319. Memorandum From the Acting Special Representative for Trade Negotiations (Roth) to President Johnson1
Washington, August 19, 1966.
SUBJECT
- New Trade Legislation
Summary
- 1.
- The negotiating authority of the Trade Expansion Act of 1962 runs out on June 30, 1967. Assuming that a moderately successful Kennedy Round has been concluded by that time, legislative authority to take care of continuing routine tariff matters would be required in 1967. There may also be certain agreements reached on an ad referendum basis in the Kennedy Round (i.e., dumping, American selling price, and possibly grains) that will need Congressional approval next year.
- 2.
- We do not, however, recommend a major trade bill in 1967, since the Congress probably would not be willing to move so quickly after completion of the Kennedy Round. Rather, we should begin developing a longer range and more comprehensive trade program that would bridge over the following election year and be submitted in 1969.
- 3.
- In preparing such a major effort, it will be necessary to study the changed conditions of world trade since 1962. The growing pressures of the less-developed countries, the development of regional trading blocs, and the growth of U.S. investment abroad, all have had their impact on the current posture of trade. Consultations both domestically and abroad and close cooperation with Congress would be essential in the preparation of a new program.
- 4.
- The development of such a program could be handled either by a citizens’, Randall-type commission, or internally, through this Office. The latter course is probably easier to control, particularly as the channels for consulting with both industry and the Congress already exist.
Recommendations2
- 1.
- If agreement is reached in the Kennedy Round on matters requiring additional Congressional authority (dumping, American selling price, and possibly grains) that such legislation be submitted in the late spring of 1967.
- 2.
- That legislation to replace the expiring Trade Expansion Act (June 30, 1967) should be limited to an interim two to three year author-ization designed only to take care of routine tariff adjustments. This bill would include the new adjustment assistance provision agreed upon by the Executive branch this year, and should be submitted in March or April.
- 3.
- That the possibility of resubmitting an East-West trade bill be reevaluated after further discussions with Chairman Mills in November.
- 4.
- That you authorize this Office to explore with your staff and the other agencies concerned, procedures leading to the development of major trade legislation for 1969. This new effort, which would include a proposal to give serious consideration of the granting of general preferences to the less-developed countries, could be announced by you in the spring of 1967.
William M. Roth