the Senate in 1929: "Article 4: The following classes of prohibitions and restrictions are not prohibited by the present convention, on condition, however, that they are not applied in such a manner as to constitute a means of arbitrary discrimination between foreign countries where the same conditions prevail, or a disguised restriction on international trade: *** Prohibitions or restrictions imposed for the protection of public health or for the protection of animals or plants against disease, insects, and harmful parasites.' See also article XXIV, paragraph 2 (b), of the postwar commercial treaty with Italy approved by the Senate in 1948. " It is true that a sanitary regulation could be challenged by another party to GATT as being a "disguised restriction." But this possibility is necessary to us also as a means of questioning doubtful sanitary regulations of other countries. Even if the United States should be questioned, however: (1) The OTC is not a source of power in the President to change the regulation; and (2) if the sanitary regulation were mandatory under United States legislation in effect in 1947 (when we joined GATT) it could not be held to be a violation of GATT because our mandatory legislation in effect on that date was, and will continue to be, exempt from the GATT rule against quotas. MARKETING STANDARDS Question. Does GATT prevent the application to imported commodities of marketing standards we apply to our own commodities; has the Trade Agreements Act authorized the President to negotiate with other countries about marketing standards; and does the OTC confirm either of these propositions? Answer. The answer is "No" to all three. The Trade Agreements Act does not delegate to the President authority to establish, remove, or alter any marketing standards established by any United States legislation or required pursuant to United States legislation. The only provision in GATT relating to marketing standards is an exception to the general rule against quotas and embargoes. Article XI, paragraph 2, of GATT provides that "The provisions of paragraph 1 of this article (prohibiting quotas) shall not extend to the following: "(b) Import and export prohibitions or restrictions necessary to the application of standards or regulations for the classification, grading, or marketing of commodities in international trade." Thus, standards applied under the Agricultural Marketing Act of 1937 to domestic commodities can be, and are, applied to imported products without interference by GATT. Background. The quoted language is similar to, but broader than, language appearing in the Convention for the Abolition of Prohibitions and Restrictions approved by the Senate in 1929: "(The convention shall not prohibit) prohibitions or restrictions designed to extend to foreign products the regime established within the country in respect of the production of, trade in, and transport and consumption of native products of the same kind." While a marketing standard applied to imports could be challenged by another contracting party as being really intended to protect domestic output against foreign competition, this possibility is necessary to us also as a means of challenging doubtful restrictions of other countries. Even if the United States should be questioned by a member of OTC, however: (1) The Trade Agreements Act is not a source of power in the President to change marketing standards; (2) the OTC is not a source of such power in the President; and (3) if the marketing standards were mandatory under United States legislation in effect in 1947 (when we joined GATT) it could not be held to be a violation of GATT because our mandatory legislation in effect on that date was, and will continue to be, exempt from the GATT rule against import restrictions and quotas. STATEMENT OF SITUATION WITH RESPECT TO THE RELATIONSHIP BETWEEN CERTAIN UNITED STATES LAWS AND THE GATT 1. Escape clause: Although there are differences of wording between the "escape clause" in the United States Trade Agreements Act and the corresponding escape clause in the GATT, the GATT escape clause is broad enough to permit any action required or authorized by the corresponding provisions of the escape clause provided for by Congress in H. R. 1. One feature of the statutory escape clause which has been cited by some of the opponents of OTC as being in conflict with GATT is that which permits the President to use quotas. The GATT escape clause, like that in the Trade Agreements Extension Act of 1951, does permit import quotas. It is true that article XI:1 of GATT calls for the general elimination of quotas, but like other obligations of the GATT this one is subject to certain exceptions. One of those is contained in the GATT "escape clause," which permits suspension of any obligation (including the obligation not to use quotas), as necessary to prevent or remedy serious injury to a domestic industry resulting from obligations assumed or tariff concessions made in the GATT. A second feature of the statutory escape clause which has been cited by OTC opponents as being in conflict with GATT relates to one of the amendments to the escape clause incorporated in H. R. 1. H. R. 1 broadened the United States escape clause by authorizing quotas and higher tariffs to protect any segment of the domestic industry, whereas prior to H. R. 1 the trade agreements legislation only authorized such action to protect domestic industry. However, since it was first introduced in 1947, article XIX of GATT has permitted escape-clause action to prevent injury to "domestic producers." This is certainly not narrower than the present legislation. It has also been alleged that whereas under domestic legislation escape-clause action may be taken if imports have increased relatively even though they may not have increased absolutely, the escape clause in GATT would permit escapeclause action only if imports increased absolutely. It is true that the escape clause of article XIX of GATT refers only to "increased quantities." However, the GATT contracting parties have been formally on record since 1948 that it is understood "that the phrase 'being imported in such increased quantities' in paragraph 1 (a) of Article XIX was intended to cover cases where imports may have increased relatively." 2. Valuation: The "American selling price" used as the basis of valuation of certain coal-tar products, some canned clams, woolen gloves and mittens, and rubber-soled footwear does not represent actual value as defined in article VII of GATT but is based on the value of merchandise of national origin. However, the United States has no obligation to alter the method of valuation of these products because of a provision in the instrument whereby the United States agreed to apply the GATT which permits the United States to continue to apply legislation in existence on October 30, 1947, which is inconsistent with part II of GATT (including art. VII). That provision covers the "American selling price" cases in United States law. Passage of H. R. 5550 or participation thereafter by the United States in OTC will in no way affect that reservation. The only thing that could affect it would be "definitive" acceptance of GATT (under art. XXVI) by the United States. With respect to that, a resolution was drawn up at the ninth session which, if accepted unanimously by all contracting parties will permit the GATT to be applied under article XXVI without changing the present situation. Under that resolution the United States could validly accept GATT under article XXVI with a reservation for inconsistent legislation on the books as of October 30, 1947. That resolution has at present been accepted by all contracting parties except one. If the resolution is accepted unanimously, making the resolution operative, the United States will be able to accept GATT under article XXVI with such a reservation. If the resolution is not accepted unanimously, the United States does not intend to accept GATT under article XXVI unless some other method is found for preventing such inconsistent legislation from conflicting with the General Agreement. In the event the United States does not accept under article XXVI, GÅTT cannot enter into force under that article, since acceptance by countries the aggregate foreign trade of which equals at least 85 percent of the aggregate foreign trade of all contracting parties is required. The United States accounts for over 20 percent of such trade, giving the United States an effective veto. The above also applies to other parts of our valuation laws which do not conform to the letter of article VII. 3. Antidumping laws: The Antidumping Act of 1921 requires only a finding of "injury" before antidumping duties can be imposed rather than of "material injury" which is the language of article VI of GATT. However, in testimony before Congress, Treasury representatives have said that they interpreted the statute to mean “material” injury. When the duty of determining whether there is injury was transferred to the Tariff Commission, a representative of the Commission called attention to the Treasury interpretation and said that if Congress wanted a different interpretation it should so indicate. The Congress did not do so. Therefore this inconsistency is an inconsistency in form only. In any case, the United States reservation to part II of GATT, cited above, would remove any inconsistency with respect to United States obligations. 4. Countervailing duty laws: Section 303 of the Tariff Act of 1930 requires the assessment of countervailing duties to offset a subsidy or other grant without a showing of injury or threat of injury to a domestic industry, while article VI of GATT would require such showing. Again, as with respect to other obligations Part 704-Presentation of views without statutory notice: Section 704.1 Request for an informa! conference. Section 701.2 Purposes of an informal conference. Section 704.3 Written views in other situations. Suggestions regarding the preparation and presentation of written briefs and oral testimony: General suggestions regarding type of information to be supplied... Carl D. Corse, member; Leonard Weiss, alternate; Department of State. George H. Willis, member; Morris J. Fields, alternate; Treasury Department. Prentice N. Dean, member; Norris G. Kenny, alternate; Department of Defense. Harry Shooshan, member; John Bennett, alternate; Department of Interior. A. Richard DeFelice, member; Weber H. Peterson, alternate; Department of Robert E. Simpson, member; Harold P. Macgowan, alternate; Department of Philip Arnow, member; Leonard R. Linsenmayer, Edgar I. Eaton, John Ewing, alternates; Department of Labor. Katharine Jacobson, member; International Cooperation Administration. Edward Yardley, executive secretary. Address communications: Committee for Reciprocity Information, Tariff SECTION 1. Creation and authority.-The Committee for Reciprocity Informa- SEC. 2. Functions of committee.-Section 4 of the above-mentioned act approved 1 The committee was originally created by Executive Order 6750 of June 27, 1934, which was supplemented or to such agency as the President may designate. The Committee for Reciprocity Information is the agency created for the purpose of receiving such views. The function of the committee is to accord reasonable opportunity to all interested persons to present their views on any proposed trade agreement or with respect to the operation and effect of trade agreements which are in force or to any aspect thereof. SEC. 3. Organization.-The committee consists of a Commissioner of the United States Tariff Commission, who is designated by the Chairman of the Commission, and of persons designated from their respective agencies by the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the Secretary of the Interior, the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Labor, and the Director of the Foreign Operations Administration. The Commissioner from the Tariff Commission is the chairman of the committee. The committee may invite the participation in its activities of other Government agencies in any manner consistent with relevant legislation and Executive Order 10082. The committee may from time to time designate such subcommittees, and prescribe such procedures and rules and regulations, as it may deem necessary for the conduct of its functions. SEC. 4. Office of committee.-The office of the committee is in the Tariff Commission Building, Eighth and E Streets NW, Washington 25, D. C., and it is open on each business day, Monday through Friday, from 8:45 a. m. to 5:15 p. m. (The office is not open on Saturday.) CHAPTER VII-COMMITTEE FOR RECIPROCITY INFORMATION REVISION OF RULES OF PROCEDURE The Rules of Procedure of the Committee for Reciprocity Information are revised as of August 16, 1954, and appear as set forth below. Sec. PART 701-GENERAL Sec. 701.1 Publication of Notices. 701.2 Matters of Official Record Available to the Public. 701.3 Matters of Official Record Not Available to the Public. 701.4 Action Taken upon Information Received. 701.5 Suggestions for Presentation. Authority: Sections 701.1 to 701.5 issued under sec. 4, 48 Stat. 945, as amended, Pub. Law 464, 83d Cong., 19 U. S. C. 1354, E. O.'s 10082, 10170, 14 F. R. 6105, 15 F. R. 6901; 3 CFR, 1949 Supp., 1950 Supp. SEC. 701.1 Publication of notices.-Concurrently with the publication pursuant to sec. 4 of the act approved June 12, 1934, as amended (48 Stat. 945, 19 U. S. C. (1946) 1354; Pub. Law 464, 83d Cong.), of formal notice of intention to negotiate a trade agreement, the Committee for Reciprocity Information shall publish notice of the time during which views in writing may be presented, together with the period within which application may be made to present oral views and the date of the public hearings. Such notice shall be published in the Federal Register, and it shall also be issued to the press and published in the Department of State Bulletin, the Treasury Decisions, and the Foreign Commerce Weekly. SEC. 701.2 Matters of official record available to the public. The following information may be inspected by persons concerned during regular office hours, on request to the Executive Secretary at the office of the Committee for Reciprocity Information, Tariff Commission Building, Washington 25, D. C.: (a) Written views filed with the Committee concerning proposed tradeagreement negotiations or the operation of a trade agreement already in effect, except information and business data submitted for official use only of Committee. (b) Transcripts of testimony taken and exhibits submitted at public hearings and informal conferences. (c) Notices concerning public hearings and the filing of written views. SEC. 701.3 Matters of official record not available to the public. The following information is not available for public inspection: (a) Information and business data submitted for official use only of Committee. (Title 18, U. S. C., sec. 1905 (62 Stat. 791) imposes criminal penalties upon an officer or employee of the United States or of any department or agency thereof who discloses "in any manner or to any extent not authorized by law any information coming to him in the course of his employment or official duties or by reason Under Executive Order 10082, members of the Interdepartmental Committee on Trade Agreements or their alternates are the members of the Committee for Reciprocity Information. of any examination or investigation made by, or return, report or record made to or filed with, such department or agency or officer or employee thereof, which information concerns or relates to the trade secrets, processes, operations, style of work, or apparatus, or to the identity, confidential statistical data, amount or source of any income, profits, losses, or expenditures of any person, firm, partnership, corporation, or association * * * *.) (b) Information and business data submitted to the Committee for its official use only shall be submitted on separate pages clearly marked 'For official use only of Committee for Reciprocity Information.' The committee may refuse to accept any particular information or data so marked which it determines is not entitled to exemption from inspection under sec. 701.2. SEC. 701.4 Action taken upon information received.-Information of any kind received by the Committee will be made available to all governmental agencies represented on the Committee for Reciprocity Information. SEC. 701.5 Suggestions for presentation.—Suggestions regarding the preparation and presentation of written views and oral testimony will be supplied to interested persons upon request to the Executive Secretary of the Committee. PART 702-WRITTEN PRESENTATION OF VIEWS Sec. 702.1 Place and Time of Submission. 702.2 Number of Copies. Sec. 702.3 Form of Submission. Authority: Sections 702.1 to 702.3 issued under section 4, 48 Stat. 945, as amended, Pub. Law 464, 83d Cong., 19 U. S. C. 1354; E. O.'s 10082, 10170, 14 F. R. 6105, 15 F. R. 6901; 3 CFR, 1949 Supp., 1950 Supp. SEC. 702.1 Place and time of submission.-Views in writing shall be addressed to the Committee for Reciprocity Information, Tariff Commission Building, Washington 25, D. C. Such views can be assured of full consideration only if received by the Committee before the close of the period announced for their submission to the Committee. SEC. 702.2 Number of copies.- Written views must be submitted in not less than fifteen copies. SEC. 702.3 Form of submission.- No special form is required in the presentation of written views to the committee. Written views shall be legibly typed, printed, or duplicated and at least one copy shall be under oath or affirmation. Sec. PART 703-ORAL PRESENTATION OF VIEWS AT PUBLIC HEARINGS 703.1 Request for Permission to Present Oral 703.2 Notice of Permission to Present Oral Testi- 703.3 Oath. Authority: Sections 703.1 to 703.3 issued under section 4, 48 Stat. 945, as amended, Public Law 464, 83d Cong., 19 U. S. C. 1354; E. O.'s 10082, 10170, 14 F. R. 6105, 15 F. R. 6901; 3 CFR, 1949 Supp., 1950 Supp. SEC. 703.1 Request for permission to present oral testimony.-Requests to present oral views to the committee at public hearings shall be made prior to the expiration of the time announced for submitting such requests and will be granted only if written views have been submitted by or on behalf of the person making the request. Oral presentations should supplement information contained in written views. SEC. 703.2 Notice of permission to present oral testimony.—After receipt and consideration of requests to present oral testimony, the Committee will notify the applicant whether or not the request is granted, and, if so, the time and place of the hearing. SEC. 703.3 Oath.—All oral statements made to the Committee at public hearings shall be under oath or affirmation. Sec. PART 704-PRESENTATION OF VIEWS WITHOUT STATUTORY NOTICE 704.1 Request for an Informal Conference. 704.2 Purposes of an Informal Conference. Sec. 704.3 Written Views in Other Situations. Authority: Sections 704.1 to 704.3 issued under section 4, 48 Stat. 945, as amended, Public Law 464, 83d Cong., 19 U. S. C. 1354; E. O.'s 10082, 10170, 14 F. R. 6105, 15 F. R. 6901; 3 CFR, 1949 Supp., 1950 Supp. SEC. 704.1 Request for an informal conference.-Persons desiring to make oral presentations to the Committee other than at public hearings may request an |