consolidation of the small firms.) Thus the urge toward concentration of our own underwear industry would be made inevitable as the small manufacturer— unable to compete with, say, the resources of the British Government-was unavoidably forced out of business. We oppose the trade agreements program on valid grounds. Further, we condemn the practice of the past administration in putting American industry at the whim of the State Department and ignoring the real necessities of protection for domestic manufacturers. However, because we understand that the proposed one-year extension is primarily for the purpose of reviewing the whole tariff program, and conditioned on the guarantee that we will be given an opportunity to present our full case on the merits of the program, we will endorse the bill presently under consideration, H. R. 4294. We particularly support the provision in the act, section 4, which makes it mandatory on the President to follow the peril point recommendations of the Tariff Commission. This expertise body is in a better position to assess the impact of specified duty levels on affected American industry, and therefore, better reflects the Nation's domestic welfare than does the State Department, which is interested only in international relationships (and which, we might add, has seemed too preoccupied with the stability and rehabilitation of foreign powers, even though the expense be destruction of home industry). Second, we support section 11 which applies countervailing duties on imports subsidized by multiple exchange rates in the country of origin. As indicated above, the average small-mill owner is in no position to compete with neosocialized, highly centralized foreign competition. And, it is not fair that domestic concerns be placed in a poor competitive position through the efforts of foreign governments, in many cases themselves practically supported by the taxes they pay. Any further encroachments upon its domestic markets will place the underwear industry in a perilous position and render it less able to serve the country in the event of another war. It is well to remember the service of this industry when considering any future trade policies, for its damage will be reflected throughout the economy. The Simpson bill provides needed checks on the powers of the executive branch, and should contribute to the very necessary protection of an industry the country could not do without. It is recommended that H. R. 4294 be approved. Further, it is recommended that the House of Representatives immediately begin a complete study of the whole tariff and trade agreements program. NATIONAL COUNCIL OF AMERICAN IMPORTERS, INC., Hon. DANIELD A. REED, Chairman, Committee on Ways and Means, LEATHER GLOVE GROUP, House of Representatives, Washington, D. C. SIR: On April 28, 1953, one of the witnesses who appeared before your committee to testify on H. R. 4294 was James H. Casey, Jr., representing the National Association of Leather Glove Manufacturers, Inc., of Gloversville, N. Y. The statement made by Mr. Casey on behalf of his association tends to create the impression that domestic leather glove producers are threatened with unusual foreign competition. To set the record straight, may we say that the domestic glove industry at Gloversville is doing a thriving business, but it is true that the industry is now in a state of transition from the former heavy production of leather gloves to the manufacture in great volume of fabric gloves cut and tailored to provide the style and fashion appeal of leather gloves. One fabric glove is advertised extensively as being Leather Tailored of Wonder Fabric. These new fabric gloves are sold with good profit at retail from $2.75 to $4 a pair while domestic leather gloves retail from $4 to $5 a pair, with specialities a little higher. French kid gloves are sold at retail from $6 to $7 a pair for the popular grades, with limited quantities as low as $5 a pair and as high as $25 or more a pair. We respectfully request that this letter be included in the record of the current hearings on H. R. 4294, together with the attached statistics of imports for the years 1951 and 1952 showing the present decline in imports of women's and children's leather gloves. Respectfully yours, RALPH TENNEY, Chairman. Women's and children's leather gloves-United States imports for consumption, by countries, 1951 and 1952 Source: Compiled from the official statistics of the U. S. Department of Commerce. Hon. JOSEPH W. MARTIN, Jr., CONNECTICUT LACE WORKS, INC., Speaker of the House of Representatives, Washington, D. C. DEAR SIR: We, the employees of Connecticut Lace Works, Inc., Norwalk, Conn., are much concerned about recent statements from Government sources promoting free trade. We petition you to resist these ideas and to protect our living standards and our jobs. Solving the problems of foreign-aid costs by tariff reduction is unfair and undemocratic. Whereas now all the taxpayers contribute their share to these costs, the reduction of protective tariff will only serve to shift the burden to the workers like ourselves whose living standards must then inevitably be lowered to the level of the competing foreign worker. We urge you to resist any reduction in tariff on the importation of laces and we petition you to support tariff protection to maintain our living standards and our welfare. Respectfully. (The petition with 114 signatures is on file in the committee office.) Mr. GORDON GRAND, Jr., Clerk, Committee on Ways and Means, MERRITT-TAYLOR-WARNER, INC., House of Representatives, Washington, D. C. DEAR MR. GRAND: In reply to your letter of March 13, the type of legislation that I am seeking to have considered is a review and a reconsideration of the present tariff laws that exist between South American countries and ourselves in the export of readymade clothing for South and Latin American consumption. From my many years of experience and through research in this matter I have found that most South American clothing is purchased on a readymade basis from countries other than the United States, and I also have found out that there is very little manufacturing of this commodity in these countries. Therefore as a businessman it is incomprehensible to me why if we have a commodity that is a necessity and not a luxury, we do not have a market in which to dispose of our products. The supply of fabric in this country today far exceeds the demand. Despite this condition our tariff laws are such that we are facing competition from European countries whose finished garments are being sent in this country to compete with us. Yet the bars of export make it practically impossible for us to have the same opportunity. This, in the main, is the condition that I should like to have considered and, if possible, legislation or tariff revisions created to remedy this. Very truly yours, HARRY MAYER. STATEMENT OF WILLIAM C. BABBITT, MANAGING DIRECTOR, NATIONAL ASSOCIATION OF PHOTOGRAPHIC MANUFACTURERS, INC. This statement in respect to H. R. 4294 is presented in behalf of the American photographic manufacturing industry as represented in the membership of the National Association of Photographic Manufacturers, Inc., whose 85 members, according to the best available information, produce more than 90 percent of the dollar volume of photographic products made in the United States. PRODUCTS The scope of this association includes all photographic products (except X-ray) intended for industrial, commercial, educational, professional, scientific, military, business, or amateur uses. This includes photographic equipment of all types, such as still and motion picture cameras, projectors and lenses, enlargers, developing and printing equipment, apparatus, such as microfilm and photocopy, and parts and accessories of all the foregoing, also photographic sensitized papers, films and plates, photographic supplies, and photographic chemicals. PURPOSE OF STATEMENT AND REQUEST The principal purpose of this statement is to support the provisions of H. R. 4294 which relate to adding the matter of the possibility of "impairment of the national security" as one of the criteria which must be taken into consideration in determining whether a proposed rate of duty shall be reduced or an existing rate of duty shall be increased. We believe it must be evident that such provisions are desirable and necessary in the interests of national security, and we therefore respectfully request that they be included, in such a manner as to be effective, in any extension of the Reciprocal Trade Agreements Act. The following information is in elaboration and support of this request: "EXPORTING" AMERICAN INDUSTRY AND JOBS All parties at interest, whether "freetraders" or "protectionists," seem to recognize the fact that there are classes of American products which cannot successfully cope with foreign competition in domestic markets unless afforded some protection either in the form of an adequate tariff, or import quota restrictions, or both. In such cases, to the extent that we import foreign products, we are in effect "exporting" the American industry and its jobs. Whether it is wise or desirable for us to do this, assuming that the replaced workers and capital investment will find satisfactory employment in some other line of activity, would seem to depend on whether we can as a nation get along without these "industries" or product line manufacture in the United States. Your committee has already received substantial evidence that in general the industries or rather the product lines involved are those which have a high labor content and where no superior production methods or facilities are available to American manufacturers in contrast with foreign producers. Your committee is also aware of the fact that many products have a very high skilled labor content, and that in general the products involved, such as scientific and industrial instruments, certain photographic equipment including fine cameras and lenses, and other precision products, are of exceptionally high strategic importance. Comparative skilled labor rates (United States Department of Labor) per hour in the manufacture of photographic equipment will illustrate the great disparities which exist, namely: United States___. Germany. Japan__ $2.25 $0.30 .38 .25 .122 The following examples will serve to show the destructive competition which results: One American lens manufacturer reports that "the Japanese have taken away one of our important customers with prices that are some 50 percent under our labor costs." He also states that by substituting Japanese wage rates for his own, he could sell profitably at slightly below the Japanses prices. Instances are reported of offers from one Japanese concern to provide finished simple lens elements at a price which would no more than pay the cost of the optical glass of American manufacture. What appear to be virtual copies of well-established American shutters and lenses are coming into the United States from Japan in important quantities which are apparently due to increase. Further, it is understood that the delivered prices would not even cover the cost of the labor in the American products. PROBLEM PRESENTED We believe that one of the most important problems which is before your committee and the administration in the case of such industries or product areas can be simply stated like this: Is it to the best interests of the United States, including in particular its defense, that imports be allowed to make any significant inroads into the domestic markets of those American products which are the normal peacetime products and means of livelihood and continuance of highly strategic precision industries? As to precision photographic equipment manufacturers, it will be recognized that their ability to serve effectively in a national emergency depends in large measure (a) On their ability to retain in gainful peacetime employment, an adequate skilled labor force which would provide the key workers essential to any successful wartime expansion of output. (b) On their ability to maintain a high level of technical research and product development so that American photographic products will continue to excell or at least equal those of any other nation. (c) On their ability to maintain plant and equipment at a satisfactory level of excellence and efficiency. WARTIME DEMANDS ON THE PHOTOGRAPHIC INDUSTRY In modern warfare, all types of photographic products are required in vast quantities by the armed services and in war-supporting effort. Photography is used extensively for, during, and after combat. It is also extensively used by the military in such areas as the training of combat troops, for troop morale, in medical work, in transmission of messages, production of maps and documents, recording war damage to ships, equipment and installations to facilitate rapid repair, and in many other ways. It is likewise a necessity to, and is extensively used by, war industries. It is interesting and important to note that it was photographic methods which were credited with getting the B-29 and other new planes into the air 4 to 6 months earlier than would have otherwise been possible, that have provided sure inspection of metal parts, stress analysis, studies of performance, including flight phenomena, and have importantly aided research development, production, and testing in many ways. INDUSTRY IS ONLY SOURCE OF SUPPLY It is of particular importance to note, that (1) The photographic manufacturing industry is the only possible source of these products. (2) The photographic manufacturing industry is depended upon as a major source of nonphotographic but related products. A MAJOR SOURCE OF OTHER KEY ITEMS During the war the photographic manufacturing industry was (and still is) the primary source of the proximity fuse, rated second importance only to the atomic bomb. This fuse (which explodes a shell when it has reached a point close enough to its target for the burst to be most effective) materially helped, for example, in preventing the V-bomb attack on Britain from being successful; was a major factor in beating back the Von Runstedt bulge; enable the American fleet to approach Japanese-held islands in spite of attacking planes. Also because of its high-precision skills and equipment, the industry was called upon to produce height finders (described by Ordnance officials as the most intricate and complicated optical instrument in the entire field of fire control), range finders, telescopes, drift meters, tank and submarine periscopes, mechanical time fuses, gun directors, aircraft fire-control equipment, radar-chart projectors, and many other high-precision items. This burden of nonphotographic production was imposed upon the industry in addition to providing vast quantities of photographic products, half of which, according to the Munitions Board (see chart, "Peacetime and wartime distribution of products by use," herewith), were civilian type photographic products and half of which were in the nature of special military photographic products. Some of the latter, however, were only adaptations of civilian products. INDUSTRY CANNOT BE RAPIDLY EXPANDED It is essential to national security that the photographic manufacturing industry be permitted to enjoy the greatest possible peacetime volume of business and prosperity. In peacetime it must depend largely on civilian purchasers including users in the field of business, science, education, professional photography, motion-picture production and other areas which account for about twothirds of its sales (see chart) and the so-called amateur market which accounts for about one-third of its sales. The reasons are: |