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a specific rate, such provisions shall apply on the basis of the ad valorem equivalent of such rate or rates, during a representative period (whether or not such period includes July 1, 1958), determined in the same manner as the ad valorem equivalent of rates not stated wholly in ad valorem terms is determined for the purpose of paragraph (2) (D) (ii) of this subsection.

"(B) (i) In the case of any decrease in duty to which clause (i) of subparagraph (A) of this paragraph applies, such decrease shall become initially effective in not more than five annual stages, and no amount of decrease becoming initially effective at one time shall exceed 10 per centum of the rate of duty existing on July 1, 1958, or, in any case in which the rate has been increased since that date, exceed such 10 per centum or one-third of the total amount of the decrease under the foreign trade agreement, whichever is the greater.

"(ii) In the case of any decrease in duty to which clause (ii) of subparagraph (A) of this paragraph applies, such decrease shall become initially effective in not more than five annual stages, and no amount of decrease becoming initially effective at one time shall exceed 1 per centum ad valorem or, in any case in which the rate has been increased since July I, 1958, exceed such 1 per centum or one-third of the total amount of the decrease under the foreign trade agreement, whichever is the greater.

"(iii) In the case of any decrease in duty to which clause (iii) of subparagraph (A) of this paragraph applies, such decrease shall become initially effective in not more than five annual stages, and no amount of decrease becoming initially effective at one time shall exceed one-third of the total amount of the decrease under the foreign trade agreement.

"(C) In the case of any decrease in duty to which subparagraph (A) of this paragraph applies, no part of a decrease after the first part shall become initially effective (i) until the immediately previous part shall have been in effect for a period or periods aggregating not less than one year, nor (ii) after the first part shall have been in effect for a period or periods aggregating more than four years. If any part of a decrease has become effective, then any time thereafter during which such part of the decrease is not in effect by reason of legislation of the United States or action thereunder shall be excluded in determining when the four-year period expires."

(b) Subsection (b) of section 350 of the Tariff Act of 1930, as amended (19 U.S. C, sec. 1351 (b)), is amended (1) by striking out "exclusive" in the first sentence, and (2) by amending paragrapli (2) to read as follows:

"(2) In order to carry out a foreign trade agreement entered into by the President on or after June 12, 1955, below the applicable alternative specified in subsection (a) (2) (C) or (D) or (4) (A) (subject to the applicable provisions of subsection (a) (3) (B), (G), and (D) and (4) (B) and (C)), each such alternative to be read for the purposes of this paragraph as relating to the rate of duty applicable to products of Cuba. With respect to products of Cuba, the limitation of subsection (a) (2) (D) (ii) or (4) (A) (iii) may be exceeded to such extent as may be required to maintain an absolute margin of preference to which such products are entitled"

(c) Paragraph (2) (A) of subsection (c) of section 350 of the Tariff Act of 1930, as amended (19 U. S. C, sec. 1351 (c) (2) (A)), is amended by striking out "'existing on January 1, 1945' and 'existing on January 1, 1955' " and by inserting in lieu thereof " 'existing on July 1, 1934', 'existing on January 1, 1945', 'existing on January 1, 1955', and 'existing on July 1, 1958' ".

(d) Paragraph (1) of subsection (e) of section 350 of the Tariff Act of 1930, as amended (19 U. S. C, sec. 1351 (e) (1)), is amended by inserting after "(including the incorporation therein of escape clauses)," the following: "the results of action taken to obtain removal of foreign trade restrictions (including discriminatory restrictions) against United States exports, remaining restrictions, and the measures available to seek their removal in accordance with the objectives of this section,".

(e) Section 350 of the Tariff Act of 1930, as amended (19 U. S. C., sec. 1351), is amended by adding at the end thereof the following new subsection:

"(f) It is hereby declared to be the sense of the Congress that the President, during the course of negotiating any foreign trade agreement under this section, should seek information and advice with respect to such agreement from representatives of industry, agriculture, and labor."

Sec. 4. (a) The third sentence of subsection (a) of section 3 of the Trade Agreements Extension Act of 1951, as amended (19 U. S. C, sec. 1360 (a)), is amended by striking out "120 days" and inserting in lieu thereof "six months". The last sentence of such subsection is amended by striking out " 120-day" and inserting in lieu thereof "six-month".

(b) Subsection (b) of section 3 of the Trade Agreements Extension Act of 1 as amended (19 U. 8. C., sec. 1360 (b)), is amended by adding at the end the the following new sentence: "If in the course of any such investigation the C mission shall find with respect to any article on the list upon which a tariff cession has been granted that an increase in duty or additional import restric is required to avoid serious injury to the domestic industry producing lik directly competitive articles, the Commission shall promptly institute an im gation with respect to that article pursuant to section 7 of this Act."

Sec. 5. (a) The first paragraph of subsection (a) of section 7 of the T Agreements Extension Act of 1951, as amended (19 U. S. C., sec. 1364 (a) amended by striking out "any interested party" and inserting in lieu thereof' interested party (including any organization or group of employees)".

(b) (1) The first paragraph "of section 7 (a) of such Act is amended by stri out "nine months" and inserting in lieu thereof "six months".

(2) The amendment made by paragraph (1) shall apply only with respec applications made after the date of the enactment of this Act.

(c) Section 7 of the Trade Agreements Extension Act of 1951, as amei (19 U. S. C., sec. 1364), is amended by adding at the end thereof the folio' new subsection:

"(f) In carrying out the provisions of this section the President may, not* standing section 350 (a) (2) of the Tariff Act of 1930, as amended, impose a < not in excess of 50 per centum ad valorem on any article not otherwise subje< duty."

Sec. 6. Subsection (c) of section 7 of the Trade Agreements Extension A< 1951, as amended (19 U. R. C., sec. 1364 (c)). is amendrd by inserting '• after "(c)" at the beginning thereof, and by adding at the end thereof the follow "(2) The action so found and reported by the Commission to be neccs shall take effect (as provided in thp first sentence of paragraph (1) or in paragi (3), as the case may be)—

"(A) if approved by the President, or

"(B) if disapproved bv the President in whole or in part, upon the adop by both Houses of the Congress (within the 00-day period following; theon which the report referred to in the second sentence of pamgraph is submitted to such committees'), by the yens and nays by a fwo-tr vote of each House, of a concurrent resolution stating in effect that Senate and House of Representatives approve the action so found reported by the Commission to be necessary.

For the purposes of subparagraph (B), in the computation of the 60-day pt> there shall be excluded the days on which either House is not in session bec< of an adjournment of more than 3 days to n day certain or an adjournment of Congress sine die.

"(3) In any case in which the contingency set forth in paragraph (2) occurs, the President shall (within 15 days after the adoption of such resolut take such action as may be necessary to make the adjustments, impose the qul or make such other modifications as were found and reported by the Commis to be necessary."

Sec. 7. (a)" The following subsections of this section are enacted by Congress:

(1) As an exercise of the nilemaking power of the Senate and the H< of Representatives, respectively, and as such they shall be considered part of the rules of each House, respectively, but applicable only with res] to the procedure to be followed in such House in the case, of resolutions defined in subsection (b)); and such rules shall supersede other rules onl; the extent that they are inconsistent therewith; and

(2) With full recognition of the constitutional riuht of either Koiist change such rules (so far as relating to the procedure in such House) at time, in the same manner and to the same extent as in the case of any ot rule of such House.

(b) As used in this section, the term "resolution" means only a concur: resolution of the two Houses of Congress, the matter after the resolving ola of which is as follows: "That the Senate and House of Representatives apj>r the action—

"(1) found and reported by the United States Tariff Commission to necessary to prevent or remedy serious injury to the respective dome industry, in its report to the President dated ,19 , on its es<-5

clause investigation numbered under the provisions of section 7 of Trade Agreements Extension Act of 1951, as amended (19 U. 8. C., 1364), and

"(2) disapproved by the President in whole or in part in his report (dated ,19 ) pursuant to the second sentence of paragraph (1) of

section 7 (c) of such Act.", the blank spaces therein being appropriately filled; and does not include a concurrent resolution which specifies more than one such investigation.

(c) A resolution with respect to an investigation shall be referred to the Committee on Finance of the Senate or to the Committee on Ways and Means of the House of Representatives by the President of the Senate or the Speaker of the House of Representatives, as the case may be.

(d) (1) If the committee to which has been referred a resolution with respect to an investigation has not reported it before the expiration of ten calendar days after its introduction (or, in the case of a resolution received from the other House, ten calendar days after its receipt), it shall then (but not before) be in order to move either to discharge the committee from further consideration of such resolution, or to discharge the committee from further consideration of any other resolution with respect to such investigation which has been referred to the committee.

(2) Such motion may be made only by a person favoring the resolution, shall be highly privileged (except that it may not be made after the committee has reported a resolution with respect to the same investigation), and debate thereon shall be limited to not to exceed one hour, to be equally divided between those favoring and those opposing the resolution. No amendment to such motion shall be in order, and it shall not be in order to move to reconsider the vote by which such motion is agreed to or disagreed to.

(3) If the motion to discharge is agreed to or disagreed to, such motion may not be renewed, nor may another motion to discharge the committee be made with respect to any other resolution with respect to the same investigation.

(e) (1) When the committee has reported, or has been discharged from further consideration of, a resolution with respect to an investigation it shall at any time thereafter be in order (even though a previous motion to the same effect has been disagreed to) to move to proceed to the consideration of such resolution. Such motion shall be highly privileged and shall not be debatable. Xo amendment to such motion shall be in order and it shall not be in order to move to reconsider the vote by which such motion is agreed to or disagreed to.

(2) Debate on the resolution shall be limited to not to exceed ten hours, which shall be equally divided between those favoring and those opposing the resolution. A motion further to limit debate shall not be debatable. No amendment to, or motion to recommit, the resolution shall be in order, and it shall not be in order to move to reconsider the vote by which the resolution is agreed to or disagreed to.

(f) (1) All motions to postpone, made with respect to the discharge from committee, or the consideration of, a resolution with respect to an investigation, and all motions to proceed to the consideration of other business, sliall be decided without debate.

(2) All appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to a resolution with respect to an investigation shall be decided without debate.

(g) If, prior to the passage by one House of a resolution of that House with respect to an investigation, such House receives from the other House a resolution with respect to the same investigation, then—

(1) If no resolution of the first House with respect to such investigation has been referred to committee, no other resolution with respect to the same investigation may be reported or (despite the provisions of subsection (d) (1)) be made the subject of a motion to discharge.

(2) If a resolution of the first House with respect to such investigation has been referred to committee—■

(A) the procedure with respect to that or other resolutions of such House with respect to such investigation which have been referred to committee shall be the same as if no resolution from the other House with respect to such investigation had been received; but

(B) on any vote on final passage of a resolution of the first House with respect to such investigation the resolution from the other House with respect to such investigation shall be automatically substituted for the resolution of the first House.

Sec. 8. (a) Section 2 of the Act entitled "An Act to extend the authority of the President to enter into trade agreements under section 350 of the Tariff Act of 1930, as amended", approved July 1, 1954, as amended by section 7 of the Trade Agreements Extension Act of 1955 (19 U. S. C., sec. 1352a), is amended to reac follows:

"sbc. 2. (a) No action shall be taken pursuant to section 350 of the Ts Act of 1930, as amended (19 U. S. C., sec. 1351), to decrease the duty on i article if the President finds that such reduction would threaten to impair national security.

"(b) Upon request of the head of any Department or Agency, upon applicai of an interested party, or upon his own motion, the Director of the Office Defense Mobilization (hereinafter in this section referred to as the 'Direct< shall immediately make an appropriate investigation, in the course of which shall seek information and advice from other appropriate Departments i Agencies, to determine the effects on the national security of imports of article which is the shbject of such request, application, or motion. If, as a res of such investigation, the Director is of the opinion that the said article is be imported into the United States in such quantities or under such circumstar as to threaten to impair the national security, he shall promptly so advise President, and, if the President determines that the article is being imported i the United States in such quantities or under such circumstances as to threa to impair the national security, he shall take such action, and for such time, he deems necessary to adjust the imports of such article so that such impc will not threaten to impair the national security.

"(c) For the purposes of this section, the Director and the President shall, the light of the requirements of national security and without excluding ot relevant factors, give consideration to domestic production needed for projec national defense requirements, the capacity of domestic industries to meet si requirements, existing and anticipated availabilities of the human resources, pr< nets, raw materials, and other supplies and services essential to the national fense, the requirements of growth of such industries and such supplies and servi including the investment, exploration, and development necessary to ass'ire ?i growth, and the importation of goods in terms of their quantities, availahiliti character, and use as those affect such industries and the capacity of the Unil States to meet national security requirements.

"(d) A report shall be made and published upon the disposition of each requ application, or motion under subsection (b). The Director shall publish |> cedural regulations to give effect to the authority conferred on him by subs tion (b).

"(e) The Director, with the advice and consultation of other appropriate I partments and Agencies and with the approval of the President, shall by Februi 1, 1959, submit to the Congress a report on the administration of thia sectii In preparing such a report, an analysis should be made of the nature of project national defense requirements, the character of emergencies that may give rise such requirements, the manner in which the capacity of the economy to sati such requirements can be judged, the alternative means of assuring such capac and related matters."

(b) The amendment made by subsection (a) shall not affect any action taken determinations made before the date of the enactment of this Act.

Sec. 9. (a) Subsection (a) of section 333 of the Tariff Act of 1930 (19 U. S. sec. 1333 (a)) is amended to read as follows:

"(a) Authority To Obtain Information.—For the purposes of carrying < its functions and duties in connection with any investigation authorized by \i the commission or its duly authorized agent or agents (1) shall have access to a the right to copy any document, paper, or record, pertinent to the subject mat under investigation,"in the possession of any person, firm, copartnership, corpo tion, or association engaged in the production, importation, or distribution of a article under investigation, (2) may summon witnesses, take testimony, and i minister oaths, (3) may require any person, firm, copartnership, corporation, association to produce books or papers relating to any matter pertaining to sv investigation, and (4) may require any person, firm, copartnership, corporate or association to furnish in writing, in such detail and in such form as the co mission may prescribe, information in their possession pertaining to such inve gation. Any member of the commission may sign subpcnas, and members :i agents of the commission, when authorized by the commission, may urlminis oaths and affirmations, examine witnesses, take testimony, and receive evident

(b) Subsection (d) of section 333 of the Tariff Act of 1930 (19 U. S. C., * 1333 (d)) is amended by striking out "under Part II of this title" and inserli in lieu thereof "before the commission".

(c) (1) Subsection (a) of section 336 of the Tariff Act of 1930 (19 U. S. C, sec.

1336 (a)) is amended by striking out the third sentence thereof. The first sentence of subsection (c) of section 337 of the Tariff Act of 1930 (19 U. S. C, sec.

1337 (c)) is amended by striking out "under and in accordance with such rules as it may promulgate".

(2) Part II of title UI of the Tariff Act of 1930 (19 U. S. C, sec. 1330, et seq.) is amended by inserting after section 334 the following new section:

"SEC. 335. RULES AND REGULATIONS.

"The commission is authorized to adopt such reasonable procedures and rules and regulations as it deems necessary to carry out its functions and duties."

Sec. 10. The enactment of this Act shall not be construed to determine or indicate the approval or disapproval by the Congress of the executive agreement known as the General Agreement on Tariffs and Trade.

Passed the House of Representatives June 11, 1958.

Attest:

Ralph R. Roberts, Clerk.

The Chairman. We are very bappy to have the distinguished Secretary of State as our first witness today. Mr. Dulles, you may proceed, sir, to make your statement.

STATEMENT OF HON. JOHN FOSTER DULLES, SECRETARY OF

STATE

Secretary Dulles. Mr. Chairman and members of the committee, 4 months ago I spoke before the House Ways and Means Committee in support of the President's proposal to extend and strengthen the Trade Agreements Act.

I now direct myself to the bill which has come to this committee from the House of Representatives. That bill represents some alteration of the bill as originally introduced. The changes, however, are acceptable to the Executive and H. R. 12591 as received in the Senate has my full support.

The Secretary of Commerce will speak to you about the compelling reasons of domestic economic policy for strengthening and extending the Trade Agreements Act. The Secretary of Labor and the Secretary of Agriculture will doubtless present further convincing evidence of the importance of the program from the domestic viewpoint. I shall direct myself primarily to foreign policy considerations.

We live in a world which is new in terms of its political structure and its economic demands. Twenty countries have won their political independence within the last 15 years and this trend is likely to continue.

Seven hundred million people are directly involved in this rapid transformation from the long-established system of colonialism. The very rapidity with which this transformation is occurring presents a major problem—how to achieve and maintain political stability.

Mass aspirations follow these new grants of independence. They are contagious and spread to other lands. The demands for improved living conditions are insistent. No possible sources of assistance are dismissed out of hand. Present free-world nations may prefer to buy and sell within the free world. But if they are frustrated in their efforts to do so, they can be expected to direct their search elsewhere. Although no international wars are being fought today, our security is menaced, not only by the vast Soviet military buildup, but by the efforts of International Communism to turn the worldwide changes to selfish use as stepping stones to world domination. If we are to com

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