V. Representations by Other Governments to the United States Regarding Section 104 of the Defense Production Act Amendments of 1951, and Section 22 of the Agricultural Adjustment Act of 1933, as Amended (The Sixth Session of the Contracting Parties to GATT)
Editorial Note
A question closely affecting the United States at the Sixth Session of the Contracting Parties was that of the restrictive requirements of the new Section 104 inserted as an amendment to the legislation extending the Defense Production Act of 1950 (64 Stat. 822), that is the Defense Production Act Amendments of 1951 (July 31, 1951, 65 Stat. 131). Section 104 required import controls through June 30, 1952 on specified products whenever the Secretary of Agriculture determined that imports of such products would (a) impair or reduce the domestic production of any such commodity or product below “present” production levels, or below such higher levels as he might determine necessary in view of domestic and international conditions, or (b) interfere with the orderly domestic storing and marketing of any such commodity or product, or (c) result in any unnecessary burden or expenditure under any government price support program. The products for which control authority was provided were those fats and oils and rice [Page 1425] and rice products formerly covered by legislation which expired on August 1, 1951, plus cheese and other dairy products. Section 104, except for the addition of controls on cheese and dairy products, was an extension of import restrictions sanctioned by previous legislation: the Second War Powers Act of 1942 (March 27, 1942, 56 Stat. 177 (title III)), Public Law 155, 81st Congress (July 1, 1949, 63 Stat. 405), Public Law 590, 81st Congress (June 30, 1950, 64 Stat. 308), and Public Law 69, 82d Congress (June 30, 1951, 65 Stat. 110).
Section 104, however, differed in several material respects from the earlier fats and oils control legislation. Firstly, whereas the earlier legislation continued “certain powers, authority, and discretion” for the purpose of imposing import controls on certain products, Section 104 permitted no discretion. Import controls were mandatory under Section 104 whenever the Secretary of Agriculture determined that any one or more of three conditions existed, regardless of whether the restrictions might result in violations of the international obligations of the United States or whether it might be detrimental to agriculture as a whole. Secondly, by providing control authority for cheese and other dairy products, the extent of control authority was broadened substantially. Products which were previously free from quantitative import restrictions under the earlier legislation but which were now subjected to such restrictions under Section 104 were cheese, casein, and nonfat dried milk solids. Thirdly, the conditions under which controls were authorized under Section 104 differed from those provided by the earlier legislation.
Section 104 became part of the Defense Production Act as a result of amendments offered on the floor of both houses of Congress without committee consideration or hearings. Before its expiration on July 1, 1951 several bills were introduced to extend the authority provided by Public Law 590. These bills provided for extensions of either one or two years, and some provided for control authority on cheese. The House bills were referred to the House Committee on Banking and Currency; the Senate bills, to the Senate Committee on Banking and Currency. No hearings were held by either Committee on those bills or on the floor amendments which became Section 104. The so-called “cheese amendment” was offered in a motion from the floor by Representative August H. Andresen, Minnesota, and subsequently often was referred to as “the Andresen amendment”. The same motion was offered from the floor in the Senate by Senator Warren G. Magnuson of Washington.
(Note: The above information is based on official Department of State documentation in the Department’s central indexed files 411.006 and 411.566 and International Trade Files, Lot 57 D 284, Box 165.)
[Page 1426]Representations against Section 104 were made to the Department of State by certain governments even before the legislation had passed the Senate or cleared the Conference Committee of the two houses.
[607] The Danish Ambassador (de Kauffmann) to the Secretary of State
411.006/7–1751
[608] The New Zealand Ambassador (Berendsen) to the Secretary of State
411.446/7–1951
[609] The Danish Ambassador (de Kauffmann) to the Secretary of State
411.006/8–151
[610] The Chargé in Italy (Thompson) to the Secretary of State
411.656/8–851: Telegram
[611] The Acting Secretary of State to All Diplomatic and Consular Offices
411.006/8–1651: Circular airgram
[613] Memorandum by the Deputy Assistant Secretary of State for Economic Affairs (Linder) to the Secretary of State
411.006/8–2451
[614] Memorandum of Conversation, by Mr. Constant Southworth of the Office of British Commonwealth and Northern European Affairs
411.426/8–2751
[615] The Danish Ambassador (de Kauffmann) to the Secretary of State
411.006/8–2851
[616] Memorandum of Conversation, by Mr. Daniel M. Lyons of the Office of Western European Affairs
411.549/8–2851
[617] Memorandum of Conversation, by Mr. Daniel M. Lyons of the Office of Western European Affairs
411.566/8–3051
[618] The Counselor of Embassy in Canada (Willoughby) to the Director of the Office of Economic Defense and Trade Policy (Leddy)
411.426/8–3051
[619] The French Embassy to the Department of State
411.006/8–3051
[620] The Australian Embassy to the Department of State
411.436/9–1151
[622] The Secretary of State to the Australian Ambassador (Spender)
411.436/9–1151
[623] The United States ( GATT ) Delegation to the Secretary of State
394.31/9–2551: Telegram
[624] The United States ( GATT ) Delegation to the Secretary of Stats
394.31/9–2651: Telegram
[625] The Acting Secretary of State to the United States ( GATT ) Delegation
394.31/10–551: Telegram
[626] The Secretary of State to the United States ( GATT ) Delegation
394.31/10–1051: Telegram
[627] The Secretary of State to the United States ( GATT ) Delegation
394.31/10–1851: Telegram
[628] The Secretary of State to the United States ( GATT ) Delegation
394.31/10–2051: Telegram
[629] The United States ( GATT ) Delegation to the Secretary of State
394.31/10–2351: Telegram
[630] The Secretary of State to the United States ( GATT ) Delegation
394.31/10–2451: Telegram
[632] The Netherlands Ambassador (van Roijen) to the Secretary of State
740.5–MSP/1–1852
[635] Undated Memorandum Prepared in the Department of State
International Trade Files, Lot 57 D 284, Box 164, “Magnuson Amendment”