<--PREV Doc #859  |  Memorial Commission Home Page  |  First Term Table of Contents  |  Presidential Papers Home Page  |  Doc#  |  NEXT--> Doc #861 Document #860; May 6, 1954 To Daniel Alden Reed Series: EM, AWF, DDE Diaries Series The Papers of Dwight David Eisenhower, Volume XV - The Presidency: The Middle Way Part V: Maintaining "a united defense"; April 1954 to August 1954 Chapter 10: Losing the war "they could not win"   Dear Dan:1 In my message to Congress of March thirtieth concerning the foreign economic policy of the United States I set forth what I believe to be a minimum essential program for the building of a stronger America as an integral part of a strong and economically vigorous free world.2 Because I consider the enactment of that program indispensable to the work that this Administration must do in the national interest, I have given much thought to the means by which such enactment can best be assured. I have reached certain conclusions which I now pass on as suggestions to you: 1. Accomplishing enactment of the heart of the program--amendment of the Reciprocal Trade Agreements Act--would, I believe, best be served by careful and deliberate action taken on the basis of extensive and unhurried hearings. In this way the wide public support for the program that I know exists will have adequate time and opportunity to express itself. Hence it is my suggestion--which I earnestly hope you will adopt--that the Committee on Ways and Means follow the pattern of its historic work last year on the tax bill by initiating hearings on the Reciprocal Trade Agreements aspect of the program as soon as possible so that full and adequate hearings can be completed between now and the reconvening of Congress next January. Under this procedure the Committee would be prepared in January to immediately begin the consideration of the legislation in executive session with a view to reporting it early in the year. A simple one-year extension of the present Act would, of course, be required for the interim period.3 2. In addition to the initiation of hearings on the vital subject of extension and amendment of the Reciprocal Trade Agreements Act, there is much else that should be accomplished in this session of Congress to carry into effect the recommendations of my message on foreign economic policy. The tax incentives for foreign investment provided for in H.R. 8300 will, I am confident, become law shortly. I look forward to the enactment at this session of Congress of the increase in the tourist allowance from $500 to $1,000 that is provided for in H.R. 8352 now pending before your Committee. It is my hope and expectation that Congress will shortly complete action on H.R. 6584 dealing with customs valuation. A study by the Tariff Commission looking to the simplification of commodity schedules and classifications under our customs laws ought, I believe, also to be authorized at this session. Action to clarify the application of our Buy-American legislation can be carried out administratively.4 Accomplishment of these things now would represent substantial progress in which we all could take satisfaction. With these first steps behind us we will be able early next year to devote our full efforts to the vital part of the program, the further amendment and extension of the Reciprocal Trade Agreements Act. This overall program will provide the forward motion in our country essential to progress the world over in raising levels of profitable trade and investment. It is my deep conviction that in this direction lies the greater security for America that comes from a stronger free world.5 Sincerely 1 Congressman Reed (Rep., N.Y.) was chairman of the House Ways and Means Committee and a key player in the President's campaign to win congressional support for a liberalization of U.S. foreign trade policy. 2 On the President's special message to the Congress see Public Papers of the Presidents: Eisenhower, 1954, pp. 352-64. For background see nos. 170, 250, 445, and 804; see also Saulnier, Constructive Years, pp. 199-207. 3 The Trade Agreements Extension Act of 1953 would expire on June 12, 1954. In accordance with recommendations of the Commission on Foreign Economic Policy (Randall Commission), Eisenhower had, in his March message to Congress, asked for a three-year renewal of the measure. On reconsideration, however, the President concluded that a one-year extension would be acceptable. He would soon so state in a letter to Charles H. Percy, made public on May 20 (see no. 884, and n. 5 below). 4 On these proposals see Public Papers of the Presidents: Eisenhower, 1954, pp. 352-64, and New York Times, March 30, 1954; for developments see no. 908. 5 On May 18 the President would have breakfast with Reed, economic affairs adviser Gabriel Hauge, and administrative adviser I. Jack Martin. In a longhand notation at the top margin of this letter Eisenhower would write: "This memo was discussed with Dan Reed--but not sent as letter--on his request. I told him on 18 May I'd make June week statement publicly. D." Accordingly, on June 10, at his news conference, Eisenhower would discuss at length his views on the liberalization of trade policy and his endorsement of a one-year extension of the Reciprocal Trade Act (see Public Papers of the Presidents: Eisenhower, 1954, pp. 551-54; and New York Times, June 11, 1954). For developments see nos. 884 and 908. Bibliographic reference to this document: Eisenhower, Dwight D. To Daniel Alden Reed, 6 May 1954. In The Papers of Dwight David Eisenhower, ed. L. Galambos and D. van Ee, doc. 860. World Wide Web facsimile by The Dwight D. Eisenhower Memorial Commission of the print edition; Baltimore, MD: The Johns Hopkins University Press, 1996, http://www.eisenhowermemorial.org/presidential-papers/first-term/documents/860.cfm <--PREV Doc #859  |  Memorial Commission Home Page  |  First Term Table of Contents  |  Presidential Papers Home Page  |  Doc#  |  NEXT--> Doc #861

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