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J. W. FULBRIGHT, Arkansas, Chairman JOHN SPARKMAN, Alabama
BOURKE B. HICKENLOOPER, Iowa MIKE MANSFIELD, Montana
GEORGE D. AIKEN, Vermont WAYNE MORSE, Oregon
FRANK CARLSON, Kansas ALBERT GORE, Tennessee
· JOHN J. WILLIAMS, Delaware FRANK J. LAUSCHE, Ohio
KARL E. MUNDT, South Dakota FRANK CHURCH, Idaho
CLIFFORD P. CASE, New Jersey STUART SYMINGTON, Missouri
JOHN SHERMAN COOPER, Kentucky
CARL MARCY, Chief of Staff
Battle, Hon. Lucius D., Assistant Secretary of State for Near Eastern
and South Asian Affairs, accompanied by Jack R. Johnstone, Political-Economic Office, United Arab Republic desk, Department Page of State..
2 Insertions for the record: Text of S. 1975..
1 Table showing U.S. exports to the Sudan and the United Arab Republic combined.
4 Table showing U.S. general imports from the United Arab Republic and the Sudan combined..
6 Table showing U.S. exports to the United Arab Republic
8 Table showing U.S. general imports from the United Arab Republic.- 10 Table showing U.S. exports to the Sudan..
12 Table showing U.S. general imports from the Sudan..
14 Table showing U.S. trade with the United Arab Republic, calendar years, 1964-67.
15 Table showing extra-long-staple cotton: U.S. imports by country, 1956–57 to 1966–67..
15 Telegram from Paul Cresole, president, Cotton Importers Association, Inc., May 27, 1968.
17 Letter from Senator Ralph W. Yarborough of Texas to Senator Fulbright, May 27, 1968..
17 Letter from Coyte W. White, assistant for communications, South Carolina, May 27, 1968.
18 Letter from William Rhea Blake, executive vice president, National
Cotton Council of America, June 3, 1968.
20 Table showing production yields per harvested acre in four States, 1964-66.
20 Table showing U.S. cotton production, 1961-62 to 1967-68.
21 Letter from J. S. Francis, Jr., president, Supima Association of America, May 24, 1968.
26 Letter to Senator Fulbright from Senators Clinton P. Anderson and Joseph M. Montoya of New Mexico enclosing a statement.-
28 Statement of Senator Paul J. Fannin of Arizona..
LONG STAPLE COTTON
MONDAY, MAY 27, 1968
UNITED STATES SENATE,
Washington, D.C. The committee met, pursuant to notice, at 2:45 p.m., in room S-116, the Capitol, Senator J. W. Fulbright (chairman) presiding:
Present: Senators Fulbright, Symington, Hickenlooper, Aiken, and Case.
The CHAIRMAN. The committee will come to order.
The committee meets this afternoon with the Assistant Secretary of State for Near Eastern and South Asian Affairs, Lucius D. Battle, on S. 1975, the extra-long-staple cotton import quota bill, which would amend section 202 of the Agricultural Act of 1956.
(The text of S. 1975 follows:)
[S. 1975, 90th Cong., second sess.) A BILL To amend section 202 of the Agricultural Act of 1956 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 202 of the Agricultural Act of 1956 is amended by adding at the end thereof the following new subsection:
"(c) Notwithstanding any other provision of law, raw, semiprocessed, or processed extra long stape cotton, as described in section 347(a) of the Agricultural Adjustment Act of 1938, as amended, which is the product of a country which has failed to maintain diplomatic relations with the United States shall not constitute any portion of the quota of such extra long staple cotton set forth in subsection (a) of this section for the import quota year beginning next after the date of enactment of this subsection, or next after the severance of diplomatic relations, whichever occurs later, and shall continue to be excluded until the end of the second import quota year beginning after the resumption of diplomatic relations; and such quota set forth in subsection (a) shall be reduced by the average annual amount of extra long staple cotton received from any such country du ring the five quota years immediately preceding the quota year in which such severance of diplomatic relations occurs: Provided, That any such reduction shall continue only until the end of the second import quota year beginning after the resumption of diplomatic relations by such country with the United States. Notwithstanding any other provision of law, the Secretary shall give domestic producers the opportunity to produce an amount of such extra long staple cotton equal to any reduction in supply which may result from the enactment of this subsection and any contracts entered into for the purchase and shipment of such extra long staple cotton from such countries, shall be allowed entry into the United States subject only to existing United States quota limitations, if said contracts have been entered into before December 1, 1967.
The CHAIRMAN. This bill was referred to the Foreign Relations Committee on April 26, 1968, at my request, after clearance with the chairman of the Committee on Agriculture and the Majority Leader. It was also my request that Mr. Battle join us this afternoon to discuss what I consider the important foreign policy implications of this proposed legislation.
The Committee on Agriculture has reported favorably S. 1975 which excludes the importation of long-staple cotton from countries ! which severed diplomatic relations with the United States preceding enactment of the bill. As recommended by the Agriculture Committee, the bill is directed primarily against the Sudan and the United Arab Republic, the major exporters to the United States of the extralong-staple cotton. This prohibition of the importation of extra-longstaple cotton is to last two import quota years after diplomatic relations are resumed.
DIPLOMATIC RELATIONS AND TRADE RELATIONS
What I find most worrisome about this bill is the connection it makes between the absence of diplomatic relations and a disruption of trade relations. To my mind, the proper issue before this committee is not how much extra-long-staple cotton the United States should import, but whether at a critical moment in the history of the Middle East, the United States Senate should approve a bill which may act as a major barrier to the resumption of normal diplomatic relations with the United Arab Republic and the Sudan. Mr. Battle, we are very pleased to have you. I wonder if you would
I make a statement for the record.
STATEMENT OF HON. LUCIUS D. BATTLE, ASSISTANT SECRETARY
OF STATE FOR NEAR EASTERN AND SOUTH ASIAN AFFAIRS; ACCOMPANIED BY JACK R. JOHNSTONE, POLITICAL-ECONOMIC OFFICE, UNITED ARAB REPUBLIC DESK, DEPARTMENT OF STATE
Mr. BATTLE. Thank you, Mr. Chairman.
I have no prepared statement. I would like, however, to talk for a few minutes on the implications of this legislation that is before the Senate.
The Department of State and I are opposed to this legislation. We do not believe it would be helpful to the conduct of our international relations and we are opposed on several grounds.
I will emphasize primarily today the political implications because there are very complicated implications with respect to the GATT, and I would leave some of those more technical considerations to others.
With respect to the effect of this bill, if passed, there are several aspects that I would like to mention.
DIPLOMATIC RELATIONS WITH THE UNITED ARAB REPUBLIC
We have, as you know, sir, over a long period of time had very difficult relations with the United Arab Republic, the main country affected by this legislation. There are, of course, other countries, such as the Sudan and Morocco which are affected, but the main one is the United Arab Republic.
I think one of the main reasons why we have had very difficult relations with the United Arab Republic is that our relations have been marked by violent swings over the years. If you look back to the years since Nasser came into power, we have either, in my judg