nished by that agency. We support churches of many denominations. These efforts are inadequate in the face of the massive power of international communism. Private effort needs strong Government support.

Reciprocal trade expansion is only one of the measures we must take in the long-range program to defeat communism-but it is a vital

measure.

(The attachments referred to follow :)

ATTACHMENT A

HONDURAS (SPANISH)

Standard has operated in Honduras since 1899. Its principal activities are the banana operations. We currently have 11,000 acres of bananas under cultivation and, in addition, we have citrus groves, coconut gardens, pastureland to care for 10,000 cattle, and many other operations related to an agricultural and banana industry operating in Central America.

Standard Fruit & Steamship Co. plays a vital role in the economy of Honduras. We pay salaries and wages far in excess of the national average, and probably as high or higher than any other substantial employer. In addition, the company furnishes many fringe benefits, such as schooling, public health programs. hospitals, medical care, public utilities, etc. Living conditions have been steadily improved over a period of years. We employ some 6,000 persons directly in Honduras, and it is estimated that another 50,000 depend upon us indirectly. The dollar value of Standard's exports represented approximately 23 percent of the country's total in 1961. Standard's 1961 payrolls amounted to about $7 million and local purchases for the banana operation were in excess of $1.5 million. It is further estimated that contributions to the Honduran Government revenues by Standard and its subsidiary interests in that country amounted to 15 percent of the national budget in 1960.

In addition, Standard also owns in Honduras 50 percent of a soft drink plant and brewery, 51 percent of a vegetable oil factory, 71 percent of another brewery and soft drink plant, and 4.2 percent of a sugar plantation and refinery. The two breweries own 13.1 percent of the sugar operation and 25 percent of a cementmaking plant.

COSTA RICA

This is a new operation for the Standard Fruit & Steamship Co., it having invested approximately $6.8 million in Costa Rica since 1956. By the end of 1962 it is expected there will be some 5,000 acres of bananas in production, plus an ultramodern precooling and packaging plant.

It is expected that this facility will produce approximately 3 million boxes of bananas annually, or 28 percent of Standard's total.

Aside from the 2,000-odd people directly employed in this operation, Standard's investments have added very substantially to the economic rehabilitaion of the Atlantic coast.

GUATEMALA

We had a $3 million investment in this country employing directly and indirectly some 2,000 people. However, Hurricane Hattie completely destroyed the banana plantations, and as diseases, inland transport, and other cost factors made rehabilitation of the cultivations uneconomical, the company is now in the process of closing its operations in that country.

NICARAGUA

Standard began operations in Nicaragua in about 1920, but were forced to abandon banana activities when disease destroyed the plantations. The company still maintains the wharf at Puerto Cabezas, keeping the port open for commerce. We also own approximately 370,000 acres of land. A number of experiments and trials are underway or being studied to develop useful and economic crops for these lands.

No investment.

EL SALVADOR

ATTACHMENT B

Purchases made by home office in 1961 (from vendors supplying in excess of

ATTACHMENT C

[From the newspaper, El Cronista, Mar. 2, 1962]

HONDURANS IN PEIPING

THERE I FREEDOM OF WORSHIP IN CONTINENTAL CHINA, DECLARES ATTORNEY MATUTE GUTIÉRREZ

Our collaborator and friend, Attorney Dionisio Matute Gutiérrez, visited the people's China recently, accompanied by other Hondurans. His first impres sions are as follows:

What can you tell us about your trip to the socialist countries?

I have the most pleasant impression of this visit. It has been for me an immeasurable objective education of the realities achieved by these industrious people. You understand, of course, that this was not a mere pleasure trip, but a vastly instructive one, because we could learn about the manner in which these people live from all aspects.

What countries did you visit?

Primarily, the trip covered an extensive visit to various cities in the people's China. In all these cities and nearby towns, I was deeply impressed by the tremendous effort of the Chinese people. Only this way can one understand why they have, in such a short time since their liberation, been able to supersede the state of misery, ignorance, exploitation, etc., in which they lived. So much so, that today you cannot find one person suffering from hunger, homeless, lacking in culture or being a victim of exploitation. Naturally, to this effort must be added the inevitable adherence to the strict moral principles which govern their relationships.

We next visited the Soviet Union, a country full of tremendous scientific progress as we were able to see at the marvelous exposition in Moscow. While there we visited its magnificent University of Lomonosof and the University of Patricio Lumumba which matriculates students from under-developed countries, including those from Latin America. The purpose is for the students to acquire higher learning which they will soon put into practice in their respective countries.

I do not want to omit a very important detail, which is that in Russia a sincerity prevails so much that any propaganda favoring war has been declared an illegal activity.

With reference to Hungary, it is fitting to mention its great progress in agriculture which we were able to appraise on a visit to a farm, and the tremendous modification of its legislature, thanks to the efforts of the outstanding jurists of that country.

Czechoslovakia, notwithstanding that it still shows the wounds inflicted by the Nazis, as can be seen in the reconstructed city of Lidice, is one of the most industrialized countries in the world, with a high standard of living. Czechoslovakia exports machinery of all types to all markets, which is highly accepted because of its excellent quality.

Is Honduras known in the countries you visited?

In all of them; particularly in the people's China, where they are familiar with all the problems and miseries of our small country and with whom, perhaps, we could further extend our cultural and commercial relations from which we would derive a great benefit.

Finally, to end these impressions, I wish to bring out the fact that due to the insistent opposition of the North American official, John P. Donney, to our making the trip, it has been established that it is on this side where the Iron Curtain exists, for in the socialist countries there is an extensive freedom to visit there and an affectionate welcome for all visitors, which accounts for 600,000 foreigners a year visiting the Soviet Union.

Finally, one more question. Is there freedom of worship in the countries you visited?

There is freedom of worship, replied Attorney Matute Gutiérrez. In China I visited a monastery, and in the Soviet Union I went to an Orthodox church, while in Hungary I went to Mass. What is very noticeable, is that the clergy has discontinued being a political power in those countries but the freedom to believe or not to believe still exists.

ATTACHMENT D

[From the newspaper, El Dia, Mar. 9, 1962]

OFFICIAL REPORT ON VISIT OF HONDURANS TO COMMUNIST COUNTRIES

The Government of Honduras, complying with its duty of passing on information and knowledge to the public in general, and as a measure of social prophylaxis, as stipulated in the Constitution of the Republic, give below a list of the younger element with totalitarian tendencies who visited Mexico during the week, and it is believed that from there they will continue to Cuba or the countries behind the Iron Curtain:

Nicolás Urbina and Simón Moradel left via SAHSA airlines for Guatemala. These elements, like others that have already returned to the country, undoubtedly will return with the specific purpose of creating an atmosphere of subversion in the Republic, in line with the policies of international communism. But the Government of the Second Republic warns the public that it continues to carry out a full investigation of the activities of these elements and that it may be sure that it will preserve, using all legal means, the democratic system of the country; and that it will further severely apply all the necessary measures for the complete eradication of the totalitarian activities of these misguided patriots.

TEGUCIGALPA, D.C., March 8, 1962.

OFFICE OF PUBLIC RELATIONS OF THE GOVERNMENT OF HONDURAS.

The CHAIRMAN. Dr. D'Antoni, we appreciate, sir, your very fine

statement.

Mr. Boggs asked me to convey to you his regrets that he could not be here this morning. He was unavoidably detained on other business and could not be here with us today. He asked me to welcome you to the committee.

I hope you understand that we do appreciate your being here.
Dr. D'ANTONI. Thank you.

The CHAIRMAN. Are there any questions?

Thank you, sir.

Mr. Griffiths, if you will identify yourself for the record by giving us your name, address, and capacity in which you appear, you may proceed.

STATEMENT OF JOHN R. GRIFFITHS, COUNSEL, AMERICAN ZINC, LEAD & SMELTING CO., ST. LOUIS, MO.

Mr. GRIFFITHS. Thank you, Mr. Chairman.

My name is John Griffiths. I reside in St. Louis, Mo., and am counsel for the American Zinc, Lead & Smelting Co., which produces

annually approximately 105,000 tons of zinc concentrates from its mines in Tennessee, Washington, Wisconsin, and New Mexico, and approximately 150,000 tons of slab zinc from smelters in Illinois, Arkansas, and Texas. The slab zinc is produced largely from Canadian, Mexican, and Peruvian ores. We also produce approximately 30,000 tons annually of zinc pigments in plants in Illinois and Ohio. Our proven zinc ore reserves in Tennessee are among the largest in the Nation.

We support the extension of the present Trade Agreements Act and urge that the escape-clause provisions be strengthened in at least one respect. We oppose H.R. 9900 because we believe it will adversely affect the industrial future of the Nation, as it does not contain an effective escape-clause procedure, peril-point provisions, or a reasonable limitation on the power of the President to reduce tariffs.

My testimony will now be directed to the experience of the lead-zinc industry under the present Trade Agreements Act with particular reference to the two escape-clause actions in which the industry has been involved and the relief granted in the second one in the form of quotas and to the effect which the Trade Expansion Act of 1962 will have on this case if it becomes law.

Attached is a summary of the experience of the lead-zinc industry before the Tariff Commission, the Congress, and with the executive branch of the Government, which I ask to have made a part of the record of the committee.

Since 1953 the industry has taken in two escape-clause actions before the Tariff Commission. In both cases the Commission found serious injury and recommended increased tariffs unanimously, but at different levels. Three Commissioners also recommended quotas in the case now pending. Effective October 1, 1958, the President imposed quotas, but did not accept the recommendations of the Commission concerning increased tariffs. The annual quotas are 80 percent of the average commercial imports of lead and zinc ores and metals for the 5 years 1953 through 1957. These are still in effect. This is the only relief which has been granted in either case, although there was stockpiling and barter as a result of the first case, and some barter since quotas were imposed.

It is essential that the quotas be continued in effect until reasonable increases in tariffs or other relief can be substituted on the recommendation of the Tariff Commission to my legislation. This cannot be done under the proposed law.

There is presently pending before the Congress the Kerr-Baker bill (S. 1361; H.R. 5193) for increased duties. This bill is based upon the findings of the Tariff Commission, by two of its members, in response to Senate Resolution 162 of the 86th Congress. In this resolution the Senate requested the Commission to make an investigation of the domestic lead and zinc industry under section 332 of the Tariff Act of 1930, and to make specific findings as to what additional import restrictions, if any, should be imposed in order that lead and zinc mining operations in the United States may be conducted on a sound and stable basis. Four of the Commissioners considered a recommendation to the Congress for increased import restrictions to be an extra legal act under a 332 proceeding, and made no recommendation.