Foreign Relations of the United States, 1964–1968, Volume VIII, International Monetary and Trade Policy

237. Memorandum From the Special Representative for Trade Negotiations (Herter) to President Johnson¹

Washington, June 2, 1964.

I recommend that you request the Tariff Commission to investigate the probable economic effect of reducing or terminating the present “escape-clause” action on stainless steel table flatware.

The escape-clause action, which amounts to a tariff 50 percent higher than the statutory rates on imports of stainless steel flatware in excess of 69 million units, dates from October 1959. Restrictions such as these are intended to afford temporary relief when tariff concessions cause injury to domestic industries.

The Tariff Commission has submitted annual reports on the industry since the escape-clause action went into effect. The most recent of these was submitted on November 1, 1963 (and is attached).² It indicates that conditions in the domestic industry have been generally good in the 1962–1963 period and that imports have decreased to about half their volume prior to the escape clause action. In addition, past reports show a steady increase of domestic production and sales since the late 1950’s. I attach a report of a Trade Staff Committee Subcommittee which sets out the economic situation in greater detail.³

The Tariff Commission report has been reviewed by the Trade Staff Committee and Trade Executive Committee, on which are represented the Departments of Agriculture, Commerce, Defense, the Interior, Labor, State, and the Treasury. All these agencies concur in my recommendation.

The authority for the recommended request to the Tariff Commission is contained in section 351(d)(2) of the Trade Expansion Act of 1962. I have attached a draft letter to the Chairman of the Commission and a draft White House press release which I feel should be issued if you concur in the recommended course of action.⁴

Christian A. Herter ⁵

1. Source: Kennedy Library, Herter Papers, Chronological File, June 1964, Box 3. Confidential. Drafted by Auchincloss.
2. Not attached. See U.S. Tariff Commission, Stainless-Steel Table Flatware: Report to the President (No. TEA-IR–1–63) Under Section 351 (d) (1) of the Trade Expansion Act of 1962, TC Publication 113, 1963.
3. Not found.
4. Neither has been found. At the request of the President, the investigation, which began June 24 and was completed April 14, 1965, was reported in U.S. Tariff Commission, Stainless-Steel Table Flatware: Report to the President on Investigation No. TEA-IA–5 Under Section 351 (d) (2) of the Trade Expansion Act of 1962, TC Publication 152, 1965.
5. Printed from a copy that bears this typed signature.