Legislature of the State of Idaho A IN THE SENATE SENATE JOINT MEMORIAL NO. 4 By Mines and Mining Committee Twenty-ninth Session JOINT MEMORIAL To the President and the Congress of the United States of America in opposition to the policy of the State Department to reduce tariffs on mineral products under the Trade Agreement Act Whereas because of the heavy depletion of mineral resources during the war years, and the lack of new exploration for and discovery of mineral deposits for many years, it is now recognized, as announced by Secretary of the Interior Department, Mr. J. A. Krug, that search for new ore deposits and mines is of vital importance to the national welfare. The prospecting and exploration for new mineral deposits has been held back by lack of manpower during and since World War II, by low OPA metal ceilings and other restrictive Government legislation, and also by the constant threat of tariff reductions under the Trade Agreement Act. Private industry is willing to take the gamble of spending large amounts of capital in mineral exploration if it can be guaranteed adequate tariff protection against the competition of lower labor costs and richer natural deposits in foreign countries when conditions in these countries return to normal; and Whereas there is a serious world shortage of many metals and with postwar demand far higher than prewar demand, this country will of necessity have to be more dependent on its own mineral resources. The metals produced in Idaho (antimony, copper, lead, mercury, tungsten, and zinc) are badly needed in both war and peace, and the encouragement of the mining and the search for these metals is therefore in the national interest. One method of encouragement is by a real protective tariff; and Whereas the present threat of tariff cuts presents a serious problem to the mining industry, due to the possibility of tariff concessions, the present tariffs on minerals no longer can be considered to offer any future protection. The development of new ore in old mines, and the opening up of new mining enterprises call for long-term planning and large capital expenditures, and with the lack of any guaranty as to future tariff protection, the incentive for mine development disappears completely in many cases. Mining is a big enough gamble in itself without in addition gambling on whether or not the State Department is going to cut tariffs; and Whereas the actual reduction in tariffs would not only discourage the search for and development of new mines but would also shut down many mines that are now producing; and Whereas, although it is argued that tariff concessions will remove trade barriers to imports and allow free access to the world's raw materials, it is a fact that most imported metals can be shipped to this country without difficulty and sold here at world price plus duty. There are certain trade barriers on exports from this country, however. For example, the United States Government prohibits the export of antimony produced domestically; and Whereas in addition to harming the mining industry, tariff cuts which cause the shut-down of domestic mines could result in our country being at the mercy of foreign cartels which could then dictate their own terms as to quantities and prices of certain metals shipped to this country; and Whereas the development of new mining and smelting operations in this country not only contributes to the national security but also creates new jobs and adds to the national wealth: Now, therefore, be it Resolved by the Senate and the House of Representatives of the State of Idaho, the Governor concurring therein, That we believe, from the standpoint of national security, special tariff consideration should be given to our mineral resources and that no further tariff reductions on mineral products should be made under the Trade Agreement Act; be it further Resolved, That the Secretary of State of Idaho be hereby authorized and directed to send copies of this joint memorial to— Honorable Harry S. Truman, President of the United States. Honorable Edward V. Robertson, Chairman of Public Lands Committee F. Morton Leonard, Chief Metals Division, United States Tariff Commis- And to the Senators and Representatives of Idaho in the two Houses of This Senate joint memorial was passed by the Senate on the 24th day of February 1947. D. S. WHITEHEAD, President of the Senate. This Senate joint memorial passed the House of Representatives on the 28th day of February 1947. BARNEY GLAVIN, Speaker of the House of Representatives. I hereby certify that the within Senate joint memorial No. 4 originated in the Senate during the twenty-ninth session of the Legislature of the State of Idaho. CARL C. KITCHEN, Secretary of the Senate. HOUSE JOINT MEMORIAL No. 19 To the Honorable Senate and the House of Representatives of the United States of America, in Congress assembled: We, your memorialists, the Senate and House of Representatives of the State of Oregon, in legislative session assembled, most respectfully represent and petition as follows: Whereas the processing and marketing of crab meat is an important industry of the Pacific Coast States and Alaska that is capable of supplying the needs of the United States for such product, if given a fair opportunity so to do; and Whereas the importation of foreign crab meat has hampered the development of this industry and will, if unrestricted, seriously curtail and impede the growth and development of an important industry of the Pacific Coast States and Alaska: Now, therefore, be it Resolved by the House of Representatives of the State of Oregon, the Senate jointly concurring therein, That the Congress of the United States be and it hereby is memorialized to enact legislation reasonably restricting the importation into the United States of foreign crab meat, and defining that term to include not only crab meat produced in foreign waters, but also crab meat produced, processed, canned, marketed, or distributed by foreign nationals outside the United States and Alaska; be it further Resolved, That the Secretary of state of the State of Oregon be and he hereby is directed to send copies of this memorial to the President of the United States. to the President and the Chief Clerk of the United States Senate, to the Speaker and the Chief Clerk of the House of Representatives of the United States and to each Member of Congress from the State of Oregon. Adopted by house March 15, 1947. Readopted by house March 29, 1947. Adopted by senate March 29, 1947. JOHN H. HALL, M. E. CORNETT, President of Senate. Endorsed: House Joint Memorial No. 19. Introduced by Mr. Joe Wilson. Claribel Buff, chief clerk. Filed: April 2, 1947, Robert S. Farrell, Jr., secretary of state. STATE OF OREGON Office of the Secretary of State I, Robert S. Farrell, Jr., secretary of state of the State of Oregon, and custodian of the seal of said State, do hereby certify: That I have carefully compared the foregoing copy of House Joint Memorial No. 19 with the original thereof adopted by the House of Representatives and Senate of the Forty-fourth Legislative Assembly of the State of Oregon and filed in the Office of the secretary of state of the State of Oregon April 2, 1947, and that the same is a full, true, and complete transcript therefrom and of the whole thereof, together with all endorsements thereon. In testimony whereof, I have hereunto set my hand and affixed hereto the seal of the State of Oregon. Done at the capitol at Salem, Ore., this 2d day of April, A. D. 1947. [SEAL] Mr. JAMES A. TAWNEY, Clerk, Committee on Ways and Means, ROBT. S. FARRELL, Jr., THE STUDEBAKER CORP., House of Representatives, Washington, D. C. DEAR MR. TAWNEY: In response to your letter of April 28, I am attaching a statement for insertion in the record on the current hearings on the reciprocal trade agreements program. Sincerely yours, PAUL G. HOFFMAN, President. STATEMENT OF PAUL G. HOFFMAN, PRESIDENT, THE STUDEBAKER CORP., SOUTH BEND, IND., IN SUPPORT OF THE RECIPROCAL TRADE AGREEMENTS PROGRAM MAY 5, 1947. To the Committee on Ways and Means, House of Representatives, Washington, D. C.: This statement is presented in behalf of the Studebaker Corp. of South Bend, Ind., and is submitted to the committee at this time to reaffirm our support and endorsement of the reciprocal trade agreements program. The Studebaker Corp. exports between 15 and 20 percent of the company's total vehicle production. Since the war, and until recently, Government export control regulations limited the volume of our exports to the same percentage of our production which we exported prior to the war. We have, as a company policy, maintained the same limitation control since the Government regulation was lifted. We have over 15,000 employees at the present time, which, in terms of our export percentage, means that up to 3,000 of our present employment level may be attributed to export trade alone. It is a well-known fact that the average earnings in our plant are well above the average earnings of the automobile industry as a whole. Not only does our export business contribute directly to the volume of our production and to the level of our employment but this employment is also accompanied by high-level earnings. Those earnings which stem from Studebaker's export operation contribute, in one way or another, to the prosperity of a great many people in our community. For many years the export margin of production has meant the difference between profit and loss in our operations. This is true of a great many other companies. The increased volume of production made possible by export trade agreements leads directly to a reduction in unit costs. This means lower prices to the purchaser of motor transportation or other products, as the case may be. We believe in expanding levels of foreign trade, because we sell a portion of our product in foreign countries and because we realize the need and necessity of increasing the import of commodities into the United States. A substantial number of the materials which go into the manufacture of motor vehicles are obtainable, in quantity, only from overseas sources. We realize that, from a broad point of view, the Nation exports in order to pay for its imports. Studebaker is vitally interested in maintaining the American system of competitive enterprise. This is an added reason for our support of the trade agreements program. We do not believe that private international trade is possible unless trade agreements are quickly negotiated among the free countries of the world. If, instead of private international trading, we have trading between governments, we will be confronted with pressures inimical with the operation of our free enterprise system within the borders of our own country. Finally, I believe that the successful elimination of trade barriers through the trade agreements program is a most important factor in maintaining high levels of production and employment in the United States over any extended period of time. It is recognized very clearly that restriction in foreign trade means a reduction in the potential in our own production and employment and that this, in turn, would correspondingly affect the business and employment in our own community as well as the country as a whole. (Whereupon the committee adjourned, to meet on Monday, April 28, 1947, at 10 a. m.) RECIPROCAL TRADE AGREEMENTS PROGRAM MONDAY, APRIL 28, 1947 HOUSE OF REPRESENTATIVES, Washington, D. C. The committee met at 10 a. m., pursuant to adjournment, in the hearing room of the Committee on Ways and Means, New House Office Building, Hon. Harold Knutson, chairman, presiding. The CHAIRMAN. The meeting will come to order. Mr. Secretary, of course we are very glad to have you with us this morning, and we shall listen to what you have to say with a great deal of interest. If you will kindly give your name to the reporter and the capacity in which you appear, we will proceed with the hearing. STATEMENT OF HON. W. AVERELL HARRIMAN, SECRETARY OF COMMERCE, DEPARTMENT OF COMMERCE, WASHINGTON, D. C. Secretary HARRIMAN. W. A. Harriman, Secretary of Commerce. Mr. Chairman, I have a very brief statement here which, with your permission, I would like to read. It is an outline of my views. I should like to preface my remarks by recalling the words of a farsighted American. [Reading:] A system which provides a mutual exchange of commodities is manifestly essential to the continued and healthful growth of our export trade. We must not repose in fancied security that we can forever sell everything and buy little or nothing. We should take from our customers such of their products as we can without harm to our industries and labor. Reciprocity is the natural outgrowth of our wonderful industrial development under the domestic policy now firmly established. What we produce beyond our domestic consumption must have a vent abroad. * * * The period of exclusiveness is past. The expansion of our trade and commerce is the pressing problem. Commercial wars are unprofitable. A policy of good will and friendly trade relations will prevent reprisals. Reciprocity treaties are in harmony with the spirit of the times. The farsighted American from whom I have quoted was President McKinley in his last speech, made in Buffalo on September 5, 1901, shortly before his assassination. I feel that his words have even greater meaning today, and they express my own views on the importance to our welfare of the reciprocal trade agreements program. I might recall that subsequent to that, and following World War I, we developed with Canada very healthy relations under which our business with Canada was expanded and the welfare of our two nations has been aided. Mr. Hull, about a dozen years ago, developed our present program on a world-wide basis. We made progress from the beginning, and |