Citizens for Victory is a nonpartisan organization dedicated to win the war, win the peace, and preserve democracy. It is the successor of the Committee to Defend America by Aiding the Allies, and has over 250 chapters in the larger centers from coast to coast. The national officers, honorary vice chairmen, and national executive committee of Citizens for Victory are as follows: OFFICERS Frederick C. McKee, chairman, national executive committee, Pittsburgh, Pa. Richard B. Scandrett, Jr., treasurer, New York, N. Y. Frances Schubert, executive secretary, Brooklyn, N. Y. Samuel Shore, chairman, labor committee, New York, N. Y. Dr. Henry A. Atkinson, Chairman, Church Committee, New York, N. Y. HONORARY VICE CHAIRMEN Grenville Clark, New York, N. Y. George M. Harrison, Cincinnati, Ohio. Dr. Frank Kingdon, New York, N. Y. EXECUTIVE COMMITTEE Ernest Angell, New York, N. Y. Douglas Auchincloss, New York, N. Y. Ellsworth Bunker, New York, N. Y. F. Le Moyne Page, New York, N. Y. Harry Sherman, New York, N. Y. D. C. Dorothy Canfield Fisher, Arlington, Vt. The following resolution was unanimously adopted at a meeting of the nationa[ executive committee of Citizens for Victory, held on April 16, 1943; "Whereas the Reciprocal Trade Act will expire, unless renewed on June 12, 1943; and "Whereas the reciprocal trade agreements have been of great value commercially to the United States in reducing foreign tariff barriers, quota systems, and other trade restrictions, and in greatly increasing our export trade; and "Whereas, the fullest cooperation with our allies of the United Nations is essential for a speedy victory and permanent peace; and "Whereas a reduction in the term of the Reciprocal Trade Act or other restrictions would at once be interpreted by our allies as an indication that the cooperation of the United States was of a very temporary nature: Now, therefore, be it Resolved, That it is the unanimous conviction of the national executive committee of Citizens for Victory that the Reciprocal Trade Act should be renewed for the full term of 3 years without any new restrictions as a vital nonpartisan war measure." Respectfully yours, CITIZENS FOR VICTORY, Chairman, National Executive Committee. AMERICAN ASSOCIATION OF UNIVERSITY WOMEN, The Honorable ROBERT L. DOUGHTON, Washington, D. C., April 30, 1943. Chairman, House Ways and Means Committee, The House of Representatives, Washington, D. C. DEAR SIR: Three years ago, I appeared before this committee on behalf of the American Association of University Women to express the support of my organization for the trade-agreements program. We supported the program at that time on the ground that it provided a sound procedure by which the interest of American consumers could be adequately considered in the regulation of international trade. The American Association of University Women, composed of some 70,000 members in more than 900 branches throughout the country, now urges the extension of the trade-agreements program for the same reason that it supported the program when the measure was last under consideration in Congress. Events of the past 3 years have increased rather than lessened the need for the program. It is abundantly clear that when the war ends it will be utterly impossible to return either to a system of national, competitive tariff making or to unrestricted free trade. The trade-agreements procedure is a necessary instrument which the American Government must possess in order to deal construetively with the problems of international trade after the war and to achieve a sound economy and sound international relations which are as truly a part of victory as are military successes. To abandon or weaken the program now would be to deprive ourselves of a tested and effective procedure, and to make the task of international adjustment more difficult by raising doubts of American serenity in the minds of our allies and fear lest the United States should embark on the ruinous course of isolationist tariff making. Very sincerely yours, CAROLINE F. WARE, Chairman, Committee on Social Studies. (Statement in behalf of the renewal of the Reciprocal Trade Agreement Act) NATIONAL COUNCIL OF JEWISH WOMEN, INC., Hon. Representative ROBERT L. DOUGHTON: The National Council of Jewish Women, an organization of some 60,000 women functioning in 215 cities, desires to go on record in support of the Trade Agreements Act. Ever since the reciprocal trade program was inaugurated the National Council of Jewish Women has supported it. We believe it protects the interest of the consumer; that it has contributed toward a progressive removal of trade barriers, which has resulted in increased foreign trade; that it has made for better mutual understanding between the United States and the countries involved; and that it has served as a means of carrying out the terms of the mutual-aid agreements of the Lend-Lease Act. Moreover, we believe that a large congressional bipartisan vote will demonstrate to the world, which is eagerly watching for an indication of our intentions, that we intend to continue to act in accordance with promises expressed in the Atlantic Charter and the Declaration of the United Nations. We believe that failure to renew the reciprocal trade agreements program will be construed as a sign that Congress does not intend to enter into international agreements, and so will make it more difficult, if not impossible, to win peace after the war. We, therefore, earnestly hope that the House will renew the reciprocal trade agreements without amendments, and for a period of 3 years. Respectfully, FANNY BRIN. AMERICAN WATCH ASSEMBLERS' ASSOCIATION, INC., Hon. ROBERT L. DOUGHTON, Chairman, Committee on Ways and Means, House of Representatives, Washington, D. C. DEAR MR. CHAIRMAN: The American Watch Assemblers' Association is concerned with misleading statements made before the Committee on Ways and Means of the House of Representatives at a hearing held before that committee on House Joint Resolution 111, a resolution to extend the authority of the President under section 350 of the Tariff Act, as amended. These statements refer particularly to the alleged effect upon American workers and American watch producers of importations from Switzerland of watch movements and watches under the existing reciprocal trade agreement between Switzerland and the United States and the alleged benefits resulting to Germany from this business. The association asks the committee to consider the following information: American dollars paid to Switzerland are not available to Germany. They are held here in the United States, deposited in the blocked account of the Swiss National Bank. Payments for all imports from Switzerland are made into this account as directed and licensed by our Federal Reserve bank. The Swiss National Bank, which is comparable to our Federal Reserve bank, pays the Swiss exporter with its own Swiss francs against the blocked dollars held in the United States. The Swiss manufacturer spends those francs in Switzerland to pay his labor or other production costs. None of it goes to Germany. Nor does it go to Germany for materials used in watches. Practically all of the steel used in Swiss-made watches comes from Sweden. The brass used in Swiss-made watches most likely is made from copper imported from the United States in 1940. In that year, with the countries around her at war, Switzerland bought from the United States and stored enough copper to supply her needs for a great many years. Moreover, extremely strict control is exercised by Switzerland over funds remitted by her citizens into Germany. Even had Germany supplied all the brass going into all the Swiss-made watches imported into the United States during 1940, 1941, and 1942 the actual weight of the brass so used would have had an import cost into Switzerland of not more than $15,000. And even had all the raw materials come from Germany-which they did notsurely it is infinitely better to have the material converted into watches for use in the United States instead of fuses, instruments, or other war materials for use by Germany. The domestic manufacturers often have contended that the wages paid to skilled labor is practically the cost of a watch movement. Cost of the raw material in a watch movement is negligible. The benefits and advantages to us in keeping highly skilled Swiss workers employed in making watches for our use rather than producing needed war materials for Germany are so obvious as to need no comment. While they are working for us they are not working for our enemies. Importations from Switzerland help meet America's present need for watches, which American manufacturers cannot now supply. There is no stock pile of Swiss-made watches in the United States. We have about 20,000 retail stores dealing in watches, and not one has an adequate supply of watches. American-made watches are in great demand but unobtainable, and this accumulated demand for American-made watches will be stronger than ever; after the war domestic manufacturers will have to use all their facilities to supply that demand. Competition from Swiss watch importations did not reduce the number of American watch factories. It was more than 20 years ago that we had 60 American watch manufacturers. Every one of them making jeweled watches, and many of them making nonjeweled watches, imported many of their parts and much of their machinery from Switzerland. Few watches were imported from Switzerland during the years when most American factories went out of business. Competition amongst themselves, lack of capital, lack of quality, failure to keep abreast of style changes, business failures, and mergers caused the reduction in the number of American manufacturers. Those same factors are found in the histories of other industries in the United States, such as the automobile industry, for instance. Forty years ago more than 100 firms were making automobiles. Today there are only 5 major automobile manufacturers. In the watch industry 3 of the original manufacturers of jeweled watches remain in business today. In addition, at least 10 of the manufacturers of nonjeweled watches still are in business. The 3 manufacturers of jeweled watches are now under indictment by the Department of Justice for violation of the antitrust laws. Meantime, new jeweled-watch manufacturers have sprung up in America, and today they all still face the same competitive difficulties which in the past forced the concentration in the industry. The policy of reciprocal trade agreements has been adopted by the United States Government. The production of watch movements and watches is one of the principal industries of Switzerland. Naturally, Switzerland is seeking an outlet for this production. We should take it, not let it go to Germany. The State Department entered into this trade agreement because it is advantageous to the United States. Its work should not be undone. Respectfully submitted. ROLAND GSELL, President. The CHAIRMAN. This will close the hearings, but the chairman would like to make this announcement, that we hope to go into executive session on this resolution as early next week as possible. The chairman will try to advise the members of the committee either tomorrow or Monday. (Whereupon the committee adjourned.) EXECUTIVE SESSION OF THE WAYS AND MEANS COMMITTEE, TUESDAY, APRIL 27, 1943 AMENDMENT OFFERED BY MR. KNUTSON-REJECTED In line 7 strike out the word "three" and insert in lieu thereof the word "two." AMENDMENT OFFERED BY MR. KNUTSON- -REJECTED Before the period in line 8 insert a colon and the following: Provided, That nothing in said section shall be construed to authorize the President to modify any law or regulation the purpose of which is to protect human, animal, or plant health and life. AMENDMENT OFFERED BY MR. WEST-REJECTED Before the period in line 8 insert a colon and the following: Provided, That no reductions shall be made in the duties on any competitive foreign products which will result in the entry of such competitive foreign products into the domestic market at prices which are less than the cost of production of like or similar domestic products. AMENDMENT OFFERED BY MR. WEST REJECTED Before the period in line 8 insert a colon and the following: Provided, That hereafter no such foreign-trade agreement shall become effective before the expiration of ninety legislative days after the date of its submission to the Congress, and shall not thereafter become effective if during such ninetyday period either branch of the Congress shall have adopted a resolution stating its disapproval of any such agreement. AMENDMENT OFFERED BY MR. WEST REJECTED Before the period in line 8 insert a colon and the following: Provided, That no such foreign-trade agreement shall include provision for the reduction in the existing United States tariff duty or import tax on any competitive foreign agricultural product when the average wholesale price of the comparable domestic product is less than the parity price therefor as determined by the Secretary of Agriculture. AMENDMENT OFFERED BY MR. WEST REJECTED Before the period in line 8 insert a colon and the following: Provided, That hereafter the proclaimed duties and other import restrictions shall apply only to articles the growth, produce, or manufacture of such foreign countries as do not discriminate against American commerce or pursue acts or policies inconsistent with the purposes of said section. AMENDMENT OFFERED BY MR. WEST REJECTED Before the period in line 8 insert a colon and the following: Provided, That so much of said section 350 as suspends the application of section 516 (b) of the Tariff Act of 1930 (relating to appeal or protest by American producers) to any article with respect to which such foreign-trade agreements have been concluded, or to any provisions of such foreign-trade agreements, is hereby repealed. |