isn't any specific thing the Congress of the United States can do legislatively to remedy this situation?

Senator SALTONSTALL. Senator Cotton, I have joined in several bills on this subject, dealing with imports of various kinds. I have done that with the idea that we can, through specific legislation, perhaps help somewhat in certain instances.

But I agree with you. I voted for the Trade Expansion Act last year with some misgivings because I felt it was better, on balance, to have that broad discretionary power-in the interest of world trade and so on. I think that it would be very difficult for Congress to pass quantitative restrictions on imports or anything of that character. You get into a great hornet's nest of things when you attempt to deal with that.

I think what we have to do is try to work out agreements. Now today's press reports indicate that the outlook is promising for progress under Governor Herter and his group in Geneva. We can only hope that out of those discussions will come something that will be helpful to us, particularly in the textile industry, although I am not too optimistic.

Senator COTTON. When you say the only thing we can do is try to work out agreements, if "we" means the Senate and the House of Representatives, do you mean all we can do is to hope and express our hope that the negotiators will be able to work out agreements? We

can't.

Senator SALTONSTALL. No, we can't work them out.

But I think the chairman of this committee has led a group to the executive department at least twice in recent years and I think that that type of action, coming from home, coming from the areas affected-Rhode Island, New Hampshire, Massachusetts, and other States that are interested-can be helpful as indicating the need for Executive action.

Senator COTTON. Did you participate in any of these conferences, Senator?

Senator SALTONSTALL. I gave my approval at the last conference to being left out for tactical reasons.

Senator CorrON. Thank you.

Senator PASTORE. But you were kept currently and fully informed? Senator SALTONSTALL. I was.

Senator PASTORE. By the Senator from Rhode Island?

Senator SALTONSTALL. I was. I approved of his leaving me out. Senator PASTORE. And speaking about the press release, of course I am responsible for that so I think I ought to address myself to the press release.

I agree with the Senator from Massachusetts that insofar as the situation concerns Japan, Italy, France, and Great Britain, we ought to follow the recommendation of the President as he enunciated it on May 2, 1961, to work out voluntary arrangements with these countries, as we did in the long-term cotton agreement.

I quite agree with the Senator from Massachusetts. But, after all, this textile problem has many facets. We have a situation now that emanates in the Virgin Islands, for instance. There we possibly could legislate, and that is the reason why the press release was made all-inclusive.

It is hard to determine at the beginning of this meeting, exactly what turn the recommendations of the committee will take. But there may be areas in which we may want to make recommendations to the Senate on legislation and that is the reason why the release was made broad enough.

To be more specific, we do have a situation in the Virgin Islands where goods are coming in duty free under a category which was not contemplated originally. We have a process by which certain woolen goods are made waterproof, for no reason at all, and then the waterproofing is washed out when it comes into this country. These goods are coming in as a subterfuge to undermine the American domestic market.

Now I do not believe that the Congress of the United States is going to sit idly by and allow subterfuges to be invoked because I think that disrupts and destroys the very philosophy of international trade.

Senator SALTONSTALL. I agree. I am on that bill with you, Senator, and also on a bill with Senator Talmadge of Georgia.

Senator PASTORE. And for that reason we might have to legislate in that area, and that is the reason why that was put in the record. I hope that satisfies my friend from New Hampshire.

Senator SALTONSTALL. Thank you very much, Mr. Chairman.

Senator PASTORE. Next we have Senator Kennedy of Massachusetts. STATEMENT OF HON. EDWARD M. KENNEDY, U.S. SENATOR FROM THE STATE OF MASSACHUSETTS

Senator PASTORE. We welcome you here this morning, Senator, and you may proceed in any way you desire.

Senator KENNEDY. Mr. Chairman, I would like to first of all thank the subcommittee for the opportunity to appear today and I would like especially to express my gratitude to Senator Pastore, who is a distinguished leader in the struggle to assist the woolen industry in the difficult circumstances which it faces today. Under his chairmanship this subcommittee has achieved a most constructive record. I am confident the timely efforts which it is now undertaking will again make an important contribution.

Mr. Chairman, our woolen textile producers face a supreme crisis. They are in a death struggle for survival against competition from cheap foreign imports. We all know that imports for 1962 were 80 percent higher than in 1961, and 34 percent higher than in the record year 1960. The situation continues to worsen.

In my own State less than 2 months ago another plant was forced to discontinue operations, affecting the jobs of 453 people and the economy of the town of Andover. The reason for this action at Marland Mills was the disastrous effect of imports from low-wage countries. Eight other plant closings have occurred this year in the United States. And the disruptive tide of imports continues to pour in.

The significance of the crisis in the textile industry cannot be overemphasized. The domestic textile industry is essential for our military needs, and it must be maintained intact for times of national emergency. The industry is also a vital economic force. For example, in my own State of Massachusetts, textile mills frequently

provide the main source of manufacturing employment in the communities where they are located; and mills are located in every part of our Commonwealth.

During the post-war period, 138 textile mills have been liquidated; 70,000 jobs have been lost. One-half of these mills and jobs were in woolens and worsted. Today in my State 7 out of the 12 labor market areas of substantial employment are seriously affected by the textile crisis.

I vigorously urge the full implementation of the President's domestic textile program of May, 1961. It must be applied to the wool industry to improve its competitive position. A system of quotas must be established to control imports of wool textiles by country and by category. And this must be done promptly.

I believe that the comprehensive information being developed by this subcommittee will reaffirm the wisdom of such measures. I trust these hearings will also demonstrate to those now conducting the negotiations of international arrangements for woolens that this matter is urgent, and their responsibility to our people is grave.

Mr. Chairman, I thank you. It has been a privilege to give my support to the domestic woolen industry's position on the problem of foreign importations.

Senator PASTORE. We thank you for stating your views, Senator Kennedy.

Senator Cotton?

Senator COTTON. Senator, I, too, appreciate your views and your interest in this subject, in which we all share.

Did you hear Senator Saltonstall's presentation?

Senator KENNEDY. I came in for the latter part of his testimony and the questioning, Senator.

Senator COTTON. You probably heard me ask him, and I would like to ask you a question. Understanding that there are bills before the Congress dealing with the waterproofing and braiding loopholes, and I am asking every witness this question: Do you have in mind any specific legislation or legislative remedy that the Congress at this time should consider or can pass that would be effective to aid this situation?

Senator KENNEDY. Well, Senator, first of all, I do understand that there are a number of different pieces of legislation, one of which bears my name as cosponsor in regard to the Virgin Island situation, and the other bills which have been mentioned by the senior Senator from Rhode Island which, as I understand it, will be considered, and will be considered by the subcommittee and the committee, and, hopefully, by the Senate. I would say at the present time, as we recognize, there are negotiations on this matter at the highest level. There has been, as Senator Pastore pointed out, a commitment, which I feel must be kept, of May 2, 1961. We have seen by treaty the 19countries agreement as far as the cotton textiles. And I would certainly hope, and I think, that the usefulness of this subcommittee's hearings and meetings, at least to an important extent, is to reaffirm, first of all, the grave concern that many Senators have with regard to this industry and its continuing as an important part of our economy, and also to reaffirm and demonstrate to the foreign countries the attitude which exists within this country of our determination that we have hard bargaining at the bargaining table.

I think that this certainly should be the intention at the present time. And I would certainly be looking forward to the results of such negotiations with this in mind.

So in specific answer to your question, I think that at the present time we know that negotiations are going on to reach some kind of agreement with regard to quantitative limitations on imports. I think that we should indicate our support for these negotiations and also our determination, as Senators and as Representatives of these States who are considerably concerned about this, that we want to see these negotiations successful.

Senator COTTON. I think your answer has been excellent, and has and has been a good analysis. Is it fair to summarize that the pending legislative actions, while they may be important, hardly reach the essence of this problem; and the main benefit of these hearings, and of the expressions and testimony we expect to receive, is to indicate (1) the anxiety of Senators in connection with this problem, and (2) to focus public opinion upon it, and (3) to let the world know how we feel about it as a means of upholding the President's hands and the negotiators' hands and aiding them somewhat in their negotiations abroad? Is that a fair summary?

Senator KENNEDY. I would strengthen point (1) to the point of indicating for our own negotiators that they have, and should take, an attitude and a view that this is a matter of the greatest concern, and therefore that they should look upon all negotiations with the foreign countries with this particular industry in mind with the kind of resolution and determination which certainly I tried to express this morning, and as I think this subcommittee expressed so ably and capably in the past.

Senator COTTON. Thank you.

And may I say to you that I for one-and I am sure all of us-feel the President is earnestly and anxiously seeking, as far as is consistent with our great overall foreign policy, to aid this industry.

Senator PASTORE. I think at this juncture we ought to make one further observation with relation to the point raised by Mr. Cotton, and so ably answered by Senator Kennedy, as to the purpose of this hearing at this time.

Actually, of course, when the President enunciated his seven-point program with regard to the textile industry, all-inclusive, on May 2, 1961, it is fair to assume he did so because he realized the precarious position of the textile industry as of that time; and it is quite important, because it has not been implemented as to woolens and manmade fibers, to indicate at this time whether the situation has ameliorated or deteriorated. And the point of this meeting here, I would hope, would be to show statistically just how better off we are, or how worse off we are.

Now it is true this record must at all times be impartial, and we can't be carried off by gossip or by rumor. But many, many reports have been made to me that the situation as it stands today, as evidenced by the closing of that fine mill in Massachusetts and two mills in Rhode Island-we lost the Stillmore Mill, the Paragon Mills, and we stand a chance of losing more mills if the situation remains uncheckedis much worse than it was on May 2, 1961, which would raise the question that if that implementation was important and necessary in 1961,

it is all the more important here in 1963. And that is the reason why we are developing these figures.

Senator COTTON. Mr. Chairman, there is something I would like to bring out later on that point, but I don't think it is the appropriate time, or courteous time, to bring it out with this witness.

I join in thanking you, Senator, for your presentation.
Senator KENNEDY. Thank you very much.

Senator PASTORE. We have Senator Allott from Colorado, and we are pleased and honored to hear from him at this time.

STATEMENT OF HON. GORDON ALLOTT, U.S. SENATOR FROM THE STATE OF COLORADO

Senator ALLOTT. Mr. Chairman, I am appearing before you here today in behalf primarily of the farmers and ranchers in Colorado who make their living by raising wool and lambs. Colorado's production of shorn wool last year totaled 14,798,000 pounds. The income from this industry, including sale of sheep, lambs and wool, brought into our State approximately $41,165,000 in 1962. Furthermore, the tax base of some of our Colorado communities is almost entirely dependent on the sheep industry. This industry converts otherwise wasted grass resources of Colorado into meat and wool.

Sheep producers in Colorado and many other States of the Nation are greatly concerned over the continued increased imports of wool textiles and apparel and the failure of the administration to restrain these imports as it has repeatedly promised the industry it would do. Our sheep producers are concerned because the wool used in the textile imports to this country in 1962, plus pile cloths and blankets, was over one-half of our U.S. 1962 shorn wool production-and the increase in these imports is continuing into 1963 unabated. Furthermore, these imports in manufactured form are replacing production and crippling the economy of the only-and I repeat, the only outlet our U.S. producers have for their raw wool; namely, our domestic mills. Liquidation of these mills of course will sound the death knell for our wool growing industry.

The White House last August stated to the domestic wool industry that it was the policy of this administration to hold wool textile imports at the levels then current. Nine months have since elapsed and the administration has still not lived up to its unequivocal commitment. Either they are not abiding by their word or are they trying to tell us the United States does not have the necessary muscle to do. this?

If we are to save an important industry of our Nation, it is highly essential that immediate quantitative limitations be applied both on imports of wool textiles and wool apparel. I cannot urge too strongly that the administration see that this is done promptly.

I make this statement, Mr. Chairman, primarily because I think I know our wool, our ranch industry, and our situation in Colorado, Wyoming, that area of the country, and I make it primarily in behalf of our farmers and ranchers who are engaged in this business. Senator PASTORE. Thank you, Senator.

Any questions?

Senator COTTON. Yes.