suspend the application to articles the growth, produce, or manufacture of any country because of its discriminatory treatment of American commerce or because of other acts (including the operations of international cartels) or policies which in his opinion tend to defeat the purpose of this section.

"(6) The President may at any time terminate, in whole or in part, any proclamation made pursuant to this section."

(b) The last sentence of section 350 (b) of the Tariff Act of 1930, as amended (19 U. S. C., sec. 1351 (b)), is hereby amended to read as follows: "No rate of duty on products of Cuba shall be decreased

"(1) In order to carry out a foreign trade agreement entered into by the President before June 12, 1955, by more than 50 per centum of the rate of duty existing on January 1, 1945, with respect to products of Cuba.

"(2) In order to carry out a foreign trade agreement entered into by the President on or after June 12, 1955, below the applicable alternative specified in subsection (a) (2) (D) or (E) (subject to the provisions of subsection (a) (3) (B), (C), and (D)), each such alternative to be read for the purposes of this paragraph as relating to the rate of duty applicable to products of Cuba. With respect to products of Cuba, the limitation of subsection (a) (2) (D) (iii) may be exceeded to such extent as may be required to maintain an absolute margin of preference to which such products are entitled."

(c) Subsection (c) of section 350 of the Tariff Act of 1930, as amended (19 U. S. C., sec. 1351 (c)), is hereby amended by inserting "(1)" after "(c)", by striking out "(1)" and inserting in lieu thereof "(A)", by striking out "(2)" and inserting in lieu thereof "(B)", and by adding at the end thereof the following new paragraph: "(2) For purposes of this section

"(A) Except as provided in subsection (d) and subparagraph (C) of this paragraph, the terms 'existing on January 1, 1945' and 'existing on July 1, 1955' refer to rates of duty (however established, and even though temporarily suspended by Act of Congress or otherwise) existing on the date specified, except rates in effect by reason of action taken pursuant to section 5 of the Trade Agreements Extension Act of 1951 (19 U. S. C., sec. 1362).

"(B) The term 'existing' without the specification of any date, when used with respect to any matter relating to the conclusion of, or proclamation to carry out, a foreign trade

conduct tending to defeat the purposes of the act. As under existing law, this provision is subject to section 5 of the Trade Agreements Extension Act of 1951, which requires the President to withdraw benefits of trade agreement concessions to imports from U. S. S. R. and from any nation or area dominated or controlled by the foreign government or foreign organization controlling the world Communist

movement.

Paragraph (6) of subsection (a) authorizes the President to terminate. at any time, in whole or in part, any proclamation made pursuant to section 350. This continues a provision of existing law; it has been moved to this separate subparagraph solely for reasons of clarity.

Subsection (b) of section 3 of the bill amends existing law to make clear the limits of authority to reduce tariffs with respect to products of Cuba.

Paragraph (1) in this subsection (b) deals with foreign trade agreements, whether with Cuba or any other country, which may be entered into before June 12, 1955, and continues unchanged the present authority to decrease duties on Cuban products to 50 percent of the rates existing on January 1, 1945, for such products.

Paragraph (2) of this subsection deals with trade agreements which may be concluded after June 12, 1955. Just as the proposed subsection (a) (2) (D) of section 350 confers authority to reduce general rates of duty (applicable to products other than Cuban products) by the use of three alternative methods, this paragraph gives parallel authority (the same three alternatives) with respect to the rates applicable to Cuban products, which in most cases are preferential. Under the third alternative method, the President could reduce all general rates which exceed 50 percent ad valorem to 50 percent ad valorem; in giving parallel authority with respect to products of Cuba, the last sentence of this paragraph authorizes the President to establish a rate for Cuban products lower than 50 percent ad valorem if necessary to maintain the absolute margin of preference to which the products of Cuba are entitled. Any decreases in the Cuban rates must also be spread over a period of 3 years. The reference to subsection (a) (2) (E) in this paragraph would permit decreasing duties on Cuban products to 50 percent of the rates existing on January 1, 1945, for such products if the trade agreement involving Japan is not entered into until after June 12, 1955.

Subsection (c) of section 3 makes necessary technical amendments to subsection (c) of section 350 to conform with substantive changes in other parts of the bill. It is made clear that the limitations on duty increases or decreases are related to rates of duty other than rates of duty which apply to products only by reason of action taken under section 5 of Trade Agreements Extension Act of 1951.

agreement, means existing on the day on which that trade agreement is entered into.

"(C) In applying paragraphs (2) (D) (i) and (3) (B) (i) of subsection (a), the rate of duty on an article included in a foreign trade agreement with respect to which notice of intention was published on November 16, 1954 (19 F. R. 7379), if such agreement is entered into before July 1, 1955, shall be considered to be the rate 'existing on July 1, 1955'." (d) Section 350 of the Tariff Act of 1930, as amended (19 Ú. S. C., sec. 1351), is hereby amended by adding at the end thereof the following new subsection:

"(e) The President shall submit to the Congress an annual report on the operation of the trade agreements program, including information regarding new negotiations, modifications made in duties and import restrictions of the United States, reciprocal concessions obtained, modifications of existing trade agreements in order to effectuate more fully the purposes of the trade agreements legislation (including the incorporation therein of escape clauses), and other information relating to that program and to the agreements entered into thereunder."

SEC. 4. Subsection (b) of section 6 of the Trade Agreements Extension Act of 1951, as amended (19 U. S. C., sec. 1363 (b)), is hereby amended by striking out the second sentence thereof.

SEC. 5. (a) In the case of any article which the President determines is not being imported into the United States or is being imported into the United States in negligible quantities, the President is authorized to decrease by proclamation the rate of duty by not more than 50 per centum of the rate existing on January 1, 1945. The President may take action under this subsection, notwithstanding that such action is not required or appropriate to carry out any foreign trade agreement, if he finds as a fact that the purpose of section 350 of the Tariff Act of 1930, as amended, will be promoted thereby.

(b) The President shall take action under subsection (a) in conformity with the applicable statutory provisions relating to the entering into and proclamation of foreign trade agreements (such as public notice, public hearings, "peril points", limitations on amounts and timing of decreases, and other applicable provisions). The applicable statutory provisions relating to the carrying out, modification, suspension, and termination of foreign trade agreements and proclamations made pursuant thereto shall apply to proclamations made pursuant to subsection (a), and to decreases in rates provided for therein, as though such proclamations had been made to carry out foreign trade agreements and as though the decreases reflected concessions granted under such agreements. Appropriate procedures for carrying out this section shall be established by the President on the basis of his determination as to the details of the statutory provisions which are applicable.

(c) For purposes of this section, the term "existing on January 1, 1945" shall have the meaning given to such term by section 350 of the Tariff Act of 1930, as amended.

(d) No proclamation shall be made pursuant to subsection (a) of this section after June 30, 1958.

Subsection (d) of section 3 adds a new subsection (e) to section 350,
requiring the President to submit to Congress annually a report on
the trade agreements program as recommended by the Commission
on Foreign Economic Policy. The report is to contain, among other
things, information on modifications of trade agreements, including a
report on the incorporation of escape clauses in existing agreements,
and information relating to agreements entered into.

SECTION 4: This section deletes the requirements now in section
6 (b) of the Trade Agreements Extension Act of 1951 that the Presi-
dent report semiannually regarding action taken to incorporate
escape clauses into existing agreements. New developments on this
score would be covered by the comprehensive annual report of the
President provided for in the new section 350 (e) described above.

SECTION 5. This section gives effect to the proposal of the Com-
mission on Foreign Economic Policy to authorize independently of
any trade agreement, the reduction by 50 percent from the January 1,
1945, rates in the case of products which are not being imported into
the United States or are being imported in negligible quantities. Such
reduction could only be made in conformity with the same kind of
procedural safeguards as are contained in trade-agreements legislation,
such as public notice, public hearings, "peril points," limitations on
amounts and timing of decreases, and other applicable procedures.
The President would determine the procedural details of the trade-
agreement procedures which are applicable and would, by executive
order or otherwise, establish appropriate procedures for carrying out
the purposes of this section.

Subsection (d) of this section provides that no proclamation shall
be made pursuant to subsection (a) of this section after June 30, 1958.

SECTION 350 OF THE TARIFF ACT OF 1930, AS PROPOSED
TO BE AMENDED BY H. R. 1, 84TH CONGRESS (EXISTING
LAW PROPOSED TO BE OMITTED IS ENCLOSED IN BLACK
BRACKETS, NEW MATTER IS PRINTED IN ITALICS, EXIST-
ING LAW IN WHICH NO CHANGE IS PROPOSED IS SHOWN
IN ROMAN)

PART III-PROMOTION OF FOREIGN TRADE 1

SEC. 350. (a) (1) For the purpose of expanding foreign markets for
the products of the United States (as a means of assisting in estab-
lishing and maintaining a better relationship among various branches
of American agriculture, industry, mining, and commerce) by regu-
lating the admission of foreign goods into the United States in accord-
ance with the characteristics and needs of various branches of Ameri-
can production so that foreign markets will be made available to
those branches of American production which require and are capable
of developing such outlets by affording corresponding market oppor-
tunities for foreign products in the United States, the President,
whenever he finds as a fact that any existing duties or other import
restrictions of the United States or any foreign country are unduly
burdening and restricting the foreign trade of the United States and
that the purpose above declared will be promoted by the means
hereinafter specified, is authorized from time to time-

[(1) To enter into foreign trade agreements with foreign gov-
ernments or instrumentalities thereof; and

[(2) To proclaim such modifications of existing duties and
other import restrictions, or such additional import restrictions,
or such continuance, and for such minimum periods, of existing
customs or excise treatment of any article covered by foreign trade
agreements, as are required or appropriate to carry out any foreign
trade agreement that the President has entered into hereunder.
No proclamation shall be made increasing or decreasing by more
than 50 per centum any rate of duty, however established, existing
on January 1, 1945 (even though temporarily suspended by Act
of Congress), or transferring any article between the dutiable and
free lists. The proclaimed duties and other import restrictions
shall apply to articles the growth, produce, or manufacture of all
foreign countries, whether imported directly, or indirectly: Pro-
vided, That the President may suspend the application to articles
the growth, produce, or manufacture of any country because of
its discriminatory treatment of American commerce or because of
other acts (including the operations of international cartels) or
policies which in his opinion tend to defeat the purposes set forth
in this section; and the proclaimed duties and other import re-

1 The first section of the Trade Agreements Act of June 12, 1934, added this part to title III of the Tariff
Act of 1930. For text of the Act of June 12, 1934, see page 23.