CONFERENCE ON U.S. TRADE POLICY CRISIS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP70B00338R000300070005-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 19, 2016
• Document Release Date: September 12, 2005
• Sequence Number: 5
• Publication Date: June 11, 1968
• Content Type: OPEN

Approved For Release 2005/11/21 :CIA-RDP70B00338R000300070005-3 .
J2c~)2e 11, 19 68 CONGRESSIONAL RECORD -SENATE S 701
.robberies, realizing that the proposed (~ Urgent Meeting an the U a. Trade Policy
legislation would involve no prohibition Crisis, Jlme 4-5, 1968, Washington, D.C.)
on the reasonable use and ownership of FORWARD TO FREER TRADE: POLICY INITIATIVES
SpOrting firearms. - - IN A CHANGED WORLD P:coNoMY
- / ~ CONFERENCE EVE, JUNE 4
l/.^/ Registration beginning at 5:00 P.M.
CONFERENCE ON U.S. TRADE Address at 8:00 P.M. by Senator Jacob K.
POLICY CRISIS Davits of New York followed by social hour.
Mr. DAVITS. Mr. Preside>;it, I call the CONFERENCE PROGRAM, .JUNE 5
attention of the Senate to an important Registration resumed at 8:30 a.In. Morning
conference which took place in Wash- session s:oo-12:00.
Panel discussion: Chairman: Charles P.
ingtOn on June 4 and 5 last. I did not Taft. "What Should the Adm:nistration and
call the attention of the Senate to it congress no?" What pace of trade liberaliza-
previously because of the terrible tragedy tion best Berl>es the nation's balance-of-pay-
el
-
d
li
ht
which overwhelmed us all. It was the
first conference of the Coordinating
Council of Organizations on Inter-
national Trade Policy to highlight the
crisis facing U.S. trade policy as a result
of current pressures in Congress for im-
port quotas and the absence of U.S. pro-
posals for the future direction of trade
policy.
The conference was attended by over
500 people from all over the country
representing organizations as diverse as
the League of Women Voters, the Amer-
ican Association of University Women,
the Commerce and Industry Association
of New York, ?the National Retail Mer-
chant Association, the National Farmers
Union, the National Grange, and many
others. I had the privilege to be the key-
note speaker on the eve of the confer-
ence. On June 5 the conference was
addressed by several members of the
President's Cabinet, including Ambassa-
dor Roth, Secretary of Commerce Smith,
Under Secretary of State Udall, and Sec-
retary Freeman, as well as Members of
Congress such as Senator PERCY, Con-
greSSmen CU'RTIS, aril HENRY REUSE, re-
affirming the reasons for this country's
commitment to a policy of trade liberal-
ization.
During the luncheon meeting, former
Senator FaII'1 Douglas and Charles P.
Taft, general counsel of the Committee
for a National Trade Policy, received the
well-deserved Coa'dell Hull Award for
their contribution to liberal trade policy.
In the afternoon, outstanding experts
and representatives of private organiza-
trans d9scussed the major issues facing
trade policy today and haw private ar-
ganizations could most effettiveiy stim-
ulate public support for freer trade. Gen-
erally speaking, Mr. President, the meet-
ing was a most interesting and important
development of the subject.
It was expected that the President
would deliver a major speech on trade
policy at dinner. In view of the Kennedy
tragedy, the President could not attend
but his speech was delivered by Ambas-
sador Roth. It was a very significant
speech for those who favor a liberal trade
policy and confirmed once again the
President's personal commitment to this
policy which has been so vital to our
economy and our relations with the
maj ar trading nations of the world.
I ask unanimous consent that the
schedule of the conference, a partial list
of organizations participating irl the
coordinating council, and. my speech to
the conference, be printed in the RECORD.
There being no abjection, the material
was ordered to be printed fn the RECORD,
as follows:
f
ene
s
g
ments needs and its overall en
interest? What must the Administration and
Congress do to ensure the consistency and
dependability of such a policy?
Two consecutive panels will discuss the
question:
Fnom Congress: Senators Philip A. Hart
(Mich.), Charles H. Percy (]:11.), Joseph D.
Tydings (M~i.) ; Representatives Henry S.
Reuss (Wisc.), Richard Bolling (Mo.),
Martha Griffiths (Mich.), Charles Whalen,
Jr. (Ohio) ; a.nd others.
From the Administration: Ambassador Wil-
liam M. RotYi and Cabinet officers.
Questions and comments from the audi-
ence will be invited in every panel discus-
sion of the dtiy.
Reception, 12:00; luncheon, 12:30
Chairman; Carl J. Gilbert.
Invocation: Rev. Francis B. Sayre, Jr.,
Dean, Washington National (:athedral.
Presentation of Cordell 73u11 Award to
Paul H. Douglas and Charles P. Taft.
Speaker: Hon. Paul H. Douglas, former
Senator from Illinois.
Benediction: Rabbi Richard G. Hirsch,
Union of American Hebrew Congregations.
Afternoon session, 2:30-5:00
Panel Discussion (2:30-3:45) . Chairman:
Roy Blough, Prof. oP International Business,
Columbia Graduate School of Bcislness (for-
merly member of President's Council of Eco-
nomic Advisers) . "An Independent, Free-
wheeling Assessment of the Issues." Nongov
ernment experts will discuss TJ.S. trade policy
needs, th.e balance-of-payments issue, and
national economic adjustments.
Panel: Howard S. Piquet, Chief Interna-
tional Economist, Library oP Congress; Rob-
ert L. McNeill, Director, International Affairs,
Washington staff, Ford Mobor Company; Rob-
ert Schwrnger, formerly trade policy special-
ist at Departments of Agriculture and Labor;
Alfred R. McCauley, attorney (formerly trade
policy counsel, Ways and Means Committee);
Robert S. Eckley, Manager of Business Eco-
nomics, Caterpillar Tractor Company; Reu-
ben L. Johnson, Director of Legislative Serv-
ices, Nahi.onal Farmers Uniorl; Harry L. Gra-
ham, Legislative Representative, National
Grange; Herbert E. Harris II, Legislative
Counsel, American Farm Bureau Federation.;
Stanley Cxreenspan, Assistant. to Director, In-
ternational .Affairs, United Auto Workers; and
Sperry Lea, National Planning Association,
Canadian-American Committee.
Panel Discussion (4:00-5:00). Chairman:
Mrs. Bruce B. Benson., President, League oP
Women Voters oP the U.S. "What Should PIi-
vate Or@;anizationa Do?" How may private
organizations most eJjectively stimulate pub-
lic support for freer trade and government
consistency in pursuit of these policy goals?
Panel: Gerald H. O'Brien, Executive Vice
President, American Importers Association;
John R. Vaatine, Jr., Washington Office,
Emergency Committee far American Trade;
Clifford B. O'Hara, Chairman, Committee on
Foreign Coinmerce, American Association of
Port Authorities; Mrs. David G. Bradley,
Chairman, Foreign Policy Commibtee, League
oP Women Voters; Jay H. Cerf, Manager, In-
ternational Group, U.S. Chamber of Com-
merce; David J. Steinberg, Secretary and
Chief Economist, Committee for a National
Trade Policy; Mrs. Alison Bell, American As-
sociation of University Women; and Nelson
A. Stitt, Executive Director, U.S.-Japan Trade
Council.
Reception, 7:00; Dinner, 7:30
Invocation: Rev. L. Maynard Catchin.gs,
United Church of Christ.
Speaker: To 'be announced.
Benediction: Very Rev. Robert 'Crisco,
Catholic University oP America.
PARTIAL LIST OF ORGANIZATIONS PARTICIPATING
ZN COORDINATING COUNCIL
American Association of Port Authorities,
Iuc.
American Association of University Women.
American Book Publishers Council, Inc.
American Importers Association.
American Institute for imported Steel.
American Mercjiant Marine Institute, Inc.
American Seafood Distributors Association.
American Watch Association, Inc.
Americans for Democratic Action.
Association of Marine Underwriters of the
United States.
Atlantic Council, Inc.
Automobile Manufacturers Association.
Buffalo World Trade Association,
California Council for International Trade.
Canned Meat Importers' Association.
Chicago Council on Foreign Relations.
Commerce and Industry Association of New
York, Inc.
Committee of American Steamship Lines.
Committee for a National Trade Policy,
Inc.
Committee for Economic Development.
Cooperative League of the U.S.A.
Dallas Manufacturers & Wholesalers Asso-
ciation, Inc,
Emergency Committee for American Trade.
Florida Ports and Foreign Trade Council.
Foreign Traders Association of Phila-
delphia, Inc.
Friends Committee on National Legislation.
Grain and Feed Dealers National Associa-
tion.
Greater Detroit Board of Commerce.
International Apple Association, Inc.
International Center o~P New England.
International Cooperative Petroleum Asso-
ciation.
International House (New Orleans),
International Trade CLub of Chicago.
International Trade Club of Greater
Kansas City, Inc.
League of Women Voters of the United
states.
Maine Port Authority.
Maryland Port Authority.
Massachusetts Port Authority.
Meat Importers' Council, Inc.
Miami-Dade County Chamber of Com-
merce.
Motion
Inc.
National Council of Catholic Women,
National Council of Jewish Women..
National Customs Brokers & Forwarders
Association of America, Inc.
National Education Association.
National Farmers Union.
National Grange.
National Planning Association.
National Retail Merchants Association.
North Atlantic Ports Association, Inc.
Port of Houston.
Port of Los Angeles.
Port of New York Authority.
Port of Seattle.
Portland Chamber of Commerce.
San Francisco Area World Trade .Associa-
tion.
Scrap Industry Trade Policy Council,
Temple oP Understanding.
Tobacco Associates, Inc.
Union of American Hebrew Congregations.
United Church of Christ.
United Nations Association oP the U.S.A.
United Presbyterian Church in the U.S.A.
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CONGRESSIONAL RECCtRD -SENATE June 11, 19G8
United World Federalists.
U.S. Council of the International Chamber
of Commerce.
Women':; International League far Peace
and Freedom.
World Trade Club of New York, Inc.
Young Women's Christian Association.,
V~IFIERE IS LF,ADERS$IPIN U.S. TRADE POLICY?
(3,emarks of Senator JACOH K. JAVTTS before
the Coordinating Council ai Organizations
an Intetnational Trade Policy on the U.S.
i'rade Policy Crisis, Washington, D.C.,
3tme 4, 1968)
This conference may well pmave to be -a
turning point for U_S. trade policies. The
Kennody Round is behind us after a most
difficult four years o?f negotiations. It is al-
m~t a yeas since the President's trade nego-
tiating authority has expired. Tariffs among
the industrialized nations are beginning to
lose their significance as impediments to in-
ternational trade and non-tariff barriers
among such nations aa?e beginning to appear
as the last remaining obstacles to free inter-
national trade. Regional trading arrange-
ments in common market or free trade area
terms are springing up or are being negoti-
at;ed almost: daily.
The less developed countries are complain-
ing with considerable justification, that they
are Losing ground in their struggle to increase
their share of world trade and that nothing
substantial is being dune Uo change the exist-
ing trading system. They claim it is working
to their disadvantage aided by the revolu-
tionary impact of new technology which de-
velaps substitutes and alternates far basic
commodities.
And, within the U.S. there is growing fear
about our ability to withstand international
competition whcih is giving support to those
who would meet that competition by
shutting it off by import quotas or other
protectionist' schemes. Congress, reflecting
these fears,, has shown more sympathy for
restrictive trade legislation in 1967 and 1968
than at any time in recent memory. In the
meantime, the people who have a great deal
at stake in this, stand by almost apatheti-
cally because they have not yet been aroused
to the importance of the issue.
It has always been a difficult task to keep
our commitment to a policy of trade liberal-
ization and to convince the American people
of its great value. But we have kept that
commitment over the past 30 years through
the leadership of Presidents, of the leaders
of Congress, and of labor and trade and in-
dustry. In the future, while our approach to
trade liberalization may be different from
that embodied in the Trade Expansion Act
of 1962 or its predecessors, the essential ele-
ment again will be leadership; this is what
is lacking today and without it our commit-
ment to trade liberalization tends to be less
convincing '.than it should.
S art week, the President at last sent to the
Congress his long awaited trade message. I
cannot find much to quarrel with in the
interim trade bill proposed by the Adminis-
tra.tion-although the downgrading of the
L7.S. Tariff Commission in adjustment assist-
ance cases is in my judgment a major mis-
take. ,
Rut I do quarrel with that portion of the
President's IVlessage which deals with facture
U.S, trade policy. In that respect, the message
is ;t failure; it is inadequate as an answer to
protectionist sentiment in the Congress, or as
a means of arousing the American people for
the task ahead. It is a failure of leadership!
It offers only caretaker legislation and gives
no significant clue to what will follow the
Kennedy Round.
Equally disturbing is the absence of trade
policy leadership by any of the candidates
who are contending for the Presidency this
year, That 1968 is not the year to propose
major legislation is generail}~ accepted. It is
an election year with more than the usual
crisis issues to occupy the c:ountry's atten-
tion. But we have every right to expect that
candidates for the Presidency will give the
American people their proposals as to how
they intend to deal with they complex prob-
lems of foreign trade durin?; the next lour
years. Trade policy is among the most sig-
nificant of these issues, both as a "bread
and butter" issue and as a major concern
of our foreign policy.
It should be self-evident that continued
commitment to trade liberalization is essen-
tial for the U.S. Open international trade is
essential to America's futtu?e--as a world eco-
nomic power and as the leader of the non-
communist world community. We benefit
from a policy of trade liberalization through
steadily expanding markets for our industries
which In turn generate millions of jobs. Im-
ports provide the essential raw materials for
our industrial machine, the wherewithal for
our trading partners to purchase our ex-
ports and a greater choice of gaols for mil-
lions of our consumers. International compe-
tition provides a major incentive to increase
our efficiency and our competitiveness which
are required to retain markets overseas and
to meet import competition at home. A policy
of protectionism runs counter to all these
needs.
Open international commerce is even more
vital to our trading partners than to our-
selves; most of them turn out to be also
among our mast essential political allies. For
many oP them-Japan, the U;aited Kingdom,
Belgium-exports constitute a substantial
part of their output. Loss of exports means
for them substantial unemployment, stag_
nation and political unrest. ?, policy of pro-
tectionism is, therefore, utlimately a threat
to our national security.
In all honesty, I do not expect that the
Presidential candidates will have much to say
as to their approach to trade policy ques-
tions in the coming months. Therefore, it
is up to you, the trade policy group with
wide grassroots support, to keep -the issue
before the American geople.
This Conference and members of the Coor-
dinating Council are faced basically with two
major responsibilities. The first and forernost
is to make the American people fully aware
of what is at stake for the United States in
a policy of trade liberalization and, equally
important, to place before tl a next Presi-
dent of the United States your recommenda-
tions as to the specifics of anew foreign
trade policy. Tomorrow's discussions will
serve to clarify the issues.
Second, this should be followed up by a
major educational effort-through a series of
popular pamphlets, discussion programs, and
conferences in major cities of the country-.
that will rally the American people around
liberal trade policy. You sl:.ould also sit
down-perhaps at an American Assembly
type conference-and draw up a specific pro-
gram for publication early next year. Above
all, make certain that whatever approach
you choose, it comes to grips with the major
unmet problems facing trade policy: non_
tariff barriers, other artificial impediments
to fair international competition, the need
for adjustment and modernization, and the
need to enhance market opportunities for
developing countries.
Given these requirements acrd the current
international situation, trade policy will have
to be flexible and possess the rnaximum eco-
nomic and minimum political goals. Within
this context the proposal to establish an
Industrial Free Trade Area snakes a great
deal of sense and deserves careful considera-
tion as one possible U.S. trade initiative.
Such a free trade area could be formed
initially between the United States, Canada
and the United Kingdom but open to alI in-
dustrialized nations willing tp observe its
rules as well as associated developing coun-
tries which oatild be eligible far special trade
concessions. All industrialized products and
raw materials would be subject to tariff cuts,
with the passible exception of a few ex-
tremely sensitive and strategic commodities.
It would be the aim of the proposal to attain
the complete elimination of tariff and non-
tariff barriers in 15 to 20 years. Provisions
could be made to provide adjustment assist-
ance or modernization loans to firms facing
stronger foreign competition.
As Geiger and Lea, authors of one of the
papers submitted for the Joint Economic
Committee compendium on trade policy is-
sues last year, concluded, the free trade area
concept promises to be relevant far the
United States in any eventuality. If the next
attempt at trade negotiations by the tradi-
tional multilateral approach fails, or is in-
sufficiently- promising to be attempted, we
would be wise to shift to the only other
practical approach sanctioned by GATT, the
formation of a free trade area of interested
industrialized nations. If the next round of
trade negotiations is successful, then we
would find ourselves so close to free trade
that the GATT countries would want to com-
mit themselves to filll free trade at a fixed
date, to establish rules of competition and
undertake other commitments as if they
were in a form~cl free trade area.
I conclude as I began. We have reached a
turning point for U.S. trade policy. The going
will be tough in the months and years-ahead
and only full confidence in our competitive
strength and wise leadership will ensure
that we will continue toward the goal of
open international commerce. Whether we
will retain our confidence and have wise
leadership in this field will depend in large
degree on what those directly interested can
accomplish tomorrow and in the days ahead.
AL)JOURNMENT
Mr. BYRD of West Virginia. Mr. Pres-
ident, if there be no further business to
come before the Senate, I move, in ac-
cordance with the order entered today,
that the Senate stand in adjournment
until 12 o'cloc:k noon tomorrow.
The motion was agreed ta; and (at 5
o'clock and-23 minutes p.m.J the Senate
adjourned until tomorrow, Wednesday,
June 12, 1968; at 12 noon.
NOMINATIONS -
Executive nominations received by the
Senate June 11, 1968:
ENVIRONMENTAL SCIENCE SERVICES ADMINIS-
TRATION
John W. Townsend, Jr., of Maryland to be
Deputy Administrator, Environmental Sci-
ence Services Administration (vice Werner
A. Baum).
IN TIIE AIR FORCE
The following officers for appointment as
Reserve commis:~ioned officers in the U.S. Air
Force to the grade indicated, under the pro-
visions of sections 8218, 8351, 8363, and 8392,
title 10 oP the United States Code:
To be major general
Brig. Gen. Reginald M. Cram, FR5812,
(colonel, Regular Air-Farce, retired) Vermont
Air National Guard.
To be brigadier generals
Col. Robert W. Akin, FG838040, Tennessee
Air National Gu.trd.
Col. Robert F'. King, FG870815, Washington
Air National Guard.
Col. Billy J. Shoulders, FG955069, Tennes-
see Air National Guard.
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