I cannot say right offhand just what the protection is for them. We would have to check it and get that information. We will be glad to do that and let you have the information, if you would care to have it. Mr. KNOX. I would certainly appreciate it if you would do so; and also, if the fur farmer does not have sufficient protection today, I would like to have your comments as to possibly what steps could be taken immediately to protect that particular industry of the fur farming area. Secretary BENSON. We will be happy to get in touch with you. (The information referred to follows:) There are no import duties on raw undressed furs with the exception of silver or black fox fur or skins, which carries a duty of 371⁄2 cents ad valorem. Dressed furs and manufacturers of furs, however, carry a duty ranging from 10 to 371⁄2 percent ad valorem depending upon type. The present rates represent a reduction of from 25 to 50 percent of the 1930 rate as a result of concessions made under the Reciprocal Trade Agreement Aet. Imports from U. S. S. R., or from any part of China under Communist domination, are now prohibited under the Trade Agreement Extension Act of 1951. The CHAIRMAN. I just want to make a little comment. I was over in Europe in 1948, and I was in Holland. I guess some of you have been there, too. Secretary BENSON. I spent the year 1946 in Europe and spent probably a month or so in Holland. The CHAIRMAN. Holland depends largely on her exports for her dairy business, does she not? Secretary BENSON. Yes; she is one of the rather large exporters of dairy products. The CHAIRMAN. As I said earlier, I come from a dairy district. Secretary BENSON. New York State is one of our big dairy States. The CHAIRMAN. I am interested in that branch of the industry. I visited one of the farms in Holland, and a very fine young couple had taken over the father's farm; it had been developed, and I went into the stable, and it was immaculately clean. They had a design of a rug on the stable floor worked in sawdust, a very artistic affair. I had had dairy cattle on my own farm, and I could picture the stable at home, and then I pictured this stable, because they had lace curtains on the windows for the cattle. Right back of the cattle was an inset in which there was a fine rug, and there again they had lace curtains. The man stayed there all night to look after the cattle in case they were ill. They had a convertible butter and cheese factory which was immaculate. I wonder if, in our country, we could get to the point of having lace curtains in the dairy barns and work these designs on the floor. Secretary BENSON. I am not sure lace curtains will contribute to the total production of the cow, but if so we will probably resort to their use. In Europe they live close to their cattle, as you know. The CHAIRMAN. Holland is a wonderful country, as are her people. Secretary BENSON. The Minister of Agriculture in Holland is in the city now. He has been with us and visited with us in the Department. We were very pleasantly surprised to learn from him how well acquainted he was with our own agriculture industry here. 32604-53-49 The CHAIRMAN. They are wonderful people, and wonderful students. They have developed their vocational schools for cheese and buttermaking and all the other dairy products to a very high standard. Mr. Secretary, we are certainly delighted that you could come here, and I think you have given us a wonderful presentation, a great deal of information, and I am sure we will all feel great confidence, in turning to you and your fine experts you have brought here today, whenever we find ourselves in trouble in agriculture. Secretary BENSON. Thank you, Mr. Chairman. We stand ready to be helpful any time. The CHAIRMAN. The committee stands adjourned until 10 o'clock tomorrow morning. (At 4 p. m., the committee recessed until 10 a. m., Thursday, May 7, 1953.) TRADE AGREEMENTS EXTENSION ACT OF 1953 THURSDAY, MAY 7, 1953 HOUSE OF REPRESENTATIVES, COMMITTEE ON WAYS AND MEANS, Washington, D. C. The committee met, pursuant to recess, at 10 a. m., in room 1102, House Office Building, Hon. Daniel A. Reed, chairman, presiding. The CHAIRMAN. The committee will come to order. The hearing will be resumed on H. R. 4294. This morning, we will hear testimony from persons interested in section 8 of the bill, which has as its purpose the amendment of section 22 of the Agricultural Adjustment Act, as amended. The first witness will be a distinguished member of the House Agricultural Committee, Hon. August Andresen, of Minnesota. You are well known to the members of this committee and we are honored to have you here. If you will give your full name for the record, and the capacity in which you appear, we shall be delighted to hear from you. STATEMENT OF HON. AUGUST H. ANDRESEN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MINNESOTA Mr. ANDRESEN. Thank you very much, Mr. Chairman. My name is August H. Andresen, representing the First District of Minnesota. Mr. Chairman, I appreciate the opportunity of appearing before your committee. I do not have a prepared statement, so I will speak to you orally with your permission. The reason that I did not have a prepared statement is due to the fact that somebody might accuse me of reading a statement prepared by some other persons. I believe I can talk with experience, having been a member of the Committee on Agriculture for over 26 years. Mr. Chairman, I favor a healthy foreign trade, but I definitely feel that legislation is necessary to prevent the dumping upon the American market of competitive articles or commodities of which we produce a domestic surplus, especially so with agricultural commodities which come under the Government's support program. The present tariff laws mean very little in protecting American producers. I find upon investigation that nearly every country in the world has exchange restrictions, licenses are required, and in most instances imports are not permitted to come into any of those foreign. countries if they produce enough themselves to take care of their own needs. I think this publication, which is published by the International Monetary Fund, would be of interest to your committee. It deals with exchange restrictions in the countries of the world who are seeking to send their commodities into the United States because of the higher price level in this country. The CHAIRMAN. Is there some part of that that you would like to extend in the record? Mr. ANDRESEN. I think it would make the record too voluminous, Mr. Chairman. The CHAIRMAN. When testimony is offered in that form, the members of the committee rarely have an opportunity later to read it. Mr. ANDRESEN. Undoubtedly the committee is aware of that, and therefore I have not attempted to break it down, because the volume covers over 200 pages. The CHAIRMAN. I know how valuable anything you offer will be to the committee. If you wish the privilege of inserting in the record excerpts from that book, it will be received for that purpose, subject to objection by any member of the committee. Mr. ANDRESEN. I would like that privilege, and I would also like the privilege of revising my remarks before the record is printed. The CHAIRMAN. Without objection, it is so ordered. (The information is as follows:) IMPORT RESTRICTIONS OF SPECIFIED DAIRY EXPORTING AND IMPORTING COUNTRIES 1 (Prepared by the National Milk Producers Federation) Australia "Nature of restrictive system.-Restrictions are exercised through licenses required for imports from all countries and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange from exports must be surrendered. Exchange receipts from invisibles and capital in United States dollars, or Canadian dollars in banknote or check form, must be surrendered. Practically all exports require licenses." (Imports not restricted from soft-currency countries, but are restricted from dollar countries to those which are essential and unobtainable from sterling areas.) * Denmark "Nature of restrictive system.-Restrictions are exercised through licenses required for imports and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Restrictions are also exercised through advance deposit requirements attached to certain imports. Foreign exchange must be surrendered. Certain exports require licenses." (Dairy products imported under license, except cheese from European countries.) France 2 "Nature of restrictive system.-Restrictions are exercised through licenses required for some imports from certain countries and for most imports from all other countries, and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange derived from exports and invisibles in currencies quoted in the official markets, with certain exceptions, must be sold in those markets. Some exports require licenses." (Import licenses are required for foreign dairy produce. Imports are normally stored upon entering country and released by order of Ministry of Agriculture. Price of imported butter and some cheeses are fixed on a basis of similar French 1 Third Annual Report, Exchange Restrictions. Int. Monetary Fund, 1952. 2 Foreign Agriculture Service, U. S. Department of Agriculture. produce and importers are obliged to pay the difference between the fixed and cost price.) 2 Italy "Nature of restrictive system.-Restrictions are exercised through licenses required for a few imports from certain countries and for most imports from all other countries, and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange in United States and Canadian dollars must be 50 percent surrendered; the remaining 50 percent must be used by holders for authorized payments or sold on the free market. Foreign exchange in other currencies must be entirely surrendered. Many exports require licenses." (Imports from Europe are not subject to licenses but are subject to duties. Imports from other countries subject to both.)' Netherlands "Nature of restrictive system.-Restrictions are exercised through licenses required for most imports and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange, with certain exceptions, must be surrendered. Exports require licenses." (Imports are subject to import licenses except from Belgium and Luxembourg. Same for duties.)❜ Norway "Nature of restrictive system.-Restrictions are exercised through licenses required for some imports from certain countries and for most imports from all other countries, and through licenses required for nontrade payments to certain countries; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange must be surrendered. Exports require licenses." Sweden "Nature of restrictive system.-Restrictions are exercised through import prohibitions, licenses being required for some imports from certain countries and most imports from all other countries, and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange from certain countries or in certain currencies must be surrendered. Other exchange receipts must be transferred to Sweden. Certain exports require licenses." (Domestic market is isolated from foreign market by quantitative restrictions (import licenses) and tariff duties.)1 United Kingdom "Nature of restrictive system.-Restrictions are exercised through licenses required for almost all imports from certain countries and for some imports from other countries, and through licenses required for nontrade payments to outside the sterling area; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange in certain currencies must be surrendered. Certain exports require licenses." (There is complete Government control of imports of dairy produce except unrationed cheese. Long-term government to government contracts with Australia, New Zealand, and Denmark at fairly low prices. Purchases on the open market are restricted in line with balance of payments position. This consideration is particularly restrictive to imports from dollar source.)' Argentina "Nature of restrictive system.-Restrictions are exercised through licenses required for all imports, individual import quotas for some goods, licenses for nontrade payments, and through a multiple currency practice resulting from the use of a basic, a preferential, and a free-market rate. Exchange proceeds of exports must be surrendered. A multiple currency practice results on the buying side from the use of three buying rates, including a free-market rate. Some exports are controlled taking into account the requirements of the internal market." * Foreign Agriculture Service, U. S. Department of Agriculture. |