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Government pursuant to which he with one another in the ultimate and funda

Mr. BYRNES of Wisconsin. Mr. undertakes to maintain his Canadian mental business of national security.

Chairman, I yield 5 minutes to the genproduction and sales at their highest his

In our defense partnership, we have

tleman from Iowa [Mr. GROSS). toric level and guarantees a fixed, in- agreed that North America must be con

Mr. GROSS. Mr. Chairman, woncreased annual amount of Canadian pro- sidered, in effect, as a single unit if we drous are the ways of the Ways and duction-for export to the United are to assure our common security.

Means Committee. We are asked again, States—in years to come. In short, Defense is not the only aspect of our

as with other bills that come from the duty-free treatment on imports into relationship that requires a North Amer- Committee on Ways and Means, to swalCanada will only be extended to those ican view. As the technological revolu- low the offering whole, no matter what who guarantee that Canada's share of tion races on, as the hazards of the 20th our ability to digest it. the home Canadian market for automo- century continue to threaten us both,

It has become fashionable, it seems, to tive products remains intact and that the

we are going to find more and more prob- bring bills in, any bill out of the ComCanadian share of the U.S. market will lems that will demand a continental ap

mittee on Ways and Means, it does not increase. Thus, the agreement is com- proach in the interest of the common make much difference what it deals with, pletely one-sided in favor of Canada prosperity and security of the American under a gag rule. I can conceive of no to the detriment of U.S. companies and and Canadian peoples.

reason whatever why this bill is on the their workers.

The automobile industry is very floor under a gag rule so that the House Mr. MILLS. Mr. Chairman, I yield clearly one of those places where we must cannot work its will.

cannot work its will. There is no ex2 minutes to the gentleman from New have a North American look. We make planation from anyone as to why the Jersey [Mr. GALLAGHER).

and drive the same automobiles, within House is again being short-circuited by Mr. GALLAGHER. Mr. Chairman, I our countries and across our long bor- the Committee on Ways and Means. will speak on this bill from a somewhat der. It is perfectly evident that the

Evidently the President has his doubts different vantage point than its bearing efficient way to run this particular in- about this legislation and its effect upon on our flourishing trade with Canada. dustry-in both nations interest-is as the workers of the automobile industry I have not gone into all of the economic a North American industry.

and the related auto parts industry, for details of the legislation, I rely fully on The agreement which has been worked

he says on page 3 of the report: the distinguished chairman of the com- out and which has been signed by the To provide appropriate relief, the bill I mittee for my information on that sub- President and by Prime Minister Pear- propose will make applicable the adjustment

assistance of title III of the Trade Expanject. However, with my colleagues of son is an imaginative answer to a

sion Act of 1962. the House delegation to the United situation crying for just such an answer. States-Canadian Interparliamentary We have heard arguments that the In other words, compensatory payGroup, I am deeply interested in the arrangements made with Canada do not ments out of the Federal Treasury, not great benefit this legislation will bring to benefit the United States alone. If this from the automobile industry, not from United States-Canadian economic and is true, it is probably as it ought to be. the parts industry, but out of the U.S. political relationships generally.

We cannot deal with a good friend and Treasury-compensatory payments to It is standard procedure to talk about tough negotiator on a matter like this workers who may be displaced by Canathe unique relationship between the and expect to have it all our way. But dian labor from enactment of this legisUnited States and Canada, and some

there is one basic economic and political lation—from the implementation of a people may find this an overworked con- fact we must not forget and that we Presidential treaty. cept. But our relationship with Canada should not minimize: I mean that Can

The chairman of the Ways and Means is a very special one and I think that it ada was headed toward the creation of Committee, the gentleman from Aris immensely important for us both that a home-grown Canadian automobile in- kansas [Mr. MILLS], when the coffee bill we make certain that it works smoothly dustry which would have seriously re- came before the House of Representaand well.

duced the opportunity for sales in tives, assured us it would not result in Two distinguished diplomats—former Canada of United States parts and ve- an increase in the price of coffee. Later U.S. Ambassador to Canada, Livingston hicles made by United States workers. he amended that statement to say that Merchant, and former Canadian Am- Now Canada has given up that idea and he regretted that it had resulted in a bassador to the United States, Arnold has agreed to remove the barriers to a price increase. I will say to you that

This the coffee we use in our home, the same Heeney—have recently reported on the single North American industry. United States-Canada relationship and is a truly outstanding event in the good brand, the same pound can, has gone on the principles that can be used to relations of our two countries. I be- from 77 cents a pound to '90 cents a guide it for the future.

lieve it will benefit both our countries. pound as a result of the Ways and Means The two Ambassadors state that the tions any of us may find in the details the international coffee cartel.

It far outweighs any minor imperfec- Committee legislation that implemented “volume and variety of mutual involve- of the arrangements. It is an event we ment of the two countries and their peo- should seize on with great satisfaction. in this bill, except that the compensa

We are getting the same kind of deal ples are without parallel.” And that is the key to our relationship with Canada. will stop here. There are other industries the dinner tables and breakfast tables

I do not believe, Mr. Speaker, that we tory coffee payments are being paid over Never in human history have two soy

and other facets of our relations with of this country to the Brazilians and ereign nations been linked together so closely_not merely by the inescapable

Canada where we have to find North other coffee producing countries in fact of geography, but by a huge flow of American solutions in the years ahead. Latin America. If we are going to enact

As we see in the present bill, and as legislation of this kind, then it is about trade, by investment, by financial relationships, by culture, by family ties, by we see in our defense arrangements, we time we got legislation to the floor of

can do so within a relationship between the House to give those of you who supsports, above all by a common interest

sovereign and independent countries. port this legislation today the opporin the preservation of a way of living as

It is the particular genius of Americans tunity to likewise vote to provide for democratic peoples.

and Canadians that they have learned the construction of American ships in We have been at peace for 150 years, without a break. Our border is unde- situations, leaving political theorizing to not build our ships in Japanese yards?

to find practical answers to practical Japanese shipyards. Why not? Why fended. The record of harmonious joint somebody else. In enacting this bill, we

somebody else. In enacting this bill, we I am one of those who has been voting occupancy of this vast continent is one

shall be telling the President and Prime for subsidies to build American ships in of the political wonders of the world.

Minister Pearson to keep on working, as American yards because I know that We are bound together in partnership. good neighbors, good partners, and good employed American labor is the best As the Ambassadors put it:

North Americans, toward the kinds of consumer of American agricultural The network of joint arrangements be- practical,

practical, constructive understanding products. I want to protect American tween the two governments and their mill- that will continue to make the United industry and I want to protect American tary services is striking evidence of the de- States-Canadian relationship the politi- labor. I am not going to be caught votgree to which the two countries are involved cal miracle of the age.

ing for this bill or any other bill that

gives away the American market for all out on the table. We know the terms million in 1962 to $30 million in 1963 American labor, American farm prod- of the supplemental agreements between and then to $65 million in 1964. During ucts, American industry and business. the automobile manufacturers and the

the automobile manufacturers and the this same period, Canadian exports to That is exactly what you will be doing Canadian Government. We know what

Canadian Government. We know what the United States of completed motor if you vote for this bill today.

is proposed as the increase in the opera- vehicles also rose sharply. The annual If anyone can give me a solid reason tions

tions of the automobile industry in value increased from $3 million in 1962 why we should turn over any part of Canada. If we revert back to the former to $4 million in 1963, and then to $24 our automotive production to Canada I situation we will not know what unilat- million in 1964. want to hear it. Such reason has not eral or individual action Canada may That is the course that Canada was been forthcoming up to this point. take in order to increase the part it plays pursuing unilaterally. The agreement is Mr. BYRNES of Wisconsin. Mr. in automobile manufacturing.

preferable in that at least we get some Chairman, may I inquire of the gentle- Let us make up our minds, whether we benefit from the situation, because we man from Arkansas, the chairman of the like it or not, the Canadian Government remove the high Canadian duty that apcommittee, whether he wishes to yield as a matter of policy has determined that

as a matter of policy has determined that plies to automotive products exported time?

it will play a larger part in the manufac- from the United States to Canada. In Mr. MILLS. I do not have any re- ture of automobile parts and of auto- exchange, we eliminate a much lower quests for time now and I would like mobiles that are consumed in the Ca- duty which applies to Canadian automothe gentleman from Wisconsin to con- nadian market. That is their policy. tive products coming into this country clude the debate, if he would.

We can disagree with that policy. I cer- in the form of finished automobiles or Mr. BYRNES of Wisconsin. Mr. tainly do not stand here defending the parts. Chairman, I yield myself 10 minutes. Canadian policy, but they are the ones Mr. Chairman, I say that in spite of

Mr. Chairman, the problem confront- who made the decision. It was as a re- the misgivings that we all may have, and ing the automobile industry, that is the sult of that decision that we sought ne- in spite of certain objections we have to producers of automobiles and the pro- gotiations with Canada to find out what the way this agreement was initiated, ducers of parts, as a result of the situa- could be done. This particular agree- and even in spite of the retroactive eftion that has existed for the past several ment is the outcome.

fect of the agreement and the other varyears, is not a simple one nor is the solu- I believe this history of the situation ious aspects of the agreement to which tion of that problem a simple one. I do, is rather important in order that we I have serious reservations-in spite of however, rise in support of this legisla- know where we are today and what we our objections and our reservations, we tion. I rise quite frankly with some mis- should do in the case of this legislation. have today before us legislation affecting givings but I would say I would have Canada was and still is faced with a a very vital industry in this country, even graver misgivings as to the conse- balance-of-payments problem and a de- namely, the automobile industry. We quences of withdrawing from this agree- sire to increase employment for its labor all recognize the importance of that inment that our Government has entered force. In seeking to alleviate the prob- dustry. If it goes on strike or something into with the Government of Canada. lem, the Canadians were influenced by happens to it, everybody becomes conFrankly, I think that is the thing we the unfavorable balance of trade in auto- cerned. The automobile industry is a have to bear in mind.

mobile products between the United vital part of our economy. Our choice is We should discuss, and I am glad there States and Canada. This unfavorable clear. We can either turn our backs on were discussions, of the problems and the balance was almost equivalent to the the problem and let Canada take unidepartures from our established trade unfavorable balance-of-payments prob- lateral action, restricting the importation policy in the course that the administra- lem which they faced. In addition, the into Canada of American parts and aution pursued in undertaking this agree- Canadians anticipated that the Ca- tomobiles, or we can take this bilateral ment. I wholeheartedly agree with the nadian market for automobiles would action which at least keeps the matter comments made by my colleague, the expand at a rate greater than the rate of somewhat under control and accepts the gentleman from Missouri, in regards to growth of the Canadian economy as a philosophy that there is going to be a the matters that concern him. I sub- whole. This would mean that the un- normal increase in the Canadian sales scribe wholeheartedly to the words of favorable balance of trade in automotive and consumption of automobiles, and caution contained in the Republican sup- products would increase unless steps were that the Canadians will have a greater plemental views accompanying this re- taken by Canada to expand the produc- share in that increase, but we will also port. But the issue is, it seems to me, tion of automotive products. So they share in it. where are we now, and where will we be said, “We are going to do something One of my regrets is that we have not should we withdraw from this agree- about it.”

pursued this type of action in areas ment, what would be our position if the They started first with the "value where we need to get concessions from Congress should refuse to give the Presi- added” concept. Canada required that the Canadians on the restrictions and dent the authority to do what he under- about 60 percent of the value of auto- duties that they put on our exports. I took to do in his agreement with the mobiles sold in Canada represent Ca- think it is regrettable that these negotiaCanadian Government?

nadian production. That was begin- tions have been confined to one industry, As I see it, these are the alternatives ning in 1962. This was intended to stim

This was intended to stim- but I would say now that that is not that we face. You will either have uni- ulate automotive production in Canada. what we have before us. The question lateral action by the Government of Can- In addition, the Canadians offered in is: What do we do as far as this industry ada to increase its share of the automo- 1962 a rebate of duty on automobiles is concerned? bile market in Canada, by taking what- and parts imported into Canada meas- I am convinced in spite of the misever action Canada decides upon to re- ured by the value of the automobiles and givings and in spite of this horn of the duce the exportation of parts from the parts exported from Canada. This was dilemma that we are on, we are better United States to Canada—and parts are part of the scheme to increase Canadian off to take that course which gives us in considerable volume--and to reduce production.

the least misgivings and in which we the exportation of new automobiles from We protested. The only thing we could have the least concern that it might be this country to Canada. Or we can meet do—and I believe we were forced to do damaging to this country's interests. I the problem as is proposed here by a bi- it under the law-was to impose coun- believe we should take that course rather lateral action through a meeting of the tervailing duties. But that would not than the other course, which we all minds, in recognition of the fact that foreclose further action by Canada to agree could have grave consequences, of both countries have an interest in the increase the value of Canadian labor and simply leaving this matter up to Canada automobile industry and its economic parts going into the production of au

itself as to what they were going to do welfare. tomobiles.

as far as restricting American participaI believe that the course adopted here Following the inauguration of the tion in their automobile industry is conis the wiser course to pursue. By this Canadian program, the value of the cerned, because we know it is their policy action, at least, we have some under- Canadian exports of automobile parts

Canadian exports of automobile parts to increase the automotive industry in standing with Canada. The cards are to the United States increased from $9 Canada itself.

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Mrs. HANSEN of Washington. Mr. a serious import crisis which is effectively

Net annual growth and cut Chairman, the problem of trade and gnawing away at the economic security of tariffs is before us today and I have no every forest-based community in our

Growth Cut wish to disrupt the orderly process of Nation, threatening unemployment and trade and friendship between our Nation economic insecurity for our citizens. New England.

1,001, 700 398, 300 and Canada, our northern neighbor, who The pending measure was a sharp re

Middle Atlantic.

1,685, 600 485,500 has been and will undoubtedly continue minder of this valiant struggle of our

Lake States.

1, 152, 489 469,352 Central

4, 835, 716 1, 696, 311 to be one of the great bulwarks of de- own domestic lumber industry against

South Atlantic

2,013, 500 1, 196, 843 mocracy in a world sometimes filled with imports of a Canadian product.

East gulf..

1, 518, 700 835, 702 Central gulf.

1, 786, 000 1, 121, 352 controversy and disagreement.

It is my hope that our Government will

West gulf.

2, 151, 000 1,081, 551 However, there are many problems do something to help the domestic soft

Pacific Northwest.

2, 378, 800 2,617,436 which should be discussed between the wood industry and its employees over

Pacific Southwest

650, 605 947, 442

Northern Rocky Mountain. 586, 497 586, 497 two nations relative to policies that effect come the disadvantage of these imports

Southern Rocky Mountain. 344, 217 344, 217 the economy of areas such as my own. and rebuild our economic health.


16, 265, 035 10, 147, 954 My district has been dependent upon

Because I think the facts about Canaforest products for many years. This

This dian timber resources would be of inyear we celebrate the 25th anniversary terest, I am including for the RECORD:

In conclusion, Mr. Chairman, I would of the first tree farm in the United First, data on 1964 lumber production in

like to say again that it is extremely

difficult to isolate any one product or States.

Canada by Province; and second, the Logging, lumbering, and the processing timber potential by Province.

any one segment of American manufac

tured goods and make it the ostensible of forest products has long provided the economic stability and vitality of south- States: First, data on 1962 lumber pro

I am also including for the United basis of trade or discussion. Our entire west Washington. However, as time duction by region in the United States;

import policy should be reviewed in the passes we find that due to changing and second, the net volume of sawtim

context of development of a better incircumstances our forest products econ- ber on commercial lands on January 1,

ternal policy and a more satisfactory ex

ternal trade policy with our Canadian omy has not always been as healthy as 1963:

neighbors. possible. One of the major problems in the

Net volume of growing stock

Mr. BURKE. Mr. Chairman, I am 30, 695

glad to add my support to this bill which Northwest at the present time is the New England.--question of our exports of raw logs to

Middle Atlantic--

46, 611 will implement the historic agreement

Lake States--Japan. The second thing is the in

31, 896 signed last January by President John

Central --ability of our American forest products South Atlantic

136, 469 son and Prime Minister Pearson. This

40, 516 to compete with the importation of soft- East Gulf..

agreement is a further major step toward

24, 663 wood from Canada.

the closer integration of the United Central Gulf.--

30, 359

States and Canada. It might be well for Members of Con- West Gulf.

38, 548 gress to look at the record.

The United States and Canada are In 1960, such imports totaled over 3.6 Pacific Northwest---

203, 085

good and close neighbors. We are each million board feet; in 1961, some 4 mil

Pacific Southwest..

55, 518 other's greatest trading partners. Last lion board feet; in 1962, over 4.5 million Southern Rocky Mountain...

Northern Rocky Mountain.

271, 192 year, we exchanged goods valued at more

147, 200 board feet; in 1963, some 5 million board

than $9 billion. Our trade in automotive feet; and in 1964, almost 5 million board

products alone almost totaled $1 billion. Total West

357, 327 feet again. For the first quarter of 1965,

Total all regions.

United States investment in Canada now

627, 882 softwood lumber imports are slightly

totals more than $20 billion. Canadians

Net volume of sawtimber ahead of the same period of last year. New England.---

have invested some $4 billion in the When we bear in mind that over 95 Middle Atlantic--

54, 428 United States.

103, 704 percent of U.S. total softwood imports Lake States

Our relations are closely entwined in

59, 705 come from Canada, it becomes readily Central--

other ways as well. In matters of our

91, 937 apparent that the Canadian softwood South Atlantic-

117, 554

mutual defense, we have established the producer enjoys a very fruitful market East Gulf.

69, 890

closest of ties. The Permanent Joint in our country.

Central Gulf.---

93, 619 Board on Defense, established in 1940 by It is difficult, Mr. Chairman, to isolate

West Gulf.

131, 007 President Roosevelt and Prime Minister a single item which gives Canadian pro- Pacific Northwest--

MacKenzie King, treats the defense of

1,091, 929 ducers a preferred position over domestic Pacific Southwest

the North American Continent as a

304, 634 producers. One of the most important, Northern Rocky Mountain..

whole. The North American Air Defense

271, 192 however, relates to the facts that gov- Southern Rocky Mountain.-- 147, 200

Command-NORAD—is a joint defense ernmental cooperation through realistic

command with an American as its comappraisal prices of Government-owned

Total West---

1, 814, 955 mander and a Canadian as its deputy. timber assists the Canadian forest indus

Total all regions.---

2, 536, 799 The DEW line the distant early warntry to export. As a matter of Govern

Net volume of sawtimber

ing network-jointly established and ment policy, raw material costs are kept Central Gulf.-

18, 832 maintained by the United States and in line with prevailing economic condi- West Gulf.

102, 994 Canada, has its objective the defense of tions in the United States. Timber sales Pacific Northwest

198, 797 the entire North American Continent. from the national forests in our country

Pacific Southwest-.

48, 664

A year ago, President Johnson and Northern Rocky Mountain.-

17, 981 are generally not conducted with com- Southern Rocky Mountain.-

Prime Minister Pearson celebrated the parable consideration of market condi

1,574 ratification

of the Columbia River tions and community stability.


Treaty. This treaty provides for the con

398, 935 The British Columbia government,

struction of dams in Canada which will

The timber cut from sawtimber which owns the Provinical timber in

protect the United States against flood Western Canada, effectively assists Ca- Middle Atlantic

New England----

1, 348, 000

damage and will provide electrical gen

1,759, 000 nadian wood products promotion. The Lake States.

eration for our joint use.

1, 300, 267 mills of British Columbia also have a Central ----

1, 718, 697

Mr. Chairman, I could cite many other regional advantage over U.S. producers South Atlantic

4,790, 209 instances where the United States and in the amounts paid in salaries and East Gulf..

2, 824, 230 Canada have established and mainwages. British Columbia lags behind in Central Gulf ---

3, 811, 027 tained the very closest of ties. So, I think fringe benefits as well.

West Gulf---

3, 949, 166 it only natural that provision should Pacific Northwest--

17, 138, 140 The bill before us today brought to

now be made to treat the great autoPacific Southwest---

5, 922, 608 mind the American softwood lumber in- Northern Rocky Mountain.-- 2,878, 342 motive industries in the United States dustry's struggle during the past 5 years Southern Rocky Mountain.------ 961, 331 and Canada as a single unit. That is for survival against Canadian imports.

what the agreement signed last January That industry continues to be faced with

Total all regions---- 48, 401, 017 and this bill will do. By removing trade barriers between the two countries, auto Mr. DUNCAN of Oregon. Mr. Chair- vise and extend their remarks on the manufactures who, in almost all cases, man, I rise in opposition to this bill as bill under consideration at this point in have plants on both sides of the border I did more vocally a few weeks ago on a the RECORD. will be able to produce in their most effi- proposal for a universal divestiture of The CHAIRMAN. Is there objection cient manner without regard to arbitrary tariffs in nickel. Today we have not a to the request of the gentleman from and unnatural barriers. The automotive unilateral action but a bilateral action Arkansas? agreement speaks well for the future of predicated again on the interest of a sub- There was no objection. our relations with Canada. I believe that stantial portion of a single industry

The CHAIRMAN. If there are no fureveryone on both sides of the border will which is completely inconsistent with ther requests for time, under the rule the benefit from it-workers, manufacturers, all our grandiose objectives and plans bill is considered as having been read for and, ultimately, consumers. I think our and statements for a “grand design" of

"amendment. economy and that of Canada will benefit a peaceful and closely knit world bound The bill is as follows: generally. Mr. Chairman, I supported together by the sinews of a freer trade.

Be it enacted by the Senate and House of and voted for this bill in the Committee Once again the exigencies of the mo- Representatives of the United States of on Ways and Means and I shall vote for ment and the demands of a single power- America in Congress assembled, it here today. ful industry subvert this "grand design."

TITLE I-SHORT TITLE AND PURPOSES Mr. TUPPER. Mr. Chairman, I urge Once again we prove to the world that

Short title in the strongest terms an affirmative "freer trade" is not a broad freeway vote by the House on H.R. 9042, the with benefits flowing in both directions "Automotive Products Trade Act of 1965”.

SECTION 101. This Act may be cited as the Automotive Products Trade Act of 1965. but is a one-way street with American A significant amount of goods now move producers and American labor giving

Purposes duty free between the United States and much and receiving little. No effort is

SEC. 102. The purposes of this Act are Canada. A free market for manufacture made to equalize the competitive disad

(1) to provide for the implementation of and sale of automotive products should vantages in which our lumber and woods Products Between the Government of the

the Agreement concerning Automotive prove to be an economic gain for both products industry finds itself vis-a-vis United States of America and the Governour country and Canada.

the Canadians. No effort is made to re

No effort is made to re- ment of Canada signed on January 16, 1965 Canada has already acted to remove lieve the log export problem presently (hereinafter referred to as the "Agreement”), the impediment to trade in automobiles bearing so heavily on our own Pacific in order to strengthen the economic relaand original equipment.

Northwest nor to equalize the flow of tions and expand trade in automotive prodThe Canadian Parliament has voted logs across the border between Washing- ucts between the United States and Canada;

and to remove all duties on import of auto- ton and British Columbia which seem to mobiles—1742 percent and parts—up our producers to flow only in one direc- such other international agreements provid

(2) to authorize the implementation of to 25 percent. tion.

ing for the mutual reduction or elimination Congress must act to match this ex- How can the administration and the of duties applicable to automotive products pression of good faith.

Congress blatantly announce that this as the Government of the United States may This bill, growing out of an agreement agreement is in violation of the General hereafter enter into. last January by President Johnson and Agreement on Tariffs and Trade and then

TITLE II—BASIC AUTHORITIES Prime Minister Pearson, will remove bar- ask for and vote for this bill? The most

Implementation of the Agreement riers to the creation of a single North favored-nation doctrine, must be applied

SEC. 201. (a) The President is authorized American automotive industry. Canada and the benefits accruing to Canada to proclaim the modifications of the Tariff has thus abandoned its purpose of creat- must be spread among our trading part- Schedules of the United States provided for ing a separate competitive auto indus- ners of the free world. We are faced in title IV of this Act. try.

here with a specter not just of Canadian (b) At any time after the issuance of the U.S. automobile companies will be production, 90 percent of which, we are proclamation authorized by subsection (a), able to treat their Canadian and United told, is American owned—but Canadian the President is authorized to proclaim furStates plants as a single indus- manned—but production from Japan, of the United States to provide for the dutytry thereby increasing the efficiency of Germany, England, France, Italy, Swe- free treatment of any Canadian article which their operation. Parts manufacturers den, and who knows what other nations, is original motor vehicle equipment (as dewill have opportunities for new business all of whom are entitled to most favored fined by such Schedules as modified pursuant with removal of tariffs. It should bring nation. We have many friends in the to subsection (a)) if he determines that the fuller employment in the U.S. automo- world when approached on this basis, importation of such article is actually or bile and parts industry. Moreover, it and it will mean little to any of them potentially of commercial significance and will help preserve a favorable balance when we try to explain our especial rela- that such duty-free treatment is required to of trade with Canada of over one-half tion to Canada as a justification for carry out the Agreement. billion dollars per year. breaking the agreement.

Implementation of other agreements In the event of temporary injury to an Our Government tells us that they in

SEC. 202. (a) Whenever, after determining individual firm and its workers through tend to ask for a waiver. A waiver that such an agreement will afford mutual increased imports or loss of exports, ad- should be obtained before the deed is trade benefits, the President enters into an justment assistance under the provision done for what do we do if the waiver is providing for the mutual elimination of the

agreement with the government of a country of the Trade Expansion Act of 1962 will not forthcoming. I reiterate again my duties applicable to products of their respecapply. Since it reduces duties 100 per- belief that our greater prosperity and tive countries which are motor vehicles and. cent immediately, adjustment assistance that of the world lies in the direction of fabricated components intended for use as is more generous than in any cases of freer trade. I cannot help but agree

I cannot help but agree original equipment in the manufacture of dislocation under the 1962 act.

with the gentleman from Missouri, (Mr. such vehicles, the President (in accordance Instead of

engaging in retaliatory CURTIS] who prophesied gloomily that with subsection (d)) is authorized to protariff measures, the United States and the road down which we are moving with ules of the United States as he determines to

claim such modifications of the Tariff SchedCanada must commence to look at trade bilateral agreement following unilateral be required to carry out such agreement. between the two countries with the ma- agreement in odd juxtaposition can but (b) Whenever, after having entered into turity the mid-sixties demand.

lead us back to the confusion, the bar- an agreement with the government of a Even where it is determined that an riers, and

the stagnation of “Smoot Haw- country providing for the mutual eliminaagreement helps one country more than ley."' The intense pressures of a single tion of the duties applicable to products the other, as long as it does not harm industry or the troubles of even so close after determining that such further agreeeither nation, the friendship between the peoples of the two countries ought to a friend as Canada ought not be per- ment will afford mutual trade benefits, enters mitted to divert us from our goal.

into a further agreement with such governdictate terms for a reasonable agreement. Just as there must be intelligent


ment providing for the mutual reduction or

elimination of the duties applicable to autocompromise in diplomacy, there must be Mr. MILLS. Mr. Chairman, I ask motive products other than motor vehicles. an intelligent give and take in trade unanimous consent that all Members de- and fabricated components intended for use policies.

siring to do so may be permitted to re- as original equipment in the manufacture of

such vehicles, the President (in accordance III of the Trade Expansion Act of 1962 (19 tions and to make a report of the facts diswith subsection (d)) is authorized to pro- U.S.C., sec. 1901–1991) as though the reduc- closed by such investigation. In his request, claim such modifications of the Tariff Sched- tion or elimination of a duty proclaimed by the President may specify the particular ules of the United States as he determines to the President pursuant to section 201 or 202 kinds of data which he deems appropriate. be required to carry out such futher agree- of this Act were a concession granted under Upon receipt of the President's request, the ment.

a trade agreement referred to in section 301 Tariff Commission shall promptly institute (c) Before the President enters into the of the Trade Expansion Act of 1962.

the investigation and promptly publish negotiation of an agreement referred to in Special authority during transitional period notice thereof in the Federal Register. subsection (a) or (b), he shall

under the agreement

(2) In the course of each investigation (1) seek the advice of the Tariff Commis

conducted under paragraph (1), the Tariff

SEC. 302. (a) After the 90th day after the sion as to the probable economic effect of

Commission shall, after reasonable notice, the reduction or elimination of duties on date of the enactment of this Act and be

hold a public hearing, if such hearing is reindustries producing articles like or directly fore July 1, 1968, a petition under section

quested (not later than 10 days after the 301 of this Act for a determination of eligibilcompetitive with those which may be covered

date of the publication of its notice under ity to apply for adjustment assistance may by such agreement;

paragraph (1)) by the petitioner or any other (2) give reasonable public notice of his in- be filed with the President by

(1) a firm which produces an automotive ject matter of the investigation, and shall

person showing a proper interest in the subtention to negotiate such agreement (which notice shall be published in the Federal Reg- product, or its representative; or

afford interested persons an opportunity to ister) in order that any interested person

(2) a group of workers in a firm which

be present, to produce evidence, and to be may have an opportunity to present his produces an automotive product, or their

heard at such hearing. views to such agency as the President shall certified or recognized union or other duly authorized representative.

(3) Not later than 50 days after the date designate, under such rules and regulations

on which it receives the request of the Presi

(b) After a petition is filed by a firm or as the President may prescribe; and

dent under paragraph (1), the Tariff Comgroup of workers under subsection (a), the (3) seek information and advice with re

mission shall transmit to the President a rePresident shall determine whetherspect to such agreement from the Depart

port of the facts disclosed by its investigaments of Commerce, Labor, State, and the workers has occurred or threatened to oc

(1) dislocation of the firm or group of

tion, together with the transcript of the Treasury, and from such other sources as he

hearing and any briefs which may have been cur; may deem appropriate.

submitted in connection with such investiga

(2) production in the United States of the (d) (1) The President shall transmit to

tion. automotive product concerned produced by each House of the Congress a copy of each the firm, or an appropriate subdivision there

(f) (1) The President shall make each final agreement referred to in subsection (a) or

determination under subsection (b), (c), or of, and of the automotive product like or di(b). The delivery to both Houses shall be rectly competitive therewith, has decreased

(d) with respect to a firm or group of on the same day and shall be made to each appreciably; and

workers only after he has sought advice from House while it is in session.

(3) (A) imports into the United States

the Departments of Commerce, Labor, and (2) The President is authorized to issue from Canada' of the Canadian automotive

the Treasury, the Small Business Adminisany proclamation to carry out any such product like or directly competitive with that

tration, and such other agencies as he may agreementproduced by the firm, or an appropriate sub

deem appropriate. (A) only after the expiration of the 60- division thereof, have increased appreciably; division thereof, have increased appreciably; final determination not later than 15 days

(2) The President shall make each such day period following the date of delivery,

or (B) only if, between the date of delivery

(B) exports from the United States to

after the date on which he receives the Tariff and the expiration of such 60-day period, the Canada of the United States automotive

Commission's report, unless, within such Congress has not adopted a concurrent res- product concerned produced by the firm, or

period, the President requests additional olution stating in substance that the Senate an appropriate subdivision thereof, and of

factual information from the Tariff Commisand House of Representatives disapprove of the United States automotive product like

sion. In this event, the Tariff Commission the agreement, and or directly competitive therewith, have de

shall, not later than 25 days after the date

on which it receives the President's request, (C) in the case of any agreement referred creased appreciably, and the decrease in such to in subsection (b) with any country, only exports is greater than the decrease, if any, in a supplemental report, and the President

furnish such additional factual information if there is in effect a proclamation imple- in production in Canada of the Canadian menting an agreement with such country automotive product like or directly com

shall make his final determination not later

than 10 days after the date on which he applicable to products described in subsec- petitive with the United States automotive

receives such supplemental report. tion (a).

product being exported. (3) For purposes of paragraph (2), in the (c) If the President makes an affirmative

(3) The President shall promptly publish computation of the 60-day period there shall determination under paragraphs 61. 62); final determination under this section.

in the Federal Register a summary of each be excluded the days on which either House and (3) of subsection (b), with respect to a is not in session because of adjournment of firm or group of workers, he shall promptly

(g) Any certification with respect to a more than 3 days to a day certain or an certify that as a result of its dislocation the

group of workers made by the President adjournment of the Congress sine die. firm or group of workers is eligible to apply

under this section shallEffective date of proclamations

for adjustment assistance, unless the Presi- (1) specify the date on which the disloca

dent determines that the operation of the tion began or threatens to begin; and SEC. 203. (a) Subject to subsection (b), the

Agreement has not been the primary factor (2) be terminated by the President whenPresident is authorized, notwithstanding

in causing or threatening to cause disloca- ever he determines that the operation of the section 514 of the Tariff Act of 1930 (19 tion of the firm or group of workers.

Agreement is no longer the primary factor in U.S.C., sec. 1514) or any other provision of law, to give retroactive effect to any procla- determination under paragraph (1) but a

(d) If the President makes an affirmative causing separations from the firm or sub

division thereof, in which case such determation issued pursuant to section 201 of this

mination shall apply only with respect to Act as of the earliest date after January 17, negative determination under paragraph (2)

or (3) of subsection (b), with respect to a separations occurring after the termination 1965, which he determines to be practicable.

firm or group of workers, the President shall date specified by the President. (b) In the case of liquidated customs en

determine whether the operation of the (h) Any certification with respect to a tries, the retroactive effect pursuant to subsection (a) of any proclamation shall apply factor in causing or threatening to cause disAgreement has nevertheless been the primary firm or a group of workers or any termination

of such certification, including the specificaonly upon request therefor filed with the cus

location of the firm or group of workers. If tion of a date in such certification or toms officer concerned on or before the 90th

the President makes such an affirmative de- termination, made by the President under day after the date of such proclamation

termination, he shall promptly certify that as this section shall constitute a certification or and subject to such other conditions as the

a result of its dislocation the firm or group termination, including the specification of President may specify.

of workers is eligible to apply for adjustment a date therein, under section 302 of the Trade Termination of proclamations assistance.

Expansion Act of 1962 (19 U.S.C., sec. 1902) SEC. 204. The President is authorized at (e) (1) In order to provide the President for purposes of chapter 2 or 3 of title III of any time to terminate, in whole or in part, with a factual record on the basis of which that Act. any proclamation issued pursuant to section he may make the determinations referred to (i) If a firm which has been certified under 201 or 202 of this Act.

in subsections (b), (c), and (d) with re- this section applies for tax assistance as proTITLE III-TARIFF ADJUSTMENT AND OTHER AD

spect to a firm or a group of workers, the vided by section 317 of the Trade Expansion

President shall promptly transmit to the Act of 1962, the reference in subsection (a) JUSTMENT ASSISTANCE

Tariff Commission a copy of each petition (2) of such section 317 to a trade or business General authority

filed under subsection (a) and, not later than which was seriously injured by increased imSec. 301. Subject to section 302 of this 5 days after the date on which the petition ports which the Tariff Commission has deAct, a petition may be filed for tariff adjust- is filed, shall request the Tariff Commission termined to result from concessions granted ment or for a determination of eligibility to to conduct an investigation related to ques- under trade agreements shall be treated as apply for adjustment assistance under title tions of fact relevant to such determina- referring to a trade or business which was

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