HANDWRITTEN NOTES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87T00759R000100180009-9
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 6
• Document Creation Date: December 22, 2016
• Document Release Date: May 13, 2010
• Sequence Number: 9
• Publication Date: July 23, 1985
• Content Type: MISC

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STAT
Sanitized Copy Approved for Release 2010/05/13: CIA-RDP87T00759R000100180009-9
 Sanitized Copy Approved for Release 2010/05/13: CIA-RDP87T00759R000100180009-9
COMPARATIVE STATISTICS OF RELIEF OPTIONS
0STs
rlv~t Z&-.Z
Option 4:
Option 2: Option' : Liberal
USITC Tariff Tariff
Remedy Option Option
Q,tdfnn/J-
5 Year Average
Tariff (including
9% tariff) 923/21/16/12
20/18/15/12/10
1st Year Reduction
in Imports from
1984:
Volume Red.
% Reduction
102 mil.prs.
14%
56-99 mil.prs.
8-13%
38-66 mil.prs.
5-9%
I/C Ratio for
5 years. 1/
61/61/62/64/68
62/63/65/68/71
65/66/67/69/71 -
Net Welfare
Costs (Annual
Average)
$55-$105 mil.
$59-63 mil.
About $40 mil.
Annual Consumer
Costs (Annual
Average)
$342-$572 mil.
$358-$379 mil.
$240-254 mil.
5 Year
Consumer Costs
$1.7-$2.9 bil.
$1.8-$1.9 bil.
$1.2-$1.3 bil,
---
Producer Surplus
(Annual Average)
$51-$86 mil.
$99-$102 mil.
$66-$68 mil.
Federal Revenue
0
$200-$214 mil.
$134-$143 mil.
Employment
(13,000-
24,400-
16,000-
Increase
21,000 jobs
25,100 jobs
17,000 jobs
Consumer Costs
$15,100-
per Job Created
$26,300
$15,500
$15,000
1/ Assuming a high baseline.
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 Appendix 8
64
il~
Clause Action Sections 201-203,
Prrocedur es ~ /--
presidential authority to grant im
awn
t
r
reliefw
, co known as escape clause or safe
uard
i
g
prov
s ns has b ie
,eennclud in trade agreements legislation in varying forms since 195
This authority is presently contained in Ti ti
e II Secti 2
.,on01,E
Of' the Trade Act of 197 4
Ti tl
N
.
e
-LSO contaiil
-ns s ca Which; apply when imports from Communist countries are fou d
to diprupt domestic markets
.
nj ury,
3? The increased imports are a substantial cause of the serious
injury. or threat thereof to the domestic industry producing
*11a'
lke or, directly competitive article.
No further action is taken if the r'
$> . A. domestic industry ..producing an article like or directly
Competitive with the imported article is being seriously injured
or threatened with such
y
c d
ommen import relief:
a. Imports are increasing, either actually or relative t
doQestjc production;
o
p r s to the President. All
of the following conditions must be met for the Commission to
find affirmativel
and re
-A-national Trade Commissio
f USITC) which investigates and re
t
y tiated by a petitio `-
from the industry involved to the II S I t4
An escape clause action is usuall
ommission finds that
the statutory criteria are not met. When the finding is affirmative
or the Commission is evenly divided in recommending relief,
the Executive Branch agencies concerned with foreign trade examine
the matter and report to the PresidetN
N
n
o later th 60 d
.anays
after the Cem,ssion's report, the President determines what
remedy, if any, is in the national economic interests.
The types of remedies
th
i
au
or
zed by th Td
erae Act either
singly or in combination are tariff increases, tariff-rate quotas,
aC} LE: quantitative. import restrictions, and orderl
k
y mar
eting agreemet
ns.
As an alternative or as a supplement, the President may also
direct that- expedited adjustment assistance be provided f
or
firms and workers in the injured industries and for communities
77 impacted by the injurious imports.
When the USITC recommends relief and the President does
not implement the recommendation, he must promptly report to
the Congress his reasons for not doing so. In such cases, the
Trade Act of 1974 provides that Congress may, by concurrent
r'eso, ution passed by majority vote in both Houses, order the
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 M eel or ono 4
atoms speeobfias the~reaidmt
de hods o roe maw ;
$5 H *z? export-limitation agree"
mum si r to to Japanese auto re-
taimk.t~t esplred this year. The White
Hour power* has eschewed formal im-
position of quotas.,
The commission's recommendation
h- tab !or1l imports sa year`~ir t of nom.
rhe
y',LA I .y arse The ceu,ng www be in
cirgsrpd raduaUy over the next three
toes maximum of ss4, m~nillios~atrs
"ad
The
with d be
value o
or a retail. And. In
new 10000, earnm>isafon ro Deed that
be " -be
selling ~'
eo to the highest bidder to help
do .
TLS 49'4 miltioepdr ceiling effectively .
wondd rib she imparts in the Sz.50~oe'
above range back to their 1983 levels. Total
U.S. sales of foreiga.nae fodtaea rose
34M% In 1984, to 74% of the U. et
All WC manufacturers sold
sass 1'Z.9 million pairs of sirs in the
U$ le I9. fora total vale of 54.7 billion.
*A& h* 9115da say footwear im,
ports n: far mtryWs year 25% higher than
1184 kNela
lve shoes-those
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TM WALL STRE'ET' JOl 1t' THURSDAY, JUNG 13,
Import Quotas
on Shoes Urged
By Trade Panel
President to Consider Move,
Or May Ask Countries
To Negotiate Restraints
1310 Arta Fars
swll.~w~-~/~wwat.s+s,.erJo.rww.
? MAGI-'the U.3. ~.
for the
grgt>vfootwear imports
nest late years to aid the domestic sloe to-
tb ddme~tbC ll. 68 d tit .
daatt'y
JX*M of leexpens
with a Customs value of less than $2.50 a
petit, w $kh amount to about 21% of all tm-
voalds't be affected. However,
president of the Footwear
Rep erS~America, which opposes tmpo?
s of quotas. said the $2.50-a pair ex-
ssspgara wadd, affect mainly sandals.
leather thongs. and the like.
'mendanon "a disaster for consumers."
The recommendatIon marked a revue
sal of the commisdon's hiding of a year
ago. when the five-member panel ruled
that the domestic industry hadn't been
but by import competition. The change of
mind reflected both economic and political
VXS-
Imposts incread sharply last year In
seeded in persuading Congress to relax the
criteria by which the eonmissian made its,
petiItlosIn jWL The industry mpmt relief. aand thfiled Its
e Fit
lined Maya the domestic industry
had bees injured suWctently by imports to
warrant a remedy. .
The panel's action yesterday cam. an a
4.1 vote. The krone disaemt-r was Commie
alma Susan Liebeler. who argued that the
domestic shoe industry was dying because
it simply wasn't any longer able to cour
pate, and that import restrictions wouldn't
help the situation. She said an industry
plan
to moderniw production n't -credible or facilities, viable." -
was
Under the majority recomaundatlam.
the import quotas would become etieepve
r ctively as of June 1, and would car
Woe at the 474? millioo-palr level through
May 31.1987. The ceiling would be raised
390 in 1987-88.69e in 198889 and 9% in 1989-
90. Some commissioners suggested varying
the quotas in different price categories.
George Langstaff. president of the Foot
wear Industry Association, the domestic
manufacturers' trade group. said be was
"generally satisfied" with the recommen-
dation. although he was critical of a few
details in the plan.
However. Mrs. Ltebeler and several
consumer groups charged the move would
raise prices unnecessarily for consumers.
Argentina Pays Banks
$250 MiUion in Interest
Sped 1 to Tun WA" STaarr Jovww.w
NEW YORK{ - Argentina yedday
paid creditor banks 53,40 million from its
own foreign-exchange reserves. acco d-
ing to a statement from Citibank.
Citibank acts as chairman for the
ages with Argentina on its $45 billion fo`
eign debt.
The latest payment brings Argeatlh
nor
current to last Dec. 30 on Interest
meats to banks on gov.rnmkentarsed
debt. That leaves about 5808 mitilas In
interest payments still overdue.
Argentina is under p=are this
week to pay wane overdue batik interest
because U.S. regulators are meeting in
Washington to review countries to which
U.S. banks have made loans. Bankers
had feared the regulators might bower
Argentina's credit rating because of sub-
stantial overdue interest payments.
Meanwhile, the country is trying to raise
a short-Min loan from the U.S. and
other goveresneea to help pay moue
Overdue inn rest.
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 Sanitized Copy Approved for Release 2010/05/13: CIA-RDP87T00759R000100180009-9
THURIIIMY. JUNE 13,1985 ? ? R '11E WASHINGTON Post
ITC UrgesT
Import Cut
For Shoes
Ag~nq~m
. poses
That Firms, Bid
The 1aterationd trade Com.
mission yesterday recommended a
sharp lima os shoe comports for the
4r fiveyesnrs and proposed for the
that floes that businsssas bd forced
tea bidiw aallwa art thernew quotmu.
Pbwd' the tide oonmsoississr
rpiemtatiies sM-1-1 tiisrrooemtea-.
4dtanm .
rrc plan, irrtdded' to pro-
tect the damodk shoe industry,
will be seem to President Reagan
Julie .1 foe final action.
The import restrictions would
have the. greste t. net on Taiwan
1Keres. Brasil; ` S Hong
Kong and the P!i On 11.
? Sales of quotas had been pro-
posed is the past by some commis-
Sian members to protect the belea-
guered U.S. sugar industry.. But
yesterday's vote marked the first
time that a majority of the ITC
called for quota sales, which were
authorised. by the. 1979 Trade
Arc. to help defend an
endaagssed segesent at
U.S. busi-
ness. said VC corniest William W.
bete; the lone oppoa the con-
' 1M
saw that _co.t p scar vrauld weed yep Pay' ;
sbai 1 rgir the t arejn
e sand -.most.-of that-
WY would tlow?he United :
Sartre to shoe cedes,.
hi ,:
aarrcitieer.
Shoe retailers contended the quo-
too would cost consumers several'
billion dollars a year and save only a
few thousand jobs in U.S. shoe man-
ufacturing plants.
? Opposing ernrnrimiosexs dis-
agreed with Liebeler's figures but
? conceded that quotas would drain
money from the U.S. economy. The
auction play is meant to return
some of that money to the U.S.
Treasury. but is act meant to bee.
,eft cooeaemesa per se, those cove-
White House officials, yesterday
. coaunenI on the ITC vote.
?Usdar federal law, the peesidest
-has 60 days from the timed receipt
:to, act on the commission's recoat-
'mreadstior. The proposal would
'be is dented within 15 days ail-
U.S. impart quotas at shoes
were last imposed in 1981 to limit
dw number and kinds of footwear
products coming into this country
from Taiwan and South Korea.
These quotas, in effect since 1977.
'ended after the Reagan admrumtra.
tion declined to renew them.
But domestic oboe manufacturns
a d their supporters were confident
yesterday that the Reagan a4mm-
:isttation a ready to accept wort
* restraints an shoes. A U.S. trade
deficit that could reach $150 billion
year-inckedisg a 77.4 percent
import penentration into the U.S.
shoe market-all argue for relief
from foreign competition. the U.S.
shoe maoutacture n said.
The ITC's unanimous vote last
May 22 that the domestic shoe
companies were being hurt by for-
eign competition and the commis
The import
restrictions would
have the greatest
effect on Taiwan,
Korea, Brazil, Italy,
Spain, Hong Kong,
and the Philippines.
sloe's majority vote yesterday rec-
ommending a remedy also bode well
for favorable administration action.
supporters said.
"The stronger the recommenda-
tions, the better the chance for vic-
tory at the White House, said
Fawn Evenson, national affairs vice
3?!f
president for the Verginile bee d
Footwear Industries of Amedrm,
which represents most of the ft-
don's noacubbeer footwear mans'
facturers.
Three of the five eoeawais.
members asked that the proposed
remedy be made retroactive to J
L It would be in effect for five ?
years.
The proposal does not affect
shoes valued at $2.50 a pair or
less-a provision meant to key
low-cost imported footwear avail.
able for low-income eneesumeees.
During the first two years d glen'
tae, foreign mmvbcMm would boN-
l to aaeu l U.& sass of 474
million parrs of shoes. That calling
would rise by increments of 3 par
cent for each of the remsag thus
years of quotas.
President Reagan. assuming that
be apprares the concept, mama
have to determine how the sesctloer<
would work. For examp , the preen
ide of ? would be reesposs" * for
choosing agency to ow
duct the suction.
lbe licensing of quotas is as ap?
propriate idea became it keeps the
quota rents in this nation," said
feorge Q. Langstaff, Footwear In-
dustriees of America president. But
Langstaff and FIA vice president
Evenson said that they are con-
cerned that the commissioners may
have given foreign manufacuirers a
big loophole by nut placing a limit
an the number of low-cost foreign
shoes that can be sold in this coue-
try. 'The U.S. Customs people don't
open up boxes and crates. This is aI
done with bills of lading. It's paper-
work. U the pawog that
this box contains $ .50 sly, Cue-
toms accepts that. Almost anything
can get though," Everson said.
lag an
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