63. Editorial Note

In his State of the Union address, given before a joint session of the Congress on January 9, President Eisenhower proposed extending the Trade Agreements Act with broadened negotiating authority for 5 years. For text of the address, see American Foreign Policy: Current Documents, 1958, pages 1–12. The Trade Agreements Act is Section 350 of the Tariff Act of 1930, amended by P.L. 316, June 12, 1934. (48 Stat. 943) For text of the Tariff Act of 1930 (P.L. 361), June 17, 1930, see 46 Stat. 590.

The President elaborated on his suggestion in a January 13 message transmitting his fiscal year 1959 budget recommendations to the Congress. He also proposed that Titles I and II of the Agricultural Trade Development and Assistance Act of 1954 be extended for one year, and that authorization for sales of surplus agricultural commodities for foreign currencies be increased from $4 to $5.5 billion. For text of his statement, see Public Papers of the Presidents of the United States: Dwight D. Eisenhower, 1958, pages 17–74. For text of the Agricultural Trade Development and Assistance Act of 1954, P.L. 480, July 10, 1954, see 68 Stat. 454.

These proposals were discussed at the January 17 Cabinet meeting. Secretary of Agriculture Ezra Taft Benson “noted the emphasis being put on the value of agricultural exports in connection with legislation to extend the Reciprocal Trade Act.” Regarding the reciprocal trade legislation, Secretary of Commerce Sinclair Weeks “reported on the prospects of Congressional action on this, emphasizing the probable difficulty of getting agreement on five years as the term of extension. The Cabinet discussed at considerable length the possibility of increased public support for this program, especially through religious organizations, the League of Women Voters, exporters, etc. Sec. Dulles noted the two-fold appeal that probably had to be made as regards the dollars and cents value to the American economy and also the non-militaristic value of international cooperation, etc. He cautioned again about the economic warfare potential of the Soviet Union and the advantage that Russia would have if our Reciprocal Trade legislation should be emasculated.” (Minutes of Cabinet meeting; Eisenhower Library, Whitman File, Eisenhower Diaries)

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Eisenhower again stressed the importance of the trade agreements program in the Economic Report of the President, transmitted to the Congress on January 20. He reiterated his request for a 5-year extension of the Trade Agreements Act, terming it “the keystone of our foreign trade policy,” and asked for authority to reduce U.S. tariffs up to 25 percent over the next 5 years to conduct trade negotiations. He also suggested that Congress authorize U.S. membership in the Organization for Trade Cooperation, which oversaw and administered the GATT agreement between sessions.

The President also recommended the following measures relating to other aspects of U.S. foreign trade: extension of the Export Control Act, amendment of certain provisions pertaining to customs administration of the Tariff Act of 1930, and additions to the Antidumping Act of 1921. Excerpts of his report are printed in American Foreign Policy: Current Documents, 1958, pages 1474–1485; for complete text, see H. Doc. 279, Eighty-fifth Congress, Second Session.

On January 30, Eisenhower sent the Congress a special message formally asking for extension of the reciprocal trade agreements program and outlining the arguments in favor of his request. For text of his statement, see American Foreign Policy: Current Documents, 1958, pages 1514–1516. Eisenhower reaffirmed his commitment to freer world trade at his February 5 press conference; for text of his comments, see Public Papers of the Presidents of the United States: Dwight D. Eisenhower, 1958, page 142. Weeks and Dulles testified in favor of the extension on February 17 and 24, respectively. For texts of their statements before the House Ways and Means Committee, see Department of State Bulletin, pages 432–445. At a February 26 press conference, Eisenhower reiterated his belief that mutual trade “was one of the iron imperatives of security and peace.” For text of his statement, see Public Papers of the Presidents of the United States: Dwight D. Eisenhower, 1958, page 192.

Clarence Randall, Chairman of the Council on Foreign Economic Policy, followed closely Congressional consideration of the reciprocal trade legislation. His observations on the bill’s progress are in the Eisenhower Library, Randall Journals, CFEP, 1958, vol. VIII.