287. Letter From Secretary of Commerce Hodges to Secretary of State Rusk0

Dear Mr. Secretary: I am pleased to attach for your information the report of the White House Conference on Export Expansion which was held on September 17-18, 1963. For your convenience, I am also attaching a summary which reflects the highlights of the reports of the several Committees.

The report is only a beginning. We plan to hold little “White House Conferences” in all parts of the country starting next week so that the export expansion story can be brought home to Americans everywhere.

[Page 617]

May I thank you once again for your cooperation and support. The enthusiastic reports we have been receiving from members of the Conference on the way in which it was conducted and the results which have been achieved are indeed gratifying.

We will now move forward promptly to develop appropriate action programs. I am looking forward to your continued cooperation in this most important task.

Sincerely yours,

Luther H. Hodges

Attachment

HIGHLIGHTS OF THE REPORT ON THE WHITE HOUSE CONFERENCE ON EXPORT EXPANSION1

It is remarkable that so much was accomplished in the two short days devoted to the White House Conference on Export Expansion. The employment of the committee technique enabled the Conference to produce a wide variety of significant recommendations. It is a tribute to the caliber of the conferees that these complex problems were so ably pre-sented for our consideration. Although the Conference participants represented many diverse interests and deliberated in eleven different groups, their conclusions blend and complement one another.

While each Committee recognized and carried forward its individual task, reference was made to policies under consideration by other Committees when it was felt their relationship was significant. I should like to mention the most important of these.

Several Committees strongly urged that an export tax incentive based upon increases in exports is of the highest priority in the Export Expansion Program. The Committee on “Tax Policies and Export Expansion” developed specific recommendations in this regard. Some members [Page 618] of the Labor Committee felt we should concentrate on the elimination of the tax subsidies of other countries instead of recommending a U.S. tax incentive program, but this represented the view of a small minority.

While one Committee had responsibility for studying commercial representation overseas, several Committees addressed themselves to this subject.

It was the general view that since the Department of Commerce has primary responsibility for trade promotion, it should also have responsibility for the selection, training, appointment, and assignment of all Commercial Officers. One Committee bluntly stated that the Export Expansion Program would only be a success if the Department of Commerce had direct control over all commercial programs overseas. Each of these Committees recognized that the Ambassador, as the President’s representative for all overseas programs, would be in charge in the field.

Several Committees noted the need for more active participation in commercial work by Ambassadors themselves. They also urged more intimate relationships with the U.S. business community, greater assist-ance and support, and suggested means for bringing this about.

Another topic of general interest concerned U.S. trade with the Soviet bloc. The views of a number of Committees were reflected in the recommendation that the U.S. re-examine the extent to which there might be an expansion of trade with the bloc in the light of the changing world situation.

Several of the Committees urged the strengthening of the Department of Commerce’s information services. They noted the importance of attacking non-tariff barriers as well as seeking tariff reductions in the forthcoming Geneva negotiations. A number of Committees also recommended equalization of ocean freight rates and simplification of AID procurement policies. It was felt that present AID regulations distort normal commercial practices and divert business from U.S. exports.

Three Committees also called attention to the beneficial relationship between foreign investment and U.S. exports. A number of the Committees discussed ways and means of achieving an early and rapid increase in U.S. exports. It was the consensus that a strong attack on this problem must be directed on a person-to-person basis to non-exporters. It was recommended that the Department of Commerce and its National and Regional Export Expansion Councils mobilize their resources to maximize this personal effort.

[Here follows a long summary of the most significant findings and recommendations.]

  1. Source: Department of State, Central Files, FT(EX) US. No classification marking.
  2. Secretary of Commerce Hodges presided over the conference, which involved the participation of many members of the Kennedy administration, including most of the Cabinet. President Kennedy addressed the conference on September 17, followed by remarks by Secretaries Hodges, Rusk, Dillon, Freeman, and Wirtz. Special Trade Representative Herter delivered a luncheon address the same day, after which the conference divided into 10 committees, each examining separate components of a successful export expansion program. The President’s address as well as the talks given by Rusk and Herter are printed in Department of State Bulletin, October 14, 1963, pp. 595-605.