TRADE AGREEMENTS EXTENSION ACT OF 1955

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100310004-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: November 11, 2016
• Document Release Date: January 19, 1999
• Sequence Number: 4
• Publication Date: June 9, 1955
• Content Type: REPORT

Approved For Release : CIA-RDP59-00224A000100310004-7
84TH CONGRESS HOUSE OF REPRESENTATIVES REPORT
1st Session No. 745
TRADE AGREEMENTS EXTENSION ACT OF 1955
Mr. COOPER, from the committee of conference, submitted the
following
CONFERENCE REPORT
The committee of conference on the disagreeing votes of the two
Houses on the amendments of the Senate to the bill (H. R. 1) to
extend the authority of the President to enter into trade agreements
under section 350 of the Tariff Act of 1930, as amended, and for
other purposes, having met, after full and free conference, have
agreed to recommend and do recommend to their respective Houses
as follows:
That the Senate recede from its amendment numbered 18.
That the House recede from its disagreement to the amendments
of the Senate numbered 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16,
17, 19, 20, 21, 22, 23, 24, 25, 26, and 27, and agree to the same.
Amendment numbered 13:
That the House recede from its disagreement to the amendment of
the Senate numbered 13, and agree to the same with an amendment
as follows:
Restore the matter proposed to be stricken out by the Senate
amendment, and in the House engrossed bill-
On page 7, line 17, after "If" insert: (in order to carry out a
foreign trade agreement entered into by the President on or after
June 12, 1955)
On page 7, line 20, strike out " (D) or (E)" and insert: (0)
or (D)
On page 8, line 5, strike out "effect" and insert: equivalent
On page 8, line 6, strike out " (iii)" and insert: (ii)
And the Senate agree to the same.
Approved For Release : CIA-RDP59-00224A000100310004-7
 Approved For Release : CIA-RDP59-00224A000100310004-7
2 TRADE AGREEMENTS EXTENSION ACT OF 1955
Amendment numbered 28:
That the House recede from its disagreement to the amendment of
the Senate numbered 28, and agree to the same with an amendment
as follows:
In lieu of the matter proposed to be inserted by the Senate amend-
ment insert the following:
SEC. 6. (a) Subsection (b) of section 7 of the Trade Agreements
Extension Act of 1961, as amended (19 U. S. C., sec. 1364 (b)), is
amended by adding at the end thereof the following: "Increased imports,
either actual or relative, shall be considered as the cause or threat of
serious injury to the domestic industry producing like or directly com-
petitive products when the Commission finds that such increased imports
have contributed substantially towards causing or threatening serious
injury to such industry.".
(b) Section 7 of the Trade Agreements Extension Act of 1951, as
amended (19 U. S. C., sec. 1364), is amended by adding at the end
thereof the following new subsection:
"(e) As used in this Act, the terms `domestic industry producing like
or directly competitive products' and `domestic industry producing like
or directly competitive articles' mean that portion or subdivision of the
producing organizations manufacturing, assembling, processing, extract-
ing, growing, or otherwise producing like or directly competitive products
or articles in commercial quantities. In applying the preceding sentence,
the Commission shall (so far as practicable) distinguish or separate the
operations of the producing organizations involving the like or directly
competitive products or articles referred to in such sentence from the
operations of such organizations involving other products or articles.".
And the Senate agree to the same.
Amendment numbered 29:
That the House recede from its disagreement to the amendment of
the Senate numbered 29 and. agree to the same with an amendment as
follows:
On page 6 of the Senate engrossed amendments, lines 7 and 8,
strike out "the existence of such facts" and insert in lieu thereof
that the article is being imported into the United States in such quantities
as to threaten to impair the national security
And the Senate agree to the same.
JERE COOPER,
JOHN D. DINGELL,
W. D. MILLS,
THOMAS A. JENKINS,
RICHARD M. SIM:PSON,
Managers on the Part of the house.
HARRY F. BYRD,
WALTER F. GEORGE,
By Harry F. Byrd
ROBT. S. KERR,
E. D. MILLIKIN,
EDWARD MARTIN,
Managers on the Part of the Senate.
an a~mw...seq ~aagr~?~oqR aeI 1
IA-RDP59-00224A000100310004-7
 Approved For Release : CIA-RDP59-00224A000100310004-7
STATEMENT OF THE MANAGERS ON TIIE PART OF THE HOUSE
The managers on the part of the House at the conference on the
disagreeing votes of the two Houses on the amendments of the Senate
to the bill (H. R. 1) to extend the authority of the President to enter
into trade agreements under section 350 of the Tariff Act of 1'930,
as amended, and for other purposes, submit the following statement
in explanation of the effect of the action agreed upon by the conferees
and recommended in the accompanying conference report:
Amendment No. 1: Section 350 of the Tariff Act of 1930 authorizes
the President to enter into foreign trade agreements with foreign
governments or instrumentalities thereof. The House bill added
language to section 350 specifically stating that this authority is
authority to enter into agreements containing provisions with respect
to international trade, including provisions relating to tariffs, to most-
favored-nation standards and other standards of nondiscriminatory
treatment affecting such trade, to quantitative import and export
restrictions, to customs formalities, and to other matters relating to
such trade designed to promote the purpose of section 350 similar to
any of the foregoing, provided that no such provision shall be given
effect in the United States in a manner inconsistent with existing
legislation of the United States. The Senate amendment struck out
the language added by the House bill. The House recedes.
Amendment No. 2: This is a conforming amendment. The House
recedes.
Amendment No. 3: The House bill provided that the enactment of
the bill shall not be construed to determine or indicate the approval or
disapproval by the Congress of organizational provisions of any
foreign trade agreement entered into under section 350. The Senate
amendment provided that the enactment of the bill shall not be con-
strued to determine or indicate the approval or disapproval by the
Congress of the executive agreement known as the General Agreement
on Tariffs and Trade. The House recedes.
Amendments Nos. 4 and 9: In the case of a trade agreement entered
into under the existing provisions of section 350 of the Tariff Act of
1930, any rate of duty may be decreased to a rate not lower than 50
percent below the rate existing on January 1, 1945. Subparagraph
(C) of section 350 (a) (2), as contained in the House bill, continued
this authority for agreements entered into before June 12, 1955.
Subparagraph (E) of section 350 (a) (2), as contained in the House
bill, applied only with respect to a foreign trade agreement entered
into by the President on or after June 12, 1955, to which the Govern-
ment of Japan is a party and with respect to which notice of intention
to negotiate was published on November 16, 1954 (19 F. R. 7379).
In the case of such an agreement, ' if the President determines that
such decrease is necessary in order to provide expanding export
markets for products of Japan (including such markets in third
countries), this subparagraph authorized a, decrease in a rate of duty
to a rats not lower than. 50 percent below the rate existing on January
1, 1945: .
Approved For Release : CIA-RDP59-00224A000100310004-7
 Approved DorARR lease : C IA RDP59-r00P2, 2 4A000100310004-7
Senate amendment No. 9 struck out subparagraph (E). However,
Senate amendment No. 4 added to subparagraph (C) authority to
decrease any rate of duty to a rate not lower than 50 percent below
the rate existing on January 1, 1945, to carry out the foreign trade
agree:ment''involving Japan. The House recedes on amendments
Nos. 4and-9.
Amendment No. 5: This is a clerical amendment. The House
recedes.
Amendment Nos. 6, 7, and 8: Subparagraph (D) of section 350
(a) (2) of the Tariff Act of 1930, as amended by the House bill, fixed
maximum limits on decreases in rates of duty which may be made to
carry out trade agreements (other than the agreement involving
Japan) entered into on or after June 12, 1955. A rate of duty could
be reduced under the three alternative methods provided in clauses
(i), (ii), and (iii).
Clause (i) authorized decreases in any rate to 15 percent below the
rate existing on July 1, 1955. Senate amendment No. 6 changed the
July 1, 1955; date to January 1, 1955. The House recedes.
Clause (ii) authorized decreases in any rate to 50 percent of the
rate existing on January 1, 1945, on products which are normally not
imported into the United States or.which are normally imported in
negligible quantities. Senate amendment No. 7 eliminated this
authority. The House recedes.
Clause (iii) authorized decreases in rates of duty which are higher
than 50 percent ad valorem (or equivalent) to 50 percent ad valorem
(or equivalent). Senate amendment No. 8 redesignated clause (iii)
as clause (ii). The House recedes.
Amendment No. 9: For explanation of the effect of this amendment,
see explanation of amendment No. 4.
Amendment No. 10: This is a clerical amendment. The House
recedes.
Amendments Nos. 11 and 12: These amendments conform the bill
to the change in dates made by amendment No. 6. The House
recedes.
Amendment No. 13: Subparagraph (D) of section 350 (a) (3) of the
Tariff Act of 1930, as contained in the House bill, authorized the
President in making changes in rates under the section to round out
rates of duty within the limits specified in the bill. Senate amendment
No. '13 struck out this provision. The House recedes with technical
and conforming changes.
Amendment No. 14: The House bill contained a provision requiring
the President, in exercising his authority under section 350 of the
Tariff Act of 1930, to avoid, to the maximum extent he deems practic-
able and consistent with the purpose of section 350, the subdivision
of classification categories. Senate amendment No. 14 struck out
this provision. The House recedes.
Amendments Nos. 15, 16, and 17: These are clerical amendments.
The House recedes.
Amendment No. 18: This is a clerical amendment. The Senate
reced es.
Amendments Nos. 19 and 20: These are clerical amendments. The
House recedes.
Amendment No. 21: This amendment conforms the bill to the
change in dates made by amendment No. 6. The House recedes. .
59-00224A000100310004-7
 Appro,}Ag Fg-R g e];xQA4WRc 9&0M4A0001 00310004-7
Amendment No. 22: This is a clerical amendment. The House
recedes.
Amendment No. 23: Subparagraph (C) of section 350 (c) (2), as
contained in the House bill, provided that if the trade agreement in-
volving Japan was entered into before July 1, 1955, the rate of duty
on any article included in such agreement was (for purposes of the
provisions relating to the 15-percent decrease authority) to be con-
sidered to be the rate "existing on July 1, 1955". The Senate amend-
ment struck out this provision. The House recedes.
Amendments Nos. 24 and 25: These are clerical amendments.
The House recedes.
Amendment No. 26: This amendment added a provision to section.
350 (e) of the Tariff Act of 1930 requiring the Tariff Commission to
continue to make the report to Congress on the operation of the trade
agreements program which is now being made under Executive order.
The House recedes.
Amendment No. 27: The last sentence of section 7 (a) of the Trade
Agreements Extension Act of 1951 (which relates to escape clause pro-
ceedings) now provides that the Tariff Commission shall transmit to
the Committee on Finance of the Senate, and to the Committee on
Ways and Means of the House of Representatives, an exact copy of
its report and recommendations to the President. Such copy is to be
transmitted within 60 days (or sooner if the President has taken
action under sec. 7 (c) of such act).
This amendment replaced the last sentence of section 7 (a) of such
act. Under the amendment the Tariff Commission is required to
make public immediately its findings and recommendations to the
President, including any dissenting or separate findings and recom-
mendations, and to cause a summary thereof to be published in the
Federal Register. The House recedes.
Amendment. No. 28: This amendment adds a new section 6 to
the bill.
Subsection (a) of the now section 6 amended section 7 (b) of the
Trade Agreements Extension Act of 1951 by adding the following:
Increased imports, either actual or relative, shall be considered as the cause or
threat of serious injury to the domestic industry producing like or directly com-
petitive products when the Commission finds that such increased imports have
contributed materially to the serious injury or the threat of serious injury to such
industry.
Under the conference agreement the words "contributed materially
to the serious injury or the threat of serious injury to such industry"
are replaced by the words "contributed substantially towards causing
or threatening serious injury to such industry".
It is the consensus of all the conferees on the part of both the
House and the Senate that, for purposes of the language added to
section 7 (b) of the Trade Agreements Extension Act of 1951 by this
amendment, increases in imports are not to be set apart from other
relevant factors and dealt with on an exclusive basis. The Tariff
Commission must look at all the factors listed in the first sentence
of section 7 (b) of such act, and. at all other relevant factors, and
(in order that the amendment may apply) must find (1) that imports
(either actual or relative) have increased as a result, in whole or in
part, of the duty or other customs treatment reflecting the trade
agreement concession; (2) that there has been serious injury or threat
Approved For Release : CIA-RDP59-00224A000100310004-7
 Approved For Release : CIA-RDP59-00224A000100310004-7
TRADE AGREEMENTS EXTENSION ACT OF 1955
of serious injury to the domestic industry; and (3) that the increased
imports have contributed. substantially toward causing or threatening
the serious injury.
Subsection (b) of the new section 6 added by Senate amendment
No. 28 related to the definition of the terms "domestic industry pro-
ducing like or directly competitive products" and "domestic industry
producing like or directly competitive articles" for purposes of the
"peril point" and "escape clause" provisions.
Under the first part of the definition, as contained in the Senate
amendment, these two terms were defined to mean-
that portion or subdivision of the producing organizations manufacturing, as-
sembling, processing, extracting, growing, or otherwise producing like or directly
competitive products or articles.
Under the conference agreement this language is retained but with
the requirement that the production be in commercial quantities.
The second part of the definition, as contained in the Senate amend-
ment, would have included within the definition of the two terms
provisions relating to the production of raw materials or other com-
ponents of such competitive products or articles. The conference
agreement eliminates this part of the definition.
The conference agreement also replaces the last sentence contained
in the Senate amendment; with a sentence providing that in applying
the defined terms, the Tariff Commission shall (so far as practicable)
distinguish or separate the operations of the producing organizations
involving the like or directly competitive products or articles from the
operations of such organizations involving other products or articles.
Although the amendment uses the plural in referring to "producing
organizations", the provisions of this amendment are equally applica-
ble with respect to any industry for which there is only one producing
organization.
Amendment No. 29: This amendment added a new subsection to
section 2 of the act of July 1, 1954 (which, act provided it 1-year
extension of the sec. 350 authority), reading as follows:
(b) In.order to further the policy and purpose of this section, whenever the
Director of the Office of Defense Mobilization has reason to believe that any
article is being imported into the United States in such quantities as to threaten
to mpair the national security, he shall so advise the President, and if the President
agrees that there is reason for such belief, the President shall cause an immediate
investigation to be made to determine the facts. If, on the bas'.is of such investi-
gation, and the report to him of the findings and recommendations made in
connection therewith, the President finds the existence of such facts, he shall take
such action as he deems necessary to adjust the imports of such article to a level
that will not threaten to impair the national security.
The House-recedes with a clarifying amendment striking out "the
existence of such facts" in the second sentence and inserting "that
the article is beinga imported into the United States in such quantities
as?to threaten to impair the national security".
Tn connection with amendment No. 29, it is the understanding of
all. the conferees, both House' and Senate, that it is not intended to,
and does :riot, diminish or impair any authority the President may
have under other law. For example, it was emphasized that if the
President sees fit to stockpile critical materials under any other law,
that action may be taken wholly. aside from the authority contained
in this. amendment. Conversely, action un4or t~e new provision may
59-00224A000100310004-7
 Approv02i4y-000100~310004-7
be taken wholly aside from the authority contained in any other
law.
It is also the understanding of all the conferees that the authority
granted to the President under this provision is a continuing authority
and that prior action taken under this provision may be modified,
suspended, or terminated in the light of changed circumstances.
JERE COOPER,
JOHN D. DINGELL,
W. D. MILLS,
THOMAS A. JENKINS,
RICHARD M. SIMPSON,
Managers on the Part of the House.
0
Approved For Release : CIA-RDP59-00224A000100310004-7