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nothing from us other than that we buy from them in order that they may buy from us in other words, they want to do business with us in accordance with the spirit and letter of the trade agreement which exists between the two nations. This is not an unreasonable request.
THE NATIONAL SECURITY
Apparently most domestic groups who seek protection against foreign imports sooner or later seek to show that such restrictions are not only necessary from an economic standpoint but are also vital to the national security. Most proponents for oil import restrictions are no exception to this ruleas a matter of fact it is the basis for their principal argument and likewise is the basis on which the current system of voluntary quotas is predicated.
Let us examine the situation as to national defense or national security as related to oil imports. It is consistently stated that, "there is no security in foreign oil.” Apparently those who make these observations are unaware of the historical facts that refute this, in the case of Venezuelan oil, since we have depended upon this oil in the past, during World War II, during the postwar fuel shortage along the Atlantic seaboard, during the Korean war and the recent Suez crisis.
Furthermore, we have had the assurance that we could depend upon this oil because of the geographical and historically friendly ties uniting us to Venezuela. At the outbreak of the Formosa crisis, the Venezuelan Foreign Minister stated his country's position: "In view of the problem faced by the free world and in particular the United States of America as a result of the tension created by the situation in Formosa, I would like to reaffirm to our sister nation to the north, in the name of the Government and the Venezuelan people, our sentiments of sincere and traditional friendship, our firm moral support and assure them that the natural and strategic resources of Venezuela, especially the petroleum and iron ore, will be available to the clause which has obliged President Eisenhower to solicit from Congress special powers for safeguarding the ideals of liberty and justice."
In spite of historical refutation, if we still assume there is no security in foreign oil, are we also to assume there is no security in foreign bauxite, manganese, tin, tungsten and many other strategic materials which we understand the United States does not possess in enough abundance to wage an all-out war? Should we ignore that Venezuelan iron ore, mined by American companies, is combined with Pennsylvania coal to produce steel in Pennsylvania mills, and would be vital to a future war effort? If we carry their argument that strategic materials from foreign sources will be unavailable in time of war to its logical conclusion, does this mean that we should gracefully surrender now, or does it mean that perhaps we should reasonably conserve our own inadequate resources and supplement them more heavily in normal times from foreign sources? Let us not through legislative mandate jeopardize or in any manner impair the availability of these necessary raw materials from whatever source they must come.
WHAT IS THE SOLUTION ?
This committee is faced with the problem of trying to find a solution or solutions to this problem of how we can balance imports and domestic productivity in such a way as to insure our domestic economic stability as well as our national security. In the process of doing this we are sure that the committee is also concerned with achieving these solutions in such a manner as will minimize, or eliminate if possible, impairment of our foreign trade. This is not an easy task. Admittedly those of us who present our positions to you do so with viewpoints that are flavored in one degree or another by our own interests. Each witness feels that his viewpoint or position is equitable and we are no exception. We recognize that this committee has a difficult task in reconciling self-interest with that which is for the greatest good of our people. We have tried to demonstrate with facts plus conclusions drawn from those facts that a continuation of our previous policies on reciprocal trade have definitely worked, in the case of our relationship with Venezuela, for the greatest good of the most people. We do not profess to be experts on the results of this program as it applies to other nations in the world ; however, we definitely have seen its benefits in the Western Hemisphere. We believe that if those policies are continued the ultimate result will be a further
expansion of our trade everywhere, and particularly in the Western Hemisphere. We are equally convinced that a deviation from this policy which would produce undue or unreasonable restrictions on the exports from our friends in the Western Hemisphere will not only jeopardize our economy and impair our national security, but of more consequence could set in motion a chain of events that would seriously damage our economic, social and political relations with our foreign friends.
By way of specific suggestion on the oil imports issue, we submit the following for your consideration : First, we believe that before any action is taken on oil imports, either by the legislative or executive branch of the Government, conferences should be held with representatives of those countries from which our foreign oil supplies come, with a view toward working out with them amiable and mutual understandings on this problem. We believe that the principal nations involved are sufficiently aware of our domestic problems and we of theirs that we can reach better solutions in this way than if the United States imposes restrictions by unilateral action.
Secondly, we recommend that any modification of our trade relationship with Venezuela be made under the terms and provisions of the agreement now existing between the two nations.
Thirdly, that in the administration of our trade agreements program the maximum possible consideration should be given to the interdependence of the nations of the Western Hemisphere.
We believe that within the framework of these recommendations and suggestions, this nation of ours can continue its expansion of world trade while at the same time preserving for itself and friends abroad economic stability and military security.
In closing, gentlemen, we would like to digress from the more specific references to our trade relations and direct your attention to our social, economic, and political relations with the other countries of the free world. At this very moment some of our friends and neighbors are at a crossroads in their struggle to establish a more democratic way of life in both their political and economic affairs. The United States has declared itself a champion of such principles throughout the world and we have dedicated both our economic and human resources to this end. At this critical moment in world affairs we must not foster the interests of those opposed to such principles, which would certainly be the case should our legislative action damage the trade relationship with and in turn the economies of our friends.
EXHIBIT No. 1
United States exports of domestic merchandise to Venezuela in 1957"
[Thousands of dollars) 00. Animals and annual products, edible : Animals, edible --
$2,039 Meat and meat products --
3, 497 Animal oils and fats, edible--
281 Dairy products.
20, 156 Fish and fish products. Other edible animal products
L'nited States esports of domestic merchandise to Venezuela in 1957?_Continued
[Thousands of dollars) 1. Vegetables food products and beverages : Grains and preparations--
20, 019 Fodders and feeds, n. e. c.--
1, 375 Vegetables and preparations, edible.
5, 456 Fruits and preparations---
8, 686 Nuts and preparations.-----
924 Vegetable oils, fats, and waxes, refined
3,047 Sugar and related products.-
300 Beverages and related products-
2, 965 Total
2. Vegetable products, inedible, except fibers and wood :
Rubber and allied gums and manufactures, except special
category 2 -
170 10. 169
5. Nonmetallic minerals:
Petroleum and products, except special category 2 :-
See footnotes at end of table.
l'nited States erports of domestic merchandise to l'enezuela in 1957?_Continued
[Thousands of dollars]
Iron bars, skelp, and pipe---------
132, 037 Castings and forgings.------
762 Railway car and locomotive wheels, tires and axles (rolled
and forged) -------------
168 Lead and semifabricated forms --
275 Nickel and semifabricated forms.--
148 Tin and semifabricated forms-----
11 Zine and semifabricated forms.--.
17 Nonferrous ores and semifabricated forms.
133 Precious metals and plated ware, n. e. c.'-.
Electrical machinery and apparatus, excluding special cate
8. Vehicles :
Tractors, parts and accessories, except special category 2 ---
excluding special category 2 ------
13, 281 38, 349 11, 491
9. Chemicals and related products :
Coal-tar products, excluding special category 2 ?
United States exports of domestic merchandise to l'enezuela in 1957 '_Continued
[Thousands of dollars] 10. Miscellaneous :
Photographic and projection goods, excluding special
4, 604 Scientific and professional instruments, n, e. c.?, excluding
special category 1 ------
4, 259 Ordance and pyrotechnics, excluding special categories 1
and 2 --Books, maps, pictures, and other printed matter, n. e. c. ---- 3, 202 Miscellaneous commodities, n. e. c.', excluding special category 1 ----
20, 181 Total ------
49, 147 Total exports--
1,005, 012 * From U. S. Department of Commerce Monthly Reports No. FT 420, United States Exports of Domestic and Foreign Merchandise, Country of Destination by Subgroup. All totals are estimated from 11 months data.
2 Not elsewhere classified.
3 Special categories include commodities for which export figures are not published separately, for security reasons.
* In this tabulation, the subgroup, machinery and vehicles, has been divided further into two groups.
NOTE.-The sum of the items in each subgroup will not equal the subgroup total because many small items are included in the total but not listed in this breakdown.