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That is all, Mr. Chairman.

The CHAIRMAN. I place in the record at this point the statement of the General Federation of Women's Clubs, 1734 N Street NW., Washington, D. C., submitted by the president, Miss Chloe Gifford, in lieu of personal appearance.

(The statement referred to follows:) STATEMENT ON RECIPROCAL TRADE AGREEMENTS PRESENTED BY Miss CHLOE GIFFORD, PRESIDENT, GENERAL FEDERATION OF Women's CluBS, WASHINGTON, D. C.

The General Federation of Women's Clubs is an international organization of 12 million members, including our associates. We have clubs in every State and in our Territories, and in 60 countries throughout the world. We were chartered by Congress in 1901.

The principles of the reciprocal trade agreements, as passed by the Congress in 1934, were considered by our State conventions and endorsed by national convention in 1938. By resolution at national convention the General Federation has supported legislation which would extend the life of the agreements every time such legislation was necessary. At our last convention in Detroit, June 1958, GFWC delegates amended the resolution passed in 1948 in order to support the proposed extension for 5 years.

The women of the General Federation take an intelligent approach to economic problems they are wives of prominent business and professional men of this country. Many are themselves engaged in the business, industrial, and professional fields. They study and think about what is good for the security and defenses of the United States. They believe the foreign policy of the United States, as expressed in the reciprocal trade agreements program, is wise and forward looking which would not only aid friendly nations but would be of great economic benefit to the United States.

Our members believe in the free enterprise system. They do not wish to injure domestic enterprise--they have confidence in the ingenuity of the American people. They believe that in a rapidly changing world where distances have been so drastically reduced by transportation and communication we must extend our ideals of free enterprise. It would be short sighted to think we can sell free enterprise if the principle is to be confined to industry within our own borders.

We feel certain that American industry will be challenged to develop new and better merchandise for Americans as well as for export in competition. We have confidence in American business and industry. Russia has challenged the free enterprise system-we do not want them to prove it cannot compete with foreign trade.

We know the law will have certain safeguards, that whoever is President of the United States will use good judgment in using those safeguards, if and when it is necessary.

It seems to the General Federation that a stronger sense of security for our Nation would evolve and a greater sense of confidence in the United States would develop among our foreign friends if we extended the Trade Agreements Act for 5 years at this time. It would surely show that the United States planned from strength. We do not dare, in these challenging times, to let it appear we are controlled by fear.

As a strong, progressive nation let us courageously act in the way that will create confidence in the United States. We urge you and the full Senate to support the proposal for a 5-year extension of the reciprocal trade agreements.

Senator Long. Thank you very much.

Our next witness is Mr. Blough representing the National Council of Churches. Mr. Blough, I have a copy of your statement here and I believe it is available to the other members of the committee.

I have asked that it be distributed and inasmuch as we have a number of other witnesses we hope to hear today, rather than ask them to come back on into the night, I would hope that you could follow the Reorganization Act where we would print the statement and then proceed to examine the witness with regard to it.

I believe you have had some experience here up on the Hill in Government, have you not, Mr. Blough?

Mr. Blough. That is correct.

Senator Long. Would you tell us your experience prior to your present post? STATEMENT OF ROY BLOUGH, REPRESENTING THE NATIONAL

COUNCIL OF CHURCHES OF CHRIST IN THE UNITED STATES

Mr. Blough. That is correct. My principal experience in Government was as Director of Tax Research for the Treasury Department from 1938 to 1946, and Assistant to the Secretary of the Treasury from 1944 to 1946, and later as a member of the President's Council of Economic Advisers from 1950 to 1952.

At the present time, I am professor of International business in the Graduate School of Business at Columbia University.

However, I am appearing here on behalf of the National Council of the Churches of Christ in the United States, and what I would like to do, if it pleases the committee, is to have the statement printed in the record.

Senator Long. Yes.

Mr. Blough. But to have leave to read a few parts of the statement for the purpose of getting the ideas a little more clearly before the committee than might be the case if we had no preliminary statement at all.

I think this might take 5 minutes.

Senator Long. Yes; if you can confine yourself to 5 minutes, go right ahead. I have noted what I thought were the highlights of your statement about which to ask questions.

Senator Carlson?

Senator CARLSON. Mr. Chairman, before we proceed I had the privilege of being on the House Ways and Means Committee and had Roy Blough before the committee on many occasions and I think for the record it should show he served as economist and adviser to at least four Treasury officials in charge of tax-policy matters—Undersecretaries Magill and Hanes, Assistant Secretary Sullivan, and General Counsel Paul—and then I believe he was himself acting in that capacity directly under the Secretary for 2 years or so.

Mr. Blough. Thank vou, Senator.

First, Mr. Chairman, I think I should say how the National Council of Churches arrives at its statement in view

Senator Long. I would like you to know I have already read your statement.

Mr. Blough. Yes; but it does not make quite clear what happens. Senator Long. Yes. (The statement in full is as follows:)

TESTIMONY ON BEHALF OF THE NATIONAL COUNCIL OF THE CHURCHES OF CHRIST

IN THE U. S. A., BY Roy BLOUGH My name is Roy Blough. Through your courtesy, I am pleased to testify here on behalf of the National Council of the Churches of Christ in the United States on the basis of its official policies and by authorization of its appropriate officers. I am a member of the general committee of the department of the church and economic life of the National Council of Churches and I am appearing here through the cooperation of that department with the department of international affairs.

The National Council of Churches has as its constituent bodies 33 Protestant and Eastern Orthodox communions, which have a total membership of approximately 38 million persons. While of course I do not presume to speak for these 38 million individual church members, the views which I am presenting where adopted after careful study, discussion, and deliberation by the official representatives of the constituent communions.

THE COMPETENCE OF THE NATIONAL COUNCIL OF CHURCHES TO SPEAK ON TRADE

POLICY

The National Council of Churches believes it has a responsibility to adopt and make known a position on international trade policy. The achievement or failure to achieve the great Christian goals of dignity and worth of the individual, the brotherhood of man, and world peace is dependent not only on the behavior of each of us as individuals but also on group action, including governmental policy, which is therefore a matter of Christian concern.

Governmental policy towards international trade has an important bearing on the relations of people and of nations. What happens to people and nations and world community because of the economic facts of life are matters of concern for religious faith and values. In such matters the churches have a particular interest and competence.

In arriving at its position the National Council of Churches has brought to bear a number of special elements of competence. First, the churches through their world-wide stationing of workers in mission and service enterprises have access to first-hand knowledge of the effects of international trade policy on people in many countries.

Second, in the worldwide cooperative work among different church communions, notably through the World Council of Churches and its Commission of the Churches on International Affairs, Christian groups in more than 50 countries meet in periodic international conferences, and carry on continuing contacts in which views are exchanged with respect to the mutual impact of the foreign economic policies of nations.

Third, the National Council of Churches has special departments devoted to economic life and international affairs. In these departments outstanding Christian laymen who are qualified in various related fields of specialization are regularly brought together to consider important current issues and to develop policy statements which represent both the general concerns of the churches and the best informed judgment of laymen who are particularly competent in the matters under consideration.

The churches through the national council have consistently taken the position that promoting the economic health of the world will help to create the conditions of peace, and that to promote economic health in the world, trade policies should be sustained and dependable, should aid economic stability and progress in each nation, should be mutually advantageous through increasing international exchange of goods and services, and should lead to the elimination of excessive trade barriers.

SOME STATEMENTS OF POLICY IN RECENT YEARS The following are statements on international trade and trade policy made by the National Council of Churches in recent years:

In 1951 the following statement was officially voted: "Peace among nations and trade among nations are interrelated, for the first requires and the other aids economic stability and progress in each nation. As a country of unique economic strength, the United States should adopt on the national level, and support on the international level, policies which will be mutually advantageous through an increasing exchange of goods and devices ***." (The National Council of Churches Views Its Task in Christian Life and Work, "approved" for publication May 1951.)

In that same year, with regard to Japan in particular, at the time of urging ratification of the treaty, the National Council of Churches spoke as follows on the matter of trade for Japan:

"It is our hope that the provisions therein contained will promote the economic well-being of Japan. The limitations of the sovereignty of that country to the Japanese home islands pose for its 83 million people an exceptionally difficult but not insuperable problem * * *. Since the Japanese people cannot subsist upon their own very limited agricultural resources, Japan must be helped to a position where she can support herself by trade abroad. If we would build constructively for peace in the Far East, Japan must be allowed access to raw mate

rials and overseas markets." (The Treaty of Peace With Japan, November 28, 1951.)

In 1952, previously adopted and maintained policies of the churches cooperating in the National Council of Churches were recorded in this way:

“The national council has supported the United States program of economic aid and technical assistance to the underdeveloped areas of the world and the principles embodied in the reciprocal trade agreements which seek to promote economic health in the world community by eliminating excessive tariff barriers." (Christian Responsibility in the 1952 Election, September 24, 1952.)

In 1953, the National Council of Churches declared:

"Even highly developed areas cannot become economically healthy unless the United States has a sustained trade and tariff policy which will permit them to sell more goods here." (The Price of American Power, September 16, 1953, for publication, October 25, 1953.)

In 1957, while concentrating on issues of economic aid, the National Council of Churches also expressed its concern for constructive international trade programs:

“The National Council of Churches on the basis of Christian concern, and in keeping with actions of many of its constituent bodies, holds that the United States should continue to develop, improve and expand programs of technical assistance, economic aid and international trade such as will make for stability, justice, freedom and peace for the peoples of the underdeveloped areas of the world and for all nations including our own.”

THE INCREASED IMPORTANCE OF TRADE POLICIES AND PROGRAMS IN THE

NUCLEAR-SPACE AGE

The most recent official policy statements of the National Council of Churches emphasize the increased importance of constructive trade policies and programs in the nuclear-space age. Taking recognition of the beginning of this new era in human history, the general assembly of the National Council of Churches meeting in St. Louis, December 5, after a process of careful consideration by responsible units within the council, adopted two significant statements which are pertinent to the subject of these hearings. The vote on the first was unanimous and that on the second virtually unanimous among the total number of 520 registered, voting delegates.

In the first statement on "Some Hopes and Concerns of the Churches in the Nuclear-Space Age" the point is made that "the present crisis with its dangers and opportunities, while partially military and scientific, is of broader and deeper nature. It is also educational, political, psychological, economic, diplomatic, and cultural. Even more fundamentally, it is moral and spiritual." In terms of the urgent need for nonmilitary actions by our Government in these days, and especially concerned with political and economic policies, this statement declares:

“We must take fuller account of the revolutions of rising expectations among newly developing areas for more freedom, dignity, independence, and a fuller share in the control and the benefits of modern industrialization.

“We must recognize that questions are now raised as to the adequacy of United States and other free nations and systems not only in science and know-how but also in economic and political leadership. We believe our Nation must react not defensively but in constructive policies and programs to demonstrate the values of our society in economics, political procedures, and human values. We must avoid, however, attempting to impose our ways on other peoples, and we must encourage their developing of their own ideas and institutions for human good.

We urge our Nation to take new diplomatic initiative in persuasive ways, making maximum use of the United Nations and its agencies, and working more sensitively and comprehensively through appropriate bilateral and regional means. Our coalitions must be strengthened in mutual efforts and sharing of concerns and knowledge, in reaffirmation of their relation to the United Nations and its purposes, and in increasing joint responsibilities for economic, political, and social well-being of peoples.

Our Nation, in partnership with others, we believe, should seize the present crisis as an opportunity to give increased moral and spiritual leadership to the world. In this we must avoid self-righteousness and moralism, but develop domestic and foreign policies and practices which will give more compelling witness to our fundamental concerns as a Nation for human rights and human values, for independence and interdependence, for freedom and responsibility, for justice and peace."

Spelling out more fully the nature of foreign economic policy which Christian faith and values and the international facts of life demand at this moment of history, the General Assembly of the National Council of Churches adopted this official statement on international aid and trade:

"OUR CHRISTIAN CONCERN

“Oneness in Christ across the nations requires mutual aid and trade. "As Christians we feel compelled to give our special support to the further development of foreign economic policies of the United States which will reflect our interest in man's welfare in other countries as well as in our own. We believe that constructive policies of international aid and trade are essential to the creation of conditions of peace with justice and freedom.

“The natural wealth of the world and the capacity to transform raw materials into desirable goods are not evenly distributed among nations. Our own country is richly endowed and highly developed. Some countries may be able to produce many commodities efficiently but have serious shortages in other essentials. Still other lands have such a low level of production that most of their citizens live in poverty, disease and illiteracy. These nations are all in our world and their people are all in God's concern. As Christians, we cannot help but be distressed by human misery and misfortune wherever it may be, and seek appropriate ways by private and public means to promote the welfare of our fellow men.

"INTERNATIONAL TRADE

“Trade in goods and services as a cooperative effort benefits both buyer and seller. On the basis of the principle of mutuality, in our own interest and in that of our neighbors, our economic foreign policies should seek expansion of trade. We believe that encouragement should be given industry to expand its international trade by constructive governmental policies. As a means of lowering barriers to trade, we support the principle of reciprocal trade agreements. We hope this program will be extended for at least another 5 years without weakening amendments. We urge that in its provision and operation there be less emphasis on reinforcing trade barriers and more on expanding trade. Further, we endorse United States participation in the international machinery necessary for efficient and orderly administration of the reciprocal trade agreements system such as is planned for in the proposed Organization for Trade Cooperation. While advocating the strengthening and extension of the reciprocal trade system, we are aware that some agreements may have certain local adverse effects. We hold, therefore, that as our Government adopts measures to strengthen international trade it should also approve programs of special assistance to areas, industries, and people adversely affected, to aid them in adjusting to the new conditions brought about in efforts for the larger good in an interdependent world.

"TRADE BENEFITS US AND THE WORLD

"It is important not only that trade among nations be expanded, but also that it be stable. Any significant decline in United States business activity would have serious repercussions abroad as well as at home. There will be specific benefit to our national economy because of policies which will increase trade, but, even more, we urge such solicies because they can be of much greater benefit to other countries more derendent on trade. Most of all we support such policies because they represent an important element in the construction of international cooperation which is so essential to building a world of more justice, brotherhood and peace.

"ECONOMIC AND TECHNICAL AID "We recognize that trade alone will not enable economically underdeveloped countries to realize their potentialities for economic growth and social progress including freedom. Both private and public aid, in the form of technical cooperation and capital, is indispensable. Assistance in long-time capital loans on favorable terms and capital grants, on a more limited basis, will be needed over a long period of time to enable such areas to establish their own economies and their place in the world market. Greater use should be made of international agencies, such as the United Nations and regional organizations. Technical and economic aid, while related to other rarts of foreign policy, should not be primarily for political and military considerations, but for the purpose of helping people to meet economic and social needs and opportunities.

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