Evening star., 1960-01-31

voluntary quotas unless Hong
Kong institutes similar ones.
Hong Kong has performed the
incredible feat of increasing cot
ton textile exports from 2.347, 900
square yards in 1853 to 1884, 900
square yards in 1859.
Cotton textile makers here also
are concerned about the trend
in other Asian exports. Indias
exports have gone from 1,274,O0O
square yards in 1858 to 14,335, 900
in 1859. Formosa's have gone from
$4,000 in 1858 to 6,509, 900 in 1859.
For Pakistan the export jump is
from $4,000 in 1858 to 5,782 900
in 1859, and for Korea it is from
4,793000 in 1858 to 5.751 900 in
1859.
The ultimate aim of the cotton
cloth makers is to obtain manda-
tory quotas limiting the quantity
Of imports by categories of goods,
making quotas most restrictive for
lines most directly competitive
with American cottons.
Quotes Are Asked
Early this month the Commerce
Departments Textile Advisory
Committee called for such quotas.
The only public representative on
the committee abstained from the
recommendation He is Martin
Gainsbrugh of the National In
dustrial Conference Board.
While it appears that the in
distry won't get such quotas in
the near future. its representatives
feel they are making progress in
the direction of protectionism.
Their greatest coup has been their
success in persuading the White
House to investigate the advisa-
bility of increasing present tariffs.
President Eisenhower has di-
rected the Tariff Commission to
make an investigation to deter
mine whether this is so. In his
communication to the commission,
the President said he had been
advised by the Secretary of Ag-
riculture that export subsidies are
a loss to the extent of imports to
the United States.
The cost Of the cotton export
subsidy program from it's inception
in 1856 through the current mar
keting year is estimated at S700
million. The amount of the subsidy
varies each year.
For the 1867 marketing year
the Agriculture Departments
Commodity Credit Corporation
paid subsidy of 6la cents a
pound on 76 million bales of cot
ton for total cost of $24l million.
The following year the subsidy was
reduced to cents a pound, and
exports under it dropped to 81
million bales. The export drop re-
suited in the subsidy being re-
stored to 612 cents for the fol-
lowing year, when it failed to boost
exports. Instead they dropped to
28 million bales, and subsidy pay
ments. though at the original rate,
totaled only $91 million.
For the 1959-60 marketing year
the rate has been boosted to a
record 8 cents a pound. Agricul-
ture Department officials expect
exports to total SIS million bales
for subsidy cost of 1920 million.
Financing Subsidy PIon
Obviously the Agriculture De-
partment is interested in cotton
textile tariffs as a means of A.
nancing its multi million dollar
export subsidy program. The cot
ton manufacturers, however, look
upon a tariff as a step along the
road of protectionism which they
hope will lead to quotas limiting
quantities of imports.
They reason that levying of new
cotton textile duties would be at
least tacit acknowledgment Of
need for curtailment of imports.
They then explain that when 1t
becomes obvious that tariffs will
not do this, then a further step
NAV be taken.
The mill representatives think
it is hopeful sign that they have
been able to get their product di-
rectly associated with the agri-
cultural program. Because farm
blocs are powerful the world over,
the move to free restrictions on
trade is expected to exempt agri-
cultural products.