International Trade Files, Lot 57 D 284, Box 161, “Escape Clause”
The President to the Chairman of the United States Tariff Commission (Ryder)
My Dear Mr. Ryder: The recommendation of the Tariff Commission in the report of November 9, 1951, resulting from the investigation with respect to hatters’ fur under section 7 of the Trade Agreements Extension Act of 1951 is hereby approved. Accordingly I am issuing a proclamation giving effect to the recommended modification in the import duty.
I note with gratification that the Tariff Commission plans to keep this case under constant review in the light of possible changed conditions in the future. I believe that it would be worthwhile to adopt a periodic system of review and report with respect to all modifications of Trade Agreement concessions under the escape clause provision of the Trade Agreements Extension Act. While we must be alert to safeguard American industry from actual or threatened serious injury, we must be equally alert to insure that trade agreement concessions are not modified for a period longer than is necessary to prevent or remedy the injury. The retention of the modifications beyond the period when they are necessary to prevent or remedy such injury could have various adverse effects upon our economy. It could harm American exporters who are reliant upon foreign markets, by encouraging other countries to apply retaliatory withdrawals of concessions. It could injure American consumers by unnecessarily adding to the cost of the goods they buy. In addition, it could impede American foreign policy objectives by denying other friendly nations the opportunity of earning the dollars which they need for their economic recovery and [Page 1560] their military efforts in the defense of the free world, by curtailing markets in which those countries earn the dollars to finance such efforts.
In view of these important considerations I have requested that an Executive Order be prepared for my consideration which would establish a regular procedure for periodic review of escape clause modifications of trade agreement concessions. Such an order would call for full investigation and report to the President by the Tariff Commission on each such case at periodic intervals, indicating whether or not, in the light of the circumstances then existing, the modified concession should in the Commission’s view be continued in its existing form.
Very sincerely yours,