reason for not granting licenses, or failing this, other devices will be found to hamper or impede the imports. U.S. manufacturers have made substantial investments in foreign countries training personnel and establishing distribution systems only to lose their investment through changes in the trade policies of the foreign nation and the imposition of restrictions which close this market to imports. Uncertainty of policies and lack of constant trade positions are a great problem in attempting to trade with foreign nations. Great Britain and Canada constitute major export markets for our industry's products, so it is appropriate to mention some of the general problems encountered with these countries. While it is true that licensing difficulties in Commonwealth countries have recently eased, most of our products have a 33% percent ad valorem duty if the item can be made in Britain. To determine whether this duty is to be levied, a simple statement on the part of the British manufacturers seems to be all that is required and the burden of proof rests with the U.S. exporter seeking the license. While close rapport between a government and her own nationals may be natural, the problems with the British in proving competitive product cannot be made in the United Kingdom often seems unfair and unduly burdensome on the U.S. exporting firm. Incidents have also been reported wherein license applications many times containing proprietary information have been circulated among foreign competitive manufacturers in the process of obtaining approval. Also of grave concern to members of the scientific apparatus industry is the manner in which the Presidential powers to safeguard essential defense industries-section 232-are administered. These similar provisions as contained in section 8 of the Trade Agreements Extenson Act of 1958 have not, in our view, provided the necessary mechanism for appeal by defense industries adversely affected by increasing imports. Of the 33 cases considered by the Office of Civil and Defense Mobilization under these provisions, only 2 cases received partial relief. It has become a cliche to say that ours is a technological age. Progress has moved so fast that a revision in orientation seems in order. More and more we are evolving into a scientific age in which technology becomes merely an implementation of the results of scientific research and development. It is science that has made technology possible with its interchangeable parts, requiring the most precise tolerances; its automation and the rest. Consider only one or two more dramatic examples: The ball bearings that control the revolutions of the gyroscope which holds a space capsule on course must be kept to tolerances within one ten-millionth of an inch, otherwise it will stray hundreds, if not thousands of miles from its planned course. A minute miscalculation of weight, or of fuel thrust will prevent missiles from reaching their target or space capsules from reaching orbit. The whole of science, after all, is dependent on three fundamental measurements-of time, distance, and mass. The manufacture of the basic instruments by which these measurements can be calculated to the incredibly high precision demanded by today's requirements are the concern of the scientific apparatus industry and the members of this association. Every development in the space race the search for new fuels, new energy, new weapons, new health or lifepreserving drugs; new manmade fibers, new methods of food production—is dependent on the work done by precision instruments used by scientists in the thousands of research and production laboratories-government, private, or academic. It is for this reason that the term "master key industry" is used to describe this industry. Truly, the very health, welfare, and especially the safety of the United States is dependent on this economically small but primarily essential and vital industry. It follows that the manufacture of instruments with so great an order of accuracy and minute precision requires the utilization of the highest skills with long training periods. The industry has never been more conscious of the need to accomplish the reduction of costs through increased speed of manufacture and the minimizing of the labor component and has effected revolutionary procedural changes to achieve this. However, in many segments of this industry the relatively low quantity requirements and extremely high precision required limit the use of automation and other techniques of mass production. We are fully cognizant of the necessity, even to the point of national survival, of the expansion of trade, and the interchange of goods and services with the nations of the free world. Nevertheless, national survival is also in large measure dependent on the preservation of our facility to develop and manufacture scientific instruments. Therefore we strongly urge that within the framework SCIENTIFIC APPARATUS MAKERS ASSOCIATION, STATEMENT SUBMITTED BY M. W. WELCH, PRESIDENT, THE WELCH SCIENTIFIC Co., CHICAGO, ILL. This statement is submitted in relation to H.R. 9900, the Trade Expansion Act of 1962, and we wish it to be made a part of the printed record. The postwar period, and especially the last two administrations in Washington, have placed great emphasis on education in general; and specifically education in the field of science and mathematics. The materials for teaching science, especially in the field of new science, requires the closest cooperation between the educator and the industry who supplies the teaching tools. All of the items are produced in relatively small quantities with a very high labor content but small material content. The industry that serves the teaching needs should be indigenous. The cost of the teaching tools in relation to the total cost of education in these sciences is small. The lag in revision of curriculum to take advantage of all improvements and advances in teaching will be substantially increased if our teaching is dependent upon foreign sources for the teaching materials. Briefly, we must maintain the strongest possible indigenous source of supply for all materials required for teaching science and mathematics. If we lag in teaching science and mathematics, we will lag in technical education which, in turn, will cause lags in national defense, delay progress in national health, and retard technological progress in industry. This plea in no way opposes the importation of teaching apparatus, but all such importation should be on a basis that equalizes the difference in labor cost for the specific items that are brought in. Only if this is done can a strong service of supply be provided at all times for the support of our science teaching program. There is often false economy with the purchase of foreign-made equipment due to the difficulty in obtaining repairs. Repairs are greatly delayed because foreign equipment is made on the metric system. Such simple things as holding screws made on the metric system cannot be replaced with the American standard threads. AIR TRANSPORT ASSOCIATION, Hon. WILBUR D. MILLS, Chairman, Committee on Ways and Means, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: The Air Transport Association of America has a vital interest in the foreign trade policy of the United States, which is now undergoing comprehensive study and review. The scheduled airlines of the United States link over 700 American communities with hundreds of communities throughout the world in friendship and commerce. These airlines devote tremendous effort to the promotion of international commerce, and they represent an extensive and highly developed transportation and communications network essential to the expansion of foreign trade. By the nature of their service and the congressional mandate under which it is performed, it has been and is their policy to advocate and work for the freer flow of persons and property in international commerce. Accordingly, we support the principle of the administration's trade-expansion program. In our opinion, flexibility to adjust tariffs to meet changing conditions can do much to overcome artificial obstacles which restrict international 1 trade, and can permit the removal of tariff barriers abroad which restrict the opportunities of American industry in developing new world markets. The resulting stimulation of mutually beneficial commerce and trade among free nations will aid in strengthening the bonds between them. We appreciate this opportunity to advise you of our position and we request that it be entered in the record of the hearings of your committee. Cordially, S. G. TIPTON. RAILWAY LABOR EXECUTIVES' ASSOCIATION, Hon. WILBUR D. MILLS, Chairman, House Ways and Means Committee, House of Representatives, Washington, D.C. MY DEAR MR. MILLS: We are pleased to lend our voice in support of the Trade Expansion Act of 1962. Railway workers have long recognized the fact that the transporting and handling of exports and imports by rail and auxiliary equipment contributes to their economic well-being. Estimates are that more than 1,600,000 carloadings in 1961 can be attributed to U.S. exports and imports. The President's proposals are intended to spur the exchange of goods among nations of the free world, and will, we believe, contribute toward job stability among those of us who have the responsibility for transporting so much of America's commerce. We wish the committee to know that we recognize the potential problem that the external tariff wall of the Common Market creates for American workers and industry. The power to bargain down Common Market tariffs is the power to generate job opportunities in the United States. We therefore wish to be recorded in favor of granting the President the instruments of negotiation that can make this prospect a reality. Very truly yours, DONALD S. BEATTIE, PACIFIC AMERICAN STEAMSHIP ASSOCIATION, Re H.R. 9900: Trade Expansion Act of 1962. Chairman, Committee on Ways and Means, DEAR MR. CHAIRMAN: Pacific American Steamship Association, comprising the major U.S.-flag steamship operators on the Pacific coast, takes this opportunity to indicate its vigorous support for H.R. 9900. We would request that this letter be made a part of the record on this legislation. The American-flag steamship industry throughout the country has for many years been dedicated to the two propositions provided for in H.R. 9900; namely, the establishment of a liberal tariff program and, at the same time, maximum provision for financial adjustment to industries essential to the commerce and defense of the Nation whose existence is jeopardized by pervasive foreign competition. The interest of the Pacific coast in this matter is obvious when one studies the Department of Commerce figures for 1960. In that year, the Pacific coast exported $2.7 billion worth of agricultural and manufactured products representing approximately 14 percent of the total U.S. exports. California, itself, is now the Nation's largest exporting State. Its exports in 1960 reached $1,780 million, giving the State a lead over Illinois with $1,728 million, and New York with $1,477 million. Taking manufactured products separately, California ranks third in the Nation with $1,303 million worth of exports-close on the heels of New York and Illinois with $1,400 million each. The California's food and kindred products were exported in the amount of $180 million in 1960 from packing plants employing more than 20,000 workers. transportation equipment industry exported $476 million; petroleum and coal products $113 million; electrical machine industries $45 million, and chemical and allied products $123 million in goods from plants and factories employing some 17,000 California workers. Other machinery manufactured in California was exported in the amount of $85 million from plants employing approximately 32,000 workers. In addition, direct employment in ocean shipping, shipbuilding, stevedoring, insurance, foreign trading, and a host of satellite industries, is well over the 125,000 mark on the Pacific coast. When added to the jobs which are partially or indirectly affected, by exports and imports, it is conservatively estimated that one person out of six in the Pacific coast States derives a significant part of his livelihood from a healthy two-way foreign trade. Our appraisal of H.R. 9900 convinces us that the President in making this proposal has reserved to the Tariff Commission the maximum extent of control possible under current circumstances which are thrust upon this country by the establishment of the Common Market in Europe. Furthermore, Common Market trading arrangements in other parts of the world are in the offing. The President's proposal retains what we consider an important principle of American policy; namely, that of administrative determination of tariff adjustments. It has long been our considered view that attempts to determine tariff rates on the floor of the Congress are fraught with danger and invite regional frictions which serve no useful purpose. Actually, the bill is conservative in its approach to trade policy in that it gives the President standby authority to move boldly to protect and preserve the markets in Europe and elsewhere which U.S. exporters have so laboriously built up during the postwar period. The steamship operators are interested in two-way trade and only with two-way trade can the tremendous investments in American ships be perpetuated, subsidy or no subsidy. The trend in recent years toward a relative balance between import and export cargoes, particularly on the established cargo liners, is a trend which in large measure can be traced to our enlightened tariff policy. We would support a continuation and extension of that policy. We find the President's proposal for greater administrative latitude to be no more than is necessary under current conditions; and further, that the additional flexibility requested in this legislation is circumscribed by appropriate checks and balances by the Tariff Commission. We earnestly urge that members of the Committee on Ways and Means favorably report H.R. 9900. Yours very truly, Hon. WILBUR D. MILLS, RALPH B. DEWEY. THE NATIONAL ASSOCIATION OF STEVEDORES, Chairman, House Ways and Means Committee, DEAR CONGRESSMAN MILLS: The attention of the National Association of Stevedores has been drawn to the fact that H.R. 9900 (Trade Expansion Act of 1962) is presently receiving the consideration of the House Ways and Means Committee under your chairmanship. Our association represents the leading stevedore contracting firms throughout the United States. As such, the major portion of the loading and discharging of all ships entering and departing the various ports of this Nation is accomplished through the efforts of our constituents and, accordingly we have a direct interest in expansion of trade. We are particularly interested in the basic purposes of this legislation as set forth in section 102 captioned "Statement of purposes." We respectfully request that the record of your proceedings state that the National Association of Stevedores supports this constructive legislation and urges its successful enactment. WILLIAM F. GIESEN, STATEMENT OF METAL LATH ASSOCIATION RE H.R. 9900 (PROPOSED TRADE EXPANSION ACT OF 1962) This statement is made on behalf of the domestic metal lath manufacturers that are members of the Metal Lath Association, a nonprofit trade association, in opposition to H.R. 9900, that proposes a new, unprecedented broad authority to the President to reduce further our tariffs and grant "assistance" to cushion the shock of such reductions. Metal lath and metal plastering accessories provide a base for plaster, and supporting members and trim items for that plaster, in walls, partitions and ceilings of both new and remodeled buildings. Metal lath alone provides reinforcement and backing for plaster and stucco, and serves as a form and reinforcement for concrete slabs. Because of the keying of plaster around the strands of metal lath, the resulting membrane is fire and crack resistant. Therefore, metal lath is considered a high quality plaster base, used chiefly in public and semipublic buildings, hospitals, apartments, hotels and larger homes as distinguished from small, inexpensive construction. Upon completion of the construction or remodeling, the metal lath and accessories are hidden in the wall or ceiling structure. Although marketed and used on the job together, such products fall tariffwise into three groups; i.e., cold-rolled channels, used in the erection of metal lath to fur the lath away from the backing, or to support or suspend metal lath in suspended ceilings; prefabricated metal studs, used to support partitions in buildings; and metal lath and other accessories, that provide the plaster base. Widely varying tariff rates are applicable to each group. Our deep concern over the proposed new, sweeping powers in H.R. 9900, to the President to negotiate tariff concessions over the next 5 years, can be graphically illustrated by the following: 1 By section 202 of H.R. 9900, without any staging under section 243(b)(1). By section 211 of H.R. 9900, with staging under section 243(a), since it is believed that United States and EEC countries are the 80 percent dominant supplier of such metal studs. By section 201(b) of H.R. 9900, with staging under section 243(a). Without doubt, H.R. 9900 proposes a radical departure in this country's foreign trade policy, both as to the authorized tariff rate reductions and the remedies to alleviate injury to industry and resulting unemployment. Those sponsoring the bill do so as a means of developing foreign markets for U.S. products, especially in the Common Market. In achieving the result an unknown number of our industries and their employees are to be treated as expendable the certainty of injury being self-evident from the fact that over half of H.R. 9900 is devoted to adjustment assistance. Even though it be recognized that as a matter of national policy this country must open wider its doors to the products of foreign countries, there is no reason why the Congress should, under the guise of encouraging trade expansion, abdicate its own responsibility to define this Nation's trade policies. Pleas for lower tariffs to deal with the Common Market, and to resist communistic economic expansion, should not be used to open the other doors which H.R. 9900 would do. This bill would carry almost to its ultimate the process of allowing the President to cut or even abolish tariffs without statutory hinderance. By it, he can enter trade agreements at will, and then "proclaim" the reduction by half of any existing tariff; if such an agreement is with a Common Market nation, he could completely eliminate tariffs by his signature; and if the remaining reduced tariff is already low, he could wipe it out in any trade agreement. Its attractive label, "Trade Expansion Act of 1962," and its purposes: "Enlarge foreign markets" for U.S. products, "Make available *** a greater variety of goods at lower prices," "Strengthen economic and political relations," "Sound economic progress of countries in the earlier stages of economic development," "Counter economic penetration by international communism," |