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COMMITTEE ON FINANCE

HARRY FLOOD BYRD, Virginia, Chairman RUSSELL B. LONG, Louisiana

JOHN J. WILLIAMS, Delaware GEORGE A. SMATHERS, Florida

FRANK CARLSON, Kansas CLINTON P. ANDERSON, New Mexico WALLACE F. BENNETT, Utah PAUL H. DOUGLAS, Illinois

CARL T. CURTIS, Nebraska ALBERT GORE, Tennessee

THRUSTON B. MORTON, Kentucky HERMAN E. TALMADGE, Georgia

EVERETT MCKINLEY DIRKSEN, Illinois EUGENE J. MCCARTHY, Minnesota VANCE HARTKE, Indiana J. W. FULBRIGHT, Arkansas ABRAHAM A. RIBICOFF, Connecticut

ELIZABETH B. SPRINGER, Chief Clerk

the staff..

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Page
Text of H.R. 9042.-
Data relating to the bill compiled by

Department reports:

U.S. Tariff Commission.-

374

Commerce----------------

490

State...

490

WITNESSES

Boyett, Fred, Assistant Deputy Commissioner, Bureau of Customs, De-

partment of the Treasury---

Connor, Hon. John T., Secretary of Commerce.---

122

Halfpenny, Harold T., counsel for the Automotive Service Industry As-
sociation.---

274

Holder, Frederick C., director of Corporate Planning, American Motors

Corp.----

241

Kendall, David W., vice president, legal affairs, Chrysler Corp---

221

Levine, Allan L., president, Automotive Service Industry Association ---- 275

Mann, Hon. Thomas C., Under Secretary of State for Economic Affairs;

accompanied by Philip H. Trezise, Deputy Assistant Secretary for Eco-

nomic Affairs, Department of State; Hon. John T. Connor, Secretary

of Commerce, accompanied by Robert L. McNeill, Deputy Assistant

Secretary for Trade Policy, Department of Commerce; and Hon.

Willard Wirtz, Secretary of Labor.---.

81

McCauley, Alfred R., representing the Industrial Committee of Paducah,

Ky---

266

Middleton, Keith T., vice chairman, Antifriction Bearing Manufacturers

Association.--

290

Nelson, Hon. Gaylord, U.S. Senator from the State of Wisconsin ---- 263
Roche, James M., president, General Motors Corp.---

189
Secrest, Fred G., vice president and controller, Ford Motor Co.--
Shewmaker, Russell N., General Counsel; accompanied by G. Patrick
Henry, economist, U.S. Tariff Commission...

478

Strackbein, O. R., chairman, the Nation-Wide Committee on Export-

Import Policy-----

302

Trued, Merlyn N., Assistant Secretary of the Treasury ------

366
Weinberg, Nat, director, special projects and economic analysis, United

Automobile, Aerospace & Agricultural Implement Workers of America
(AFL-CIO).

246

Wirtz, Hon. Willard, Secretary of Labor.--

133, 311

COMMUNICATIONS

Budd Co., The, telegram of R. J. Kalbfleisch, vice president, automotive
division, Detroit, Mich., to the chairman.-

---

309

Castle Rubber Co., East Butler, Pa., letter of Lewis E. Straith, president,

to the chairman.

307

Committee for a National Trade Policy, Inc., Washington, D.C., state-
ment of John W. Hight, executive director.-

261
Dana Corp., Toledo, Ohio, telegram of J. E. Martin, president, to the
chairman ---

262
Eaton Manufacturing Co., Detroit, Mich., telegram of F. J. Goodrich,
vice president, to the chairman.--.

260
Fafnir Bearing Co., The, New Britain, Conn., letter of W. E. DeCaulp,
secretary and general counsel, to Hon. Thomas J. Dodd..

309

H. O. Canfield Co., Inc., The, Clifton Forge, Va., letter of K. N. Carter,

vice president-sales, to the chairman..

308

Kelsey Hayes Co., Romulus, Mich., telegram of W. G. MacDonnell, to the

chairman.-------------

260

205

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Ohio Rubber Co., The, Willoughby, Ohio, telegram of P. D. McManus, Page

president, to the chairman.-----

--- 309

Rockwell Standard Corp., Detroit, Mich., telegram of R. G. Wingerter,

president, automotive division, to the chairman.--.

260

Rubber Manufacturers Association, New York, N.Y., letter and enclosure

of George A. White, secretary, molded and extruded products division,

to the chairman.-----

------304, 369

Wolverine Die Cast Corp., Detroit, Mich., telegram to the chairman..- 310

ADDITIONAL INFORMATION

“Big Three To Boost 1966 Car Prices,” article in the Detroit News, Septem-

ber 5, 1965.------

203

Brazilian imports---

365
Canadian-United States balance of trade (payments) for Chrysler Corp... 233
Distribution of the employment in selected motor vehicle metalworking

operations..
Earnings and dividend distributions of the Canadian automotive manu-

facturing subsidiaries of General Motors, Ford, and Chrysler, 1961-64.. 108

Editorial material for Chrysler Canada, Ltd.---

225

Memorandum regarding possible modifications by the Canadian Govern-

ment of certain definitions incorporated by reference in annex A of the

United States-Canadian Automotive Products Agreement.----

180

Profile of the North American automotive industry, prepared by the De-
partment of Commerce.------

125

Questions of Hon. Carl Curtis and answers thereto..

104

Report on the bill from Ambassador William M. Roth, acting special rep-

resentative for trade negotiations, Executive Office of the President.-- 188

Statement of the Minister of Industry, Mr. Drury ---------------------

151

Typical automotive bearing application..

295

“UAW Urges Amendment to United States-Canadian Auto Trade Agree-

• ment,” article in news from UAW..

157

United States and Canada: Average hourly earnings of production workers

in all manufacturing and in motor vehicle and equipment industries,

selected months, 1963–65--------

United States and Canada: Average hourly earnings or wage rates in the

motor vehicle and motor vehicle parts and accessories industries, selected

areas and occupations, 1963.---

361

TUESDAY, SEPTEMBER 14, 1965

U.S. SENATE,

COMMITTEE ON FINANCE,

Washington, D.C.

The committee met, pursuant to recess, at 10 a.m., in room 2221, New

Senate Office Building, Senator Harry Flood Byrd (chairman) pre-

siding.

Present: Senators Byrd (presiding), Smathers, Douglas, Gore,

Talmadge, Hartke, Carlson, Curtis, and Morton.

Also present: Elizabeth B. Springer, chief clerk, and Thomas Vail,

professional staff member.

The CHAIRMAN. The committee will come to order.

The purpose of this hearing is to receive testimony from both the

administration and the general public on H.R. 9042, a bill which was

introduced at the request of the administration to provide for the

implementation of the agreement concerning automotive products

between the Government of the United States and the Government of

Canada.

I place in the record a copy of the bill and a copy of data relating to

the bill compiled by the staff.
(H.R. 90Ã2 and data referred to follow :)

[H.R. 9042, 89th Cong., 1st sess. ]

AN ACT To provide for the implementation of the Agreement concerning Automotive

Products Between the Government of the United States of America and the Government

of Canada, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled,

TITLE I–SHORT TITLE AND PURPOSES

SHORT TITLE

SECTION 101. This Act may be cited as the "Automotive Products Trade Act

of 1965".

PURPOSES

SEC. 102. The purposes of this Act are

(1) to provide for the implementation of the Agreement Concerning Auto-

motive Products Between the Government of the United States of America

and the Government of Canada signed on January 16, 1965 (hereinafter re-

ferred to as the "Agreement”), in order to strengthen the economic relations

and expand trade in automotive products between the United States and

Canada; and

(2) to authorize the implementation of such other international agree-

ments providing for the mutual reduction or elimination of duties applicable
to automotive products as the Government of the United States may here-

after enter into.

TITLE II—BASIC AUTHORITIES

IMPLEMENTATION OF THE AGREEMENT

SEC. 201. (a) The President is authorized to proclaim the modifications of the Tariff Schedules of the United States provided for in title IV of this Act.

(b) At any time after the issuance of the proclamation authorized by subsection (a), the President is authorized to proclaim further morifications of the Tariff Schedules of the United States to provide for the duty-free treatment of any Canadian article which is original motor-vehicle equipment (as defined by such Schedules as modified pursuant to subsection (a)) if he determines that the importation of such article is actually or potentially of commercial significance and that such duty-free treatment is required to carry out the Agreement.

IMPLEMENTATION OF OTHER AGREEMENTS SEC. 202. (a) Whenever, after determining that such an agreement will afford mutual trade benefits, the President enters into an agreement with the government of a country providing for the mutual elimination of the duties applicable to products of their respective countries which are motor vehicles and fabricated components intended for use as original equipment in the manufacture of such vehicles, the President (in accordance with subsection (d)) is authorized to pro claim such modifications of the Tariff Schedules of the United States as he determines to be required to carry out such agreement.

(b) Whenever, after having entered into an agreement with the government of a country providing for the mutual elimination of the duties applicable to products described in subsection (a), the President, after determining that such further agreement will afford mutual trade benefits, enters into a further agreement with such government providing for the mutual reduction or elimination of the duties applicable to automotive products other than motor vehicles and fabricated components intended for use as original equipment in the manufacture of such vehicles, the President (in accordance with subsection (d)) is authorized to proclaim such modifications of the Tariff Schedules of the United States as he determines to be required to carry out such further agreement.

(c) Before the President enters into the negotiation of an agreement referred to in subsection (a) or (b), he shall

(1) seek the advice of the Tariff Commission as to the probable economic effect of the reduction or elimination of duties on industries producing articles like or directly competitive with those which may be covered by such agreement;

(2) give reasonable public notice of his intention to negotiate such agree ment (which notice shall be published in the Federal Register) in order that any interested person may have an opportunity to present his views to such agency as the President shall designate, under such rules and regulations as the President may prescribe; and

(3) seek information and advice with respect to such agreement from the Departments of Commerce, Labor, State, and the Treasury, and from

such other sources as he may deem appropriate. (d) (1) The President shall transmit to each House of the Congress a copy of each agreement referred to in subsection (a) or (b). The delivery to both Houses shall be on the same day and shall be made to each House while it is in session.

(2) The President is authorized to issue any proclamation to carry out any such agreement

(A) only after the expiration of the 60-day period following the date of delivery,

(B) only if, between the date of delivery and the expiration of such 60-day period, the Congress has not adopted a concurrent resolution stating in substance that the Senate and House of Representatives disapprove of the agreement, and

(C) in the case of any agreement referred to in subsection (b) with any country, only if there is in effect a proclamation implementing an agree ment with such country applicable to products described in subsection (a). (3) For purposes of paragraph (2), in the computation of the 60-day period there shall be excluded the days on which either House is not in session because

journment of more than 3 days to a day certain or an adjournment of

ress sine die.

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