Senator HRUSKA. And insofar as you know were they able to supply any facts of figures of the type which we are talking about here this morning?

Mr. PRICE. These facts and figures in this form, Senator, have never existed, either here or in very many of the other importing countries. One of our great problems, for example, was to get the EEC in such a manner that we understood their figures and they understood ours. But I think this has now been accomplished.

PRIOR WORK OF GATT

Senator HRUSKA. And the earlier statement would probably be true, that heretofore any discussions in GATT have been pretty much in terms of loose general talk without specific facts. That is just about what happened, is it not?

Mr. PRICE. Certainly in this field of textiles, no one can talk seriously without the depth of the figures that we desire.

Senator HRUSKA. I am familiar with that, and I think the Senator from Rhode Island makes an excellent point. What I am trying to develop here is that we have had a lot of personnel and expense, and a lot of effort has been expended ostensibly to deal with this thing, and it has failed in its purpose. Maybe there is some fat in that Department that may be sliced away and grafted onto a new organization. But we sometimes get a little frustrated at this idea of leaving these things where they are and then creating something new to coordinate the efforts of doing nothing. And it is that point which I would like to bring to the attention of the members of the committee and yourself.

QUESTION OF ABSORBING CUT

I do not know what the total budget of the Department of Commerce or the State Department is at the moment. But when a request comes in here for $185,000, which is contrasted with a multibillion dollar budget for those two Departments, it seems to me that it is just a little picayunish. If a sufficient adjustment cannot be made some place within the budgets of those two Departments in order to pick up $185,000, then the Senator from Nebraska is suffering under a great disillusion.

Senator PASTORE. Well, will the Senator yield for an observation on that?

Senator HRUSKA. Surely.

Senator PASTORE. We conducted an investigation of the decline of the textile industry. It was a resolution that was introduced by Senator Cotton of New Hampshire. And we went into this matter quite exhaustively. As a matter of fact, we had no data. It is not à question that somebody was falling down on the job. If you wanted to pinpoint what the inventory in a certain category of textiles was in the United States of America, it was a hit and miss proposition. Then many, many times the plight of the industry was understood, but it turned on a political question. We have had many instances where these people have gone before the Tariff Commission on the escape clause, and even after a very substantial adjustment was made by the Tariff Commission, pinpointing the fact that the industry was being hurt, it would turn on a political question.

CHANGES IN TEXTILE EXPORT PROGRAM

Now we have got to understand this in the complex of the evolution of the times. Immediately after World War II, of course, we were about the only exporting nation in the world. But since then, of course, we have helped these people to rehabilitate, to industrialize, and they have been hell bent for election in sending their textile merchandise and production here to the United States of America; to the point that the whole textile industry worldwide is overinventoried, which has been one of the very serious problems.

Now if you are asking the question, "Has this work ever been done, or was it done sloppily?"-the answer is in the former. It was never done, never done in the fashion that we could understand exactly what was happening to this industry. And I daresay that the activity of the Department should be expanded with relation to other industries, as well.

We have just sat back and said, "Well, we sell so much, and we import so much. Everything is fine," without realizing that things were taking place. Things were changing in the economic makeup of ourselves and our friends abroad.

NEW INDUSTRIALIZED COUNTRIES

And since they have become industrialized, Germany has become a great exporter, Italy a tremendous exporter, Japan a tremendous exporter, Hong Kong, and now India is coming into the picture, Pakistan is coming into the picture, Portugal, Egypt, Spain are coming into the picture, and everybody is sending their stuff to the United States of America.

We have never been able to say, "Now, look. This is how much we produce of this. This is what has been happening to this category and that category. We do not have those statistics. Nobody ever took the time or the trouble, and Congress never appropriated the money. And that is what we are beginning to do. By the time we get through here, this $185,000 might have to become $185 million in order to protect our own domestic industry. This is the beginning, really. This is the beginning.

Senator DwORSHAK. Last year we gave GATT $700,000 to their operations, to Geneva. That ought to take care of something else besides cocktail parties.

LACK OF SPECIFIC KNOWLEDGE

Senator HRUSKA. With all due deference to the Senator from Rhode Island, I cannot agree with his statement that it is a question of somebody not doing his job. I venture to say that if we check over the records of the Department of Agriculture, for example, we would just about know what specific products are coming in in turns of bushel, pound, or ton.

Senator PASTORE. Oh, that is true. That is the only industry that has done it; agriculture.

Senator HRUSKA. All right. Now if somebody has been going to GATT all these years and has not had this information before him,

75285-61-3

he has simply been talking in generalities, the same kind of generalities we are frequently called upon to deal with when we go to the Tariff Commission to intercede on behalf of an industry. I think it can rightfully be said that somebody did fall down on the job. Senator PASTORE. And I think Congress did.

NEED FOR INVESTIGATING COMMISSION

Senator HRUSKA. I think so. I think Congress is one of them. And for the last 3 or 4 years the Senator from Nebraska has been one of the sponsors of a million dollar appropriation for the purpose of having a high level commission which would investigate not only textiles but all of these things. And for some reason or other, the leadership has not seen fit to give any thought to that proposition.

I want to tell my friend from Rhode Island that I am going to vote for this amount.

Senator PASTORE. And I am going to vote for his million dollar appropriation.

Senator HRUSKA. And I do not think it will be enough. It should be more. But for all these wheels spinning and getting no place, it seems to me we should soon have a return. I do not know but what now is the time.

Senator SMITH. Mr. Chairman?

Senator HOLLAND. Senator Smith.

CONGRESSIONAL LEADERSHIP AFFIRMED

Senator SMITH. I would like the record to show that I cannot agree with the Senator saying that Congress is to blame for all of this, because Congress has been taking the lead for a long time; not long ago, through the Pastore-Saltonstall bill. We have appropriated money time and time again. So I just say we have not had the leadership and the follow-through in the executive branch of the Government to tell us just exactly what to do and what could be done.

Senator HOLLAND. With the consent of the committee, I am going to request the staff to consult with the committee of the other body and find out what was the basis for this cut; if it was anything other than an arbitrary cut; because I think this committee has sufficiently gone on record as wanting to give the adequate tools for the doing of this job, that is, to better protect our textile industries. And I think we will continue to do it.

Unless there is objection, I am going to give that instruction at this time, because we are going to be pressed for time to get our hearings completed before the markup of this bill will have to proceed.

If there is no objection, I will give that instruction at this time. Senatore Pastore?

Senator PASTORE. I would like to say one final word.

Senator, we have come before the gentleman from Florida several times on this problem, and he has been very understanding, and I think it was through his leadership that this all started.

CONGRESSIONAL LACK OF SPECIFIC DIRECTION

When I say that Congress is at fault: We, too, should have recognized a long time ago that something was happening. Maybe we should have done it when we asked for the extension of the reciprocal trade acts. America needs to know what its position is. You just cannot speak in a vacuum. That is what we have been doing. We have not even brought our business representatives to these meetings. You just say, "The Commies are coming," and we just open up our pockets and lose all sense of proportion. That is exactly what has happened in this whole field.

The State Department has gone into the White House and said, "Look. If you abide by the decision of the Tariff Commission, this country will turn Communist." And on that score, and that score alone, the Tariff Commission has been disregarded, and so has our domestic industry.

Now, I am not saying that the political question is not involved. Of course it is involved. It is a great part of this whole consideration. But I think in many, many instances it has not been scrutinized, has not been investigated properly.

AREA REDEVELOPMENT ADMINISTRATION

STATEMENTS OF JOHN PRINCE, ACTING EXECUTIVE ASSISTANT TO THE SECRETARY; OSCAR H. NIELSON, DEPARTMENTAL BUDGET OFFICER; WILLIAM L. BATT, JR., ADMINISTRATOR, AREA REDEVELOPMENT ADMINISTRATION; WILLIAM H. BOZMAN, ASSISTANT ADMINISTRATOR FOR MANAGEMENT SERVICE

RESTORATION REQUESTED

Senator HOLLAND. The next items for consideration involve funds for the Area Redevelopment Administration. Requests for $11 million for Operations and $40 million for grants for public facilities were transmitted in House Document No. 210 dated July 12. A request for a language item for the area redevelopment fund was subsequently transmitted in House Document No. 228. The House committee recommendations for substituting appropriations for borrowing authority, as contained in the bill reported by the House committee, were deleted on a point of order.

HOUSE DOCUMENTS 210 AND 228

At this point there will be placed in the record pertinent extracts from House Documents Nos. 210 and 228 transmitting these requests; the justifications in support of these items; and the Department's request for amendment of the House bill to provide these funds in accordance with the supplemental requests.

(The extracts, justifications and requests referred to follow :)

[Extract from H. Doc. No. 228 of Aug. 21, 1961]

DEPARTMENT OF COMMERCE

"AREA REDEVELOPMENT ADMINISTRATION

"Area Redevelopment Fund

"The Secretary of Commerce is hereby authorized to make such expenditures for the purposes of sections 6 and 7 of the Area Redevelopment Act, within the limits of funds and borrowing authority available under section 9 of said Act, and in accordance with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Government Corporation Control Act as amended, as may be necessary in carrying out the programs set forth in the budget for the current fiscal year for such purposes."

This proposed provision is to enable the area redevelopment fund to be used for loans and other financial assistance for area redevelopment purposes in accordance with sections 6 and 7 of the Area Redevelopment Act. The detailed information supporting this language in the usual form has already been made available to the Committees on Appropriations.

[Extract from H. Doc. No. 210 of July 12, 1961]

DEPARTMENT OF COMMERCE

"AREA REDEVELOPMENT ADMINISTRATION

"OPERATIONS

"For necessary expenses, not otherwise provided for, of the Area Redevelopment Administration, including not to exceed $4,500,000 for technical assistance, as authorized by section 11 of the Area Redevelopment Act (Public Law 87–27), rent in the District of Columbia, and hire of passenger motor vehicles, $11,000,000: Provided, That funds made available for administrative expenses of carrying out the functions of the Area Redevelopment Administration may be consolidated into a single expense fund account.”

This appropriation is required to support costs of the following activities authorized by the Area Redevelopment Act, approved May 1, 1961: (1) Information and advisory services to urban and rural redevelopment areas, (2) research on causes of unemployment and underemployment, (3) studies which would be useful in alleviating or preventing conditions of unemployment, and (4) expenses of program administration. The proposed language will permit consolidation of all funds required for administration of the several aspects of the area redevelopment program, including expenses of loan supervision, into a single account for management purposes.

"GRANTS FOR PUBLIC FACILITIES

"For grants in accordance with the provisions of Section 8 of the Area Redevelopment Act (Public Law 87--27), $40,000,000, to remain available until expended."

The Area Redevelopment Act authorizes the appropriation of $75 million for grants to State and local governments, Indian tribes, or nonprofit associations representing any redevelopment area, for land acquisition, construction, re