Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1940-03-16

While admitting that Canada is
a relatively small producer OF zinc,
and has at no time been at the top
Of the list in regard to zine imports
into the United States, any other
nation with which the United States
has trade relations may claim the
same concession. j. e.. the cOnces-
sion to Canada.
Escape Clause
The arguments presented call at
tention, also. to a provision in the
trade agreement which has been
referred to by the State Department
as an escape clause" but which
has never been exercised. the
escape clause is supposed to come
to the rescue at any time that II
can he shown that third parties are
benefitting from the concession 10
the detriment of domestic producers.
1--WE submit" said the statement oil
the American Zinc Institute, Inc,
that third countries have obtained
the major benefits of the duty
concessions. as evidenced by the
fact that 1889 imports show that
Canada was responsible for y per
cent of our zinc imports; Peru, 14.5
per cent and Mexico, 59.4 percent.
The Institutes statement says
The operations of the American
zine industry are nationwide. Zine
mining is carried on in Is states in
the western. central, and eastern
sections of the United States. More
than 80 states in all are concerned
in the production and manufacture
of zinc and its products About
$4,000 men are employed, and it is
therefore reasonable TO assume that
at least 100. 900 persons are directly
dependent upon the zine industry.
Industry Puzzled
The zinc industry was puzzled at
the contemplated concessions toI
Canada. as one of the stated prin-
ciples Of the trade agreement pro-
gram is that concessions shall be
made only to the chief source of
imports. AS a matter of fact, i'm
ports had been unimportant except
in 1897, when extraordinary drought
conditions in Montana curtailed
domestic production. Even in 1887
zinc imports from Canada were in
4th place. and represented less than
15% of total imports, Belgium,
Peru and Mexico each being respon-
sible for a larger share. Further
more, at no previous time had Can
ada been the chief source of our
imports, nor has this situation |
changed to date
In it's statement filed with the |
Committee for Reciprocity Informa-
ton on March u, 1898. the insti- |
tute emphasized the probabilities of
third country benefits as follows:
=" We must expect immediate |
importations from other countries,
particularly Mexico. The low |
wage rates prevailing in Mexico |
justify current duties as means of |
protection for American labor
The institute then quoted the fol-
lowing statement made in 1921 by
the United States Tariff commits
sion. when zinc rates were discussed:
." Here Gin Mexico) we find
large deposits of high-grade zinc
ore that have not been worked. AS
soon as there is adjustment of the
unrest in those regions these de-
posts can furnish enormous guam
titles of desirable zinc ore at ex
tremely low cost. The freight from
these mines to the American zinc
smelters is high, but in view or
the low cost of producing the ore it
can be delivered at Mississippi
of the output from the mines even
valley points for less cost than much
of that section of the United States.
AS a response to our expressed
fears of third country benefits, we
had to depend upon the answer
that was given at the hearings time
and time again when senators, con-
gressmen and representatives of in
dustry mentioned the threat of
general invasion of our markets.
They were told not to worry, that
there would be the usual escape
clause in the agreement which
would insure against that risk The
zinc industry accepted this state
ment at its face value and it seemed
TO be the only ray of hope when
on November II. 1888, the an
nouncement was made that the
duties on zinc ore and slab zinc
had been cut 20 per cent
Protest Filed
Because we believed a great wrong
had been done and that a serious
error had been made energetic pro- (
tests were filed promptly and CON
tinuously with the State depart
ment. We felt sure that the sound {
ness of our position would be recog-
nized upon review Adding to this
assurance was the public statement
of DR.. John w. Finch. director Of
the Bureau of Mines, who. in April {
1888. pointed out that a reduction
in the tariff on zinc could hardly
be considered in the public interest i
This opinion, it will be noted, was
offered by DR.. Finch six or seven
months before the announcement of
the duty cut.
Months went by and we persisted
in our protests with the result that
we were invited to furnish data to
permit of a special study OF zinc by
the Trade Agreements Division Of
the Department of State We fur
nished everything which was re- 4