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U. S. Lumbermer, Alarmed By Canadian Tariff Action, Renew Request To JFK For Temporary Lumber Quota
The American lumber industrv. reacting sharply to Canada's uniliteral imposition of higher tariffs on a wide range of imports June 24, has again urged President Kennedy to impose a temporary quota on Canadian softwood lumber "to provide easement of the current emergency confronting the lumber industry and its employees."
Arthur Temple, Jr., President of National l,umber Manufacturers Association, in a letter to the Chief Executive renewed his industry's request of May 10 for immediate miasures ro counteract the flood of Canadian lumber which has cost 200,000 iobs in American forest industries.
"\Me recognize that our Canadian friends are confronted with fiscal and financial diffrculties," Mr. Temple wrote the President. "We share the prevailing American sentiment that we should stand by these longtime friends in this crisis.
"Howevef," he added, "we do not believe that the burden of supporting a sound fiscal position for the Canadian nation should be largely borne by the privately owned and operated lumber industry in the United States."
Softwood lumber imports from Canada presently occupy more than 14 per cent of United States lumber markets and have increased more than 20 oer cdnt over a year ago. according to Department of Commerce figures.
Referring to White l{ouse action creating an interagency task force to "analyze tl-re basic factors at work and to consider possible solutions," Mr. Temple stated, "The basic factors at
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rvork are, in my opinion and in the opinions of my colleagues in the American lumber industrv. either self-eviclent or are treated eihaustivelv in the hearings of the Senate Commerle Committee recently concluded."
He cited State Department testirnony before that Committee with respect to industry requests for the temporary quota on Canadian lumber 'ivhich emphasized that U. S.Canadian trade agreements are to maintain stability in day-to-day trade relat10ns.
The State Department spokesman then had declared, ". . both countries have undertaken not to imoose restrictiorrs on the other's effori except in very carefully defined circumstaices. The principal one is that neither will resort to the imposition of quotas or increased tariffs against the other unless such action is determined to be necessary to remedy serious injury due to increased imports."
Mr. Temple commented, "It is ap- parent that Prime Minister fohn G. Diefenbaker has made that deiermination and acted forthrightly to serve the needs of his nation. His recent action certainly is at variance with the philosophy espoused in its testimony before the Senate Commerce Committee when the State Department held, 'we believe the urgency of the problem should not lead us into precipitous action which migl-rt prove harmful in the last analysis to the industry itself and the nation as a whole."'
Quoting Mr. Diefer.rbaker's stateurent that "these emergency measures are temporary and will be removed as soon as circumstances permit," Nf r. Temple reminded the Presideflt, " he has stated a policy which is precisely the burden of the American lumber industry's request for a temporary quarterly quota on Canaclian softwood lumber."
Mr. Temple said the lumber industry had been advised that the United States Treasury Department has announced the intention of the United States to accept the Canadian action as being temporary and of an emerg'ency nature and has declined to require upward adjustment in U. S. tariff rates on Canadian goods. He pointed out that such action is clearly indicated under existing Reciprocal Trade Agreements.
"This action by the Canadian Government, close on the heels of devaluation of the Canadian dollar," I\f r. Temple added, "emphasizes that that g'overnment is prepared to take any action to protect its domestic industry. Since one of the major exports from Canada is lumber, the lumber industry in the United States is reelilrg under the direct impact of these Canadian g'overnmental ictions."
N{r. Temple first proposed consideration of a temporary quota in a letter to the Secretary of Commerce NIarclT 22 and, at the same time, asked him to arrang'e an early conference betrveen representatives of the United States and Canadian softwood lumber industries to work out a mutually acceptable solution.
Lumber industry spokesmen indicate that no formal replv has yet been received to that proposal.
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