Foreign Relations of the United States, 1961–1963, Volume IX, Foreign Economic Policy

252. Memorandum From Secretary of State Rusk to President Kennedy⁰

Washington, October 12, 1962.

SUBJECT

• Recommended Veto of H.R. 8938 on Bicycle Tariffs

H.R. 8938 was passed by the Congress on October 5 and is now before you for consideration. This bill has the effect by reclassification of doubling the duty on half our imports of bicycles. The bill has been consistently opposed by the Department of Commerce, the Department of State, and other Executive agencies.

I strongly recommend that you veto H.R. 8938.

The reasons for my opposition are that:

• —The Bill is an example of unilateral tariffmaking by special legislation, and as such is contrary to the new Trade Expansion Act.
• —In doubling bicycle tariffs, the Bill will likely produce prompt retaliation by the United Kingdom, the Common Market countries, Japan and Austria—retaliation of the kind recently generated by escape clause action on carpets and glass. This retaliation will adversely affect United States exports at a time when we are trying to increase them.
• —The Bill will undermine confidence in United States negotiated tariff commitments, and prejudice the bargaining position of your Chief Negotiator in the upcoming crucial negotiations with the European Economic Community.
• —The bicycle industry has made no effort to show that it is suffering serious competitive injury from imports; in the absence of such injury, unilateral action on this tariff will violate an existing international agreement of the United States.
• —The industry has not availed itself of the administrative remedies open to it under the tariff laws.

A proposed draft of veto message is attached.¹

Dean Rusk²

Notation: If Congressional adjournment permits, a “pocket veto” is available.³

0. Source: Department of State, Central Files, 411.006/10-1262. No classification marking. Drafted by Bayless A. Manning (U) and cleared in substance by W. Michael Blumenthal (E) and Herman Barger (E/OTF). A typed notation on the source text reads: “Withholding approval. See Press Release from W.H. 10/22/62.” The attached press release is printed in Public Papers of the Presidents of the United States: John F. Kennedy, 1962, p. 805.
1. Not attached but presumably the draft veto message was the same as, or very similar to, the White House Press Release.
2. Printed from a copy that indicates Rusk signed the original.
3. The notation is in unidentified handwriting. Because the second session of the 87th Congress had adjourned, the President’s disapproval was a “pocket veto” of the bill.