from weakening influences and provides increasing opportunities for expanded business and employment. "Instead of creating hazards to domestic business, its proper development strengthens the economy and thereby helps all business and those employed by business. "Among the new steps to promote the reciprocal trade program are the following: "(1) A policy-recommending unit at Cabinet level reflecting widespread responsibilities in foreign economic policy and domestic affairs. "(2) Since 1934 an interagency committee known as the Trade Agreements Committee has made recommendations to the President on the administration of the Trade Agreements Act. Such recommendations will now be reviewed by the Cabinet Committee before going to the President. "(3) An extremely important new function assigned to the Cabinet Committee is to advise the President on action to be taken by him on recommendations by the Tariff Commission in escape clause cases. The President thus will receive counsel reflecting a wide scope of experience and responsibility. "The new arrangement is another demonstration of the importance which the Administration places on the development of vigorous trade programs with a favorable impact on the entire economy. It will be a sort of 'watchdog' group, giving constant consideration to the progress of the nation's reciprocal trade program." [Press release, Department of Commerce, Office of the Secretary, Washington, D. C., January 13, 1958] Secretary of Commerce Sinclair Weeks today announced that the Trade Policy Committee with the approval of the President has adopted a statement of functions and operating procedures. The statement is set forth in a memorandum for the President signed by the Secretary as Chairman of the seven-member Cabinet Committee. The President, in issuing the Executive order (November 25, 1957) establishing the committee, stated that it would advise and assist him in the administration of the reciprocal-trade program. The President also pointed out that "the reciprocal-trade program is now one of our most important programs in the field of foreign economic policy and should, therefore, be under constant consideration by a Cabinet-level Committee with increased responsibility in the Secretary of Commerce, who is responsible for the development of foreign and domestic commerce." Memorandum as approved by the President is attached. Memorandum for the President THE SECRETARY OF COMMERCE, As Chairman of the Trade Policy Committee, established by Executive Order of November 25, 1957, this is to inform you that the Committee has adopted the following statement regarding its functions and operating procedures. The statement has been approved by all of the members of the Committee-the Secretaries of Commerce, State, Treasury, Defense, Interior, Agriculture, and Labor. FUNCTIONS OF THE TRADE POLICY COMMITTEE The functions assigned to the Trade Policy Committee by the Executive Order of November 25, 1957, establishing the Committee are to (1) make recommendations to the President on basic policy issues arising in the administration of the trade-agreements program, which, as approved by the President, shall guide the interdepartmental Committee on Trade Agreements; (2) advise the President with respect to the recommendations made by the Trade Agreements Committee to the President; and (3) make recommendations to the President as to what action he should take on escape-clause reports submitted by the Tariff Commission. In carrying out these functions, the Trade Policy Committee will be concerned therefore, with the following types of activities among others: (1) recommendations with respect to tariff negotiations, including compensation cases, (2) review and recommendations in escape clause case, (3) recommendations in certain other tariff matters such as the use of the Geneva Wool Reservation, (4) recommendations on United States positions with respect to any voluntary export arrangements of foreign countries, and (5) recommendations on other policy issues arising in the administration of the trade agreements program including all policy position papers for the GATT. În connection with tariff negotiations the Trade Policy Committee will be responsible for recommendations to the President regarding the initiation of tariff negotiations including the timing, preparations, and policy with respect to adherence to the peril-point findings. The Committee will review the recommendations of the Trade Agreements Committee regarding the list of items to be considered for tariff negotiations and will forward the list with comment to the President. The final list of items recommended by the Trade Agreements Committee for tariff negotiation, together with the tariff concessions proposed to be offered and sought, will be transmitted to the President through the Trade Policy Committee which will submit to the President such advice as it may deem appropriate. The Trade Policy Committee will be consulted on the proposed composition and membership of the delegation to the GATT and submit to the President such advice thereon as it may deem appropriate. When it becomes necessary to modify or withdraw a tariff concession, as under an escape clause action, recommendations for compensatory tariff reductions will be reviewed by the Trade Policy Committee. Similarly, when other countries withdraw tariff concessions, recommendations regarding compensation to be sought by the United States, as well as the adequacy of compensation offered, will be reviewed by the Trade Policy Committee. Such recommendations of the Trade Agreements Committee will, after such review, be transmitted to the President through the Trade Policy Committee, which will submit to the President such advice thereon as it may deem appropriate. It will be the responsibility of the Trade Policy Committee to review the reports (findings and recommendations) of the Tariff Commission submitted to the President relating to escape clause cases and relating to review of prior escape clause modifications of tariff concessions; and the Trade Policy Committee will make recommendations to the President as to what action he should take on such reports. The Trade Policy Committee will also consider and formulate such recommendations as it may deem appropriate in certain other matters, such as the Geneva Wool Reservation. In these matters the Trade Policy Committee will have the responsibility of submitting to the President its analysis of the issues involved together with its recommendations. Whenever the members of the Committee are not unanimous, the report shall state the several recommendations and the points of disagreement upon which the differences rest. In carrying out these responsibilities, in particular matters, the Committee should request and consider the written views of other interested departments or agencies not represented on the Trade Policy Committee, and may invite their personal participation, as appropriate. The Trade Policy Committee will review policy position papers and instructions for the United States delegation at the annual meetings and intersessional meetings of the GATT, and submit to the President such advice with respect thereto as it may deem appropriate. Whenever the members of the committee are not unanimous, the report shall state the several recommendations and the points of disagreement upon which the differences rest. It is recognized that the emphasis which will be given by the Trade Policy Committee to various problems within the functions assigned to it by the President may need to be reconsidered from time to time in the light of its operating experience. OPERATING PROCEDURES OF THE TRADE POLICY COMMITTEE Escape clause action From time to time the Tariff Commission will present a report for Presidential action. The Executive Secretary of the Trade Policy Committee will receive these reports and circulate copies to each member of the Committee. Thereafter, a meeting of the Committee will be convened for discussion of the Tariff Commission report and the various views submitted. The product of this meeting will be a report to the President presenting the comprehensive viewpoint of the Committee, including concurring and divergent views. The report will include a specific recommendation for Presidential action. Review of Trade Agreements Committee recommendations All recommendations to the President from the Trade Agreements Committee will be sent to the members of the Trade Policy Committee with the request that the Trade Policy Committee member inform the Chairman of any wishes and views regarding the interest that the Trade Policy Committee should take in the Trade Agreements Committee proposal. Such information from the Trade Policy Committee member must be received in the Office of the Trade Policy Committee within 5 working days unless a different submission period is provided with respect to a particular matter. If one or more protests or divergent views are received upon any Trade Agreements Committee recommendation, the Trade Policy Committee will be convened to discuss such matter. At the conclusion of such discussions, the Trade Policy Committee will prepare a report to the President showing the concurring and divergent views as well as its specific recommendation. Recommendation on basic policy issues From time to time the Trade Policy Committee will be presented with problems relating to basic policy decisions as contemplated by the Executive order. These subjects, in the form of proposals, shall be circulated to all members of the Trade Policy Committee and meetings will be held promptly at the request of any member of the Trade Policy Committee, culminating in a report to the President indicating concurring and divergent views and with specific recommendation for Presidential action. At the request of any member of the Trade Policy Committee, the Committee will be convened to discuss any policy issue, which may arise in the administration of the trade-agreements program. To facilitate the task of selecting policy issues for Trade Policy Committee consideration, all documents of the Trade Agreements Committee (e. g., position papers for GATT meetings) will be transmitted to the Executive Secretary of the Trade Policy Committee for circulation to its members. Staff operation The staff of the Trade Policy Committee will include an Executive Secretary of the Committee located in the Department of Commerce. SINCLAIR WEEKS, Chairman, Trade Policy Committee. Senator MALONE. Now then, to complete your explanation as to just how we get out of these trade agreements, is that all you have to say about it? Secretary WEEKS. Yes; I think I have covered it. Senator MALONE. I am going to correct the record. I was the State engineer of my State when this act was first passed. I said then in addresses, in debates, in my own State and elsewhere that it would destroy the United States of America if carried through to a logical conclusion. I did not understand then and I still do not understand how anybody can be for it if they fully understand what the ultimate effects are what the effect is at the moment and what the ultimate effect on the workingmen and investors can be. Now this is the way you get out of these trade agreements. First I would ask you if Congress should, by resolution, request the President or the Secretary of State or whoever does the job to serve such notice, do you have any doubt that the notice would be served? Secretary WEEKS. No; I have no doubt but that it would. Senator MALONE. You as the Chairman of the Policy Committee certainly would follow Congress request in that regard if they passed a joint resolution. Secretary WEEKS. The ultimate power in these matters obviously rest with the Congress, Senator. Senator MALONE. Then you are right about the bilateral trade agreements, and I will read that paragraph of a letter received from the Tariff Commission on January 29, signed by the Chairman, Mr. Brossard: All existing bilateral trade agreements to which the United States is a contracting party are now subject, in accordance with the terms thereof, to termination upon the expiration of 6 months after either the United States or the respective foreign country gives notice to the other party of its intention to terminate the agreement. Then within 6 months after that notice is served you understand that the products covered by that bilateral trade agreement would revert to the Tariff Commission, an agent of Congress under section 336 of the 1930 Tariff Act. Secretary WEEKS. Yes, sir. Senator MALONE. Now I stand corrected in my language in reference to GATT by Secretary of State Dulles. I referred to GATT as an organization, General Agreement on Tariffs and Trade, but he corrected me. It is merely an agreement and that each one of these agreements are called GATT General Agreement on Tariffs and Trade. I find that he makes a technical difference and that he would rather we refer to it as the agreements, instead of an organization. Do you understand it that way? Secretary WEEKS. Yes; I do, and that is why for some time the administration has urged approval of the OTC. It would provide a permanent organization to administer these agreements. Senator MALONE. That would have made it permanent, would it not? Secretary WEEKS. It would have given continuity by permanency. I do not mean permanency to the agreements. Senator MALONE. Permanency to the organization and the right to make the agreements. Secretary WEEKS. A permanent organization instead of the meetings which are held once or twice a year, I think. It would have given continuity to the machinery. Senator MALONE. In other words, it would have been a permanent institution set up by Congress to make the agreements. The initial agreement included thousands of products. Secretary WEEKS. No; because you could never make the agreements until all the members met, as they must do in order to make new agreements. It would not have given any permanency to anything except it would simply have given continuity to the procedure of making the agreements. Senator MALONE. Maybe I am not making myself entirely clear. Secretary WEEKS. And I would add to that the machinery to administer them. Senator MALONE. It would be permanent machinery by which such agreements could be continually made, canceled, and remade, and so forth. Secretary WEEKS. No; I think you haven't stated it quite correctly. The 35 nations meet Senator MALONE. Thirty-six now, thirty-seven; we are one. Thirty-six foreign competitive nations are doing the job on us. Secretary WEEKS. They meet 3 or 4 times a year. Senator MALONE. Nobody knows here. We are not notified. I am glad to get this information that you meet that often. Secretary WEEKS. When they meet, they make an agreement, and the only thing this OTC would have done would have been to help administer that agreement, if the agreement might not be lived up to here or there. It would have given permanent machinery approved by Congress. Senator MALONE. To enforce it. Secretary WEEKS. To attempt on a continuous basis to attempt to keep the agreement in effect. Senator MALONE. Yes, but the OTC was an organization of nations, was it not? Secretary WEEKS. It would have had a representative from each nation. Senator MALONE. It would have been an organization of nations, the OTC (Organization for Trade Cooperation)? Secretary WEEKS. Yes, sir. Senator MALONE. That is much better, and it did not take over 10 minutes to get that into the record. Now an international trade organization would have been the same thing, would it not? Secretary WEEKS. No. An international trade organization? Senator MALONE. We had that monstrosity before Congress before you arrived in Washington officially. You were here several times. You were still in business then. Senator MALONE. You have not changed much either except you have joined the free trade side now. You were for protection when you were in business because you could not stay in business without it. I understand your situation. You can either agree or resign. You have that choice, do you not? Secretary WEEKS. I have changed my mind, Senator. The world has changed some in the last 20 years. Senator MALONE. You could resign if you had not changed your mind, couldn't you? Secretary WEEKS. Yes, sir. Senator MALONE. I have been in every nation in the world. I wanted to see our star boarders in order to vote intelligently on taxpayers' money going to them in the amount of billions of dollars, so I have seen the industries of every nation in the world including our ex-friend, Russia, and some of this poppycock that is going on about Russia at the State Department would shock a Russian. It shocks me, since I have been there. Now to get back to our previous discussion. Do you remember the International Trade Organization ever having been before Congress preceding the OTC? Mr. SIMPSON. Yes, Senator Senator MALONE. Identify yourself for the record. Mr. SIMPSON. Robert Simpson. Senator MALONE. Who are you? Mr. SIMPSON. I am in Mr. Weeks' Department in the Bureau of Foreign Commerce. Senator MALONE. What is your title? Mr. SIMPSON. I am Director of the Office of Economic Affairs. Senator MALONE. How long have you been there? Mr. SIMPSON. In the Department of Commerce? Senator MALONE. Yes. Mr. SIMPSON. Eleven years. Senator MALONE. You preceded the administration by some years. Mr. SIMPSON. Yes, sir, that is right. 27629-58-pt. 1—11 |