in the case of UNRRA to countries that were not able to provide the necessary food and imports for themselves.

But I would agree with you fully, with the implications of your question. That is, as a permanent policy that is very bad and we must not do that.

The only other way in which we can continue to export, and the only sound way, is to increase our imports into this country.

Mr. REED. And you are not in a position to give us specific details as to the type of agricultural products that are likely to be shipped into this country by each of the countries with which we have executed trade agreements and with which we are expected to deal?

Mr. CLAYTON. No, sir, I do not think so. There would be so much conjecture and speculation on that that it would be difficult to give anything that would be worth anything.

Mr. REED. I have one other question. I am sorry that I have taken so much time, but I am really interested in this.

There is a good deal said about cartels. To what extent are cartels in operation in the countries with which we are dealing?

Mr. CLAYTON. Foreign countries, as you know, of course, have adopted the cartel system of business, particularly in international trade to a much greater extent than we have in the United States; they believe in it more than we do. We have got inserted into the charter for the international trade organization provisions dealing with cartels which, we think, was quite a victory for our delegation in London, and we shall press for the retention of those provisions in Geneva.

Mr. REED. Without going into it too much, but just to give me a picture of it, to what extent have you agreed to eliminate cartels in international trade?

Mr. CLAYTON. Well, to begin with, it is agreed by everyone that it will not do too much good to eliminate governmental restrictions on international trade if you let private people engage in practices and put on restrictions which would have the same effect, and it is the cartels, the controlled cartels, which should be eliminated as far as possible, and it is provided in the charter of this ITO, that any country that feels its trade and its economy is being injured by the operation of any cartel should make representation of that fact to the international trade organization, which would make an investigation, and if the charge is supported, that the international trade organization would take the matter up with the country which was the headquarters or the seat of that cartel, and point out that its practices were injurious, and ask that that country take the necessary action under its laws to have that discontinued; and if its laws are not sufficiently comprehensive to deal with the subject, that they should enact legislation for that purpose.

Mr. REED. Have any of the countries with which we have trade agreements so far violated the trade agreements, and was it necessary to protest such violations?

Mr. CLAYTON. There may be some instances, Mr. Reed, but they are very few. I would like to point this out: That almost every trade agreement provides that the agreement may be set aside in case of war. That applies, of course, to us, and to the other parties to the agreement. So, for the last 6 or 7 years, when the trade of the world had been conducted under war conditions, many of the provisions. of these trade agreements have been inoperative.

Mr. REED. I notice in the press-and that is the reason I ask the question that they filed some protest with Sweden over some violation.

Mr. CLAYTON. That is correct, and that matter is under discussion now with the Swedish government.

Mr. REED. Have you filed any other protests?

Mr. CLAYTON. There have been a number of small things from time to time; practically, none of them as important as this Swedish example to which you have referred-a number of small things that we have called the attention of the countries to, and, as a general thing, they have been corrected.

Mr. REED. I would really like to ask many more questions, Mr. Clayton, since you are so well-informed and you have so much material at your department. We seldom have any access to that.

There are some questions, I suppose, that you perhaps would like to answer, and I do not know whether any questions have been asked on that, but I am curious to know whether or not you can furnish the committee the actual items which you are to use for the purpose of trading at the Geneva conference.

Mr. CLAYTON. We would be glad to furnish a list of those commodities, Mr. Reed.

Mr. REED. Will you do that at this point in the record?

Mr. CLAYTON. Yes, sir. We will get a list of that and insert that into the record.

(The list referred to is as follows:)

The Honorable DANIEL A. REED,

House of Representatives.

DEPARTMENT OF STATE,
Washington, April 8, 1947.

MY DEAR MR. REED: Under the pressure of preparing to get away for the Geneva Conference Mr. Clayton was not able to communicate with you regarding a matter which arose in connection with his appearance before your committee

on March 28 and requested me to do so. You asked him to furnish the committee a list of the items we were to use for the purpose of trading at the Geneva Conference. In his reply he evidently had in mind our published list of November 9, 1946, and said that he would be glad to furnish a list of those commodities for committee with a copy of that list. I am informed that my associates have supplied the clerk of your

the record.

I find, however, that according to the record you requested him to “furnish the committee in a confidential way the actual items to use which you are to use for the purpose of trading at the Geneva Conference." This leads me to believe that you may have had a different list of products in mind.

As Mr. Clayton explained to the chairman on March 26, they are going to Geneva as a set of traders to negotiate with representatives of other governments and they cannot very well make public to the world the limits of our negotiating ability. I think Mr. Clayton also made it clear in answering Mr. Kean's question on March 29 that the delegation needs to carry all of its bargaining power with it. If you feel that the list which has been supplied for the record is not responsive to your request, I should appreciate having this letter inserted at the appropriate place in the record so that the reasons why Mr. Clayton was unable to comply with your request may be known.

Sincerely yours,

WILLARD L. THORP, Assistant Secretary.

DEPARTMENT OF STATE,
February 18, 1947.

SUPPLEMENTARY STATUTORY LIST-ITEMS PROVIDED FOR IN THE TARIFF

ACT OF 1930

FOREWORD

Since publication on November 9, 1946, of the list of products which would be considered for the possible granting of tariff concessions by the United States in trade-agreement negotiations with the 18 countries set forth above, the Committee for Reciprocity Information has conducted public hearings with respect to these products. The hearings continued from January 13 to February 6. As a result of the information and views presented at the hearings, together with further information on our trade with these countries, it has been found desirable to make certain technical amendments and additions to the original list. These amendments are given in this supplementary list.

The supplementary list is published, in accordance with established procedure under the Trade Agreements Act, in order that interested persons may have opportunity to present information and views on the products included. No decision will be made, and no negotiation will be undertaken, on any item in this list until after public hearings.

Schedule 1. Chemicals, oils, and paints

Par. 5.—Eucalyptol; selenium dioxide; tellurium compounds.

Par. 6.-Ammonium aluminum sulfate or ammonia alum; aluminum salts and compounds not specially provided for.

Par. 23. Articles specified in this list under paragraph 5, when imported in capsules, pills, tablets, lozenges, troches, ampoules, jobes, or similar forms, including powders put up in medicinal doses.

Par. 26.-Thymol obtained or derived from eucalyptus oil.

Par. 28.-(a) Saccharin.

Par. 41.-Pectin.

Schedule 2. Earths, earthenware, and glassware

Par. 226.-Lenses of glass or pebble, molded or pressed, or ground and poiished to a spherical, cylindrical, or prismatic form, and ground and polished plano or coquille glasses, wholly or partly manufactured: Any of the foregoing (except lighthouse, spectacle, and eyeglass lenses), with edges ground or beveled. Schedule 3. Metals and manufactures of

Par. 328.-Flexible metal tubing or hose, whether covered with wire or other material, including any appliances or attachments affixed thereto, not specially. provided for.

Par. 368.-(a) Clocks, clock movements, including lever movements, clockwork mechanisms, time-keeping, time-measuring, or time-indicating mechanisms, devices, and instruments, synchronous and subsynchronous motors of less than one-fortieth of one horsepower valued at not more than $3 each, not including the value of gears or other attachments, and any mechanism, device, or instrument intended or suitable for measuring time, distance, speed, or fares, or the flowage of water, gas, or electricity, or similar uses, or for regulating, indicating, or controlling the speed of arbors, drums, disks, or similar uses, or for recording or indicating time, or for recording, indicating, or performing any operation or function at a predetermined time or times, all the above (except the articles enumerated o described in paragraph 367 of the Tariff Act of 1930), whether or not in cases, containers, or housings, including jewels contained in any of the foregoing.

(c) Parts for any of the foregoing:

(1) Parts (except plates provided for in clause (2) of this subparagraph, and jewels) imported in the same shipment with complete movements, mechanisms, devices, or instruments, provided for in subparagraph (a) of this paragraph (whether or not suitable for use in such movements, mechanisms, devices, or instruments); but this clause of this subparagraph shall not be applicable to that portion of all the parts in the shipment which exceeds in value 11⁄2 per centum of the value of such complete movements, mechanisms, devices, or instruments;

(2) plates suitable for assembling thereon the clockwork mechanism constituting or contained in any of the foregoing movements, mechanisms, devices, or instruments;

(3) assemblies or subassemblies consisting of two or more parts or pieces of metal or other material joined or fastened together;

(4) assemblies or subassemblies consisting in part of a plate or plates provided for in clause (2) of this subparagraph;

(6) all other parts (except jewels).

(d) Dials for any movements, mechanisms, devices, or instruments enumerated or described in this paragraph or in paragraph 367 of the Tariff Act of 1930 (except dials specifically provided for in paragraph 367), when imported separately.

(e) Cases, containers, or housings suitable for any of the movements, mechanisms, devices, or instruments enumerated or described in this paragraph, not specially provided for, when imported separately.

(9) Taximeters and parts thereof, finished or unfinished.

Schedule 4. Wood and manufactures of

Par. 405.-Red cedar plywood.

Schedule 5. Sugars, molasses, and manufactures of

Par. 505.-Lactose.

Schedule 7. Agricultural products and provisions

Par. 701.-Tallow, inedible.

Par. 124.-Corn or maize, including cracked corn, the product of Cuba only. Par. 742.-Grapes (other than hot-house grapes) in bulk, crates, barrels, or other packages.

Par. 745.-Peaches: dried, desiccated, or evaporated; or otherwise prepared or preserved, and not specially provided for.

Par. 747.-Pineapples in bulk, the product of Cuba only.

Par. 749.-Pears: dried, desiccated, or evaporated; or otherwise prepared or preserved, and not specially provided for.

Par. 763.-Grass seeds and other forage crop seeds: white and ladino clover.

Schedule 9. Cotton manufactures

Par. 908.-Tapestries and other Jacquard-figured upholstery cloths (not including pile fabrics or bedticking) in the piece or otherwise, wholly or in chief value of cotton or other vegetable fiber.

Schedule 10. Flax, hemp, jute, and manufactures of

Par. 1001.-Crin vegetal, twisted or not twisted.

Schedule 12. Silk manufactures

Par. 1205.-Woven fabrics in the piece, wholly or in chief value of silk, not specially provided for; woven fabrics in the piece, not exceeding thirty inches in width, whether woven with fast or split edges, wholly or in chief value of silk, including unbrella silk or Gloria cloth; any of the foregoing, whether or not Jacquard-figured.

Schedule 14. Papers and books

Pars. 1407.-(a) Handmade paper and paper commonly or commercially known as handmade or machine handmade paper, and paper similar to the foregoing, weighing eight pounds or over per ream, not ruled, bordered, embossed, printed, lined, or decorated in any manner, or if ruled, bordered, embossed, printed, lined, or decorated in any manner, whether in the pulp or otherwise, other than by lithographic process.

Schedule 15. Sundries

Par. 1528.-Imitation solid pearls, unpierced, pierced or partially pierced, loose, or mounted, of whatever shape, color, or design, and valued at more than one-fourth of one cent per inch.

Par. 1535.-Fish hooks, not specially provided for.

Par. 1558-Articles manufactured, in whole or in part, not especially provided for: Textile grasses or fibrous vegetable substances (except istle or Tampico fiber). Items provided for in the Internal Revenue Code (sec. 2491): (a) Tallow, in

edible.

Mr. REED. That is all I have. Thank you for your patience, Mr.

Clayton.

Mr. CLAYTON. That is all right, sir.

The CHAIRMAN. Mr. Dingell.

Mr. DINGELL. You, of course, referred, Mr. Clayton, to some of the products, chiefly agricultural products, which were deriving the

most benefits, or rather the agricultural interests that were getting most of the benefits from the trade agreements.

Mr. CLAYTON. Yes, sir.

Mr. DINGELL. You mentioned, among others, that wheat and other grains have been largely benefiting, but then, of course, you agreed, as was mentioned by Mr. Reed, that cotton and tobacco came in for a substantial lift. But I would like to have a specific list for the record, at least for my benefit, to indicate some of the other products that have benefited, such as apples, and other fruits that were shipped to European countries in substantial volume. As I recall in one of your previous appearances before the committee, you gave us a pretty good idea of these benefits, and they were listed, as I recall, as individual items, and the committee would be very glad to have that. Mr. CLAYTON. We will be glad to furnish that, Mr. Dingell. Mr. DINGELL. Thank you.

(The information referred to follows:)

CONCESSIONS OBTAINED IN RECIPROCAL TRADE AGREEMENTS ON AGRICULTURAL PRODUCTS

1

Number of countries granting concessions on important products and groups of products exported from the United States (not including numerous concessions obtained on a wide variety of other products)