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EXPORT EXPANSION ACT OF 1971

HEARINGS

BEFORE THE

SUBCOMMITTEE ON

FOREIGN COMMERCE AND TOURISM

OF THE

COMMITTEE ON COMMERCE

UNITED STATES SENATE

NINETY-SECOND CONGRESS

SECOND SESSION

ON

S. 2754

TO AUTHORIZE THE SECRETARY OF COMMERCE TO ENGAGE
IN CERTAIN EXPORT EXPANSION ACTIVITIES, AND
FOR RELATED PURPOSES

JANUARY 24, 25, 26, 27, 28; FEBRUARY 17, AND 18, 1972

Serial No. 92-83

Printed for the use of the Committee on Commerce

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1972

COMMITTEE ON COMMERCE

WARREN G. MAGNUSON, Washington, Chairman

JOHN O. PASTORE, Rhode Island
VANCE HARTKE, Indiana
PHILIP A. HART, Michigan
HOWARD W. CANNON, Nevada
RUSSELL B. LONG, Louisiana
FRANK E. MOSS, Utah

ERNEST F. HOLLINGS, South Carolina
DANIEL K. INOUYE, Hawaii
WILLIAM B. SPONG, JR., Virginia

NORRIS COTTON, New Hampshire
JAMES B. PEARSON, Kansas
ROBERT P. GRIFFIN, Michigan
HOWARD H. BAKER, JR., Tennessee
MARLOW W. COOK, Kentucky
TED STEVENS, Alaska

J. GLENN BEALL, JR., Maryland
LOWELL P. WEICKER, JR., Connecticut

FREDERICK J. LORDAN, Staff Director
MICHAEL PERTSCHUK, Chief Counsel
EMANUEL ROUVELAS, Staff Counsel

ERIC H. M. LEE, Staff Counsel
ARTHUR PANKOPF, Jr., Minority Staff Director
DAVID CLANTON, Minority Staff Counsel

SUBCOMMITTEE ON FOREIGN COMMERCE AND TOURISM

DANIEL K. INOUYE, Hawaii, Chairman

VANCE HARTKE, Indiana HOWARD W. CANNON, Nevada RUSSELL B. LONG, Louisiana FRANK E. MOSS, Utah

ROBERT P. GRIFFIN, Michigan HOWARD H. BAKER, JR., Tennessee TED STEVENS, Alaska

J. GLENN BEALL, JR., Maryland

(II)

CONTENTS

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Questions of Senator Inouye and the answers thereto..

147

Stans, Hon. Maurice H., Secretary, Department of Commerce; accompanied
by Harold Scott, Assistant Secretary, Domestic and International Busi-
ness; and William Letson, general counsel__.

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Questions of Senator Inouye and the answers thereto-

taats, Hon. Elmer B., Comptroller General, General Accounting Office;
accompanied by Charles D. Hylander, Deputy Director, International
Division; John E. Milgate, Associate Director; James Y. Kurihara, As-
sistant Director; and Joseph R. Ferri, Supervisory Auditor_.

Letter of March 22, 1972_.

Dickerson, Ray, director, Department of Business and Economic Develop-
ment, on behalf of the National Association of State Development
Agencies; accompanied by Frank Alspaugh___

Donaghue, Hugh P., assistant to the president, Control Data Corp.; accom-
panied by Earle Lerette__

Harr, Dr. Karl G., Jr., president, Aerospace Industries Association of

America, Inc.; accompanied by Marshall J. Garrett, international

director

Questions of Senator Inouye and the answers thereto___.

Rohrbacher, Bruce, director, McKinsey & Co.; accompanied by Brian

Thompson

405

381

372

Prepared statement

Questions of Senator Inouye and the answers thereto..

Grant, Virgil V., executive vice president, Caterpillar Tractor Co., Peoria,
Ill.; accompanied by James Fender, Associate__.

471

McElwaine, Robert M., executive vice president, Volkswagen American
Dealers Association

478

492

Letter of March 2, 1972_

Steinberg, David, executive director, Committee for a National Trade
Policy

461

470

Serenbetz, Warren L., president, Interpool Corp-----

535

Vaccaro, John C., transportation director, National Association of Sec-
ondary Material Industries, Inc.; accompanied by Edward L. Merrigan,
association counsel; Mitchel Bekritsky, traffic manager of Philipp Bros. ;
Edward Frankel, Frankel Bros. & Co.; and Richard Stovroff, president,
Consolidated Fibers...

Ytterberg, Ralph W., president, Textile Machinery Divisions, North Amer-
ican Rockwell Corp.; accompanied by Graydon R. Powers, Jr., executive
vice president, American Textile Machinery Association__.

Adams, Josiah K., vice president and general counsel, States Marine Inter-
national; accompanied by Gordon Torrey.

621

627

600

573

744

Prepared statement---

754

Beach, Robert, vice president, United Aircraft Corp.; accompanied by Rob-
ert Baer, president, United Aircraft International, Inc.; George Kron-
miller, senior Washington representative, UAI; and Joseph Coughlan,
staff attorney, UAC----

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Harrop, William C., chairman, board of directors, American Foreign Serv-
ice Association; accompanied by F. Allen Harris; and Harvey Fergus-

son

772

Prepared statement_-_

772

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ADDITIONAL ARTICLES, LETTERS, AND STATEMENTS

Abshire, David M., Assistant Secretary for Congressional Relations,

letters of:

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