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Economy - Trade Specialty Steel
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The original documents are located in Box 11, folder "Economy - Trade Specialty Steel" of
the Philip Buchen Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 11 of the Philip Buchen Files at the Gerald R. Ford Presidential Library
THE WHITE HOUSE
WASHINGTON
May 29, 1976
MEMORANDUM FOR PHILIP BUCHEN
JOHN O. MARSH
JAMES M. CANNON
MAX FRIEDERSDORF
BRENT SCOWCROFT
FROM:
L. WILLIAM SEIDMAN LWS
SUBJECT:
Implementation of Speciality Steel Decision
A memorandum from Ambassador Dent on implementation of the
specialty steel decision is attached.
I would appreciate your comments and recommendations no later
than c.o.b. Tuesday, June 1, 1976
No objection
Ken Legarns
6/2/76
girt
Attachment
CONF IDENTIAL
THE SPECIAL REPRESENTATIVE FOR
TRADE NEGOTIATIONS
WASHINGTON
May 27, 1976
MEMORANDUM FOR THE PRESIDENT
FROM : Frederick B. Dent Flis At
SUBJECT: Implementation of Specialty Steel Decision
Pursuant to your decision of March 16, 1976, you
instructed me to seek orderly marketing agreements with
the countries which are principal suppliers of specialty
steel to the United States market. You announced your
intention at that time that if agreements were not negoti-
ated successfully, you would proclaim import quotas for a
period of three years to take effect on or before June 14,
1976, at overall levels comparable to those recommended by
the U.S. International Trade Commission.
Invitations to negotiate were extended to Japan, the EC
and Sweden. Of these suppliers, only Japan has indicated its
willingness to sign an agreement with the United States. Japan
is our principal supplier, accounting for 51 percent of all
U.S. imports of specialty steel in 1975. The agreement with
Japan provides for a reduction of Japanese shipments to the
annual average share that that country shipped during the
period 1971-75, with some additional elements of flexibility
with regard to shifting between product categories.
It is proposed that quotas be provided for other countries,
generally on the 1971-75 base applied initially to Japan (with-
out the agreed additional elements of flexibility), with some
additional consideration for our trade with Canada, which runs
heavily in our favor, and with provision being made for new
suppliers. This nondiscriminatory application of quantitative
restrictions complies with United States international obli-
gations under the General Agreement on Tariffs and Trade (GATT).
A full description of the proposed import relief program is
contained in the attached memorandum. A copy of the proposed
agreement with Japan is contained in Annex C.
CONFIDENTIAL
DECLASSIFIED
E.O. 12958, Sec. 3.5
NSC Memo, 11/24/98, State Dept. Guidelines
By WHM NARA, Date 5/5/00
CONFIDENTIAL
- 2 -
Discussions are continuing with Canada which may result
in an exchange of letters agreeing that the Canadian quota
will only be applied after consultations are held. This possible
agreement would not affect the amount of U.S. specialty steel
imports allocated to Canada.
Under the provisions of the Trade Act, import relief must
be effective in accordance with your decision no later than
June 14, 1976. After receiving your approval, I will indicate
to the Government of Japan that the orderly marketing agreement
between our two countries should be submitted for approval to the
Japanese Cabinet on June 11 (after consideration by Vice Ministers
on June 10). It is contemplated that the Japanese Ambassador and
I would then sign the U.S.-Japan agreement in Washington on June 11,
in time for your issuance of a proclamation of the entire import
relief program effective June 14.
The proposed orderly marketing agreement and the remainder
of the import relief program has been reviewed and approved by
the statutory interagency trade organization (the Trade Policy
Committee structure). The program described in the attached
memorandum has been agreed to by STR, CIEP, CEA, and the Depart-
ments of State, Treasury, Commerce, Labor, Agriculture, Interior,
and Defense. Additional comments by participants in the inter-
agency review of this case follow:
State, Treasury, CIEP, and CEA wish to emphasize the
great importance that they place on close monitoring of the
industry and trade, so that you will be in a position to
exercise your March 16 decision to reduce or terminate
relief when the industry is regaining healthy production
and employment levels. I have therefore directed that a
further interagency review take place next week to improve
the monitoring system described on page eight of the
attached memorandum. The object of the review will be to
design a system to collect data on the most current basis
feasible.
The State Department also wishes that the announcement
of the controls make clear the Administration's commitment
to a continuing review of the restraint program looking
toward early termination. State and CIEP would also have you
announce that consultations would be held with suppliers
CONFIDENTIAL
CONFIDENTIAL
- 3 -
prior to the end of the first restraint period. State
urges an early review of the stainless steel sheet and
strip industry, a quarterly review of the effects of
the quotas (including price implications), and an over-
all review of the restraint program at the end of 12
months. CEA and Treasury wish to be associated with
State's suggestion that price effects be reviewed
quarterly.
CEA would prefer some upward adjustment in the total
quantity of specialty steel imports permitted, in order
to reflect growth in the market since the USITC decision
was issued in January, and to benefit industrialization
in developing countries.
I believe that your March 16 decision, and the monitoring
system that we develop, will be sufficient to bring to your
attention information necessary for a timely reduction or termi-
nation of the import relief when it is no longer required. In
view of these procedures, and flexibility to reallocate short-
falls in shipments under quota, the quota amounts provided should
be adequate in the context of providing import relief.
To meet the statutory deadlines involved, your approval
indicated below is requested by June 7.
RECOMMENDATION: That you approve the entry into force of
the proposed orderly marketing agreement
with Japan and the implementation of the
agreement and the import relief program
described in the attached memorandum.
Approve
Disapprove
Attachments
(1) Memorandum describing program
(2) Draft press release
CONFIDENTIAL
THE WHITE HOUSE
WASHINGTON
November 4, 1976
MEMORANDUM FOR PHILIP BUCHEN
JAMES CANNON
MAX FRIEDERSDORF
JAMES LYNN
JOHN O. MARSH
BRENT SCOWCROFT
FROM:
L. WILLIAM SEIDMAN LWS
SUBJECT:
Proclamation to Revise Special
Steel Quotas
A memorandum from Ambassador Dent recommending issuing
a proclamation to revise specialty steel quotas is
attached at Tab A.
The proposed proclamation has also been approved as
to form and legality by the Department of Justice (Tab B).
I would appreciate your comments and recommendations by
no later than c.o.b. Monday, November 8.
Thank you.
Attachments
November 9, 1976
The Counsel's Office has no objection to the
issuance of a Proclamation revising special
steel quotas.
T.W.B.
Philip W. Buchen
GERALD FORD LIBRARY
THE WHITE HOUSE
WASHINGTON
November 9, 1976
MEMO FOR: PHIL BUCHEN
Bobbi
FROM:
BOBBIE KILBERG
SUBJECT:
Proclamation to Revise
Special Steel Quotas
Suggested response:
The Counsel's Office has no objection
to the issuance of a Proclamation
revising special steel quotas.
GERALD LIBRARY FORD
THE SPECIAL REPRESENTATIVE FOR
TRADE NEGOTIATIONS
WASHINGTON
1 NOV 1976
LIMITED OFFICIAL USE
MEMORANDUM FOR THE PRESIDENT
SUBJECT: Proclamation to Revise Specialty Steel Quotas
Due to historical errors in statistical classification
of U.S. imports, the quotas you proclaimed for specialty steel
on June 11, 1976 did not provide adequately for-certain steels
used for the manufacture of bearings ("bearing steel"). This
has an unintended serious restrictive effect on imports of
bearing steels, causing great concern among the Governments
of Sweden, Japan, and the European Community and domestic
bearing producers. It is also inconsistent with the require-
ment of the Trade Act that quotas not restrict imports below
levels in a recent historical period. The domestic specialty
steel industry supports action to alleviate the bearing steel
problem and domestic bearing producers are anxious to remove
constraints on imported materials.
Attached is a Proclamation which would rectify the
situation by establishing a quota for bearing steel and pro-
viding quota amounts to countries affected that fulfill the
Trade Act requirement. This Proclamation has been cleared
by interested member agencies of the Trade Policy Committee
structure (State, Commerce, Labor, Interior, Defense, and
Treasury).
Also attached is a background paper on the bearing steel
problem.
(Signed) Frederick B. Dent
Frederick B. Dent
Attachments
BERALD R. FORD
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
Background Paper on Bearing Steel Problem
On June 11, 1976, you proclaimed an agreement between the
Governments of Japan and the United States to limit specialty
steel imports from Japan and quotas on specialty steel imports
from all other countries. This action followed an investiga-
tion by the U.S. International Trade Commission, under the
import relief provisions of the Trade Act of 1974, which led
to its finding of import-related injury to the domestic industry
and of quotas as an appropriate remedy.
Subsequent to issuance of the Proclamation, it has been
ascertained that a certain type of steel used primarily to pro-
duce ball bearings ("bearing steel") was being charged to the
quota for "alloy tool steel". Because this material apparently
had not been counted historically as "alloy tool steel" prior
to imposition of the quotas, the historical statistics used in
establishing the alloy tool steel quota levels were set at
levels that are far too low (perhaps- by as much as 50 percent).
Section 203 (d) (2) of the Trade Act requires that any quota or
agreement proclaimed under the "escape clause" authority shall
"permit importation of a quantity or value of the article which
is not less than the quantity or value of such article imported
into the United States during the most recent period which the
President determines is representative of imports of such
article". Due to the inadequacy of import statistics during
the recent representative period used, the restriction levels
proclaimed are inadvertantly less than they should be, and
would violate this Trade Act requirement.
Foreign Reaction
The Government of Sweden has made strong protests concerning
this problem. The issue is particularly sensitive in Sweden
because bearing and alloy tool steel exports are substantial
and because of the uncertainties associated with the Swedish
governmental transition The Swedish Government has urged that
we move immediately to exempt bearing steel from the quotas.
Japan, the European Community (EC) and Canada also have
an interest in this problem. By amending the orderly marketing
agreement, Japan has been permitted to continue shipments of
álloy tool steel and bearing steel despite filling of the initial
quòta in early September, in part at the cost of reduced quotas
in other specialty steel categories: However, the Japanese
Government has urged strongly that an exclusion of bearing steels
be made
sion
the :The EC thas requested prompt U.S. action to alleviate the
problem. Canada's interest is small -and no formal communica
tions have been received.
LIMITED OFFICIAL USE
LIBRARY
LIMITED OFFICIAL USE
2.
Domestic Reaction
Representatives of the domestic specialty steel industry
have indicated that they had not considered bearing steel to
be covered by the industry's import relief petition and they
support exclusion of such steel from import relief.
The domestic bearing producers are anxious also to remove
this item from the quotas. Several producers are already
experiencing problems due to shortages of supplies of special
order materials.
Action Taken
On October 14, 1976, Ambassador Dent requested the U.S.
International Trade Commission (USITC) and the Secretaries of
Commerce and Labor to advise you regarding the effects of
excluding bearing steel from import relief. This step is a
necessary prerequisite to your consideration of such an
exclusion.
Unfortunately, the USITC investigation will take three
to four months to complete, and "alloy tool steel" quota levels
have already been reached for the EC and will be reached shortly
for Sweden. Japan has had to borrow tonnages from other cate-
gories to continue shipments of bearing and alloy tool steels.
Shipments of both bearing steel and alloy tool steel (and in
the case of Japan of other categories from which tonnages have
been borrowed) are thus being curtailed in an unintended manner.
Such curtailment is adversely affecting some domestic bearing
manufacturers, disrupting long established importer/customer
relationships in the U.S. market for tool and bearing steels
and creating considerable tension between the United States
and Sweden (and, to a lesser extent, the EC and Japan).
Proposed Action
To avoid disruption of trade while the USITC conducts its
investigation, we recommend that you issue a new proclamation
establishing a separate quota category for bearing steel and
providing quota amounts based on the best available estimates
of anticipated shipments obtained from the respective govern-
ments in countries that have shipped this material. This will
bring your original proclamation into conformance with Section
203 (d) (2) of the Trade Act, which requires that imports not be
rolled back from recent levels. It will alleviate the problems
of disruption of bearing steel imports while the USITC completes
its investigation on the effects of exclusion of such steel from
the quotas. In the event you should decide against such exclu
sion when advice is received from the USITC, Commerce and Labor,
the import relief program. will permit imports of bearing steel
at anticipated shipment levels without disrupting imports of
LIBRARY
other specialty steels.
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
3.
Attached is a proclamation for your signature to implement
this recommendation. The interested member agencies of the Trade
Policy Staff Committee structure (State, Commerce, Labor, Interior,
Defense, and Treasury) concur in this request.
Attachment
FORD : LIBRARY 03RALD
LIMITED OFFICIAL USE
2".
Modification of Temporary Quantitative Limitations
on the Importation into the United States
of Certain Articles of Alloy Tool Steel
BY THE PRESIDENT OF THE UNITED STATES
A PROCLAMATION
1. On January 16, 1976, the United States
International Trade Commission (USITC) reported
to the President the results of its investigation
under section 201 (b) of the Trade Act of 1974 (19
U.S.C. 2251 (b)) (the Trade Act). The USITC deter-
mined that certain articles of stainless steel or
alloy tool steel provided for in items 608.52, 608.76,
608.78, 608.85, 608.88, 609.06, 609.07, and 609.08 of
the Tariff Schedules of the United States (TSUS)
were being imported into the United States in such
increased quantities as to be a substantial cause
of serious injury, or the threat thereof, to the
domestic industry or industries producing articles
like or directly competitive with the imported
articles.
2. An orderly marketing agreement was
concluded on June 11, 1976, between the Government
of the United. States of America and the Government
of Japan, limiting the export from Japan and the
import into the United States of certain articles
of stainless steel (except razor blade steel) or
alloy tool steel provided for in items 608.52,
608.76, 608.78, 608.85, 608.88, 609.06, 609.07,
and 609.08 of the TSUS.
FORD
GERALD
LIBRARY
2
3. On June 11, 1976, by Proclamation 4445,
I proclaimed, pursuant to the Constitution and
the statutes of the United States (including
section 203 of the Trade Act), the imposition
of temporary quantitative limitations on the
importation into the United States of certain
articles of stainless steel or alloy tool steel.
These limitations were effective as to those
articles entered, or withdrawn from warehouse,
for consumption on or after June 14, 1976, and
are to continue for a period of three years
from that date unless earlier modified, or
terminated.
4. Alloy "tool steel", as that term is
defined in statistical headnote 1(a) of subpart
B, part 2, schedule 6 of the TSUS, was included
in the finding of the USITC. Steel, so defined,
was made subject to the quantitative limitations
established by Proclamation 4445, in item 923.24.
Subsequent to the issuance of that proclamation I
have ascertained that certain alloy tool steel
having a chemical composition within the specifi-
cations of new headnote 2(a) (iv) proclaimed in
paragraph A(iii) below had not either consistently
or substantially been historically reported in
import statistics as alloy tool steel prior to
June 14, 1976. Therefore, the statistics used
as a basis for establishing the quantitative
limitations for item 923.24 are inaccurate, and the
FORD : LIBRARY GERALIC
3
quota quantity provided for that category is
substantially understated.
5. Section 203(d) (2) of the Trade Act.
(19 U.S.C. 2253 (d) (2)) requires that any
quantitative restriction proclaimed pursuant
to section 203 subsection (a) or (c), and any
marketing agreement negotiated pursuant to sub-
section (a), shall "permit the importation of a
quantity or value of the article which is not less
than the quantity or value of such article imported
into the United States during the most recent
period which the President determines is represen-
tative of imports of such article". Based on data
that was not available on June 11, 1976, I have
determined that the inclusion of the steel described
in new headnote 2 (a) (iv) proclaimed below in the
quantitative limitation for item 923.24 would result.
in the importation of a quantity or value of specialty
steel into the United States which is less than that
quantity or value imported into the United States
during the most recent period determined by me in
recital 6 of. the Proclamation 4445 to be representative
of imports of alloy tool steel.
6. In order to provide appropriate quantitative
limitations in accordance with the statutory require-
ments referred to in recital 5 above, I have determined
to delete item 923.24 and to include alloy tool steel
formerly provided for in item 923.24 separately in
new items 923.25 and 923.26, and to proclaim separate FORD
quantitative limitations for imports included in each BERID
LIBRARY
new item.
THEREFORE, I, GERALD R. FORD, President of
the United States of America, acting under the
authority vested in me by the Constitution and
the statutes of the United States of America,
including section 203 of the Trade Act (19 U.S.C.
2253), do hereby proclaim, until the President
otherwise proclaims or until otherwise superseded
by law that:
A. Subpart A, part 2, of the Appendix to
the Tariff Schedules of the United States (19
U.S.C. 1202) is modified as follows:
(i) by deleting "923.24" from the
first sentence of headnote 2 and substitu-
ting "923.26" in lieu thereof.
(ii) by deleting "923.24" from headnote
2(a) (iii) and substituting "923.25 and
923.26" in lieu thereof.
(iii) by renumbering paragraph (a) (iv) of
headnote 2 thereof (a) (v) and inserting the
following new paragraph (a) (iv) in numerical
sequence:
"(iv) The alloy tool steel provided
for in item 923.25 is limited to
alloy tool steel of the types
provided for in items 608.52,
608.76, 608.78, 608.85, 608.88,
609.Q6, 609.07, and 609.08,
which contain, in addition to
LIBRARY GERALD R. FORD
5
iron, each of the following
elements by weight in the amounts
specified:
carbon: not less than 0.95
nor more than 1.13
percent;
manganese: not less than
0.22 nor more
than 0.48 percent;
sulfur: none, or not more than
0.03 percent;
phosphorus: none, or not more
than 0.03 percent;
silicon: not less than 0.18
nor more than 0.37
percent;
chromium: not less than 1.25
nor more than 1.65
percent;
nickel: none, or not more than
0.28 percent;
copper: none, or not more than
0.38 percent;
molybdenum: none, or not more
than 0.09 percent.
(iv) by deleting "923.24" from headnote
2 (b) and substituting "923.26" in lieu thereof.
(v) (a) by adding the following sentence
after the second sentence to headnote 2 (f)
"With respect to item 923.25 there
is no limitation specified for the increase
permitted in any quota quantity but any
establishment or increase in a base limit
for item 923.25 must be accompanied by an
equal tonnage reduction in the quota
quantity from Japan for one or more of
the other items during the same restraint
period."
FORD LIBRAR CERALD
6
(b) by deleting "923.24" from the
tabulation in headnote 2(f) and substi-
tuting "923.26" in lieu thereof; and
(c) by inserting the following
in the tabulation to headnote 2(f)
in numerical sequence:
Restraint Periods
June 14, 1976-
June 14, 1977-
June 14, 1978-
Item
June 13, 1977
June 13, 1978
June 13, 1979
Base
Maximum
Base
Maximum
Base
Maximum
limit
increase
limit
increase
limit
increase
1,000
1,000
1,000
S. tons
Percent
S. tons
Percent
S. tons
Percent
923.25
19.8
no
22.0
no
24.3-
no
limitation
limitation
limitation
(vi) by deleting item 923.24 and substi-
tuting in lieu thereof the following:
:
:
Item
:
Articles
:
Quota Quantity
:
:
(in short tons)
s
:Effective on or after---
s
:June 14, : June 14, : June 14,
:
: 1976
: 1977
: 1978
:
:
:
:
:
=
:
:
: Alloy tool steel of the types :
:
:
: provided for in items 608.52;
:
:
:
608,76, 608.78, 608.85,
:
:
:
:
608.88, 609.06, 609.07, and :
:
:
: 609.08:
:
:
:
923.25
:
Alloy tool steel within
:
:
:
:
the specifications of
:
:
:
:
headnote 2(a) (iv):
:
:
:
:
Japan
: 19,800
: 22,000
: 24,300
:
European Economic
:
:
:
8
Community
: 3,500
: 3,500
: 3,500
:
Canada
:
65
:
65
:
65
:
Sweden
: 7,000
: 8,000
: 8,000
8
Other:
:
:
:
8
Countries enti- :
:
:
8
tled to the
:
:
:
8
rate of duty :
:
:
8
in rates of
:
:
:
s
duty column
:
:
8
:
numbered 1
:
:
ERALD 50 R. FORD LIBRARY
8
(total) ..... :
50
:
50
:
8
Other (total)
:
None
:
None
:
None
7
:
:
Item
:
Articles
:
Quota Quantity
:
:
(in short tons)
z
: Effective on or after--
$
:June 14, : June 14, : June 14,
:
: 1976
: 1977
: 1978
:
:
:
:
923.26 :
Other (see headnote 2(a)
:
:
:
:
(111)):
=
:
:
:
Japan
: 3,500
: 3,700
: 3,800
:
European Economic
:
:
:
:
Community
: 3,400
: 3,500
: 3,600
:
Canada
: 1,900
: 2,000
: 2,000
:
Sweden
: 8,500
: 8,600
: 8,700
:
Other:
:
:
:
:
Countries enti- :
:
:
:
tled to the
:
:
:
:
rate of duty
:
:
:
:
in rates of
:
:
:
:
duty column
:
:
:
:
numbered 1
:
:
:
:
(total)
.....
: 3,600
: 3,700
: 3,800
:
Other (total)
:
6
:
6
:
6
B. The modifications of subpart A, part 2
of the Appendix to the TSUS, made by this proclama-
tion, shall be effective on the third day after
the date of publication of this proclamation in
the Federal Register as to articles entered, or
withdrawn from warehouse, for consumption on and
after June 14, 1976.
IN WITNESS WHEREOF, I have hereunto set my
hand this
day of November, in
the year of our Lord nineteen hundred seventy-six,
and of the Independence of the United States of
America the two hundred and first.
GERALD R.FORD LIBRARY
B
NOV 3 1976
The President,
The White House.
Dear Mr. President:
We have received a copy of a proposed proclamation
entitled "Modification of Temporary Quantitative Limita-
tions on the Importation into the United States of Certain
Articles of Alloy Tool Steel."
This proposed proclamation was prepared in the Office
of the Special Representative for Trade Negotiations, and
it has been forwarded by Ambassador Dent for the considera-
tion of this Department as to form and legality. Section
2 (f) of Executive Order No. 11846 provides that proclamations
relating to the trade agreements program need not be channeled
through the Office of Management and Budget.
The Department of Justice made several changes of an
editorial and stylistic nature which are incorporated in the
copy we have received.
At the instructions of the Office of the Special Repre-
sentative for Trade Negotiations we have already advised Mr.
FORD : LIBRARY 0ERALD
Roger Porter, Special Assistant to the President, by
telephone that the proposed proclamation is approved as
to form and legality. This letter confirms the Depart-
ment's approval of the proposed proclamation as to form
and legality.
Respectfully,
Antonin Scalia
Assistant Attorney General
Office of Legal Counsel
- 2 -
FORD : LIBRARY GERALD
NOV 3 1976
MEMORANDUM
Re: Proposed proclamation entitled
"Modification of Temporary Quanti-
tative Limitations in the Importa-
tion into the United States of
Certain Articles of Alloy Tool Steel"
This proposed proclamation was prepared in the Office
of the Special Representative for Trade Negotiations and has
been forwarded for the consideration of this Department as
to form and legality. Pursuant to Executive Order No. 11846,
proclamations relating to the trade agreements program need
not be channeled through the Office of Management and Budget.
This proposed proclamation will amend Proclamation No.
4445 of June 11, 1976. It will provide relief from the re-
striction to the supply of bearing steel and other alloy tool
steel which resulted from latent inaccuracy in the historical
data which served as the basis of the United States Inter-
national Trade Commission (USITC) finding underlying the
earlier proclamation. This proclamation is issued pursuant
to authority in the Trade Act of 1974 (primarily section 203).
It modifies the temporary quantitative limitations on certain
alloy tool steel that were established by Proclamation 4445.
The proclamation (1) recites the prerequisite USITC
finding, (2) recites the orderly marketing agreement with
the Government of Japan, (3) recites the temporary quantita-
tive limitations placed on stainless and alloy tool steel by
Proclamation No. 4445, (4) recites that the historical data
for alloy tool steel did not adequately reflect bearing steel,
and that the quota quantity was therefore understated, (5)
recites the requirements of section 203 of the Trade Act man-
dating preservation of historical import levels, and (6) re-
cites that the President has determined to provide a separate
FORD i LIBRARY 9ERALD
import category for bearing steel with accompanying quan-
titative limitations.
The implementing provisions of the proclamation cite
the Constitutional and statutory authorities of the Presi-
dent and (A) modify Proclamation No. 4445 to create separate
quantitative limitations for bearing steel and all other
alloy tool steel, and (B) make such modifications effective
three days after the date of publication of this proclamation
in the Federal Register.
Antonin Scalia
Assistant Attorney General
Office of Legal Counsel
- 2 -
FORD : LIBRARY 9ERALD
Modification of Temporary Quantitative Limitations
on the Importation into the United States
Of Certain Articles of Alloy Tool Steel
BY THE PRESIDENT OF THE UNITED STATES
A PROCLAMATION
1. On January 16, 1976, the United States
International Trade Commission (USITC) reported
to the President the results of its investigation
under section 201 (b) of the Trade Act of 1974 (19
U.S.C. 2251 (b)) (the Trade Act). The USITC deter-
mined that certain articles of stainless steel or
alloy tool steel provided for in items 608.52, 608.76,
608.78, 608.85, 608.88, 609.06, 609.07, and 609.08 of
the Tariff Schedules of the United States (TSUS)
were being imported into the United States in such
increased quantities as to be a substantial cause
of serious injury, or the threat thereof, to the
domestic industry or industries producing articles
like or directly competitive with the imported
articles.
2. An orderly marketing agreement was
concluded on June 11, 1976, between the Government
of the United States of America and the Government
of Japan, limiting the export from Japan and the
import into the United States of certain articles
of stainless steel (except razor blade steel) or
alloy tool steel provided for in items 608.52,
608.76, 608.78, 608.85, 608.88, 609.06, 609.07,
and 609.08 of the TSUS.
FORD : LIBRARY GERALD
2
3. On June 11, 1976, by Proclamation 4445,
I proclaimed, pursuant to the Constitution and
the statutes of the United States (including
section 203 of the Trade Act), the imposition
of temporary quantitative limitations on the
importation into the United States of certain
articles of stainless steel or alloy tool steel.
These limitations were effective as to those
articles entered, or withdrawn from warehouse,
for consumption on or after June 14, 1976, and
are to continue for a period of three years
from that date unless earlier modified, or
terminated.
4. Alloy "tool steel", as that term is
defined in statistical headnote 1 (a) of subpart
B, part 2, schedule 6 of the TSUS, was included
in the finding of the USITC. Steel, so defined,
was made subject to the quantitative limitations
established by Proclamation 4445, in item 923.24.
Subsequent to the issuance of that proclamation I
have ascertained that certain alloy tool steel
having a chemical composition within the specifi-
cations of new headnote 2(a) (iv) proclaimed in
paragraph A (iii) below had not either consistently
or substantially been historically reported in
import statistics as alloy tool steel prior to
June 14, 1976. Therefore, the statistics used
as a basis for establishing the quantitative
limitations for item 923.24 are inaccurate, and the
FORD : LIBRARY GERALD
3
quota quantity provided for that category is
substantially understated.
5. Section 203 (d) (2) of the Trade Act
(19 U.S.C. 2253 (d) (2)) requires that any
quantitative restriction proclaimed pursuant
to section 203 subsection (a) or (c), and any
marketing agreement negotiated pursuant to sub-
section (a), shall "permit the importation of a
quantity or value of the article which is not less
than the quantity or value of such article imported
into the United States during the most recent
period which the President determines is represen-
tative of imports of such article". Based on data
that was not available on June 11, 1976, I have
determined that the inclusion of the steel described
in new headnote 2 (a) (iv) proclaimed below in the
quantitative limitation for item 923.24 would result
in the importation of a quantity or value of specialty
steel into the United States which is less than that
quantity or value imported into the United States
during the most recent period determined by me in
recital 6 of the Proclamation 4445 to be representative
of imports of alloy tool steel.
6. In order to provide appropriate quantitative
limitations in accordance with the statutory require-
ments referred to in recital 5 above, I have determined
to delete item 923.24 and to include alloy tool steel
formerly provided for in item 923.24 separately in
new items 923.25 and 923.26, and to proclaim separate
quantitative limitations for imports included in each
BERALD FORD LIBRARY
4
new item.
THEREFORE, I, GERALD R. FORD, President of
the United States of America, acting under the
authority vested in me by the Constitution and
the statutes of the United States of America,
including section 203 of the Trade Act (19 U.S.C.
2253), do hereby proclaim, until the President
otherwise proclaims or until otherwise superseded
by law that:
A. Subpart A, part 2, of the Appendix to
the Tariff Schedules of the United States (19
U.S.C. 1202) is modified as follows:
(i) by deleting "923.24" from the
first sentence of headnote 2 and substitu-
ting "923.26" in lieu thereof.
(ii) by deleting "923.24" from headnote
2 (a) (iii) and substituting "923.25 and
923.26" in lieu thereof.
(iii) by renumbering paragraph (a) (iv) of
headnote 2 thereof (a) (v) and inserting the
following new paragraph (a) (iv) in numerical
sequence:
"(iv) The alloy tool steel provided
for in item 923.25 is limited to
alloy tool steel of the types
provided for in items 608.52,
608.76, 608.78, 608.85, 608.88,
609.06, 609.07, and 609.08,
which contain, in addition to
GERALD FORD LIBRARY
5
iron, each of the following
elements by weight in the amounts
specified:
carbon: not less than 0.95
nor more than 1.13
percent;
manganese: not less than
0.22 nor more
than 0.48 percent;
sulfur: none, or not more than
0.03 percent;
phosphorus: none, or not more
than 0.03 percent;
silicon: not less than 0.18
nor more than 0.37
percent;
chromium: not less than 1.25
nor more than 1.65
percent;
nickel: none, or not more than
0.28 percent;
copper: none, or not more than
0.38 percent;
molybdenum: none, or not more
than 0.09 percent;
(iv) by deleting "923.24" from headnote
2 (b) and substituting "923.26" in lieu thereof.
(v) (a) by adding the following sentence
after the second sentence to headnote 2 (f) :
"With respect to item 923.25 there
is no limitation specified for the increase
permitted in any quota quantity but any
establishment or increase in a base limit
for item 923.25 must be accompanied by an
equal tonnage reduction in the quota
quantity from Japan for one or more of
the other items during the same restraint
period."
FORD ; LIBRARY DERALD
6
(b) by deleting "923.24" from the
tabulation in headnote 2 (f) and substi-
tuting "923.26" in lieu thereof; and
(c) by inserting the following
in the tabulation to headnote 2 (f)
in numerical sequence:
Restraint Periods
June 14, 1976-
June 14, 1977-
June 14, 1978-
Item
June 13, 1977
June 13, 1978
June 13, 1979
Base
Maximum
Base
Maximum
Base
Maximum
limit
increase
limit
increase
limit
increase
1,000
1,000
1,000
S. tons
Percent
S. tons
Percent
S. tons
Percent
923.25
19.8
no
22.0
no
24.3
no
limitation
limitation
limitation
(vi) by deleting item 923.24 and substi-
tuting in lieu thereof the following:
:
:
Item
:
Articles
:
Quota Quantity
:
:
(in short tons)
:
: Effective on or after
:
: June 14, : June 14, : June 14,
:
: 1976
:
1977
: 1978
:
:
:
:
:
:
:
:
: Alloy tool steel of the types :
:
:
:
provided for in items 608.52;
:
:
:
608.76, 608.78, 608.85,
:
:
:
:
608.88, 609.06, 609.07, and :
:
:
:
609.08:
:
:
:
923.25
:
Alloy tool steel within
:
:
:
:
the specifications of
:
:
:
:
headnote 2(a) (iv) :
:
:
:
:
Japan
: 19,800
: 22,000
: 24,300
:
European Economic
:
:
:
:
Community
:
3,500
:
3,500
: 3,500
:
Canada
:
65
:
65
:
65
:
Sweden
:
7,000
:
8,000
:
8,000
:
Other:
:
:
:
:
Countries enti-
:
:
:
:
tled to the
:
:
:
:
rate of duty
:
:
:
:
in rates of
:
:
:
:
duty column
:
:
:
:
numbered 1
:
:
:
(total)
:
50
:
50
:
Other (total)
:
None
:
None
None
GERALD
LIBRARY
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:
:
Item
:
Articles
:
Quota Quantity
:
:
(in short tons)
:
: Effective on or after
:
: June 14, : June 14, : June 14,
:
: 1976
: 1977
: 1978
:
:
:
:
923.26
:
Other (see headnote 2(a)
:
:
:
:
(iii)):
:
:
:
:
Japan
:
3,500
: 3,700
: 3,800
:
European Economic
:
:
:
:
Community
:
3,400
: 3,500
: 3,600
:
Canada
:
1,900
:
2,000
: 2,000
:
Sweden
:
8,500
:
8,600
: 8,700
:
Other:
:
:
:
:
Countries enti-
:
:
:
:
tled to the
:
:
:
:
rate of duty
:
:
:
:
in rates of
:
:
:
:
duty column
:
:
:
:
numbered 1
:
:
:
:
(total)
:
3,600
: 3,700
: 3,800
:
Other (total)
:
6
:
6
:
6
B. The modifications of subpart A, part 2
of the Appendix to the TSUS, made by this proclama-
tion, shall be effective on the third day after
the date of publication of this proclamation in
the Federal Register as to articles entered, or
withdrawn from warehouse, for consumption on and
after June 14, 1976.
IN WITNESS WHEREOF, I have hereunto set my
hand this
day of November, in
the year of our Lord nineteen hundred seventy-six,
and of the Independence of the United States of
America the two hundred and first.
BERALD LIGHTS ? FORD