Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1940-03-09

repeal anu kAc(A 6N0 eAA0N - $500
fication of elected representatives
the public interest"
Taking issue with Assistant Sec
retary of state Henry F. Grady oY-
or Senate ratification. Mr.. COnoyer
stated: 1--WE cannot agree with the
Implication in these statements that
only the appointed officials of the
trade agreements organization have
the clear vision, intelligence and
incorruptibility to handle our en-
tanglements with foreign countries,
and that elected members of Con-
gress. responsible directly to the
Deople. are incompetent to discharge
their duty to the nation when con-
fronted with sectional issues.
Urges Amendment
Speaking for all branches OF the
mining industry. Conover urged the
Senate committee to amend the ex-
isting act in three respects:
1. Make the law contain def
mite requirements limiting our CON
SESSIONS on any commodity to that
country which constitutes the prin-
ciple source of imports.
,. Incorporate definite provisions
in the existing act to make etfee-
tive the escape clause found III
the various treaties.
3. Require Senate ratification OF
all agreements before they become
effective.
Failure to limit our concessions
on any commodity to the country
which constitutes the principal
source OF imports, has resulted in
serious damage to domestic miner
al commodities, the mining spokes-
man asserted. Domestic protection
on zinc and cadmium was reduced
in the second Canadian agreement,
although Canada is not the pTinci-
pal or even an important source
of imports, COnover stated. He
charged that the major benefits of
concessions made to Canada were
enjoyed by Mexico. Peru, Belgium,
Netherlands. Italy and other coun-
tries from whom no correspond
ing concessions were received in
return.
Escape Clauses
Vigorously urging the adoption
of an amendment to require use OF
the "escape clauses" of the agree
ments when it was found that dam
age done to domestic industries
called for relief, Conover scored
the failure of the State Depart
mnt to take action under the escape
clause provided in the Canadian
agreement:
THE zinc industry affords a con-
spicuous example Producing a bas-
ic commodity whose price is govern |
ed by the world market, our pro-
ducers Immediately suffered the full |
cut Of 81 per ton which was made
in the Canadian agreement, and this |
penalty will persist throughout the
life of that treaty. except for such
temporary and uncertain relief as
may be afforded by the wars dis
locations. Damage has resulted not |
only from greatly increased imports,
but from the depression of domestic |
price levels and from the loss OF
that confidence in the future so
essential to a natural resource in
dustry which requires years of
preparation before actual produc-
tion takes place. The continuance
Of this outlook is bound to have
serious consequences upon our flu
ture supplies of a critical war ma
terial.
Zinc Industry's Case
1.-The zinc industrys case fulfills
completely the conditions of the
escape clause in the Canadian
treaty. Under this clause our coun-
try has the right to withdraw or
modify the concession on any ar
ticle if, as the result of the ex
tension of such concession to other
foreign countries. such countries OBJ
tain the major benefit of the con-
cession, and if in consequence i'm
ports of the article concerned in
crease to such an extent as to
threaten serious injury to domestic
producers.
Repeated conferences with the
State Department have brought out
clearly that the zinc duty had been |
reduced without an adequate com
pensation of the facts. and without
any evidence of such painstaking |
and accurate study as is claimed i
to be an inherent part of the trade
agreement procedure