This is not necessarily so, because, in the auto industry, for example, there are foreign plants now, according to Business Week of February 22, 1958, which are as low-cost efficient producers as any company in the United States. General Motors, Ford, American Motors, and Studebaker-Packard are now importing cars from abroad, and Chrysler is anxious to do likewise. Business Week of February 22, 1958, says: With the tide running heavily against exports from the United States and toward production abroad, one Detroit executive has been heard to say: "Before I retire, I hope to see my company producing as many units abroad as in the United States." With regard to more than a dozen American companies setting up factories in Scotland since World War II because, among other reasons, of the skilled labor which was a third cheaper than in the United States, the New York Herald Tribune of March 20, 1949, had this to say: One complication would be customs duties charged on goods exported to the United States. Some believe, however, American tariffs might be reduced. This they regarded as something new-American manufacturers lobbying to cut American tariffs. *** The This legislation is said to be necessary to meet the threat of the European Economic Community in creating a Common Market. It will do nothing of the kind. The Common Market consists of France, West Germany, Italy, Belguim, the Netherlands, and Luxembourg. Our present duties on imports from these countries were lowered in exchange for concessions on duties on our exports to them. tariff duties of the Common Market could consist of the highest duty charged by any of the 6 nations; so that, in 5 cases out of 6, our exports could face a higher duty, and yet our Government seems to consider itself unable to obtain any redress for the canceled concessions under the GATT agreement. The ultimate effect is, obviously, going to be that our duties will be lower while foreign duties in many instances may be higher than now. Business Week of February 22, 1958, in discussing the auto industry, says: Right off the bat, the Common Market and free-trade area mean the European market for United States-built passenger cars is almost gone. The same publication, on September 28, 1957, reported: *** Creation of the European Common Market has led Rockwell Manufacturing Co., a United States producer of valves, meters, and regulators, into buying a foreign property. *** It fears low import quotas and high tariffs around the Common Market will prevent United States companies as well as others outside the Common Market and the proposed associated free-trade area from maintaining their present sales volume. *** With reference to a speech by James A. Moffett, president of Corn Products Refining International, the New York Herald Tribune of April 16, 1958, had this to say: ** As a result of the Common Market development, the speaker said, American business may have to reappraise its situation because the increase in production abroad will ultimately eliminate the need for American manufactured goods. * ** The President says that the reciprocal trade agreements program is necessary to meet the economic offensive of the Soviet Union. It is a fact, however, that this legislation will not make our exports sufficiently cheap, as the prices of our goods are determined by commercial and not by political considerations. That this is so is borne out by a recent speech of Henry Cabot Lodge, United States Ambassador to the United Nations, reported in the New York Journal-American of April 17, 1958. He said that the United States may have to subsidize exporters in order to compete with Soviet prestige price-cutting abroad. It is obvious that Ambassador Lodge recognized the futility of the Reciprocal Trade Agreements Act to help in this connection. Furthermore, it should not be forgotten that when we subsidize our exports there are immediate adverse repercussions from other exporting nations, so that the cure may be worse than the disease. For example, the Wall Street Journal of February 16, 1955, reported that American subsidies on exports of oranges were denounced at the then current GATT session in Switzerland by representatives of Italy, South Africa, Greece, Australia, Cyprus, and the British West Indies. Therefore, any benefit must be confined to goods which we might import, rather than to let them go to the Soviet Union. In this intsance, also, however, the Soviet Union can outbid us when diplomacy dictates such a course. Central Intelligence Agency Director Allen Dulles is quoted by Time magazine of May 5, 1958, as saying of the Russians: They will buy anything, trade anything, and dump anything if it advances communism or helps to destroy the influence of the West. The money to pay for imports into the Soviet Union could come from the sale of their gold. Leslie Gould, financial editor of the New York Journal-American, on April 9, 1958, in an article under the headline "United States Gold Policy Helps Reds Compete in South America," had this to say: Brazil is where the Russians, under their "new look," will contest the United States in the economic phase of the East-West cold war. The Argentine is the other big battleground, with Chile and Uruguay smaller targets. Russia is dangling long-term credits, including needed dollars, and barter deals of oil equipment and other machinery. The irony of these proposals is that these credits are made possible by the United States Treasury's $35-an-ounce fixed price of gold. This puts a firm floor under the world gold markets, no matter how heavy the offerings of metal. ✶✶✶ Russia is a heavy seller of gold. These sales are the source of much of the money being used to carry on the economic phase of the Communists' cold war, as well as to finance subversive activities of its other agents. Although definite figures are not available, Samuel Montagu & Co., a leading British bullion dealer, according to the Northern Miner of February 27, 1958, has estimated that gold is produced in the Soviet Union at the rate of 17 million ounces annually, which would be worth $595 million a year. We must not forget that the value of gold is largely dependent upon the willingness of the Government of the United States to buy gold in unlimited amounts from no matter what source of production. Confirming this view is the statement by Douglas Abbott, the Canadian Federal Minister of Finance, according to the Northern Miner of May 22, 1952, who, while speaking in the Canadian House of Commons, maintained that gold itself had little intrinsic value, and that its stability as a medium of international exchange depended on the willingness of the United States Treasury to buy it at the fixed price of $35 per ounce. As long as our country stands ready to supply the Soviet Union with an amount of dollars limited only by the size of the latter's gold reserve, it is futile for us to expect to compete successfully with that nation in the arena of economic warfare. Under the circumstances, we do not believe that the arguments are valid in favor of the passage of the bill extending the reciprocal trade agreements program, and the American Coalition of Patriotic Societies opposes such action. Senator CARLSON. Mr. Trevor, we appreciate your appearing here before the committee. I notice you appear here for the American Coalition of Patriotic Societies. Mr. TREVOR. Yes, sir. Senator CARLSON. Would you mind mentioning some of them, or would you list them for the record? Mr. TREVOR. I can supply the clerk with the list. It is about 103 societies. (The material referred to follows:) SOCIETIES COOPERATING WITH THE AMERICAN COALITION OF PATRIOTIC SOCIETIES As of December 6, 1957 Alliance, Inc., The American Coalition of New York American Public Relations Forum, Inc. American Tradition, The American War Mothers American Women's Legion of World Wars Americanism Defense League Bill of Rights Commemorative Society Connecticut Volunteers Dames of the Loyal Legion of the United States Dames of the Loyal Legion of the United States, District of Columbia Daughters of America, National Council Daughters of America, District of Columbia Council Daughters of the Revolution, National Society Daughters of the Revolution, New Jersey Society Daughters of the Revolution, New York Society Daughters of the Revolution, Commonwealth of Pennsylvania Daughters of the Revolution, Colonial Chapter Daughters of the Revolution, Lafayette Chapter Daughters of the Revolution, Liberty Bell Chapter Defenders of the American Constitution, Inc. Defenders of State Sovereignty and Individual Liberty, Arlington Chapter Descendants of the Signers of the Declaration of Independence Fraternal Patriotic Americans, State of Pennsylvania, Inc. General Society of the War of 1812 General Society of the War of 1812, District of Columbia Division General Society of the War of 1812, New York Division Grass Roots League, Inc. Junior Order United American Mechanics, New Jersey Junior Order United American Mechanics, New York, Inc. Junior Order United American Mechanics, Pennsylvania Ladies of the Grand Army of the Republic Ladies of the Grand Army of the Republic, Department of the Potomac Massachusetts Committees of Correspondence Michigan Coalition of Constitutionalists Military Order of the Loyal Legion of the United States, Commandery in Chief Military Order of the Loyal Legion of the United States, Commandery of the District of Columbia Military Order of the Loyal Legion of the United States, Commandery of the State of New York Military Order of the Loyal Legion of the United States, Commandery of the State of Pennsylvania Military Order of the World Wars Minnesota Coalition of Patriotic Societies, Inc. National Constitution Day Committee National Huguenot Society, The National Society, Colonial Dames of the XVII Century, New York State Society National Society for Constitutional Security National Society for Constitutional Security, Chapter I National Society for Constitutional Society, Chapter II National Society for Constitutional Security, Chapter III National Society, Magna Charta Dames National Society of New England Women National Society of New England Women, New York City Colony National Society, Patriotic Women of America, D. C. Council National Society, Sons and Daughters of the Pilgrims National Society, U. S. Daughters of 1812, State of New York National Society, Women Descendants of the Ancient and Honorable Artillery Company National Sojourners, Inc. National Woman's Relief Corps Naval and Military Order of the Spanish-American War, National Commandery New Jersey Coalition, Inc. Ohio Coalition of Patriotic Societies Order of Fraternal Americans, Grand Council Order of Independent Americans, Inc., State Council of Penna. Order of the Founders and Patriots of America, California Order of the Founders and Patriots of America, D. C. Order of the Founders and Patriots of America, Mass. Order of the Founders and Patriots of America, New Jersey Order of the Founders and Patriots of America, New York Order of the Founders and Patriots of America, R. I. Order of the Three Crusades 1096-1192, Inc. (The) Order of Washington Patriotic Order Sons of America, National Camp Patriotic Order Sons of America, State Camp of Pennsylvania Rhode Island Association of Patriots Society of Old Plymouth Colony Descendants Society of the Sons of the Revolution in the Commonwealth of Massachusetts Sons and Daughters of Liberty, State Council Conn. Sons of Union Veterans of the Civil War Commandery-in-Chief United States Flag Committee Wheel of Progress, The William Thaw Council of Americans, Inc. Woman's Relief Corps, Department of Potomac Women of Army and Navy Legion of Valor, U. S. A. Women's National Defense Committee of Philadelphia Senator CARLSON. Senator Malone? Senator MALONE. Mr. Trevor, your statement is very interesting, and has brought up some new points. What is the customary method for the nations of Europe and Asia to preserve their own markets for their own people? Mr. TREVOR. Well, they prevent our goods from being sold there in one way or another. If the tariff rate is fixed, they make a quota or they make some regulation like the size of automobiles that are sold, that can only be met by foreign cars, and otherwise. Senator MALONE. Do they have import quotas or exchange permits? Mr. TREVOR. I think they have all those things. Senator MALONE. With an utter disregard for any trade agreement that they may have signed at Geneva? Mr. TREVOR. Well, that is right. This Common Market system is just setting a whole new bunch of tariffs on top of the tariffs they had agreed on in the negotiating sessions before. Senator MALONE. See if I am correct. Did I read in news dispatches a month or two ago that when they set up this Common Market it would be a considerable time before they even had free trade among themselves, but one of the objects of it was to protect that market for the nations included in the Common Market? Mr. TREVOR. That is correct. Senator MALONE. Am I right about that? Mr. TREVOR. That is correct; yes, sir. Senator MALONE. I wonder if you could furnish for the record some documentary evidence that that is a fact that is to say, news dispatches or current statements. You understand we have 15 members of this committee and 96 Members of the Senate. I know they will be glad to get factual information such as that. Mr. TREVOR. Well, I supplied the statements by people who analyzed it here to such an extent that they had either decided they had better move their factories into it to avoid what they saw was inevitable. Mr. Moffett, who handles this Corn Products Refining International Senator MALONE. And Rockwell? Mr. TREVOR. Well, the Rockwell Manufacturing Co. are putting their plant abroad. James A. Moffett, who is the president of the Corn Products Refining International made this statement: As a result of the Common Market development, the speaker said, American business may have to reappraise its situation because the increase in production abroad will ultimately eliminate the need for American manufactured goods. Senator MALONE. Then what is the effect of import permits or exchange permits or manipulation of the price of their money in terms of the dollar for trade advantage? What influence does that have on the location of manufacturing or processing plants or mines? Mr. TREVOR. Well, it makes it desirable to invest abroad rather than in the United States. |