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Printed for the use of the Committee on Ways and Means

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DOCUMENT

DEPARTMENT

U.S. GOVERNMENT PRINTING OFFICE

68-676 0

WASHINGTON: 1980

For sale by the Superintendent of Documents, U.S. Government Printing Office

Washington, D.C. 20402

1

COMMITTEE ON WAYS AND MEANS

AL ULLMAN, Oregon Chairman DAN ROSTENKOWSKI, ļllinois

BARBER B. CONABLE, JR., New York CLES: A. VANIK, Ohio

JOHN J. DUNCAN, Tennessee
CORMAN, California

BILL ARCHER, Texas
SAM M. GIBBONS, Florida

GUY VANDER JAGT, Michigan J. J. PICKLE, Texas

PHILIP M. CRANE, Ilinois CHARLES B. RANGEL, New York

BILL FRENZEL, Minnesota WILLIAM R. COTTER, Connecticut

JAMES G. MARTIN, North Carolina FORTNEY H. (PETE) STARK, California L. A. (SKIP) BAFALIS, Florida JAMES R. JONES, Oklahoma

RICHARD T. SCHULZE, Pennsylvania ANDY JACOBS, JR., Indiana

BILL GRADISON, Ohio JOSEPH L. FISHER, Virginia

JOHN H. ROUSSELOT, California HAROLD FORD, Tennessee

W. HENSON MOORE, Louisiana
KEN HOLLAND, South Carolina
WILLIAM M. BRODHEAD, Michigan
ED JENKINS, Georgia
RICHARD A. GEPHARDT, Missouri
RAYMOND F. LEDERER, Pennsylvania
THOMAS J. DOWNEY, New York
CECIL (CEC) HEFTEL, Hawaii
WYCHE FOWLER, JR., Georgia
FRANK J. GUARINI, New Jersey
JAMES M. SHANNON, Massachusetts
MARTY RUSSO, Illinois

John M MARTIN, Jr., Chief Counsel
J. P. BAKER, Assistant Chief Counsel
JOHN K. MEAGHER, Minority Counsel

SUBCOMMITTEE ON TRADE

CHARLES A. VANIK, Ohio, Chairman SAM M. GIBBONS, Florida

GUY VANDER JAGT, Michigan DAN ROSTENKOWSKI, Illinois

BILL ARCHER, Texas JAMES R. JONES, Oklahoma

BILL FRENZEL, Minnesota JOSEPH L. FISHER, Virginia

JAMES G. MARTIN, North Carolina KEN HOLLAND, South Carolina

L. A. (SKIP) BAFALIS, Florida ED JENKINS, Georgia

RICHARD T. SCHULZE, Pennsylvania THOMASITY DOWNEY, New York

W. HENSON MOORE, Louisiana
WILLIAM R. COTTER, Connecticut
RA AMOND F. LEDERER, Pennsylvania
FRANK J. GUARINI, New Jersey
JAMES M. SHANNON, Massachusetts
AL ULLMAN, Oregon
MARTY ROSŞO, IHimois

David B. ROHR, Professional Staff
MARY JANE WIGNOT, Professional Staff
WILLIAM K. VAUGHAN, Professional Staff

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CONTENTS

Press release of Tuesday, August 19, 1980, announcing hearing.
Material on Japanese Industrial Policy

Page

1
101

[graphic]

Advanced Micro Devices, Inc., Thomas Skornia, Mike Gadbaw, and Paul

Osterhuis....

Austin, Frank J., Giddings & Lewis, Inc., and National Machine Tool Builders

Association.

Brodhead, Hon. William M., a Representative in Congress from the State of

Michigan

Campobasso, Tom, Rockwell International, and Electronic Industries soci-

ation .....

Carnegie Endowment for International Peace, I. M. Destler.

Chase Financial Policy Group, Chase Manhattan Bank, Joseph Willett.

Communications Workers of America, John Morgan...

Destler, I. M., Carnegie Endowment for International Peace.

Electronic Industries Association, Tom Campobasso ....

Gadbaw, Mike, Advanced Micro Devices, Inc., and Semiconductor Industry

Association.....

Giddings & Lewis, Inc., Frank J. Austin

Ingersoll, Robert, Japan-United States Economic Relations Group..

Japan-United States Economic Relations Group, Robert Ingersoll.

Morgan, John, Communications Workers of America.....

National Machine Tool Builders Association, Frank J. Austin.

Osterhuis, Paul, Advanced Micro Devices, Inc., and Semiconductor Industry

Association..

Pease, Hon. Don J., a Representative in Congress from the State of Ohio

Rockwell International, Tom Campobasso.

Semiconductor Industry Association:

Thomas Skornia, Mike Gadbaw, and Paul Osterhuis

Joseph Willett...

Skornia, Thomas, Advanced Micro Devices, Inc., and Semiconductor Industry

Association.......

Weil, Frank, former Assistant Secretary of Commerce...

Willett, Joseph, Chase Financial Policy Group, Chase Manhattan Bank, and

Semiconductor Industry Association.

29 405ST

XL 17561

10/97

52_n

Page 228

208

National Cattlemen's Association, Sam Washburn, letter....
Preyer, Hon. Richardson, a Representative in Congress from the State of

North Carolina, statement ..
Rose, Hon. Charles, a Representative in Congress from the State of North

Carolina, statement
Tanners' Council of America, Inc., Eugene L. Kilik, letter

209 228

TRADE WITH JAPAN

TUESDAY, AUGUST 26, 1980*

U.S. HOUSE OF REPRESENTATIVES,
COMMITTEE ON WAYS AND MEANS,
SUBCOMMITTEE ON TRADE,

Washington, D.C. The subcommittee met at 10 a.m. pursuant to notice, in room 1100, Longworth House Office Building, Hon. Charles A. Vanik (chairman of the subcommittee) presiding. [Press release announcing the hearing follows:]

(Press release of Aug. 19, 1980)

CHAIRMAN CHARLES A. VANIK, (D., OHIO), SUBCOMMITTEE ON TRADE, COMMITTEE ON

WAYS AND MEANS ANNOUNCES HEARING ON H. CON. RES. 376 RELATIVE TO JAPANUNITED STATES TRADE; ON H. CON. RES. 383, DISAPPROVING THE PRESIDENT'S DETERMINATION TO DENY IMPORT RELIEF ON LEATHER WEARING APPAREL; AND ON CERTAIN TARIFF AND TRADE BILLS, TUESDAY, AUGUST 26, 1980

The Honorable Charles A. Vanik (D., Ohio), Chairman, Subcommittee on Trade, U.S. House of Representatives, today announced that the Subcommittee on Trade will hold a public hearing on Tuesday, August 26 on H. Con. Res. 376, introduced by Mr. Vanik, relative to Japan-United States trade. Administration and private sector appearances on H. Con. Res. 376 will be limited to witnesses specifically invited by the subcommittee.

In addition to the nontariff barrier and investment issues mentioned in the resolution, the subcommittee is especially interested in receiving information on the United States-Japanese negotiations relating to the MTN agreement on Government procurement (NTT-issue), recent trends in Japanese auto exports, and ideas for long-range improvement in United States-Japan trade relations (such as the work of the Wise Men's Group).

Following testimony on H. Con. Res. 376, the subcommittee will receive testimony on H. Con. Res. 383, introduced by Mr. Shannon, to disapprove the determination by the President not to provide import relief for the leather wearing apparel industry. On January 24, 1980, the U.S. International Trade Commission unanimously reported to the President that coats and jackets of leather were being imported in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry and recommended an increase in the rate of duty on such imports (not valued over $150 each) to 25 percent ad valorem in the 1st year; 20 percent ad valorem in the 2d year; and 15 percent ad valorem in the 3d year. On March 24, the President decided to deny import relief to the industry as not in the national economic interest. Passage of the disapproval resolution would implement the ITC's original recommendation.

Finally, testimony will be heard on the following four tariff and trade bills:
H.R. 6750, (Mr. Edgar). "The Hovercraft Skirt Tariff Act.”
H.R. 7660, (Mr. Jenkins). To extend duty-free treatment to certain freight contain-

H.R. 7709, (Mr. Jones of Oklahoma; Mr. Evans of the Virgin Islands). To amend the tariff schedules of the United States to increase the quantity of cigarettes that may be accorded duty-free treatment if acquired in insular possessions and entered by returning U.S residents.

ers.

• The August 26 hearing covered a number of issues (as per the press release). The Japan portion of the hearing is printed here. Other issues discussed on the 26th are printed elsewhere.

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