bodies. The comof the bill. I believe this is in line with happen, I am happy that these improve- promise retains the good will, as the one of the amendments which was of- ments have been made in the legislation gentleman from California has said, of fered and rejected in the House, to broad- and therefore I am happy to support the the FHA and we have provided for the en the scope or function of this Depart- action of the conference committee. designation of a FHA Commissioner. ment outside of strictly urban areas, or Mr. HOLIFIELD. Mr. Speaker, I Yet, the conference agreement does not large concentrations of population, and thank the gentleman from Illinois for do violence to, and is in complete conto give consideration to the suburban his remarks. He was very strong on one sonance with, the principles laid down in and rural areas, to the smaller com- principle, that of naming the Federal the Hoover Commission report with remunities throughout the country.

Housing Administration within this De- gard to what is good administration, Second, an amendment was adopted partment. As I said in my remarks and good management, and good organizain the other body to provide that the new as he has said, we have retained that tion.

tion. These principles are simply that Department should encourage vigorous name for whatever publicity value and all of the powers, the duties, the funcprivate home building and mortgage- for whatever goodwill value with respect tions, and the responsibilities should lending industries. This amendment to the housing industry that it may have. rest in the head of the Department. was also agreed to by the conferees. The housing industry was very strong That cardinal principle is preserved in

Many who opposed the bill were fear- on retaining the name FHA. That has this report, because while we preserve ful—and still are—that the new Depart- been done. I agree with the gentleman the name of the FHA and provide for the designation of a Federal Housing Com- sylvania [Mr. MOORHEAD], the gentle Ways and Means. Amendments offered by missioner, the bill specifically provides man from New York (Mr. MULTER], the direction of the Committee on Ways and that all of the responsibilities, duties, gentleman from Illinois [Mr. RONAN),

Means may be offered to the bill at the confunctions, and powers should rest in the the gentleman from California (Mr. amendments shall not be subject to amend

clusion of the general debate, but said Secretary of the Department. Therefore, ROOSEVELT), the gentleman from New

ment. At the conclusion of the considerait is in complete consonance with the York (Mr. ROSENTHAL), the gentleman tion of the bill for amendment, the Commitrecommendations of the Hoover Com- from Wisconsin

from Wisconsin (Mr. STALBAUM), the tee shall rise and report the bill to the mission recommendations. So, on all gentlewoman from Missouri (Mrs. SULLI- House with such amendments as may have points, Mr. Speaker, I think the con- VAN), the gentleman from Ohio (Mr.

been adopted, and the previous question ference committee has done an admir- VANIK), the gentleman from Georgia

shall be considered as ordered on the bill

and amendments thereto to final passage able job and I certainly thank my col- [Mr. WELTNER), and the gentleman from

without intervening motion except one moleagues who participated on the majority Illinois (Mr. YATES).

tion to recommit. and minority sides for bringing back this I hope that the new Department of very fine conference report. Housing and Urban Development will

Mr. DELANEY. Mr. Speaker, I yield Mr. HOLIFIELD. Mr. Speaker, I yield endorse this legislation, so that man on

30 minutes to the gentleman from Calisuch time as he may consume to the earth is not lost sight of in our attempt fornia [Mr. SMITH) and pending that I gentleman from Wisconsin (Mr. REUSS). to put a man on the moon.

yield myself such time as I may consume. Mr. REUSS. Mr. Speaker, I hope that Mr. HOLIFIELD. Mr. Speaker, I move AMENDMENT OFFERED BY MR. DELANEY the conference report will be adopted, the previous question on the conference Mr. Speaker, I offer an amendment. and the bill to establish a Department report.

The Clerk read as follows: of Housing and Urban Development thus The previous question was ordered.

Amendment offered by Mr. DELANEY: On sent to the President.

The SPEAKER. The question is on page 1, line 8, strike out the period, insert The effort to give our cities recognition the conference report.

a comma, and add the following: "and all at the Cabinet level has had its strong The conference report was agreed to. points of order against said bill are hereby sponsors in this House. In the head- A motion to reconsider was laid on the waived.” quarters of the Federal Reserve on Con- table.

The amendment was agreed to. stitution Avenue in Washington, the

Mr. DELANEY. Mr. Speaker, House name of Carter Glass, of Virginia, is me

MILITARY CONSTRUCTION FOR DE- Resolution 551 provides a closed rule, morialized as one whose congressional backing had made that structure possi

PARTMENT OF DEFENSE FOR FIS- waiving points of order, with 3 hours of

CAL YEAR 1966 ble. When, at some future time, the new

general debate for consideration of H.R.

9042, a bill to provide for the implementaDepartment of Housing and Urban De- Mr. SIKES. Mr. Speaker, I ask unani- tion of the Agreement Concerning Autovelopment occupies its own headquarters, mous consent to take from the Speaker's motive Products between the Governnothing could be more fitting than that table the bill (H.R. 10323) making ap- ment of the United States of America and the names of WILLIAM L. DAWSON, of Illi- propriations for military construction the Government of Canada, and for other nois, CHET HOLIFIELD, of California, and for the Department of Defense for the purposes. DANTE B. FASCELL, of Florida, likewise re- fiscal year ending June 30, 1966, and The occasion for H.R. 9042 arises from ceive recognition for their devoted sery- for other purposes, with Senate amend- the signing on January 16, 1965, by the ices in behalf of our cities.

ments thereto, disagree to the Senate President of the United States and the As a result of the conference, I believe amendments, and agree to the conference Prime Minister of Canada of an Agreethat the bill before us is a better one asked by the Senate.

ment Concerning Automotive Products than it was when it first passed the The SPEAKER pro tempore (Mr. AL- between the United States and Canada. House. Particularly, I am happy that BERT). Is there objection to the request

The principal purposes of the bill are the House accepted Senate language de- of the gentleman from Florida?

to authorize the President to implement claring it as one of the purposes of the

The Chair hears none, and, without the Agreement Concerning Automotive bill “to encourage the solution of prob- objection, appoints the following con- Products between the United States and lems of mass transportation."

ferees: Messrs. SIKES, McFALL, PATTEN, Canada; to authorize the implementation Today our Federal Government is com- LONG of Maryland, MAHON, CEDERBERG, of similar agreements that the President mitted to substantial research efforts to JONAS, and Bow.

may enter into with countries other than develop new methods of transportation There was no objection.

Canada; to authorize the implementation to the moon by rocket, to other conti

of agreements supplementary to the forenents by supersonic planes, and to other cities by revolutionary rail systems. But


going agreements; and to provide interim

special procedures for adjustment assistin the area where new transportation

ACT OF 1965

ance to firms and workers suffering dissystems are needed most-how to get Mr. DELANEY. Mr. Speaker, by di- location resulting from the operation of from one part of a metropolitan area to rection of the Committee on Rules and the agreement signed on January 16 of another rapidly, safely, economically, on behalf of the gentleman from Texas this year. and without polluting the atmosphere- [Mr. YOUNG], a member of that commit- Mr. Speaker, the chairman of the we are undertaking no noticeable re- tee, I call up House Resolution 551 and Committee on Ways and Means will exrearch effort whatever.

ask for its immediate consideration. plain the provisions of the bill more fully, Last June 17 I introduced H.R. 9200, The Clerk read the resolution, as and I urge that House Resolution 551 be to set up a 2-year $20 million, federally follows:

adopted in order that the bill may be supported research program to achieve

H. REs. 551

considered. a breakthrough in new methods of urban

Resolved, That upon the adoption of this Mr. SMITH of California. Mr. transport. Twenty-one other Members resolution it shall be in order to move that

resolution it shall be in order to move that Speaker, I yield myself such time as I have joined me in introducing identical the House resolve itself into the Committee

may use. legislation—the gentleman from Ohio of the Whole House on the State of the Union

Mr. Speaker, House Resolution 551 will [Mr. ASHLEY], the gentleman from

for the consideration of the bill (H.R. 9042) Texas [Mr. CABELL), the gentleman from to provide for the implementation of the provide 3 hours of general debate in the

consideration of the bill H.R. 9042, the New York (Mr. FARBSTEIN], the gentleAgreement Concerning Automotive Products

Automotive Products Trade Act of 1965. Between the Government of the United man from Minnesota (Mr. FRASER), the States of America and the Government of It is a closed rule. It is an amendment gentleman from Ohio [Mr. GILLIGAN), Canada, and for other purposes. After gen- to the Tariff Act, and unless the rule is the gentlewoman from Michigan [Mrs. eral debate, which shall be confined to the a closed one it would open up the entire GRIFFITHS), the gentleman from New bill and shall continue not to exceed three Tariff Act. York (Mr. HALPERN), the gentleman hours, to be equally divided and controlled

Points of order have been waived. Befrom New Jersey (Mr. JOELSON], the genby the chairman and ranking minority mem

cause of the Ramseyer rule it would be ber of the Committee on Ways and Means, tleman from Maryland [Mr. LONG], the the bill shall be considered as having been

necessary to print the entire Tariff Act gentleman from New York [Mr, McCAR- read for amendment. No amendment shall

to set forth a few changes. That was THY), the gentleman from New Jersey be in order to said bill except amendments

be in order to said bill except amendments the agreement in the Rules Committee. (Mr. MINISH], the gentleman from Penn- offered by direction of the Committee on House Resolution 551 did not provide for waiving of points of order, so an amend- interest in promoting the closest possible doubtedly take steps to impose an addiment has been offered to that effect. relationship between our two countries. tional duty equal to the amount of any

Mr. Speaker, there are some additional I married a Canadian, and many mem- such American subsidy. views in connection with this particu- bers of our family are Canadians today. Now that is the story of the remission lar bill. The purpose of the bill is to Indeed, I am hopeful that all actions of duty episode which has now been authorize the President to implement the taken by the United States Congress and

taken by the United States Congress and abandoned and is being replaced by the Automotive Production Agreement and the Canadian Parliament will improve

the Canadian Parliament will improve so-called treaty which was signed so draothers supplemental to it, signed on the unity and solidarity between our two matically on January 16 at the L.B.J. January 16, 1965, between the United nations socially, economically, culturally, Ranch in Texas. States and Canada; to authorize similar and I hope politically and governmental Let us recognize first of all that future agreements with other nations, unity as well. However, it is my position Canada is anxious to develop its indusand to provide adjustment assistance to that the treaty which H.R. 9042 proposes trial capabilities. I am all for that, parfirms and workers suffering dislocation to authenticate will not have these ticularly to the extent that this indusfrom such agreements. effects.

trial capability can be developed ecoUnder the agreement duty-free treat- First of all, we should recall that in nomically and competitively to the adment is afforded automotive parts and

1963, through adoption of the remission vantage of Canada, both internally and autos across the United States-Canadian

of the duty order, the Canadian Gov. in relation to its trade with other counborder. Parts must be original equip- ernment undertook, in effect, to provide tries. ment. The agreement is inconsistent a subsidy for exports of automotive The treaty or agreement regarding auwith our obligations under GATT, but parts. The manner in which the sub- tomotive parts was developed on condithe committee majority sees this as more

sidy operated was this: Automotive parts tion that certain large automobile and form than substance. They point to the

imported into Canada from the United parts manufacturers—principally the common ownership of plants in both

States were paid at the regular rates, Chrysler Corp., Ford Motor Co., General countries, and the fact that it will not

which included rates up to 25 percent. Motors, and American Motors—would affect prices and so harm no other im

Canadian manufactured automotive agree to maintain the existing ratio of porting countries. Section 201 authorizes the President to tariffs. However, to the extent that exparts continued to be subject to U.S. production. These private agreements

contain a commitment to increase the proclaim the modifications of the tariff

ports of Canadian automotive parts by value of production of automobiles and schedules and such further changes as a Canadian manufacturer exceeded ex

automobile parts in Canada by a total of are necessary-new types of original

ports of prior years, the Canadian Gov- $241 million over the next 3 years. equipment parts. ernment granted remission of duty or

In reliance upon these commitments, Section 202 authorizes similar agree

a credit on the parts imported from the the agreement was developed which proments with other nations. Prior to be

United States. While this may sound vides for the elimination of duties on ginning negotiations the President must

like a great deal of bookkeeping and both sides of the border in such a manfirst, seek the advice of the Tariff Com

did not, in fact, involve payment of a ner that these large manufacturers will mission as to probable economic effects;

cash subsidy, it represented, neverthe be protected and will probably gain some second, give reasonable public notice;

less, an identifiable and actual item to substantial advantages to the detriment and third, seek information from the Departments of Commerce, Labor, State,

the extent of 25 percent of the price of of smaller, independent parts manufac

the additional Canadian made automo- turers. Let me point out that the manuand the Treasury. If within 60 days foltive parts.

facture of automotive parts is carried on lowing delivery to Congress both Houses by concurrent resolution have not indi

This subject was brought to the atten- by a large number of small, independent tion of our State Department as well as

concerns in addition to larger companies cated disapproval, the President may the Treasury Department without any

that operate both within the United carry out the agreement.

States corrective action. Subsequently, a peti

and in Canada. Obviously In the minority or separate additional tion was filed with the Tariff Commis

an American company with a Canadian views, Mr. Speaker, signed by eight Members, they oppose the special treatment

sion in behalf of the Automotive Service subsidiary will, under the agreement, be afforded one industry. They also object

Industry Association of Chicago seeking able to export parts to the Canadian subto a special adjustment program for one under section 303 of the Tariff Act of sidiary for attachment to new vehicles

without payment of duty. In addition, 1930 to impose countervailing duties on industry when the Trade Expansion Act those Canadian made parts which bene

the new automobile which is assembled in is now operating. They feel such spefited from the remission of duty order.

Canada with Canadian-made and Amercial assistance should be carried out not

I believe other petitions were also filed the United States without payment of

ican-made parts may be imported into by the taxpayers but by the industry

on behalf of American concerns seeking which is the beneficiary of the agree

duty. the same relief. Indeed, the provisions ment.

of section 303 appeared to be clearly This morning I received a letter signed

But heretofore there has never been applicable by requiring that there "shall tive parts going into a new vehicle and

any distinction made between automoby five Members expressing opposition.

be levied and paid" an additional duty those going into used vehicles. Indeed, They will be heard later on. This ar

equal to the net amount of “any bounty Canada has always been a fertile market rangement can extend to other NATO

or grant” upon the “manufacture or pro- for used automobiles and for replacecountries. I know of no objection to the rule; in

duction for export” of any article manu-
factured or produced in another country

ment parts. American concerns have fact, those who oppose are opposed to certain portions of the bill, and are not

when such article is imported into the developed a reliance upon this market United States.

and notwithstanding the Canadian objecting to the rule itself because a situation, Mr. Speaker, has arisen where The petition before the Tariff Com- duties, were able to compete with the something has to be done. In other mission was never decided and, except this legislation, those trade opportuni

Canadian parts manufacturers. Under for the damage incurred by various ties will disappear. Certain parts manuwords, duties have not been paid since January 16, 1965. They are accumulatAmerican parts manufacturers, the

facturers are to be favored over other ing, and unless we vote the bill up or treaty which H.R. 9042 proposes to vali

parts manufacturers, dependent upon down we cannot dispose of the problem date, will render the controversy moot.

whether the parts will find their way into which affects manufacturers at this I question that anyone would contend

a new vehicle or a used vehicle. This time. that the Canadian remission of duty or

distinction has never been made before Mr. Speaker, at this time I yield 5 min

der could possibly promote the cordial and yet it serves to reveal the intent and utes to the gentleman from Illinois (Mr. relations between the United States and McCLORY).

Canada. Obviously if the United States continue in effect the same discriminaMr. MCCLORY. Mr. Speaker, in dis- provided a subsidy equal to the amount tory practice against certain

American cussing H.R. 9042 which purports to of a Canadian tariff on articles exported parts manufacturers. facilitate trade between the United to Canada, the Canadian Government Let me say this: If the Canadian GoyStates and Canada, let me emphasize, would be completely justified in criti- ernment wished to remove all tariffs on first of all, my personal and individual cizing any such action and would un- automobiles and on automotive parts, there would be no controversy here to- (By unanimous consent, Mr. GROSS irresponsible in its fiscal affairs, and in day whatever. The controversy results was granted permission to speak out of its youth job program makes it policy because first, there is a guarantee pro- order.)

that “it is not what you know, but who vided of an increase in Canadian auto- Mr. GROSS. Mr. Speaker, over the you know that counts." motive and automotive parts produc- weekend I received an envelope with It is time for actions to match the tion, and second, the new automobile some enclosures from Vice President Hu- stated intentions of the administration and automotive parts production in Can- BERT H. HUMPHREY. I assume other in this and many areas. ada is bound to increase at the expense Members of Congress received the same Mr. DELANEY. Mr. Speaker, I move of the automotive parts manufacturer material. These enclosures include a the previous question. in the United States.

letter from the Vice President, a mimeo- The SPEAKER. The question is on I say this is bound to happen and yet, graphed letter, in which he says that the resolution. of course, I should qualify my statement "hundreds of thousands of youngsters The question was taken, and the by declaring that the American auto- were provided with summer jobs they Speaker announced that the ayes had it. motive parts manufacturers will suffer would not otherwise have held.” Of Mr. MCCLORY. Mr. Speaker, I obonly to the extent that they depend upon course, that includes the Vice President's ject to the vote on the ground that a export sales to Canada. If the domestic nephew, who got a job at $2.29 in a post quorum is not present and make the parts business continues to improve, office in South Dakota, although the point of order that a quorum is not . American parts manufacturers will con- nephew's family was not known to be present. tinue to prosper despite this agreement, poverty stricken. The letter goes on to The SPEAKER. Evidently a quorum but not because of it. say:

is not present. The Doorkeeper will close In speaking as I do on this subject The President and I urgently seek your the doors, the Sergeant at Arms will notoday, I want also to emphasize that some help in encouraging young boys and girls in tify absent Members, and the Clerk will American industries will undoubtedly your district, particularly those age 16 to 21, call the roll. benefit from this legislation. They will to return to school.

The question was taken; and there benefit because Canada has a growing The second enclosure is a speech or a were-yeas 364, nays 23, not voting 46, market for new and used automobiles statement by President Johnson as of as follows: and for new and replacement automotive August 21, 1965.

[Roll No. 254] parts. Through the utilization of subIncidentally, in his letter Mr. HUM

YEAS364 sidiary companies, the parent company PHREY lauds the President, and in the Abbitt


Halleck can transfer operations more easily and President's communication he lauds Mr.

Abernethy Daddario Halpern perhaps, in many instances, more eco- HUMPHREY and himself.



Ianley nomically.

Then there is included a suggested Addabbo Davis, Ga. Hanna But, Mr. Speaker, in the light of our editorial for weekly newspapers. Why


Davis, Wis. Hansen, Idaho Anderson, Dawson

Hansen, Iowa system of private enterprise, it seems to the youth opportunity editorial writers


de la Garza Hansen, Vash. me that this legislation is wrong. It do not write editorials for the daily Andrews, Delaney

Hardy does not treat all alike and it does not newspapers I do not know, but here is an N. Dak. Dent

protect the individual American manu- editorial for
editorial for the weekly newspapers

Annunzio Derwinski Harsha

Harvey, Ind. facturing concern against the unfair dwelling on the subject of the great ac

Ashbrook Dingell

Harvey, Mich. competition which is implicit in the complishment of hiring youths during Ashley


Hathaway agreement which this bill would validate. the past summer and urging the news

Ashmore Donohue Hawkins
Aspinall Dorn

Hechler It has been suggested to me that the papers to urge young men and women to


Helstoski step taken by this legislation must be go back to school. Incidentally, the edi- Baldwin


Henderson taken in order to solidify close and har- torial lauds Lyndon Johnson.

Bandstra Downing Hicks

Barrett monious relations with our Canadian


Holifield Mr. Speaker, those who are spending


Duncan, Oreg. Holland neighbors. On the contrary, I am sus- so much time and money urging Con- Beckworth Dwyer

Horton picious that the measure is designed to gress to encourage the dropouts to go Bell



Ellsworth Howard placate and satisfy the current political back to school would do well to examine


Erlenborn Hull administration in Canada. I wonder if the kind of example they are setting for Betts

Evans, Colo. Hungate the policy of that administration is not our young people. It would be better Bingham Everett


Blatnik one of greater Canadian nationalism, of for our youth and the encouragement of


Hutchinson Boggs

Farbstein Ichord Canadian self-interest, self-sufficiency, hard work and education if some of our


Farnsley Irwin and isolation as contrasted to the policy officials would try to give more of an in- Bolton


Jacobs of cooperation and harmony which we dication that they are interested in



Joelson would like to see developed. I am fear- running a decent and responsible govern- Broomfield Findley

Johnson, Calif. ful that seeds of disagreement and mis- ment.

Brown, Calif. Fino

Johnson, Okla. understanding are contained in the bill All of us should, and will, encourage Broyhill, Va. Fisher

Johnson, Pa.

Buchanan before us.


young people to stay in school and ob-


Jones, Ala. Would that it were possible for the tain the best education that is practical. Burleson


Jones, Mo. Congress today to express the desire for We will encourage them to return to Burton, Calif. Ford, Gerald R. Karsten

Burton, Utah

Karth free and unrestricted trade in automo- school if they are dropouts who are un

Byrne, Pa.

William D. Kastenmeier biles and automobile parts of all types. qualified for jobs.

Byrnes, Wis. Fountain Keith If this were possible under the rule, I However, it should be understood that Cabell


Kelly would undertake to offer an amendment all of the education and poverty pro


Frelinghuysen Keogh

King, Calif. to the bill to permit the President to grams are undermined when our high


Fulton, Pa. King, NY. negotiate such an agreement. Regret- est officials set bad examples and give the Carter

Fulton, Tenn. King, Utah tably, under the rule as presented, such impression that it is political influence



Cederberg Garmatz Kluczynski an amendment would not be possible. and arm twisting that really counts.

Chamberlain Gathings Krebs Accordingly, I am suggesting that the It is a poor example for our youth Chelf


Kunkel rule should be defeated or recommitted when an administration boasts of a sum


Laird with a view to permitting such an


Gibbons Langen mer job program based on merit, and

Clausen, Gilbert

Latta amendment to be offered and thereafter then secretly turns it into a political Don H. Gilligan

Leggett adopted as the expression of the Con- patronage program.

Clevenger Gonzalez Lennon gress toward an era of greater unity and

Cohelan Grabowski Lipscomb
It is a poor example for our youth


Long, La. cooperation between the United States when the administration continues to Conable

Green, Oreg. Long, Md. and Canada, and toward a more flour- hide the names of the job holders behind Conte

Green, Pa. Love ishing economy in this great North a wall of secrecy, even after it has be


McCarthy American Continent.


McCulloch come apparent that it is filled with po


McDade Mr. SMITH of California. Mr. litical influence,


Griffiths McDowell

Cramer Speaker, I yield 5 minutes to the gentle


It does little to encourage hard work


McGrath man from Iowa [Mr. GROSS].

and decency when an administration is Cunningham Hagan, Ga. McMillan

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