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SOURCE: Japanese Experts - Ministry of Finance Japanese Government. U.S. Sales - Reports to Stainless Steel Flatware Association by 12 Domestic Producers. (85% Industry, Tariff Commission Report January 1958)

NOTE: Experts not reported by any European country. Actual import statistics from any country not available as not reported separately by U.S. Bureau of Census.

UNLESS LIMITED BY QUOTA

IMPORTS OF STAINLESS STEEL FLATWARE WILL DESTROY

THE ENTIRE U.S. FLATWARE INDUSTRY

RATIO OF IMPORTS OF STAINLESS STEEL

FLATWARE TO U.S. STAINLESS STEEL MANUFACTURERS COMBINED SALES OF FLATWARE MADE OF

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$2.00

$1.50

$1.00

50%

U.S. MANUFACTURERS

CANNOT OVERCOME THE COMPETITIVE
ADVANTAGE OF FOREIGN PRODUCERS
BECAUSE OF THEIR LOWER WAGE RATES

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SOURCE-TARIFF COMMISSION
REPORT 1958 PAGES 27-28

SOURCE - DIV. OF FOREIGN LABOR
CONDITIONS, BUREAU OF LABOR
STATISTICS, U.S. DEPT. OF LABOR
1/22/58

SOURCE DISPATCH BY EDWARD M. SKAGEN
LABOR ATTACHE, AMERICAN EMBASSY, TOKYO
5/29/57 AVERAGE SKILLED WORKER $33. PER MO.
APPRENTICES $8. TO $10. PER MO. (33% OF WORKERS)
FRINGE BENEFITS 35% OF WAGES

EXHIBIT B

Hon. PRESCOTT BUSH,

THE INTERNATIONAL SILVER CO.,
Meriden, Conn., March 14, 1958.

Senate Office Building, Washington, D. C.

DEAR SENATOR BUSH: A rumor appears to be circulating in Congress that the United States stainless-steel flatware industry did right well when the executive branch accepted for it, and by executive order imposed upon it, a voluntary Japanese quota limiting exports of Japanese stainless flatware to the United States to 5,500,000 dozens in the year 1958. Because 5,500,000 dozens is roughly half the total of estimated imports of Japanese stainless flatware in 1957, whoever planted the rumor hopes you will feel the injury being done the United States industry has been greatly alleviated.

That is completely contrary to the facts.

The President's decision actually did this:

1. It gave the Japanese alone, 25 percent of the present total United States market for stainless-steel flatware, instead of the 10 percent for all imports which the United States industry recommended.

2. It provided no safeguard against a declining United States market due to general economic conditions. Thus the Japanese share of the market may actually exceed 25 percent, while the United States manufacturers' share reduces still further.

3. It made no provision for revoking a still further reduction in duty on spoons, effective June 30, 1958, under previous negotiations under GATT. 4. It left European producers free to make greater inroads into the United States market, thereby causing further losses to the United States flatware industry.

5. Most important: In essence, it permitted a group of Japanese manufacturers, aided by the Japanese Government, to decide the fate of a United States industry.

Let me make very clear, the United States stainless-flatware industry had no part in the acceptance of the so-called voluntary quota from Japan. On the contrary, it clearly stated to United States Government officials that, if the case was to be decided on the basis of a Japanese voluntary quota, then such quota must be imposed on the United States industry, rather than accepted by it. If it had been legally possible for the United States industry to negotiate with the Japanese, you can be very certain it would never have settled for a quota anywhere near 5,500,000 dozens. We know serious injury to our industry starts the minute imports absorb more than 10 percent of the United States market.

Our constant hope, although now proved a vain one, was the President would recognize the extent of injury this industry has suffered, and impose a United States Government global quota, if not at 10 percent of the United States market, then something much more closely approaching it than 25 percent.

With kindest regards.

Cordially yours,

RALPH BERTINI, Executive Assistant.

EXHIBIT C

Unless restricted, imports of Japanese stainless-steel flatware will exceed United States manufacturers' stainless-flatware sales in 1958.

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1 Reports to Stainless Steel Flatware Association by 12 domestic producers (85 percent industry Tariff Commission report January 1958).

2 1953-56 U. S. Tariff Commission report, January 1958. 1957 estimate see below.

3 As stainless steel flatware imports are not separately reported by U. S. Bureau of Census, 1957 imports must be estimated. The Tariff Commission determined that actual imports of Japanese stainless flatware were 27 percent greater than quantity reported by Japanese Ministry of Finance in 1956. This same ratio was used to estimate probable actual imports of Japanese stainless steel flatware in 1957.

Tariff Commission determined actual imports of Japanese stainless steel flatware greatly in excess of Japanese Ministry of Finance reports of exports to United States.

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1 As stainless steel flatware imports are not separately reported by U. S. Bureau of Census, 1957 imports must be estimated. The Tariff Commission determined that actual imports of Japanese stainless flatware were 26 percent greater than quantity reported by Japanese Ministry of Finance in 1956. This same ratio was used to estimate probable actual imports of Japanese stainless steel flatware in 1957.

Compiled by United States Manufacturers of stainless steel flatware, silver-plated flatware, and sterling silver flatware, Feb. 12, 1958.

(Whereupon, at 4: 20 p. m., the committee was recessed to reconvene at 10 a. m., Monday, June 30, 1958.)

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