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if an Escape Clause petition is lodged by an affected US industry, whether it has merit.

This, we would add, would also be our view with respect to other safeguards. The administration of safeguards, unless clearly circumscribed and supervised, can do more harm than good. The most important criterion in our view, to take into consideration in all safeguard areas, is the necessity for the businessman, be it a domestic producer, an importer, a foreign manufacturer, or a multinational corporation, to know within reasonable degrees of certainty and predictibility what the law is and what to expect from the administration of such safeguards.

We have few comments to offer with respect to those provisions of the proposed law dealing with most-favored-nation status or non-market economies. With regard to the trade effects if this title of H.R. 10710 is enacted, we would like to comment that it would appear most important to seek to determine the trade effects in terms of merchandise and in terms of balance of payments if goods from Communist countries are permitted the same access as merchandise from other countries in terms of importation. The most important immediate effect would be, of course, to permit entry of such goods under the duty rates set forth in column 1 of the Tariff Schedules of the United States, rather than the much higher column 2 rates most of which represent the old statutory rates dating back to 1934. We have not seen a great deal of analysis what this would mean in terms of trade and we believe as this is negotiated with nonmarket economy countries that a fair determination would be made on the effect in international trade of this liberalizaton. Another result of mostfavored-nation treatment would be to relieve the trade both in export and import from the restrictions which are now being imposed, be it in terms of limited access for Communist goods much of which has already been liberalized, or be it in terms of liberalization of export controls, because the goods for many nonmarket economy countries are still under relatively tight control under categories S and Z of the Export Commodity Control lists. Again, we believe that a quantification of the trade effects would be most important in order to be able to judge the effect of what we would receive and what we would offer such countries if such status is accorded them.

Concerning Title V dealing with preferences for developing countries, it is our view that since other countries have long made available generalized preferences to developing countries, it is appropriate for the United States to also develop and make available a scheme of preferences which will adequately reflect this country's position taking into consideration particularly the provisions which already exist in this area as they are being afforded by European countries and Japan most notably. In this regard, it is proper to point out that less developed countries or developing countries have been the suppliers of raw materials and we are beginning to experience the need for a great number of raw materials not only energy but for instance certain metals are in relatively short supply in the United States and we would believe it an important consideration to seek to secure a source of supply. On the other hand, we fully understand that developing countries are seeking investment so that they may advance their industries, and these desires can be balanced against our raw material needs. There are appropriate quid proquos which we believe can be very advantageously worked out.

The point we consider most crucial to the entire Trade Reform Act and the negotiations which it would authorize is contained in Chapter 3 of Title I, and in particular in the provisions dealing with industry and public advisory participation in the trade negotiations. We have observed that over many years the negotiators of our trading partners have had the benefit of the closest advice of their industry right during the negotiations and, of course, extensive preparations before then. In some cases, it developed that the negotiators were themselves representatives of the industries involved who were in some way or other commissioned by their governments to undertake these negotiations. On the other hand, we have followed concepts which have permitted hearings and which have permitted views to be expressed, but which by and large have left the matter of negotiations to a group of experts who often confronted our trading partners without the benefit of industry sitting at their elbows and right behind them in the conference room. We are pleased to see in the Trade Reform Act that the concern of negotiatory advice and participation has been noted, and that the Administration both recognizes the importance and need for such advices, and

that the Ways and Means Committee has placed in the bill provisions which assure that such advice will be available and forthcoming. We hope that it will be made clear by the Senate that if our trading partners enjoy the benefits of industry advice at or near the conference table, our negotiators should have the same privilege. We therefore hope that the provisions of the Trade bill might be strengthened in this regard. Similarly, we would believe it to be most advantangeous, if Congress could be present through a delegation and sufficiently large permanent staff to very closely observe the progress of negotiations. Especially in the non-tariff barrier area, where results are to be presented to the Congress, the full understanding of such agreements to be reviewed would clearly make such indepths observation not only appropriate but highly advisable.

To summarize, the Italy-America Chamber of Commerce supports and urges the enactment of H.R. 10710 and we will gladly assist this committee with further information which you may desire.

Thank you Mr. Chairman and members of the Committee for this opportunity to present our views to you.

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Chairman: F. Durando-Olympic International.

Co-Chair: D. Cavanna-Indesit, Inc.

Co-Chair: R. Boulogne-J. C. Penney Purchasing Corp.

EXPORT PROMOTION

Chairman: A. L. Watson-A. L. Watson & Co.

Co-Chair: F. Waehler-Haines, Lundberg & Waehler.

Co-Chair: F. X. Zietz-Westinghouse Electric Int'l Corp.

FOOTWEAR

Chairman: H. Glick-Marx & Newman Co., Inc.

Co-Chair: W. Luft-Lujan, Inc.

Co-Chair: M. Finkel-S.C.A. International, Inc.

Co-Chair: S. Shir-Benj. Shir, Inc.

Co-Chair: W. Blumenthal-Harwyn International, Inc.

FREIGHT, OCEAN

Chairman: H. Potchtar-Toscany Imports, Ltd.
Co-Chair: H. Glick-Marx & Newman Co., Inc.

Co-Chair: H. Wegner-Ocean Freight Consultants, Inc.

FREIGHT FORWARDERS

Chairman: R. Gioia-Luigi Serra, Inc.

Co-Chair: J. Di Sano-H. W. Robinson, Inc.

Co-Chair: G. Balbo-Francesco Parisi International Transports.

HOME FURNISHINGS DIVISION

Genl Chairman: V. Russo-Mario Imports, Ltd.
Gen'l Co-Chair: N. De Luca-Pino L. De Luca, Inc.

Furniture, Lamps, Lighting Fixtures, Decorative Accessories
Chairman: B. Safran-Safran & Glucksman, Inc.

Co-Chair: (Furniture) W. Hatch-The Walter Hatches, Inc.
Co-Chair: (Dec. Acc.) M. Cohn-Decorative Crafts, Inc.

Marble

Chairman: L. Charney-Colonna & Co., Inc.

Co-Chair: E. Weiss-International Granite & Marble Co.

Co-Chairman: C. Greenwald-Marble Supply Corp. of America. Glassware, Dinnerware

Chairman: B. Meiselman-Meiselman Imports, Ltd.

Co-Chair: W. Lombardo-Pitman Dreitzer div. Lancaster Colony. Co-Chair: C. Piccoli-Ceramar, Inc.

Housewares

Chairman: G. Valenti-Pasta-Mat, Inc.

INSURANCE

Chairman: E. Kratovil-Johnson & Higgins, Inc.

Co-Chair: J. Roberts-American International Underwriters.

INVESTMENT, FINANCE

Chairman: R. Guadagnini-Banca Nazionale del Lavoro.
Co-Chair: P. d'Onofrio-Sterling National Bank & Trust Co.
Co-Chair: P. F. Bilbao-Merrill Lynch, Pierce, Fenner & Smith Int'l.
Co-Chair: E. Eldridge-White & Co.

KNITWEAR

Chairman: M. Rappaport-Damon Creations, Inc.

Co-Chair: A. Goldstein-Gino Paoli.

MARKETING ADVISORY

Chairman: T. De Rosa.

MEMBERSHIP

Chairman: C. Morelli-Boise-Griffin Steamship Co. Inc.
Co-Chair: A. Puglisi-Pustorino, Puglisi, Beban & Co.

METAL PRODUCTS

Chairman: A. B. Howard-A. B. Howard, Inc.

Co-Chair: G. Bonomo-Schiavone-Bonomo Corp.

PUBLICATIONS

Chairman: P. Treves-Italian Publications, Inc.

Co-Chair: N. Danesi Murray-Rizzoli International Bookstore.

30-229-74-pt. 4-24

SPECIAL EVENTS

Chairman: H. Potchtar-Toscany Imports, Ltd.
Co-Chair: N. De Luca-Pino L. De Luca, Inc.
Co-Chair: A. D'Alessandro-American Export Lines.
Co-Chair: C. Morelli-Boise-Griffin Steamship Co., Inc.

TEXTILE AND APPAREL

Chairman: C. Brambilla.

Co-Chair: R. Ruchs.

Co-Chair: D. Orsi-Orsi, Inc.

The CHAIRMAN. That concludes the morning session. This committee will resume its sessions on Monday morning at 10a.m.

[At 11:45 a.m. the hearing recessed until Monday, April 1, 1974, at 10 a.m.]

TRADE REFORM ACT OF 1973

MONDAY, APRIL 1, 1974

U.S. SENATE, COMMITTEE ON FINANCE, Washington, D.C.

The committee met, pursuant to recess, at 10 A.M., in room 2221, Dirksen Senate Office Building, Hon. Herman Talmadge, presiding. Present: Senators Talmadge, Hartke, Byrd, Jr., of Virginia, Bennett, Dole, and Packwood.

Senator TALMADGE. The committee will please come to order.

This morning we resume our hearings on H.R. 10710, the Trade Reform Act. We have a long list of witnesses today, and each witness has been asked to confine his remarks to no longer than a 10-minute summary of the written statement. The 5-minute rule will be in effect for the questioning period.

Inasmuch as Senator Hartke has not yet arrived and the distinguished Congressman from Florida is here, will you proceed, Congressman Gibbons?

We are delighted to have you appear before our committee.

STATEMENT OF THE HON. SAM M. GIBBONS, A REPRESENTATIVE IN CONGRESS FROM THE SEVENTH CONGRESSIONAL DISTRICT OF THE STATE OF FLORIDA

Mr. GIBBONS. Thank you. It is a pleasure to be here.

I am reminded of the fact that today is the first day of April, but I do not wish to be classed as an April fool or a May, June, or July fool, or any kind of fool for that matter.

Senator TALMADGE. Let the record show that the Finance Committee takes judicial notice of the fact that you do not come in that category, Congressman.

[Laughter.]

Mr. GIBBONS. And I am going to try to be very conservative in the statements that I make and merely urge this committee to move very rapidly in developing a trade bill, Senator Talmadge. I think that now is the time to move forward on the trade bill.

It has been 12 years since we passed any kind of trade bill. Since 1967, our Government has been semiparalyzed without any effective trade bill.

The House-passed bill is a good bill. Like all other pieces of legislation, it is a compromise. It could stand some improving, and I am sure it will have some improving over here in your committee. And then it

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