My understanding is Mr. Eberle is the detail man and the Secretary and Mr. Flanigan are going to cover the broad scope of the program. Mr. Eberle is available to us to cover the fine points of it, but in order to permit the witnesses to get on with their work as soon as possible I thought it would be best if we heard the statements of Mr. Shultz and Mr. Flanigan this morning and ask them the questions that we have in mind for them. OPENING STATEMENT OF SENATOR RIBICOFF Senator RIBICOFF. Mr. Chairman, I have a short statement. What must be realized is that this bill is more than a year old. Conditions have changed drastically during the past year under the inpact of the fuel shortages, and the situation in the European Community. Even as we move towards energy self-sufficiency and more rational allocation of existing supplies a larger and even more ominous problem looms on the horizon. This is a desperate scramble by all industrialized nations for natural resources of all kinds, food, fiber, and minerals. We are already suffering from a highly inflationary effect of this worldwide race for raw materials. The Trade Reform Act before us today does not provide answers to the critical problem of shortages of industrial raw materials and foodstuffs. Any trade legislation that Congress finally enacts this year also must provide more relief for American firms and workers from unfair trade practices abroad and greater assurances that the will of Congress will be implemented. Mr. Chairman, if we are having difficulty coping with an Arab oil boycott affecting less than 10 percent of our total oil consumption making an international squeeze play affecting such minerals as chromium, tin, manganese, platinum, cobalt, nickel, bauxite, and asbestos where we are from 80 percent to 100 percent dependent on foreign sources. Somehow you know that the countries which produce these resources are watching the results of the Arab oil squeeze. The mathematics and politics here are very simple. The fewer producers of a commodity and the more inelastic the demand, the easier it is for the producers to get together and agree to raise prices. Unless we can work together on this new danger with our trading partners the West will be in for the kind of cutthroat competition where no nation can afford the price of winning. Our trade bill, therefore, must be a signal both to our trading partners and to our suppliers of raw materials that if they will not agree to fair rules of the game, we will take steps to protect ourselves and the American economy is still by far the strongest in the world. International agreements are needed on export controls, assured access to raw materials, food and manufactured goods, and on sanctions against countries which impose export embargoes that substantially injure other nations. Our Government should be authorized to retaliate against countries which wage economic warfare against us. I will also propose that developing countries desiring preferences for their goods in American markets must not discriminate against the United States in obtaining access to raw materials. I will have other amendments designed to strengthen America's hands in times of shortages, no matter what happens at the international bargaining table. These are some of the minimum requirements of economic security which this country's workers and its industries need in a very unstable, uncertain world. Thank you, Mr. Chairman. OPENING STATEMENT OF SENATOR ROTH Senator ROTH. Mr. Chairman, I have a short statement. The importance of foreign trade to our economy and way of life is not widely recognized. Trade is a bread and butter issue to millions of Americans. It accounts for billions of dollars in our gross national product and millions of jobs. A healthy balance of trade is associated with boom and prosperity. Large imbalances are associated with unemployment, recession, devaluation and inflation. Our ability to export and to maintain a strong dollar are directly related to our ability to import essential supplies such as oil. What this committee does or does not do with respect to the Trade Reform Act will determine the general thrust of our trade policies for the next several years. New authorities are being requested-authorities to enter negotiations, to retaliate effectively against foreign dumping and unfair foreign trade practices, to assist in controlling inflation and correcting fundamental imbalances in our overseas payments. We must scrupulously examine each and every one of these authorities. There are hard choices to be made and a lot of work to be doneno question about that. The essential thing is that we make these choices and that we do not permit our trade policies simply to drift. Polls have shown that confidence in Government-including Congress is very low. No small part is due to what many regard as a lack of decisiveness and leadership, an inability of Congress to act and to act with precision. This committee has a great deal of proposed legislation in the areas of health, taxes, and commodities yet to consider in this session. These bills are also of great importance to the American people. It is doubly important, therefore, that we move forward with the trade bill. I hope Government and private witnesses will keep the rhetoric to a minimum and will focus on the real issues. I believe the committee has an important opportunity to provide leadership by discharging its responsibilities not only with care, but also with dispatch. In closing, Mr. Chairman, I would just like to say that I think it is extremely important, and I would ask you that we try to work out the schedule immediately as to when the other witnesses are going to appear. I can say as one person whose calendar is already getting full that I think it is important we know sometime this week what the time schedule is going to be. Thank you, sir. The CHAIRMAN. I suggest that we let the Secretary and Mr. Flanigan, each make his statement before we ask any questions on their testimony. We will print the bill at this point in the record along with a couple of press releases, the committee has issued in the past couple of months relative to the Trade Reforming Act. [The material referred to follows. Oral testimony begins on page 163.1 FOR IMMEDIATE RELEASE March 12, 1974 PRESS RELEASE COMMITTEE ON FINANCE PUBLIC TESTIMONY ON TRADE REFORM ACT TO COMMENCE ON MARCH 21 The Honorable Russell B. Long (D., La.), Chairman of the Senate Finance Committee, today announced that the Committee will resume public hearings,beginning March 21, 1974, on The Trade Reform Act (H. R. 10710). The Chairman said the Committee will hear testimony from public witnesses from Thursday, March 21, through Wednesday, April 10. The hearings will begin each day at 10:00 a. m. in Room 2221 of the Dirksen Senate Office Building. The Chairman said that because an unusually large number of requests to testify have been received in response to the Committee's call last December for public testimony, the Committee will not be able to schedule all those who have requested to testify. Those persons who are not scheduled to appear in person to present oral testimony are invited to submit written statements. The Chairman emphasized that the views presented in such written statements will be as carefully con sidered by the Committee as if they were presented orally. In view of the large number of individuals and organizations who have requested to testify, all parties who are scheduled to testify orally are urged to comply with the guidelines below: Notification of Witnesses. --Parties who have submitted written requests to testify will be notified as soon as possible as to the time and date they are scheduled to appear. Once a witness has been advised of the time and date of his appearance, rescheduling will not be allowed. If a witness is unable to testify at the time he is scheduled to appear, he may file a written statement for the record of the hearing. - Consolidated Testimony. The Chairman also stated that the Committee urges all witnesses who have a common position or with the same general interest to consolidate their testimony and designate a single spokesman to present their common viewpoint orally to the Committee. This procedure will enable the Committee to receive a wider expression of views on the total bill than it might otherwise obtain. The Chairman praised witnesses who in the past have combined their statements in order to conserve the time of the Committee. Panel Groups. - མ། Groups with similar viewpoints but who cannot designate a single spokesman will be encouraged to form panels. Each panelist will be required to restrict his or her comments to no longer than a ten minute summation of the principal points of the written statements. The panelists are urged to avoid repetition whenever possible in their presentations. Legislative Reorganization Act. --The Chairman observed that the Legislative Reorganization Act of 1946, as amended, requires all witnesses appearing before the Committees of Congress "... to file in advance written statements of their proposed testimony, and to limit their oral presentations to brief summaries of their argument. The statute also directs the staff of each Committee to prepare digests of all testimony for the use of Committee Members. Chairman Long stated that in light of this statute and in view of the large number of witnesses who desire to appear before the Committee in the limited time available for the hearing, all witnesses who are scheduled to testify must comply with the following rules: (1) All statements must be filed with the Committee at least one day in advance of the day on which the witness is to appear. If a witness is scheduled to testify on a Monday or Tuesday, he must file his written statement with the Committee by the Friday preceding his appearance. (2) All witnesses must include with their written statement a summary of the principal points included in the statement. (3) The written statements must by typed on letter-size paper (not legal size) and at least 100 copies must be submitted to the Committee. (4) Witnesses are not to read their written statements to the Committee, but are to confine their ten-minute oral presentations to a summary of the points included in the statement. (5) Not more than ten minutes will be allowed for the oral summary. Witnesses who fail to comply with these rules will forfeit their privilege to testify. Written Statements.-- Witnesses who are not scheduled for oral presentation, and others who desire to present a statement to the Committee, are urged to prepare a written position of their views for submission and inclusion in the printed record of the hearings. He emphasized that these written statements would also be digested by the staff for presentation to the Committee during its executive sessions, and that they would receive the same careful consideration by the Committee as though they had been delivered orally. These written statements should be submitted to Michael Stern, Staff Director, Committee on Finance, Room 2227, Dirksen Senate Office Building not later than Thursday, April 11, 1974. PR #61 FOR IMMEDIATE RELEASE PRESS RELEASE COMMITTEE ON FINANCE UNITED STATES SENATE FINANCE COMMITTEE TO HEAR SECRETARY KISSINGER In Finance Committee Press Release No. 55, Dated February 7, 1974, it was announced that the Honorable Henry A. Kissinger, Secretary of State, would appear before the Committee to present testimony on the Trade Reform Act (H. R. 10710) on March 4 and 5. Instead, Secretary Kissinger will be appearing on Thursday, March 7. The schedule of Administration witnesses who will appear on the Trade Reform Act is therefore revised as follows: Monday, March 4 and Tuesday, March 5 The Honorable George P. Shultz, Secretary of the Treasury The Honorable William D. Eberle, Special Representative The Honorable Peter M. Flanigan, Executive Director, Wednesday, March 6 The Honorable Earl L. Butz, Secretary of Agriculture Thursday, March 7 The Honorable Henry A. Kissinger, Secretary of State As was stated in the February 7 press release, due to the possibility that the Committee may have to take up emergency legislation on energy-related matters, public witnesses have not yet been scheduled to testify on H. R. 10710. However, Chairman Russell B. Long stated that it is his intention to schedule public witnesses at a later date once the Committee's work schedule becomes clearer. The hearings will begin at 10:00 a. m., March 4, 5, 6, and 7, and will be held in Room 2221, Dirksen Senate Office Building. PR #58 |