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(4) The 6 European countries—France, Germany, Italy, Belgium, Nether; and Luxembourg—have now ratified the treaties which will set np, over a {id of 12 to 15 years, a common market free of tariffs and quotas for the prodi of 160 million people. The first phase of this operation will take place In next 4 to 6 years, during which period tariffs among the 6 will be reduwa 30 percent, and a common tariff at a level of the average of present tariffs i be established against all outside countries. We consider this develojimeiJ major step in the right direction—-the greater specialization, the increase productivity brought about by large-scale production in this wider market a; can only result in higher living standards for all of the six countries. It' mean greater two-way trade between the area and the United States, pr<rri< we are able, through the extension of this Trade Agreements Act, to nep>d a reduction in the level of the average European tariff to be maintained agsi us. Our mutual trade can certainly increase, as it has always done, as fa tries increase their developments and raise their standards of living, but if give notice, by failure to pass this legislation in meaningful form, that we not prepared to maintain our liberal trade policy, there is the consider! danger that the direction which the six nations take in their development i be away from closer economic relations with us and toward the kind of dn trading system so disastrous to our goals of freer worldwide multilateral tn It could lead to the kind of bilateralism and regionalism against which wt- h exerted our influence for many years. It could lead, increasingly, to our mnt economic isolation and reduction of our very considerable mutual trade lu*tt of its increase, as both of our economies demand.

There is no real solution, as many have maintained, in greater United StJ investment in plant und equipment inside the Common Market area in ordei supply that market tariff free. Remittance of earnings in dollars and rejd ation of capital will depend on European dollar earnings through inerei exports of the area to the United States, and this can only be accompli*! through a reciprocal reduction of tariffs.

(5) Extension of the Trade Agreements Act is particularly important in T of the current business downturn. There can be no doubt that the recent ded in our exports has been a basic contributing factor in that downturn.

For the sake of our economy, for the preservation of United States jobs wl depend on exports, we need now the boost that passage of this legislation w< give to our rate of business activity by removing the uncertainty, the crisi confidence among our foreign customers that our trade policy is in dani'o going backward. We cannot afford the kind of a downward spiral in onr ion trade and failure to extend this act would entail. Its inevitable conseqnt would be further pressure on our employment, our investment In plant equipment and our economic activity.

((>) Above all, extension of the Trade Agreements Act is essential to t world unity and security. All nations in this world of mutual dependence 1 for their economic strength on foreign markets for their exports and on for* sources of raw materials and other essentials for their imports. No allixi political or military, can be strong unless it is supported by common e^onfl ties and full faith by each in the cooperative effort of all. In the face of the i Soviet economic offensive—the new challenge to the United States in the fieN trade, issued by the Kremlin—these ties and these opportunities become n crucial than ever to the security. A large part of the world is at stake. If default, we may lose, for our principles of freedom and of competition, mncl that world. The drive for economic development, for higher standards of lit is Irresistible everywhere, and will be satisfied either within the traditions freedom or by forced growth at the tragic sacrifice of the individual, charae iHtic of the Soviet system. This extension of the Trade Agreements Act wll n central factor in the choice the world makes as to the direction it will g"

Mount Holyoke Couxss. South Hadley, Mass., June S3, J9H Hon. Harby F. Bybd,

Chairman, Committee on Finance,

United States Senate, Washington, D. C.

Dear Senator Bybd: As one long interested in International trade, both Is business career and now in academic life, I should like to submit for the r«i of your committee the following statement In support of the bill, H. B. I2WI extend the Trade Agreements Act. At the very least, this bill should be ciiaiJ without further weakening amendments.

Over the past quarter century our domestic economy has benefited in many ways from the reciprocal trade program. With the present lower level of economic activity in the United States we must be particularly careful to avoid actions which could make business conditions worse. While it can be said that foreign trade has been a partial cause of the present downturn, this is only because exports have declined. Unless the present is extended in the form passed by the House or better, there is every reason to think that exports would be even more adversely affected, worsening present business conditons.

The effect of our trade policy on our relations with other nations is of the greatest importance, too. Recent events in Latin America demonstrate the difficulties we create for ourselves when we restrict imports from friendly nations. At a time when the Soviet Union has openly proclaimed its intention to win world domination by means of its economic offensive, the United States must not appear to be retiring from the contest by reverting toward economic isolation. We are spending $40 billion on defense to prevent this Soviet domination. A proper extension of the Trade Agreements Act is also important for this same purpose, and rather than being a burden on the economy, as defense expenditures inevitably are, it is a positive stimulus to the economy.

Indeed there is probably no Federal program today which contributes so much to our national welfare while at the same time being so consistent with our basic economic philosophy of free enterprise. Unlike certain other Federal programs, the very purpose of the trade-agreement program is to reduce Government interference with business. It serves to give the free-enterprise system a better chance to work, both at home and abroad. There is much evidence that foreign competition has had a healthy effect on our domestic economy; it plays a similar role as domestic competition in stimulating the production of better products with greater efficiency. Domestic producers are, of course, protected against genuinely unfair foreign competition, as for example in the case of dumping, by means of the Antidumping Act and other measures.

Abroad it is to our interest to stimulate private enterprise and a belief in the workings of the free market. We cannot convince others that we really believe in private enterprise and competition, however, if we bring in the power of the Federal Government to eliminate an important element of competition for our domestic producers.

The bill as passed by the House of Representatives, while useful in that it tarries forward this valuable program with certain additional powers for the President, is not entirely satisfactory. Among the features of the bill which I feel are highly undesirable are the provisions which permit the President, pursuant to an escape-clause action, to increase tariffs by 50 percent over the 1934 level and the provision which permits the President to establish a tariff of up to 50 percent ad valorem on those items now bound on the free list.

Under the circumstances, I think that it would be a grave disservice to this Nation if the Senate amended the bill in any way which made it easier to increase tariffs or which reduced the authority granted to the President. It would also be most unfortunate if the act were extended for less than 5 years. I most strongly urge that your committee report the bill favorably with no further amendments unless these were amendments to eliminate these undesirable provisions which I have mentioned. Sincerely yours,

Richard Glenn Getteix, President, Mount Holyoke College; Member of Committee on Commercial Policy of the United States Council of the International Chamber of Commerce.

The Pobt or New Yobk Authority,

New York, N. Y., June 18,1958. Hon. Habby F. Btrd,

Chairman, Oommitte on Finance,

United States Senate, Washington, D. C. Dear Mb. Chairman: The Board of Commissioners of the Port of New Tork Authority endorses and respectfully urges that the United States Senate renew the Reciprocal Trade Agreements Act for the full 5-year term incorporated in the legislation recently enacted by the House of Representatives. On behalf of our Commissioners, I would like to present the port authority's position with respect to this legislation and request that this letter be made a part of the record of he hearings and deliberations of your committee.

Since 1934, the reciprocal trade agreements program has served as a con stone for the foreign economic policy of the United States. This program means of the reduction of tariffs and trade barriers on a mutually advantag* basis, has resulted in expanded international trade. This ever-Increasing Toll of trade, travel, and investment flow has unquestionably strengthened the H omy of the United States and the rest of the free world.

The expansion of trade and the strengthening of the economy have of cw benefited the States of New York and New Jersey and their bistate harbor, port of New York. Eight billion dollars worth of export-import cargo arri and departed from this port by ship or airplane In 1957, and these benefit." i mately accrue to the entire natitoual economy.

The importance of export-import trade to the New York-New Jersey metn Itan area is emphasized by the fact that port jobs provide a livelihood W least 430,000 people in this great bistate region. These 430,000 jobs, in tt furnish the ecoonmic basis of existence for 1 out of every 4 person* who in the port district. Moreover, the port's handling of many millions of I of waterborne commerce a year produces more than one-fourth of the t wages earned in the port district.

The port of New York has therefore a vital Interest in the continuance expansion of the flow of international trade and commerce. This concern interest was demonstrated by the States of New York and New Jersey In t port compact of 1921 which created the Port of New York Authority a* t bitsate public agency. One of the basic responsibilities of the port antlw is the development and promotion of commerce and trade through the pot New York.

The conviction of the commissioners of the port authority that interns:! trade is vital to the port's welfare and their faith in the future of this C is proved by their continued approval of new and expanded programs and ities designed to promote the welfare of the port district and its 13 residents.

Thus, during the past 15 years, the port authority has invested $100.6 mil in 5 great marine terminals in New York and New Jersey and has auth«rf the expenditure of an additional $60 million during the next 5 years in fiW Improvement of its waterfront terminals. These new and modernized pi cargo terminal buildings, ship berths, channels and supporting facilities aci mod'ite a substantial portion of the 12,000 ships which enter New York Ha every year.

In its Investment and authorized additional expenditures of $370 millla 4 gre-it metropolitan airports, a large part of which has been spent for faeJJ to handle overseas air passengers and cargo, the port authority has also dM strntert its confidence that the welfare of the port, the two States, and the Ti States as a whole is founded on an ever-increasing Interchange of peopJ* goods between the nations of the world.

So too is that confidence expressed in our trade-development and port-pr* tion program, on which the port authority spends $1 million a year. This » ity includes a number of publications and other media designed to inform assist overseas and domestic shippers in their handling of export-import tr-\ and from the United States. Similarly, the port authority's 3 overseas 0 development offices in London, Zurich, and Rio de Janeiro as well as its 4 dol tic offices in Washington, D. C., Chicago, Cleveland, and in downtown \ hnttan have as their basic function and purpose, assistance and service M shippers in the respective areas of Europe, Lathi America, and this coal for which they are responsible.

It is the firm belief of the commissioners of the port authority that the o* tive of American tariff policy should be an orderly and progressive Incrws International trade. Such a policy benefits each of the participating ccmn( by providing the stimulus for the international exchange of goods. Equally < is the increase of commerce among nations as a positive step toward w peace.

Foreign trade is Important to a much greater area of our national econ< than just the export-import business directly concerned. It is importanl evprynne in the country who has labor, products, or services for sale, 1 truism has been amply demonstrated. The original purpose of the Rsdnrt Trade Agreements Act—the increase of foreign trade through bilateral ta reduction agreements between the United States and inidvidlau couutrK has succeeded beyond expectstiton. Exports have increased from about *2 bill in 1934 to more than $20 billion in 1957, while imports have increased from about $1% billion in 1934 to almost $13 billion in 1957.

For these reasons, the Port of New York Authority endorses a foreign-trade policy which encourages the freer movement of goods to and from the United States as best serving the economic welfare and security of the Nation. We respectfully urge therefore that your committee act favorably to extend for a 5-year period the Reciprocal Trade Agreements Act. Sincerely,

Donald V. Lowe, Chairman.

Getz Bros. & Co., San Francisco, Calif., June 17,1958. Senator Harry Byrd,

Chairman, Senate Finance Committee, Washington, D. C. Dear Sib: With reference to the forthcoming meeting of the Senate Finance Committee to consider the passage of the administration bill for the renewal of the Reciprocal Trade Agreements Act, due to the fact that I am unable to appear before the meeting to testify in favor of the passage of this act, I am taking this opportunity of writing you my thoughts in this connection.

This act is of great importance since it means a strengthening of our own economy and consequently the strengthening of the economy of the free world. I am urging your support and that of your committee for the extension of the Reciprocal Trade Agreements Act for a minimum of 5 years because this means expanded United States export trade and consequently millions of jobs, a strong United States bargaining position for negotiating tariff and trade problems during European Common Market developments, aid in our drive toward lower costs and lower prices of consumer goods through competitive Imports, and finally, the necessary presidential authority for dealing with United States trade policy as an integral part of United States foreign policy. I sincerely hope that you and your committee will give this matter your most favorable consideration since it is in my opinion the most important legislative matter on the agenda at present. Very truly yours,

Lester Goodman.

Gulp Oil Corp., Pittsburgh, Pa., June 23,1958. Hon. Harry F. Byrd,

Chairman, Committee on Finance,

United States Senate, Washington, D. C. Dear Senator Byrd: This letter, the attached statement and summary are submitted to you in connection with the Senate Finance Committee's consideration of H. R. 12591, Trade Agreements Extension Act of 1958. Last November, and again in February, Gulf Oil Corp. presented a statement of its longstanding views on this vital legislation, first, to the Subcommittee on Foreign Trade Policy, and then to the House Committee on Ways and Means. We should like this letter and the attached statement to be part of the record of your hearings.

Gulf has consistently supported a 5-year renewal of the Reciprocal Trade Act as a necessary weapon in the coming struggle for world economic and political leadership. It is our firm belief that world trade is necessary to our domestic prosperity, to the growth and development of our free world friends, to win the cold war and to prevent a hot one—for trade may become our most critical battle with international communism.

We were greatly encouraged by the recent action taken by the United States House of Representatives on this legislation and urge that the Senate Finance Committee recommend to the full Senate its speedy passage. Very truly yours,

R. O. Rhoades.

Summary, Trade Agreements Legislation And The Petbolextm Isdusti Statement Of Gulf On. Corp.

Gulf, because of its long and extensive experience in both domestic and fo operations, feels Itself qualified to comment on international trade.

PURPOSE AND ACCOMPLISHMENTS OF THE TRADE AGREEMENTS ACT

1. The purposes of the 1934 act to expand foreign markets for the prodw of the United States and to support prosperity have been successfully aehiew

2. Free foreign nations have been aided by the promotion of increased trt< 8. Reversal of the policy established to minimize trade barriers wonld be roc

likely to bring about both domestic and foreign economic distress and to low friends.

4. Failure to renew the Reciprocal Trade Act would tend to forfeit made through foreign aid.

POSSIBLE ABUSE OF THE ESCAPE CLAUSE IN THE ACT

1. Minimum criteria should be added to the law to define positive injury be shown before escape clauses apply.

2. Loose interpretation of the escape clauses could nullify the act.

PETROLEUM IMPORTS

1. Both imports and domestic production should share increasing demand.

2. As long as domestic production is increasing, imports are supplementing a not supplanting domestic production.

3. Temporary short-term fluctuations in production and demand should i govern the establishment of import policy.

4. The voluntary oil imports program is acting as a brake on the rate erf crease of oil imports.

5. Restrictions in petroleum Imports are likely to jeopardize free access American citizens to their oil concessions abroad.

6. The United States has been Bo thoroughly explored for oil that most nut, oil pools probably have already been discovered. Recent findings tend to smaller and have higher cost per barrel.

7. Increase in oil reserves in the United States is not keeping pace with I Increase in demand; we will have to depend more and more on foreign oil.

Conclusion

The Trade Agreements Act should be extended to insure continued domes prosperity and national security.

Trade Agreements Legislation Anu The Petroleum Indi-stht
1. Purpose And Accomplishments Of Trade Agreements Act

For more than 46 years Gulf Oil Corp. has engaged in foreign operatic It was one of the earliest of the American oil companies to enter Mexico, aron 1912, and since that time its geologists and geophysicists have prospected I petroleum in many parts of the world. As a result, the corporation today I substantial oil production in Venezuela, Canada, Sicily, and the Middle East, • is in the process of developing discoveries in other countries. During murli the same period, Gulf has also made substantial investments in the eonstr tion and development of marketing facilities in many European and I* American countries.

However, Gulf is by no means merely an American-owned company eu£&i in foreign operations. Traditionally it has maintained a position as a rnaj petroleum producer in the United States, and by far the largest share of its vestments in leases, land, and equipment needed to carry on its business as u p ducer, refiner, transporter, and marketer of petroleum and petroleum product .*• b been made in the United States. It is thus a company engaged in both domes and foroitrn trndo, ami this fact lays upon its management the necessity a duty of formulating, advocating, or supporting those policies which seem N calculated to promote and maintain the healthiest possible conditions for I* foreign and domestic commerce. Because of the company's position. Gal

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