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J.C. Penney Company, Incorporated
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7490125
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J.C. Penney Company, Incorporated
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United States - China Business Council Records
Business Advisory Services Files
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China
J.C. Penney Co.
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7490125
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1982-07-31
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1982
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1973-05-01
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1973
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The original documents are located in Box 216, folder "J.C. Penney Company Incorporated" of the U.S. - China Business Council Records 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. The Council donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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 216 of The U.S. - China Business Council Records at the Gerald R. Ford Presidential Library First Conference sponsored by I will attenc May 31, 1973 conference. The National Council for Please find an enclosed check for $250 payable to United States-China Trade The National Council for United States-China Trade.. Department of Commerce Name of Participant W. K. Barry Auditorium, Washington, D.C. Title Vice President May 31, 1973 Company J. C. PENNEY COMPANY, Inc. PAID Address 1301 Avenue of Americas New York, New York MAY 25 1973 Zip 10019 Phone Number 212 957-6623 AMERICAN *Note: Attendance is limited to one representative per SECURITY & TRUST company. M COMPANY O William K. Barry Vice President and Director of Merchandise May 22, 1973 Mr. D. C. Burnham The National Council for United States-China Trade Post Office Box 2804 Washington, D. C. 20013 Dear Mr. Burnham: Enclosed please find check in the amount of $250 with regard to the National Council for United States - China Trade conference to be held on May 31, 1973. We have designated Mr. W. K. Barry as name of participant. However, Mr. Barry is out of the office at the present time, and there is a possibility that another of our associates will attend the conference. We trust that this will be satisfactory. Sincerely, Evelyn Freeburger Evelyn Freeburger Secretary to Mr. Barry Enclosure: Check $250 FORD & LIBRARY GERALD J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 W Westinghouse Electric Corporation DC Burnham Westinghouse Building Chairman Gateway Center Pittsburgh Pennsylvania 15222 July 19, 1973 Mr. William M. Batten Chairman of the Board J. C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mil: Since speaking with you this morning, I am delighted to learn that J. c. Penney has become a member of the National Council for United States-China Trade. Mr. R. Boulogne, Director, International Buying, has been designated as the point of contact in your Company. Knowing this permits me to come quickly to my key question. Would you personally consider joining the National Council's Board of Directors? As I explained in our phone conversation, we need key representation from the "buying" element of American business, and I can think of no one I would like to work with more than yourself. We would expect to have only one or two meetings of the Board a year, and these would be in Washington. The original Board membership, which is contained in the attached descriptive material, was selected and invited to serve by Fred Dent on behalf of the Nixon Admin- istration. If you concur, I would like to propose your name to our Board for election at an early date. I look forward to your favorable reply. Sincerely, Enclosure FORD i LIBRARY GERALD bcc: Mr. Christopher H. Phillips Mr. Charles H. Weaver August 2, 1973 Mr. William M. Batten Chairman of the Board J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mil: After several weeks of discussions with Chinese Liaison Office officials, we have been invited to send representatives of the National Council for U.S. -China Trade to Peking in early October for an initial meeting to establish contact with the China Council for the Promotion of International Trade. We have agreed with the Chinese in Washington that the first delegation will be a small exploratory group consisting primarily of officers and members of the Executive Committee. The present schedule calls for meetings to occur during the second week in October in Peking followed by a journey to Canton to observe the Chinese Export Commodities Fair. I thought you would be interested in reviewing the enclosed letter and memorandum which contain our suggestions for discussion at these meetings. We are also seeking suggestions from each of our member firms regarding subjects for discussion in Peking. A copy of Ambassador Phillips' letter to our members is enclosed. I am par- ticularly interested in having the comments of our Directors before our visit. I have asked Ambassador Phillips to schedule a Board meeting to be held soon after we return from China to discuss our future program. You will, I know, also be interested in looking over the enclosed list of companies which have been approved to date for mem- bership in the National Council, as well as the copy of the press release we have issued in connection with our meeting with the CCPIT. With best regards. Sincerely, D. C. Burnham FORD & LIBRARY GERALD Chairman Enclosures Mr. William M. Batten Chairman of the Board J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mil: We have totaled up the expenses incurred by the National Council for entertainment and overweight baggage during our trip to China. You may recall I had suggested that instead of charging these expenses to the Council's budget, we divide them among the seven corporate members of the delegation. The cost of our dinner in Peking and the reception in Canton was $1,280, and the overweight baggage amounted to $232. The share for each member, therefore, would be $216. If you agree to this procedure, would you please send a check for this amount to the National Council offices in Washington. Sincerely, D.C. Burnham Chairman dt FORD i LIBRARY GERALD October 5, 1973 Mr. William M. Batten Chairman of the Board J. C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mr. Batten: As you will see from the memorandum and other material enclosed, we have circulated several new publications to our membership. The handbook for the Canton Fair and the directory of China's foreign trade corporations have already proved to be very popular publications and I hope you will let me know if you would like additional copies of these or any other items. With kind regards, Sincerely, Christopher H. Phillips President CHP/beo Enclosures FORD i LIBRARY CERALD October 5, 1973 Mr. William M. Batten Chairman of the Board J. C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mr. Batten: Don Burnham has asked me to request you to set aside the afternoon of Wednesday, December 12, for the first formal Board meeting of the National Council for U.S.-China Trade since our inaugural conference on May 31. As presently planned, this meeting will begin at 2:00 p.m. in Washington, D. c., at the Virginia Room located on the second floor of the Mayflower Hotel and will conclude before dinner. The meeting will follow by about three weeks our initial discussions with the China Council for the Promotion of Inter- national Trade in Peking and our visit with officials of the Chinese Export Commodities Fair in Canton. Having held these talks, it is likely that our December 12 meeting will be able to focus very directly on the National Council's programs for the coming year. We will provide you with an agenda and further details about this important Board meeting at a later date. With kind regards, Sincerely, Christopher H. Phillips President CHP/11 FORD i LIBRARY GERALD December 6, 1973 Mr. William M. Batten Chairman J.C. Penney Company 1301 AVenue of the Americas New York, New York 10019 Dear M11: It was a pleasure to be with you and Mrs. Batten during our recent visit to China. I regret that Phyllie and I were unable to continue with the delegation for the whole trip, but it was a great pleasure at least to have the chance to work with you in Peking. with best personal regards. Sincerely, Eugene A. Theroux EAT/11 FORD is LIBRARY GERALD GERALD R. FORD LIBRARY The item described below has been transferred from this file to: X Audiovisual Unit Book Collection Ford Museum in Grand Rapids Item: 2x2 BW photograph William milfred Batter The item was transferred from: NeuseT 86-30 Business advisory Dervices Member Company Tibs g.e. Penney Company Ind. Initials/Date HR 11/9/89 A JCPenneyNews Release WILLIAM MILFRED BATTEN Chairman of the Board and Chief Executive Officer of J. C. Penney Company, Inc. BASIC DATA Born June 4, 1909, in Reedy, W. Va., the son of Lewis A. & Gurry (Goff) Batten; married Aug. 10, 1935, in Greenville, Ohio to Kathryn Pherabe Clark of Gettysburg, Ohio; two children: a son, David Clark, born July 26, 1944, and a daughter, Jane Louise, born Aug. 11, 1946; family residence: Mill Neck, Long Island, New York. EDUCATION Graduated in 1932 from Ohio State University, Columbus, with a B. S. degree in economics; did graduate work during 1932 at University of Chicago. COLLEGE President of student governing body; member of Beta Gamma Sigma, scholastic fraternity; president of ACTIVITIES Phi Kappa Psi, social fraternity; Bucket and Dipper, junior honorary society; Sphinx, senior honorary society. PROFESSIONAL Started with J. C. Penney Company, Inc., department store chain, as an extra salesman in 1926 and a BACKGROUND regular salesman in 1928 at Parkersburg, W. Va.; joined Company on full-time basis in 1935 as salesman, section manager and then assistant manager in Lansing, Mich.; training director in the Personnel Department at the Company's Central Office, New York, during 1940-42; after three years' military service, returned to Central Office, where he served as Eastern Zone personnel representative during 1945-51; assistant to the president 1951-58; elected vice president 1953; named to the board of directors 1955; elected president and chief executive officer 1958; chairman of the board 1964. MILITARY Consultant in organization, planning and control in the Office of the Quartermaster General, Washington, D. C., SERVICE during June-November, 1942, while still in employ of Penney Company; Lieutenant Colonel in U.S. Army, Office of Quartermaster General (Chief of Field Services, Civilian Personnel) 1942-45. CIVIC Member of the board of directors, New York Stock Exchange, 1972-74; trustee, Woodrow Wilson International ACTIVITIES Center for Scholars, Washington, D.C. (until October, 1978); 1973 national chairman of U.S. Industrial Payroll Savings Committee; member, National 4-H Foundation Advisory Council; trustee, National Urban League; trustee, Committee for Economic Development; member, Senior Executives Council of The Conference Board. PROFESSIONAL A director of American Telephone and Telegraph Company, Boeing Company, First National City Bank and ACTIVITIES First National City Corporation; chairman of the Business Council, Washington, D. C. 1971 & 1972. HONORARY LL.D., Morris Harvey College, Charleston, W. Va., 1960. DEGREES L.H.D., Marietta College, Marietta, Ohio, 1965. LL.D., West Virginia University, Morgantown, W. Va., 1966. LL.D., Alderson-Broaddus College, Philippi, W. Va., 1971. HONORS National honorary member, Beta Gamma Sigma, scholastic fraternity, 1965; Beta Gamma Sigma Alumni Award, 1967; Gold Key Award, Avenue of the Americas Association, 1968; National Retail Merchants Association's Gold Medal, 1969; 1970 Tobe Award for Distinguished Retailing; Ohio State University Centennial Achievement Award 1970. CHURCH Manhasset Congregational Church. CLUBS Union League Club, New York; Manhasset Bay Yacht Club; The Creek, Locust Valley, New York; The Links Club, New York. FORD is LIBRARY GERALE 7/73 Public Information J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 January 8, 1974 Mr. William Batten Chairman of the Board J. C. Permey Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mil: That the world is filled with the slings and arrows of out- rageous writers to newspaper editors is proven again by a recent letter to the South China Morning Post. The target of that letter is none other than yourself. I thought you would be interested in seeing it. Best personal regards, Sincerely, Eugene A. Theroux FORD & LIBRARY GERALD - 2 - Phase 3. Begin tour of country to see additional business sectors and sights in general. Phase 4. Reassemble delegation on West Coast for recapitulation and, if necessary, for further business session with National Council officials. In order to assist the Committee in its work, the National Council staff, in cooperation with the Depart- ment of Commerce, is working on tentative itinerary sugges- tions which will be submitted to the Committee for its consideration. FORD i LIBRARY QERALD January 14, 1974 Mr. William M. Batten Chairman of the Board J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mil: Enclosed herewith is a memorandum containing the proposed guidelines for the CCPIT Visit Planning Committee, which you and Don asked me to prepare. I am also enclosing a list of the committee members, as we discussed them during our luncheon in New York last week. I believe Don is writing directly to these individuals, inviting them to membership on the Committee. With kindest regards, Sincerely yours, Christopher H. Phillips dt enc. FORD is LIBRARY GERALD January 14, 1974 Mr. William M. Batten Chairman of the Board J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mil: In preparing for the return visit of the China Council for the Promotion of International Trade delegation, (now likely by late May or early June) we have begun to focus on the problem of finances. As you know, the Chinese picked up the tab for all the expenses of our delegation during the twelve days we were in China. In inviting them to this country we are, of course, under an obligation to reciprocate. It seems to me that one way of doing so would be to ask each corporate member of our delegation to contribute an amount approximately equal to what it would have cost him and his wife had each of us paid for all of our expenses during our stay in China. If you agree, I suggest that a contribution of $1,000 per individual ($2,000 per couple) be made to the National Council to help defray the cost of the CCPIT visit to the U.S. Obviously, this amount will not be suf- ficient to cover all expenses, but I am confident that with the cooperation of our members throughout the country, the additional amounts needed can be raised through local contributions for hotels, food, transportation, etc. If this appears to you to be a satisfactory arrangement, would you please send a check for the appropriate amount directly to the National Council offices in Washington. Sincerely yours, D.C. Burnham FORD is LIBRARY GERALD dt W.M. Batten Chairman of the Board January 11, 1974 file Mr. Eugene A. Theroux The National Council for United States-China Trade 1100 Seventeenth St., N.W. Washington, D.C. 20036 Dear Gene: Thank you for your letter of January 8th and the copy of the news clipping of November 9th. Our Hong Kong office showed me a copy of the article when I was there. For the record, I don't recall ever using the word "exploit" as mentioned in the article. If I did so inadvertently, it was unfortunate because of the difference in interpretation of the word in China and the United States. Since the article appeared November 9, 1973 and this is January 11, 1974, and the sky hasn't fallen, guess the whole flap was not world-shaking after all. I don't plan to lose any sleep over it! With warm regards and best wishes. Sincerely yours, wmb ez FORD & LIBRARY GERALD TAKE STOCK IN AMERICA J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 January 15, 1974 William M. Batten Chairman of the Board J.C. Penny Company, Inc. 1301 Avenue of the Americas New York, NY 10019 Dear Mil: The Chinese Liaison Office in Washington has sought our assistance in determining for them the potential market in the United States for Chinese hand tools. Spedifically, the Chinese are interested in answers to the following questions: 1. What hand tools are most saleable in the United States? China exports such hand tools as hammers, screwdrivers, wrenches, pliers, and wire nails, hinges and similar items. 2. What percentage of the following items are manu- factured in the United States and what percentage are imported? 3. What countries are the main foreign suppliers of hand tools in the United States, and what types of hand tools do they produce? 4. What are the requirements which a foreign producer must take into account in exporting hand tools to the United States, for wxample, must the foreign supplier ordinarily stamp the U.S. retailer's trade name on the tools? 5. What are the tariffs applicable on the foregoing kinds of hand tools imported from the People's Republic of China as contrasted with the tariffs applicable on those same tools from other countries? FORD & LIBRARY GERALD -2- 6. How are these hand tools imported into the United States, in other words, are they imported through trading companies or through special arrangements between retailers and foreign manufacturers, or under licensing arrangements? 7. What are the annual import statistics on hand tools imported into the United States, and what is the total market value of hand tools sales in the United States? Should comeone in the J.C. Penny erganization have ready access to answers or descriptive material responsive to any of the foregoing questions, I would like to be in touch with them. With best regards. Sincerely, Eugene A. Theroux ch FORD is LIBRARY GERALD W.M. Batten file JC Perry Chairman of the Board January 15, 1974 JAN JAN 18 1974 Ambassador Christopher H. Phillips President The National Council for United States-China Trade 1100 Seventeenth St., N.W. Washington, D.C. 20036 Dear Chris: At our luncheon last week, I mentioned an invitation received by our buyers from the China National Textile Import and Export Corporation to visit China in February. The details of the invitation are included in the internal memorandum attached. I view our new undertaking of the Council as a most important follow-up to our trip and look forward to working with the Planning Committee. With warm personal regards. Sincerely yours, wmb ez encl. FORD & LIBRARY GERALD TAKE STOCK IN AMERICA J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 JCPenney Intra Company Correspondence TO: W. M. Batten FROM: Robert Boulogne STORE NO: OR DEPT. International Buying 10th Floor, N.Y.O. LOCATION: DATE: January 14, 1974 Dear Mr. Batten: A cable from the China National Textile Import and Export Corporation was received on December 26, 1973 welcoming Bob Gill and myself to visit Peking the first "decade" of February. We immediately cabled back to thank them for this invitation and advised them that further details would be forwarded in a few days. After formulating our plans we called Mr. Wang Tien Ming, Official of the Liaison Office in Washington, D.C. advising him that Mr. G. Hogenson would replace Bob Gill and that to maximize the potential of our visit it was necessary to include a minimum of three Textile Merchandise Managers. Mr. Wang stated that this proposal sounded acceptable and recommended we cable Chinatex on that basis. He also stated that the actual schedule and visit was in complete control of China National Textile Import and Export Corporation, and that he had no details of this visit, however, very likely, factory visitations in both Peking and Shanghai would be included. On the above basis we are proceeding with plans to depart for Hong Kong on Sunday, February 3rd arriving in Peking on February 6th. Formal approval and details of itinerary are still pending. In addition to overall information about our Company, we will be ready to bring with us samples and specifications where we feel buying programs can be initiated. BERALD FORD VIBRARI W. M. Batten -2- Jan: 14, 1974 From information obtained on our first visit, we will especially concentrate in the areas of cotton flannel, denim, chambray, corduroy, and terry. We will also be prepared to discuss with Chinese Textile Officials both Penneys' requirements and U.S. market's needs and practices. Bod Robert Boulogne RB/1z CERALS LIBRARY January 17, 1974 Mr. W.M. Batten Chairman of the Board J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mil: Just a line to thank you and Katherine for send- ing us those snapshots of the China visit. They were a happy reminder of that historic trip. If you are ever in Washington long enough to come to our apartment, we would love to show you our slides which are now all mounted and ready for projection. They came out very well. Many thanks also for sending me a copy of your internal memorandum reporting on the visit of the Chinese to your New York store. We are very glad to have it for our records. That was a useful luncheon you and I had with Don last week, and I'm delighted that you have agreed to be Chairman of the planning committee for the CCPIT visit. As you know, I have been in touch with Hal Eddens by phone and I hope we will soon be able to announce the formation of the committee. With best regards, Sincerely, Christopher H. Phillips dt FORD & LIBRARY GERALD W. M. Batten Chairman of the Board January 7, 1974 3 member Liasu in Ambassador Christopher H. Phillips President The National Council for United States-China Trade 1100 Seventeenth St., N.W. Washington, D.C. 20036 Dear Chris: Inclosed is a copy of an internal memorandum describing a visit to one of our stores by representatives of the China Mission. Thought you would be interested. With warmest personal regards and best wishes for 1974. Sincerely yours, Mil wmb ez encl. FORD is LIBRARY GERALD TAKE STOCK IN AMERICA J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 JCPenney W.M. Batten Chairman of the Board January 30, 1974 Ambassador Christopher H. Phillips President The National Council for US/China Trade 1100 Seventeenth St., N.W. Washington, D.C. 20036 Dear Chris: In accordance with Don Burnham's letter of January 14th, enclosed please find check in the amount of $2,000 as a contribution to The National Council to help defray the cost of the CCPIT visit FEB 1 1974 to the United States. With kindest personal regards. Sincerely yours, me wmb ez encl. FORD i LIBRARY GERALD TAKE STOCK IN AMERICA J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 JCPenneyNews Release WILLIAM MILFRED BATTEN Chairman of the Board and Chief Executive Officer of J. C. Penney Company, Inc. BASIC DATA Born June 4, 1909, in Reedy, W. Va., the son of Lewis A. & Gurry (Goff) Batten; married Aug. 10, 1935, in Greenville, Ohio to Kathryn Pherabe Clark of Gettysburg, Ohio; two children: a son, David Clark, born July 26, 1944, and a daughter, Jane Louise, born Aug. 11, 1946; family residence: Mill Neck, Long Island, New York. EDUCATION Graduated in 1932 from Ohio State University, Columbus, with a B. S. degree in economics; did graduate work during 1932 at University of Chicago. COLLEGE President of student governing body; member of Beta Gamma Sigma, scholastic fraternity; president of ACTIVITIES Phi Kappa Psi, social fraternity; Bucket and Dipper, junior honorary society; Sphinx, senior honorary society. PROFESSIONAL Started with J. C. Penney Company, Inc., department store chain, as an extra salesman in 1926 and a BACKGROUND regular salesman in 1928 at Parkersburg, W. Va.; joined Company on full-time basis in 1935 as salesman, section manager and then assistant manager in Lansing, Mich.; training director in the Personnel Department at the Company's Central Office, New York, during 1940-42; after three years' military service, returned to Central Office, where he served as Eastern Zone personnel representative during 1945-51; assistant to the president 1951-58; elected vice president 1953; named to the board of directors 1955; elected president and chief executive officer 1958; chairman of the board 1964. MILITARY Consultant in organization, planning and control in the Office of the Quartermaster General, Washington, D. C., SERVICE during June-November, 1942, while still in employ of Penney Company; Lieutenant Colonel in U.S. Army, Office of Quartermaster General (Chief of Field Services, Civilian Personnel) 1942-45. CIVIC Member of the board of directors, New York Stock Exchange, 1972-74; trustee, Woodrow Wilson International ACTIVITIES Center for Scholars, Washington, D. C. (until October, 1978); 1973 national chairman of U.S. Industrial Payroll Savings Committee; member, National 4-H Foundation Advisory Council; trustee, National Urban League; trustee, Committee for Economic Development; member, Senior Executives Council of The Conference Board. PROFESSIONAL A director of American Telephone and Telegraph Company, Boeing Company, First National City Bank and ACTIVITIES First National City Corporation; chairman of the Business Council, Washington, D. C. 1971 & 1972. HONORARY LL.D., Morris Harvey College, Charleston, W. Va., 1960. DEGREES L.H.D., Marietta College, Marietta, Ohio, 1965. LL.D., West Virginia University, Morgantown, W. Va., 1966. LL.D., Alderson-Broaddus College, Philippi, W. Va., 1971. HONORS National honorary member, Beta Gamma Sigma, scholastic fraternity, 1965; Beta Gamma Sigma Alumni Award, 1967; Gold Key Award, Avenue of the Americas Association, 1968; National Retail Merchants Association's Gold Medal, 1969; 1970 Tobe Award for Distinguished Retailing; Ohio State University Centennial Achievement Award 1970. CHURCH Manhasset Congregational Church. CLUBS Union League Club, New York; Manhasset Bay Yacht Club; The Creek, Locust Valley, New York; The Links Club, New York. FORD & LIBRARY GERALD 7/73 Public Information J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 February 5, 1974 Mr. William M. Batten Chairman of the Board J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mil: I am enclosing a copy of the "Fortune 1000" list of firms, which contains the names of the chief executives to whom Don Burnham and I wrote last November soliciting membership in the National Council. You will recall that at the December Board meeting, I asked if each member would agree to select four or five companies whose chief executives they knew personally and to whom they could write in support of our letters. The list has been screened for existing members which have been indi- cated by "N" in ink. I am also enclosing sample copies of the letter Don Burnham and I wrote in November. Under separate cover, I am sending you five copies each of material you may wish to include in your letter to prospective members. Though I dislike imposing additional burdens on you, I am convinced that a personal letter from a Board member to an individual he knows is the most effective way to recruit new members. I believe the time is ripe to make such approaches because the Council is now recognized by the Chinese as the focal point in the U.S. for arranging all commercial exchanges between the two countries. Furthermore, we are geared to pro- vide our members with the advice and information they need to assist them in planning their strategy for entering the China market. is FORD GERALD LIBRARY Mr. William M. Batten February 5, 1974 Page Two If you are able to help us in this recruitment drive, I would greatly appreciate it if you could send me copies of the letter you write, or let me have a list of the individuals to whom you have written. In this way, we can keep a record of the approaches which have been made and the follow-up which may be required. Today our membership is 170. I would like to see us break the 200-mark before mid-year. With best regards, Sincerely, Christopher H. Phillips enc. dt FORD i LIBRARY GERALD February 11, 1974 Mr. Robert Boulogne Manager International Buying J. C. Penney Purchasing Corporation 1301 Avenue of the Americas New York, New York 10019 Dear Mr. Boulogne: Thank you for your recent letter expressing interest in attending the Spring Chinese Export Commodities Fair. We have prepared a list of companies having our endorsement in connection with a Fair invitation, and your company is on that list. A copy of the list has been delivered to and discussed with the Chinese and, should they react favorably, you will be hearing directly from them. While we cannot guarantee that your company will in fact receive an invitation to the Fair, we have given our strong support on your behalf. If I can be of any additional assistance in this matter, please feel free to contact me. Sincerely, Christopher H. Phillips CHP:erv FORD is LIBRARY GERALD JCPenney Purchasing Corporation JAN January 22, 1974 Ambassador Christopher H. Phillips The National Council for United States-China Trade 1100 Seventeenth Street N.W. Washington D.C. 20036 Dear Ambassador Phillips: This is answer to your letter circulated to member firms regarding the forthcoming Kwangchow Fair starting April 15, 1974. As you know, the J.C. Penney Company was invited to the last Fall fair--at that time, some purchasing was done and interest in many other items was expressed to various sections of the Export and Import Trading Corporations. On this basis, we are relatively certain that a repeat invitation will be extended, although of course, we cannot be completely sure of this. In addition to the above and as Mr. Batten recently advised you, the Penney Company has also been invited by the China National Textile Importand Export Corp. to come to Peking for what we hope to be an extensive and thorough study of textile facilities and products in and around Peking and Shanghai. During our visit we will, of course, personally remind our various China contacts that we are extremely interested in a repeat invitation to the Kwangchow Fair. We believe this reminder should be effective in helping in our continued participation to the Fair. FORD & LIBRARY GERALD J.C. Penney Purchasing Corporation, 1301 Avenue of the Americas, New York, N.Y. 10019 -2- We also plan to again stress, during our stay, the importance of exposing more specialized buyers to this market, and we would hope that our next invitation will reflect this need. For example, we believe that this Spring we will need to send a minimum of four men which will include our Merchandise Manager of Home Decorative Accessories, our buyer of Home Decorative Furnishings and Boutique and our International Buying Manager. In addition, we will suggest that our Southeast Asian Buying Manager located in Hong Kong also be invited. This particular man will then, in the future, accompany all our visitors into China, thus, helping to establish a continuity of relationship with our various Chinese contacts. The above brings you up-to-date on our plans and activities in the China Market. Should you need more information, we trust that you or any of your staff will not hesitate to contact us. Sincerely, Mailop Robert Boulogne, Manager International Buying /pv CC. Mr. W.M. Batten FORD is LIBRARY GERALD R.B. Gill Vice President and General Merchandise Manager of Home and Automotive Lines February 8, 1974 Mr. Eugene A. Theroux The National Council for US-China Trade 1100 Seventeenth Street N.W. Washington, D.C. 20036 FEB 1 1974 Dear Gene: I am attaching our report concerning Import and Domestic Hand Tool Market in the United States per your request. We hope you will find this information helpful. As you probably know, four Penney associates are now in Peking discussing Textiles. We have also indicated our desire to send three or four buyers to the Canton Fair this Spring. Although we have not received official word on the Canton Fair as yet, we have every reason to believe that our request will be acted upon favorably. If you have any questions concerning the material we have attached, please do not hesitate to give us a call. Sincerely, J.C. PENNEY CO., INC. Bb Robert B. Gill RBG:hl FORD & LIBRARY GERALD J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 JCPenney Intra Company Correspondence SUBJECT: IMPORT & DOMESTIC HAND TOOL MARKET IN THE UNITED STATES To simplify the answers to Mr. Theroux's letter, I'll follow his sequence of questions. I. The following are the most saleable hand tools in the United States. Please note they are not in any order of importance. Socket and Drive Tools Striking Tools, e.g. Hammers, Sledges, Wedges, Ripping Bars, etc. Pliers Wrenches Screwdrivers Adjustable Wrenches Hand Saws Levels, both wood and metal Planes Wood Carving Tools Steel Measuring Tapes Steel Squares Chisels Files Pipe Wrenches Vises II. See Exhibit I for a total overview of the import market. Since 1969 the import market has grown from 1.8 million to over 5.3 million in 1973 or a 190% increase in 5 years. (These figures are at manufacturer's cost.) your FORD & LIBRARY GERALD -2- The total import market is $50 million or about 10% of the total hand tool market of $500 million. (Manufacturer's cost.) By 1980 it is estimated the market share of imported hand tools will be approximately 14% or 150 million. (See Exhibit II.) There are some interesting factors that continuously effect the import market. Devaluation and revaluation will cause inevitable price adjustments which will not only effect dollar forecasts, but also consumer acceptance of imported tools. Some other factors are: varying rates of inflation in other countries and increasing overseas freight and handling costs. III. The following countries are the main suppliers of imported hand tools in the United States. COUNTRY PRODUCTS SUPPLIED Japan Precision instruments, Pliers Screwdrivers, Hammers, Hand Saws, Socket and Drive Tools Wrenches, carpenter's tools Chisels England Pliers, Levels, Carpenter's tools, Saws, Saw blades, Files, Chisels Spain Adjustable Wrenches, Pliers, Files, Pipe Wrenches, Carpenter's Tools Taiwan Socket and Drive Tools, Wrenches India Wrenches, Pliers West Germany Pliers, Wrenches, Saw and Saw blades, Chisels, Screwdrivers Sweden Hand Saws and Saw blades Denmark Saw and Saw blades Italy Wrenches, Files Canada Saw and Saw blades Mexico Vises and Clamps BERALD BRARD Hong Kong Screwdrivers 1v. The main requirement a foreign producer must take into account when exporting to the U.S. is to stamp the country of origin on each hand tool produced. All hand tools produced in foreign countries for sale in the United States must conform to: All Federal Specifications regarding construction, safety require- ments and packaging. If a foreign manufactured tool is sold in the United States there should be a name on the tool or packaging that a consumer can identify with. e.g. "Made in Spain, distributed by the J.C. Penney Company." V. See Exhibit III, a complete schedule of tariffs for both Most Favored and Other Nations. One can readily see a vast difference in the rate each classification must pay. The following example will clearly illustrate what effect this difference in duty rates has on a final retail price. I'll use a hypothenal F.O.B. cost of 1.00 for a Vise. (page 383 of Exhibit III.) MOST FAVORED NATIONS OTHER NATIONS F.O.B. 1.00 1.00 Overseas Freight- 2.5% 3.5% 3.5% Duty 5% Ad. Value= .05¢ 45% Ad. Value=. 47¢ Miscellaneous .02¢ .03¢ Cost-2% Warehouse .11¢ .15% Cost-10% Store Cost 1.22 1.69 Retail 2.44 3.38 M.U. % 50% 50% V1. Most tools are imported through Trading Companies which in most cases either own the factories or have a licensing agreement with a foreign manufacturer. In some cases a retailer will have a special agreement with a foreign manufacturer e.g. Sear's has an agreement with a Spanish Plier manufacturer to produce pliers. In some cases U.S. manufacturers will have special agreements with foreign manufacturers to manufacture tools for them. Usually the U.S. manufacturer will use the foreign manufacturing facility to produce items that will round out his entire hand tool assortment. FORD & LIBRARY GERALD There are also companies in the United States that perform the basic function of a jobbers but they only distribute imported hand tools, They will import warehouse, and distribute these hand tools to retailers in the United States. V11. TOTAL HAND TOOL SALES (MANUFACTURERS COST PRICES) 1960 $121,000,000 1965 202,000,000 1970 314,000,000 1972 441,000,000 1975 639,000,000 1980 1,180,000,000' The total market for imported hand tools in the United States is over $50 million in 1973. (manufacturer's cost.) The total market value of hand tools in the United States is over $500 million. (manufacturer's cost.) The total Retail market of hand tools in the United States is over $1 billion for 1973. The Mass Merchants. e.g. JCPenney, Sears, Wards, are making great inroads into this hand tool market. By 1980 it is estimated that mass merchants will have 29% of the hand tool market; this would make them the largest seller of hand tools in the United States. See Exhibits five, six and seven which clearly illustrates the growth rate and market and penetration of mass merchants. SOURCES 1. U.S. Imports/General and Consumption Schedule A 2. Hand Tool Institute 3. Presentation by Hand Tool Div. of Litton Industries to the JCPenney Company in November, 1973. 4. Discussing with hand tool manufacturers. FORD is LIBRARY GERALD HAND TOOLS INSTITUTE EXHIBIT I - JAN 2 1974 331 Madison Avenue New York, N. Y. 10017 ISSUED IMPORTS OF MECHANICS' HAND SERVICE TOOLS INTO U.S.A. TOTAL - ALL TOOL PRODUCT CLASSES COMBINED- (A-L) - -DATA FROM U.S. DEPT. OF COMMERCE - - MILLION ANNUAL RATES-MO. AVG BASIS 1970 1971 1972 1973 MILLION DOLLARS 53 54 55 5657 58 596061 62 63 651'66 67 68 69 1 2 3 4 1 2 3 4 1 2 3 4 1 DOLLARS 2 5.0 5.0 4.5 4.5 4.0 40 3.5 35 3.0 30 2.5 2.5 20 2.0 1.5 1.5 CURRENT 1.0 TREND 1.0 .5 .5 0 0 MONTH & QUARTERLY COMPARISONS ANNUAL TREND YEAR MO. AVGS. MO. 1969 1970 1971 1972 1973 1960 $ 602,397 Jan $ 892,705 $2,235,604 $3,044,574 $4,943,537 $4,841,090 1961 543,160 Feb 1,486,097 1,669,425 2,299,515 3,398,969 3,931,861 1962 566,767 Mar 1,977,532 2,098,561 2,815,243 3,622,451 4,766,890 1st Qu. 1,452,111 2,001,197 2,719,777 3,988,319 4,513,280 1963 565,864 Apr 1,866,624 2,359,307 2,897,612 3,800,666 4,547,415 1964 654,518 May 1,956,079 2,263,689 2,092,003 3,536,789 5,293,081 1965 810,783 Jun 1,862,783 2,123,076 2,619,634 3,396,549 4,552,611 2nd Qu. 1,895,162 2,248,691 2,536,416 3,578,001 4,797,702 1966 998,978 Jul 2,082,212 2,401,724 2,181,574 3,348,143 4,543,459 1967 1,103,445 Aug 1,870,836 2,729,895 2,500,704 4,610,372 5,776,734 1968 1,531,422 Sep 1,973,678 2,513,720 2,805,683 3,924,586 4,340,187 FORD i LIBRARY GERALD 3rd Qu. 1,975,576 2,548,446 2,495,987 3,961,034 4,883,460 1969 1,790,305 Oct 1,909,654 2,605,688 1,721,893 3,727,503 4,666,813 1970 2,336,560 Nov 1,713,950 2,413,308 1,590,108 4,426,062 5,333,852 1971 2,471,110 Dec 1,891,515 2,624,726 3,084,781 3,804,204 4th Qu. 1,838,373 2,547,907 2,132,261 3,985,923 1972 3,878,319 Year 1,790,305 2,336,560 2,471,110 3,878,319 JMI IMPORT STATISTICS OF MECHANICS® HAND SERVICE TOOLS ORGE P. BYRNE JA, 331 MADISON AVENUE NEW YORK CUSTOM HOUSE DATA- BUREAU OF CENSUS U.S. DEPT OF COMMERCE WASHINGTON. ISSUED MEW TOAK, MY. NEW STATISTICAL SERIES - COMMENCING SEPT. 1963 DATA SHOWN INCLUDES TOTAL DUTY RATE APPLICABLE ANNUAL TOTAL IMPORTS MONTHLY TOTAL IMPORTATIONS IMPORTS FROM ALL COUNTRIES IN EACH PERIOD (MONTHLY AVERAGE RATES) 1972 1973 1974 REF. 1930 TARIFF PRODUCT DESCRIPTION % VALUE PERIOD RATE YEAR DOZ/PCS VALUATION PLR # MO. DOZ/PCS VALUATION VALUE DOZ/PCS VALUATION VALUE PER DOZ/PCS VALUATION VALUE PER . PER * MO PRIOR RATES 21.5% 1964 NA $ 228,590 $ Jan NA 2,438,568 NA 2,622,021 Jan A 21.5 1965 NA 285,565 Feb NA 1,481,671 NA 2,106,355 Feb 80 " 21.5 1966 NA 350,189 Mar NA 1,724,236 NA 2,669,399 Mar = $ 21.5 1967 NA 426,326 Apr NA WRENCHES & PARTS 1,938,423 NA 2,428,275 Apr KENNEDY ROUND 19.0 1968 NA 574,628 May NA 1,737,334 NA 3,076,893 May 17.0 1969 NA 725,946 Jun (EXCEPT CUTTERS) " $0 NA 1,587,848 NA 2,251.00 Jun 15.0 1970 NA 1,040,250 2,405,313 Jul $ " Jul NA NA 1,583,976 NA 13.0 1971 1,192,841 = $ 1972 NA Aug NA 2,418,160 NA 3,300,216 AUB 11.0 1,921,964 1973 Sap NA 2,191,353 NA 2,543,906 Sec 11.0 11.0 1974 Oct NA 1,751,677 NA 2,791,414 Oct (TSUS 6489740) Nov 11.0 NA 2,255,486 NA 2,915,314 Nov 1975 Dec NA 1,954,787 Dec PRIOR RATES 21.5% 1964 8,526 $ 47,807 $ 5.61 Jan 37,486 287,960 7.68 36,132 262,562 7.27 Jan B 21.5 1965 12,324 60,667 4.94 Feb 38,175 368,883 9.66 43,543 313,577 7.20 Feb $0 " 21.5 1966 PIPE WRENCHES 17,421 93,803 5.38 Mar 35,177 290,193 8.25 42,442 346,187 8.16 Mar " " 21.5 1967 18,779 90,923 4.84 KENNEDY ROUND 1968 APT 30,666 264,748 8.63 46,019 323,025 7.02 Apr 19.0 49,177 166,724 3.39 & 1969 May 60,037 381,018 6.35 382,893 5.77 May 17.0 66,308 54,337 175,003 3.22 " " 15.0 1970 Jun 58,090 265,466 4.57 50,742 401.191 1.91 Jun 37,138 189,695 5.11 SPANNERS " ⑉ 13.0 1971 Jul 198,498 6.15 48,546 381,678 7.86 32,266 32,077 318,643 9.93 Jul - = 1972 42,154 310,243 7.36 Aug 28,342 250,803 8.85 33,064 376,899 11.40 Aug 11.0 SeL 37,126 327.589 8.83 241,313 10.36 Sep (TSUS 6483720) 1973 22,232 11.0 1974 Uct 32,195 272,493 8.46 11.0 14,036 207,676 14.80 Uct Nov 1975 66,645 379,118 5.69 11.0 35,548 228,283 6.43 No. VALUE PER DOZEN Dec 33,368 252,865 7.58 7 PRIOR RATES 20.0% 1964 24,842 $ 66,567 $ 2.68 Jan 96,884 400,152 4.13 78,601 346,388 4.41 J. C 20.0 1963 28,124 83,079 2.95 Feb 46,071 186,504 4.05 46,720 200,567 4.29 Feb 20.0 1966 39,999 117,685 2.94 Mar : 64,046 238.892 3.73 59.362 295,719 5.00 Mar # 20.0 1967 32,962 98,761 3.00 Apr 55,695 232,280 4.17 70,801 281,697 3.98 Apr SLIP-JOINT PLIERS RENNEDY ROUND 20.0 1968 38,332 122,236 3.19 May 55,839 247,510 4.43 75,018 344,401 4.59 May 20.0 1969 47,058 158,997 3.38 " " Jun 63.441 253,393 3.99 76.639 375.930 4.92 Jvn 20.0 1970 62,263 222,361 3.57 Jul . " 45,653 186,540 4.09 50,616 217,376 3.84 Jul (TSUS 6488100) 20.0 1971 47,803 187,476 3.92 - $ Aug 70,436 328,136 4.66 84,070 404,271 4.81 Aug 20.0 1972 61,433 261,254 4.25 Sev 60.383 216,216 3.58 39,862 201,743 5.07 sep 20.0 1973 VALUE PER DOZEN 20.0 1974 Oct 69,754 314,216 4.50 51,014 273,713 5.37 Oct Nov 20.0 1975 58,920 296,067 5.02 68,939 380,412 5.52 Nov Dec 50,069 235,147 4.70 Dec PRIOR RATES 20.0% 3.3t 1964 31,155 $ 131,167 $ 4.21 Jan 134,350 769,700 5.73 115,307 626,243 5.43 Jan D 20.0 3.3₫ 1965 38,892 165,659 4.26 Feb 133,694 598,992 4.48 81,772 498,282 6.09 Feb 20.0 3.3t 1966 43,499 202,616 4.66 Mar 114,918 625,900 5.45 103,375 652,252 6.31 Mar PLIERS. NIPPERS PINCERS 20.0 3.31 1967 51,831 227,531 4.39 AIR 78,324 495,811 6.33 112,066 585,448 5.22 Apr KENNEDY ROUND B.O 3.0 € 1968 56,815 261,249 4.60 May 64,450 494,837 7.68 67,049 522,747 7.80 May ETC.-(SOLID JOINT) 16.0 2.58 1969 56,364 284,582 5.05 Jun 63,441 452,088 6,61 76.601 524.257 7.76 Jun 14.0 2.3t 1970 71,732 370,247 5.16 Jul 68,486 476,514 6.96 88,829 605,830 6.82 Jul (TSUS 6488500) 12.0 2.07 1971 62,726 355,637 5.67 s 3 Aug 94,390 648,634 6.87 85,884 594,145 6.92 Aug 10.0 1.64 1972 89,460 544,219 6.08 Ser 71,560 469,935 6.29 85,151 521,677 6.13 Sep 10.0 1.6t 1973 Oct 71,523 442,584 6.19 65,053 459,783 7.07 Oct VALUE PER DOZEN 10.0 1.6 1974 Nov 100,606 579,312 5.76 10.0 1.6 ₫ 1975 123,008 775,757 6.31 Nov Dec 72,776 496,314 6.82 Dec PRIOR RATES 19.0% 1964 NA $ 175 $ Jan NA NA 1,317 Jan E 19.0 1965 NA 1,950 Feb NA 2,854 NA 7,421 Feb 19 0 1966 NA 939 Mar $ " NA NA 6,143 Mar 19.0 1967 NA 4,686 PLIERS-PARTS KENNEDY ROUND ATE NA 17.0 1968 NA 1,463 NA 15,102 AFE 15.0 1969 May NA NA 1,038 NA 6,033 May DO Jun NA 1.648 NA 13.0 1970 NA 2,373 $ Jul NA NA 2,314 NA 10,762 (TSUS 6488900) 11.0 1971 8,900 : = Aug NA NA 9,733 9.5 1972 MA 2,479 Sep NA 4,581 NA 11,439 Sep 9.5 1973 Oct NA 9.5 1974 4,859 NA 631 Oct Nov NA 9.5 1975 3,766 NA 6,262 Nov Dec NA 2,724 Dec PRIOR RATES 22.5% 10t 1964 8,411 $ 2,215 $ .263 Jan 42,898 20,954 .488 58,256 42,474 .729 Jan F 22.5 102 1965 12,205 4,248 .348 Fab 32,370 16,430 .508 75,828 45,280 .597 Feb " 22.5 102 1966 TIN SNIPS & PARTS 7,399 3,214 .434 Mar 42,372 $0 : 17,397 .411 45,130 28,635 635 Mar 22.5 10# 1967 7,896 4,057 .514 KENNEDY ROUND20.0 Apr 97 1968 30,727 14,099 .459 9,583 4,661 .486 30,372 22,024 725 Apr 18.0 8$ May 1969 21,170 9,894 .487 49,430 34,392 .696 May THEREOF 15,492 7,489 .483 " 15.5 7t Jun 1970 23,306 12,307 .528 79.686 52,732 662 Jun 18,568 9,320 502 (TSUS 6489100) ## 13.0 Jul 6¢ 1971 18,122 10,633 .587 6,594 5,235 .794 Jul = = 23,388 12,349 528 11.0 5d 1972 17,322 Aug 43,440 24,592 .566 56,386 42,094 .747 Aug 32,662 .530 1973 Sey 31.782 17.499 ,551 23,603 20,755 879 Sep ** VALUE PER PIECE 11.0 5€ 11.0 5d 1974 Oct 24,328 16,043 .659 23,730 18,704 .788 Oct 11.0 5 ₫ 1975 Nov 47,690 30,224 .634 14,279 11,877 .832 FORD Nov Dec 33,738 17,795 .527 Doe MA - not available KIBRARD 1 M: IMPORT STATISTICS OF MECHÁNICS® HAND SERVICE TOOLS CORGE P. BYRNE JR. 331 MADISON AVENUE NEW YORK CUSTOM HOUSE DATA BUREAU or CENSUS U.S. DEPT.OF COMMERCE WASHINGTON. ac. NEW YORK, NY. NEW STATISTICAL SERIES COMMENCING SENT. 1963 DATA SHOWN INCLUDES TOTAL DUTY RATE APPLICABLE ANNUAL TOTAL IMPORTS MONTHLY TOTAL IMPORTATIONS IMPORTS FROM ALL COUNTRES IN EACH PERIOD (MONTHLY AVERAGE RATES) 1972 1973 1974 % VALUE F. 1930 TARIFF PRODUCT DESCRIPTION PERIOD RATE YEAR DOZ/PCS VALUATION PLA # MO. DOZ/PCS VALUATION VALUE PER a DOZIVES VALUATION VALUE DOZ/PCS VALUATION VALUE PLA MO PER # PRIOR PATES 21.0% 1964 NA $ 9,500 $ Jan 166,226 73,672 Jan G BOLT& CHAIN CLIPPERS & 21,0 1905 NA 12,339 Fab 69,916 50,874 Fab 21.0 1913 NA 15,058 Mar 52.576 71.171 Hur 21.0 1967 MA 19,141 Apr 74,087 OTHER METAL CUTTING KENNEDY ROUND 10.3 1508 16,507 67,614 hit NA May 50,494 74,417 May 16.5 1909 NA 29,345 Jun 43,314 67.823 100 14.5 1570 NA 26,907 Jul . 00 41,795 125,123 Jul SHEARS 12.5 1971 NA 35,047 Aug 50,235 74,213 10.5 1972 Aug NA 64,018 Sep 40.517 79.761 Sac (TSUS 6489500) 10.5 1973 Oct 44,961 55,315 10.5 1974 OCE Nov 59,816 72,319 Nov 10.5 1975 Dec 74,279 Due PRIOR RATES 30.0% 1964 NA - 770 $ Jan 11,536 16,987 JSA 30.0 1965 NA 696 Feb 18,503 22,997 Feb H BOLT & CHAIN CLIPPERS 30.0 1968 NA 776 Mar 13,245 17,019 Mar 30.0 1961 NA 1,470 APR EXC. METAL CUTTING SHEARS KENNEDY ROUND 27.0 1500 MA 6,021 25,568 27,017 AUS May 24.0 1969 MA 2,748 13,686 50,374 Hay " " Jun INC. PIPE CUTTERS AND 21.0 1970 NA 3,903 12.639 22.151 Inc Jul BY so 18.0 1971 NA 12,00% 32,893 20,337 Jul - " 1972 Aug PARTS 15.0 43,825 MA 40,917 22,032 AUg 15.0 1973 SEL 24.685 19,212 Sap (TSUS 6489300) 1974 Oct 15.0 30,866 45,234 Det 15.0 1975 Nov 14,592 16,561 Nov Dee 17,350 Dae PRICE RATES 22.5% 1964 14,118 $ 42,609 $ 3.02 Jan 55,206 279,018 5.05 47,698 262,893 5.51 Jan 22.5 1965 15,697 55,219 3.52 Feb 37,059 195,821 5.28 43,444 244,813 5.39 yes I HAMMERS & SLEDGES 22.5 1966 18,977 68,136 3.59 Mar 39,027 173.113 4.44 40,241 234.110 5.87 Mar 22.3 1937 20,386 65,413 3.21 AGE 52,610 234,678 4.46 42,173 283,415 1968 6,71 455 SENIVOT ROUND 20.0 29,832 102,837 3.45 WITH OR WITHOUT HAND- May 34,843 151,757 6.35 44,745 243,951 5.43 18.0 1969 MAY 31,478 113,477 3.60 Jun 66,700 260,404 3,91 37,770 241.270 6.07 Jun LES,-NOT OVER 3.25LB. EA 15.5 1970 35,738 134,485 3.76 Jul 50,492 215,941 4.23 40.045 204.351 5.91 Jul 13.0 1971 28,070 114,155 4.07 Aug 48,083 221,075 4.60 46,490 289,078 6.21 AUR (TSUS 6512100) 11.0 1972 50,696 223,339 4.41 Sen 70.635 201.703 2.95 40,624 282.053 5.83 548 11.0 1973 UCE 53,534 221,463 4.14 11.0 35,666 1976 213,405 5.98 DEE VALUE PER DOZEN Nov 50,500 238,363 4.72 11.0 46,828 1975 320,775 6.83 Nov Dac 49,660 280,646 5.65 Due PRIOR RATES 22.5% 1964 NA $ 40,499 $ Jan 165,222 155,363 Jan CHISELS & OTHER METAL 22.5 1965 NA 37,232 Feb 125,730 155,830 Feb J 22.5 1966 NA 39,071 Mar 143,554 120,190 May : 22.5 1967 NA 43,909 AIR 173,914 177.344 Are CUTTING TOOLS & PARTS KENNEDY ROUND 20.0 1968 NA 86,121 May 152,224 149,353 May 18.0 1969 NA 91,414 Jun 155.719 174,920 Jun 15.5 1970 NA 99,340 Jul 112,455 172,818 Jul 13.0 1971 NA 113,409 Aug 214,468 189,997 " Aug (TSUS 6513100) 11.0 1972 NA 134,597 SCL 140.692 91,797 See 11.0 1973 Oct 146,014 197,223 Occ 11.0 1974 Nov 186,348 236,416 Nov 11.0 1975 Dec 138,823 Due PRIOR RATES 21.5% 1964 NA $ 57,627 8 Jan 294,830 320,135 Jan 21.5 1965 NA 73,395 Feb K 259,854 SCREWDRIVERS 197,247 Feb 21.5 1966 NA 77,736 Mar 278,347 259,360 Mar 21.5 1967 NA 77,988 Apr 252,048 261,319 Ass KENNEDY ROUND 19.0 1968 NA 144,877 May 209,499 318,190 Ray (TSUS 6513700) 17.0 1969 NA 144,280 Jun 235,989 253,717 Jun 15.0 1970 NA 180,556 Jul 219,981 233,483 Jul 13.0 1971 NA 180,553 Aug 303,195 315,196 $ Aug 11.0 1972 NA 247,798 Sep 194,532 264,866 Sep 11.0 1973 Oct 310,362 297,666 Oct 11.0 1974 Nov 228,373 224,307 Nov 11.0 1975 Dec 186,570 Dec PRIOR RATES 22.5% 1964 NA $ 26,998 $ Jan 109,371 110,833 Jan 22.5 1965 NA 30,514 Feb 73,811 88,518 Fab INTERCHANGEABLE HAND 22.5 1966 NA 29,735 Mar 64,948 56,936 Mar 22.5 1967 NA 43,238 Apr 95,010 95,113 Apr TOOLS-NOT METALCUTTING KENNEDY ROUND 20.0 1968 NA 44,097 May 88,536 89,142 May 18.0 1969 NA 55,986 Jun 104,654 115.841 Jun 15.5 1970 NA 57,121 Jul 82,423 98,983 Jul (TSUS 6494700) 13.0 1971 NA 60,238 Aug 107,249 139,943 se Aug 11.0 1972 NA 109,054 Geb 109,183 60,547 See 11.0 1973 Oct 171,965 106,049 Oct 11.0 1974 Nov 154,597 125,369 Nov 11.0 1975 Dec 146,904 Dsc NA not available EXHIBIT II LIBRARY FORD & IMPORTS OF HAND TOOLS GERALD (ALL DOMESTIC MARKETS) AVERAGE GROWTH RATE 1960-72 17% 1960 6% MARKET SHARE 1972-80 17% 13 1965 6%' MARKET SHARE 1972 10% MARKET SHARE 1975 12% MARKET SHARE 1980 14% MARKET SHARE 25 50 75 100 125 150 millions of dollars AT IMPORTERS COST EXHIBIT III TAR SCHEDULES OF THE UNITED STATES AM TATED (1972) Page 377 SCHEDULE 6. - METALS AND METAL PRODUCTS Part 3. - Metal Products 6-3-D 646.02- 646.42 Stat Units Rates of Duty Item Suf- Articles of fix Quantity 1 2 Subpart D. - Nails, Screws. Bolts, and Other Fasteners: Locks; Builders' Hardware: Furniture, Luggage, and Saddlery Hardware Subcart D headnote: 1. The provisions of this subpart do not cover articles coated or clated with precious metals un- less such articles are specifically included therein. Thumb tacks: 646.02 00 Of two or more pieces of iron or steel, whether or not having heads coated or covered with plastics or other material Lb 1.6c per 1b. 4.54 per lb. 646.04 00 Of copper. Lb 8% ad val. 45% ad val. 646.06 00 Other Lb 0.45 per lb. 0.9¢ per 1b. Drive pins, studs; and other fasteners, all the fore- going, whether threaded or not threaded, suitable for use in powder-actuated hand tools: 646.15 00 Not threaded Lb Free 0.7¢ per lb. 646.17 00 Threaded Lb 7.5% ad val. 45% ad val. 646.20 00 Staples in strip form Lb 0.54 per lb. 24 per lb. 646.22 00 Corrugated fasteners, glariers' points, hook nails, and ring nails Lb 9.5% ad val. 45% ad val. Brads, nails, spikes, staples, and tacks, all the foregoing. not described in the foregoing pro- visions of this subject, of base metal: Of iron or steel (except articles with heads of nonferrous metals): Of ORE piece construction: Made of round wire: 646.25 00 Under 1 inch in length and under 0.065 inch in diameter Lb 0.54 per lb. 0.75 per lb. 646.26 1 inch or more in length and 0.065 inch or more in diameter 0.14 per lb. 0.44 per lb. 20 Smooth shank Lb. 40 Other Lb. Cut: 646.27 00 Not over 2 inches in length Lb 4% ad val. 15% ad val. 646.28 00 Over 2 inches in length Lb 0.14 per lb. 0.44 per lb. 646.30 00 Other Lb 1.2¢ per 1b. 1.54 per lb. 646.32 00 Of two or more pieces Lb 1.6 per lb. 4.5¢ per lb. 646.34 00 Of copper Lb 3% ad val. 45% ad val. 646.36 00 Other Lb 9.5% ad val. 45% ad val. Rivets of base metal: 646.40 00 Of iron or steel and not brightened, not lathed, and not machined Lb 0.24 per 1b. 14 per lb. 645.41 00 Other Lb 7% ad val. 45% ad val. 646.42 00 Cotters, cotter pins, and fasteners or holders (except nuts) used with screws, bolts, or studs, all the foregoing of base metal Lb 9.5% ad val. 45% ad val. FORD & LIBRARY GERALD TARIFF SCHE LES OF THE UNITED STATES ANNOTATED (1972) Page 378 SCHEDULE 6. - METALS AND METAL PRODUCTS 6 3 D Part 3. - Metal Products 546.45 646.78 Stat Units Rates of Duty Item Suf- Articles of fix Quantity 1 2 Furniture glides of base metal: 646.45 CO Of two or more pieces of iron or steel Lb 1.8t per 1b. 4.5 per lb. 646.47 00 Other Lb 9.5% ad val. 45% ad val. Wood screws (including lag screws or bolts) of base metal: 646.49 Of iron or steel 12.5% ad val. 25% ad val. 20 Lag screws or bolts Gross 40 Other Gross Other: 646.51 00 Having shanks or threads not over 0.12 inch in diameter Gross 11.5 % ad val. 45% ad val. 646.53 00 Having shanks or threads over 0.12 inch in diameter Gross 9% ad val. 45% ad val. Bolts, muts, studs and studding, screws, and washers (including holts and their nuts imported in the sace shipment, and assembled bolts or screws and washers, with or without nuts); screw eyes, screw books and screw rings; turnbuckles; all the fore- going not described in the foregoing provisions of this subpart, of base metal: Of iron or steel: 646.54 00 Bolts and bolts and their nuts imported in the same shipment Lb 0.24 per 1b. 14 per lb. 646.56 00 Nuts Lb 0.14 per lb. 0.64 per lb. 646.57 00 Studs and studding. X 7% ad val. 45% ad val. Screws: 646.58 00 Machine screws 0.375 inch or more in length and 0.125 inch or more in diameter (not including cap screws) Lb 0.54 per 1b. 14 per lb. Other: 646.60 Having shanks or threads not over 0.24 inch in diameter 11% ad val. 45% ad val. 20 Crp Cross 40 Other Gross 646.63 Having shanks or threads over 0.24 inch in diameter 9.5% ad val. 45% ad val. 20 Cap screws Gross 40 Other Gross Washers: 646.65 CO Spiral and other lock washers Lb 10% ad val. 35% ad val. 646.70 00 Other Lb Free 0.6$ per lb. 646.72 00 Assembled bolts or screws and washers; screw eyes, screw hooks and screw rings; turnbuckles X 9.5% ad val. 45% ad val. Of other base metal: Bolts, nuts, screws, and washers (including bolts and their nuts imported in the same shipment): 646.74 00 Muntz or yellow metal bolts Lb 1.54 per lb. 6.54 per lb. Other: 646.75 00 Having shanks, threads, or holes not over 0.24 inch in diameter Gross 11.5% ad val. 45% ad val. 646.76 00 Having shanks, threads, or holes over 0.24 inch in diameter Gross 9% ad val. 45% ad val. 646.77 00 Studs and studding X 8% ad val. 45% ad val. 646.73 00 Assembled bolts or screws and washers; screw eyes, screw hooks and screw rings; turnbuckles X 9.5% ad val. 45% ad val. FORD is LIBRARY GERALD TARIFF SCHEDULES OF THE UNITED STATES ANNOTATED (1972) Page 379 SCHEDULE 6. - METALS AND METAL PRODUCTS Part 3. - Metal Products 6-3-D 646. 79 646. 98 Stat Units Rates of Duty Item Suf- Articles of fix Quantity 1 2 646.79 00 Any article described in the foregoing item 646.20 and items 646.40 to 646.78, inclusive (except 646.45 and 646.47), if Canadian article and original motor-vehicle equipment (see headnote 2, part 6B, schedule 6) X Free Locks and padlocks (whether key, combination, or electrically operated), luggage frames incorporat- ing locks, all the foregoing, and parts thereof, of base metal; lock keys: Padlocks: Not of cylinder or pin tumbler construc- tion: 646.80 00 Not over 1.5 inches in width Doz 6¢ per doz. 35 per doz. + 4% ad val. + 20% ad val. 646.81 00 Over 1.5 but not over 2.5 inches in width Doz 94 per doz. 50 c per doz. + 4% ad val. + 20% ad val. 646.82 00 Over 2.5 inches in width Doz 18 per doz. 75% per doz. + 5% ad val. + 20% ad val. Of cylinder or pin tumbler construction: 646.83 00 Not over 1.5 inches in width Doz 40 ¢ per doz. $1 per doz. + 5% ad val. + 20% ad val. 646.84 00 Over 1.5 but not over 2.5 inches in width Doz 30 ₺ per doz. $1.50 per doz. + 4% ad val. + 20% ad val. 646.85 00 Over 2.5 inches in width Doz 40 ¢ per doz. $2 per doz. + 4% ad val. + 20% ad val. Cabinet locks: Not of cylinder or pin tumbler construc- tion: 646.86 00 Not over 1.5 inches in width Doz 15 per doz. 70¢ per doz. + 4.25% ad val. + 20% ad val. 646.87 00 Over 1.5 but not over 2.5 inches in width Doz 21c per doz. $1 per doz. + 57 ad val. + 20% ad val. 646.88 00 Over 2.5 inches in width Doz 32$ per doz. $1.50 per doz. + 4% ad val. + 20% ad val. 646.89 00 Of cylinder or pin tumbler construction Doz 40¢ per doz. $2 per doz. + 4% ad val. + 10% ad val. 646.90 Luggage locks, and parts thereof, and luggage frames incorporating locks 11% ad val. 45% ad val. 20 Locks Doz. 40 Other X 646.92 00 Other X 9.5% ad val. 45% ad val. 646.93 00 If Canadian article and original motor- vehicle equipment (see headnote 2, part 6B, schedule 6) X Free 646.95 00 Door closers and parts thereof, of base metal X 5.5% ad val. 45% ad val. Harness and saddlery or riding-bridle hardware, whether or not coated or plated with precious metal: 646.97 00 Not coated or plated with precious metal X 6% ad val. 50% ad val. 646.98 00 Coated or plated with precious metal X 7.5% ad val. 60% ad val. BERALD FORD LIBRARY 454-102 36 TARIFF SCHEDULES OF THE UNITED STATES ANNOTATED (1972) Page 330 SCHEDULE 6. - METALS AND METAL PRODUCTS 5-3-D,E Part 3. - Metal Products 647.01 647.10 Stat Units Rates of Duty Item Suf- Articles of fix Quantity 1 2 Hinges; and fittings and mountings not specially provided for, suitable for furniture, doors, windows, blinds, staircases, luggage, vehicle coach work, caskets, cabinets, and similar uses; all the foregoing, of base metal, whether or not coated or plated with precious metal: Not coated or plated with precious metal: Of iron or steel, of aluminum. or of zinc: 647.01 00 Hinges, fittings, and mountings, designed for motor vehicles X 4% ad val. 25% ad val. 647.02 00 If Canadian article and original motor-vehicle equipment (see headnote 2, part 6B, schedule 6) X Free 647.03 Other 9.5% ad val. 45% ad val. Hinges: 30 Extt hinges Doz.prs. 40 Cther X 60 Other X 647.05 00 Other X 8% ad val. 45% ad val. 647.06 00 If Canadian article and original motor-vehicle equipment (see headnote 2, part 68, schedule 6) X Free 647.10 00 Coated or plated with precious metal X 20% ad val. 65% ad val. Subpart E. - Tools, Cutlery, Forks and Spoons Subpart E headnotes: 1. Except for blow and other torches (items 649.31 and €49.32), acrasive wneels mounted on frame- works (item 649.39), tool tios and forms for making tool tios (item 649.53), sewing sets, pedicure or mani- cure sets, or combinations Mereof (items 651.11 and 651.13), and except for knives, forks, s200ns, and ladies, all the foregoing which are kitchen or table ware of precious metal *this subnart covers only arti- cles with a blade, working edge, working surface or other working part of -- (i) base metal; (ii) metallic carbides on a support of base metal; (iii) natural or synthetic precious or semiprecious stones on a support of base metal; or (iv) abrasive materials on a support of base metal, provided that the articles have other functioning or working elements such as cutting teeth, edges, grooves, or flutes. 2. In determining the length of files and rasps (items 649.01-.07, inclusive), the tang (if any) should not te included. 3. The provisions for "interchargeable tools for hand tools or for machine -colls Over Inter- changeable tools which are designed to be fitted to hand tools or machine tools and which cannot be used Independentiv, and include, but are not limited to, Interchangeaste tools for pressing, stateing, drill- ing, tamping, threading, boring, broaching, milling, i FORD GERALD LIGARA TARIFF SCHEDULES OF THE UNITED STATES ANNOTATED (1972) Page 381 SCHEDULE 6. METALS AND METAL PRODUCTS Part 3. - Metal Products 6 - 3 E 648. 648.7 Stat Units Rates of Duty Item Suf- Articles of fix Quantity 1 2 cutting, dressing, mortising or screw-driving, but do not include saw blades, knives, or cutting blades, and CO not include holding or operating devices even if attached to such interchangeable tools. 4. For the purposes of oetermining the rate of duty applicable to sets provided for in item 651.75, a specific rate of duty or a compound rate of duty for any article in the set shall be converted to its.ao valorem eduivalent rate, i.e., the divalo- rem rate which, when applied TO the full value of the article determined in accordance with section 402 or 402a of this Act, would provide the same amount of duties as the specific or compound rate. 5. Cases, boxes, or containers of types ordi- regily sold at retail with the tools or other arti- cles provided for in this suppart are classifieble with such articles if imported therewith. Submart E statistical headnotes: 1. For purposes of statistical reporting of stain- less steel knives, forks, or spoons imported in sets. classifiable under item 651.75, and described in items $43.00-.08 in the Appendix, report the mumber of such knives, forks, and spoors under the appropriate 7-digit reporting number in the Appendiz. 2. For purposes of reporting statistical item 551.7515, report the total number of pieces with this item momber in addition to the number of knipes, forks, and spoons as required by subpart E statistical headnote 1. Drainage tools, scoops, shovels, spades, picks, mattocks, hoes, rakes, and forks; axes, adres, hatchets, machetes, and similar hewing tools; scythes, sickles, grass hooks, corn knives, hay knives, hedge and grass shears, pruning shears and sheep shears; all the foregoing which are hand tools, and metal parts thereof: 648.51 00 Drainage tools, scoops, shovels, and spades, and parts thereof X 7.5% ad val. 30% ad val. 648.53 00 Picks and mattocks, and parts thereof X 3.5% ad val. 45% ad val. Hoes and rakes, and parts thereof: 648.55 3 Agricultural or horticultural tools, and parts thereof X 7.5% ad val. 15% ad val. 648.57 CO Other. X 7.5% ad val. 30% ad val. Forks, and parts thereof: 648.61 00 Agricultural or horticultural forks, and parts thereof (except hay and manure forks) X 3.5% ad val. 15% ad val. 648.63 2 Other X 7.5% ad val. 50% ad val. Axes, adzes, hatchets, machetes, and similar hewing tools, and parts thereof: 643.65 CO Machetes, and parts thereof X Free Free 648.67 02 Other X 11% ad val. 45% ad val. 648.69 00 Scythes, sickles, grass hooks, and corn knives, and parts thereof X 4% ad val. 30% ad val. 648.71 00 Hay knives, and parts thereof No 11 each + 8¢ each + 6% ad val. 45% ad val. BERALD FORD LIBRARY TARIFF SCHEDULES OF THE UNITED STATES ANNOTATED (1972) Page 382 SCHEDULE 6. METALS AND METAL PRODUCTS 6 3 E Part 3. - Metal Products 648. 73 - 649.29 Stat Units Rates of Duty Item Suf- Articles of fix Quantity 1 2 Drainage tools, scoops, shovels, spades, etc. (con.):- 648.73 C:) Hedge and grass shears, and parts thereof. No 5¢ each + 20 each + 11% ad val. 45% ad val. 648.75 00 Pruning shears and sheep shears, and parts thereof No, 2¢ each + 20 each + 4% ad val. 45% ad val. iers, nippers, and pincers, and hinged tools for holding and splicing wire: tin snips, bolt and chain clip ers, and other retal cutting shears; pipe cutters and other pipe tools: spanners and wrenches; files (except nail files), and rasps; all the foregoing which are hand tools, and metal parts thereof: Pliers, nippors, and pincers, and hinged tools for holding and splicing wire, and parts of the foregoing: 648.81 00 Slip-joint pliers Doz 20% ad val. 60% ad val. 648.85 00 Other (except parts) Doz 1.64 each + 10¢ each + 10% ad val. 60% ad val. 648.89 00 Parts X 9.5% ad val. 45% ad val. 648.91 00 Tin snips, and parts thereof No 54 each + 20¢ each + 11% ad val. 45% ad val. Bolt and chain clippers and other netal-cutting shears (except tin ships): pipe cutters; parts of the foregoing: 643.93 00 With cutting part containing by weight over 0.2 percent of chromium, nolyhdenum, or tungsten, or over 0.1 percent of vanadium X 15% ad val. 60% ad val. 648.95 00 Other X 10.5% ad val. 50% ad val. 648.97 Pipe tools (except cutters), wrenches, and spanners, and parts thereof 11% ad val. 45% ad val. 20 Pize urenches and sparmers. Doz. 40 Other X Files and rasps, with or without their handles: 649.01 00 Not over 2.5 inches in length Doz 6t per doz. 25 per doz. 649.03 CO Over 2.5 but not over 4.5 inches in length Doz 10c per doz. 47.54 per doz. 649.05 00 Over 4.5 but not over 6.75 inches in length Doz 14¢ per doz. 62.5 $ per doz. $49.07 00 Over 6.75 inches in length Doz 8 per doz. 77.5 per doz. Non-mechanical S3WS, blades for mechanical or non- mechanical saws (including blades in continuous lengths), and metal teeth or cutting segments and other metal pirts of such saws and blades: 649.11 00 Non-mechanical saws No 3.5% ad val. 20% ad val. Blades for mechanical or non-mechanical saws: 649.14 00 Band saw blades X 4% ad val. 20% ad val. 649.17 00 Circular saw blades No 4% ad val. 25% ad val. 649.19 CO Hacksaw blades No 5% ad val. 20% ad val. 649.21 00 Jewelers' or piercing saw blades Gross 10 per gross 40 ¢ per gross Chain-saw blades, in lengths or cut to size: 649.23 00 With cutting part containing by weight over 0.2 percent of thro- miun, solybdenum. or tungsten, or over 0.1 percent of vanadium X 15% ad val. 60% ad val. 649.24 Other 4.5% ad val. 27.5% ad val. 20 In continuous Lengths Ft. 40 Other X 649.25 00 Other blades No 3.5% ad val. 20% ad val. Чеса! parts: 649.26 03 Metal teeth and cutting segments suitable for use in cutting metal X 7.5% ad val. 30% ad val. Other: 649.27 00 Frames, handles, and other parts for non-mechanical saws X 9.5% ad val. 45% ad val. 649.29 00 Other X 5% ad val. 35% ad val. FORD i GERALD LIBRARY TARIF CHEDULES OF THE UNITED STATES ANNO TED (1972) SCHEDULE 6. METALS AND METAL PRODUCTS Page 383 Part Metal Products 6-3- E 649.31 649.57 Stat Units Rates of Duty Item Suf- Articles of fix Quantity 1 2 Blow torches and similar self-contained torches, and metal parts thereof: 649.31 00 Torches, designed to be operated by compressed air and kerosene or gasoline No 5% ad val. 45% ad val. 649.32 00 Other X 9.5% ad val. 45% ad val. Anvils: 649.33 00 of iron or steel, weighing over 5 pounds each Lb 0.5 per lb. 3¢ per lb. 649.35 00 Other No 9% ad val. 45% ad val. 649.37 Vises and clamps (except parts of, or accessories for, machine tools) 5% ad val. 45% ad val. 10 Vises No. 20 Other No. 649.39 00 Abrasive wheels mounted on franeworks, hand or pedal operated No 4.5% ad val. 27.5% ad val. Interchangeable tools for hand tools or for machine tools, including dies for wire drawing, extrusion dies for metal, and rock drilling bits: 649.41 00 Files and rasps, including rotary files and rasps Doz 3% val. 15% ad val. 649.43 Cutting tools (except tools provided for in item 649.41) with cutting part containing by weight over 0.2 percent of chromium, molybdenum, or tungsten, or over 0.1 per- cent of vanadium 15% ad val. 60% ad val. OS End milling cutters X 10 Masonry drills X 15 Milling cutters (except end milling cutters) X 20 Rock drilling bits X 25 Single point toola X 30 Threading taps, dies, and chasers X 40 Twist drills X ES Metal-cutting dies (excluding threading dies) X 70 Other X Other: Suitable for cutting metal: 649.44 00 Twist drills X 21% ad val. 50% ad val. 649.46 00 Other X 10.5% ad val. 50% ad val. Not suitable for cutting metal: 649.47 00 For hand toois X 11% ad val. 45% ad val. 649.45 Wire-drawing dies and extrusion dies for metal 7.5% ad val. 30% ad val. 20 Diamond dies No. 40 Other X 649.49 Other 5% ad val. 35% ad val. 10 Metal-forming dies X 20 Other X 649.53 00 Tool tips; and plates, blanks and other forms for making tool tips; all the foregoing, unmounted, of sintered metal carbides Lb 15% ad val. 60% ad val. 649.57 00 Slicers, choppers, grinders, juice extractors, and other mechanical appliances, all the foregoing which are not over 25 pounds in weight, are not powered by electricity, and are of types used in the household, in restaurants, or in retail stores for preparing or serving food or drink No 8.5% ad val. 40% ad val. FORD & LIBRARY GERALD TARIFF SCI ULES OF THE UNITED STATES ANNOTAT (1972) Page 384 SCHEDULE 6. - METALS AND METAL PRODUCTS 6-3-E Part 3. Metal Products 649.65 650.07 Stat Units Rates of Duty Item Suf- Articles of fis Quantity 1 2 Knives and cutting blades for power or hand machines: 649.65 00 For agricultural or horticultural machines (ex- cept lawn-mower blades) and for shoe machinery No Free Free 649.67 Other 5% ad val. 20% ad val. 20 For meat-slicing, reat-cutting, or meat-chopping muchines no. 50 Over 23 inches in Length, for vencer- outting machines No. 60 Over 6 inches in Length, for wood-chipper machines no. 70 For matal-shearing nachines No. 80 Other 10. Pen knives, pocket knives, and other knives, all the foregoing which have folding or other than fixed blades cr attachments; and blades, handles, and other parts thereof: Knives: 649.71 00 Valued not over 40 cents per dozen No 25% ad val. 1.25 each + 50% ad val. 649.73 00 Valued over 40 cents but not over 50 cents per dozen No 25% ad val. St each + 50% ad val. 649.75 00 Valued over 50 cents but not over $1.25 per dozen No 25% ad val. 11t each + 55% ad val. 649.77 00 Valued over $1.25 but not over $3 per dozen No 4.5g each + 18t each + 13.5% ad val. 55% ad val. 649.79 00 Valued over $3 but not over $6 per dozen No 6.24 each + 25 è each + 12.5% ad val. 50% ad val. Valued over $6 per dozen: 649.81 00 with steel handles ornamented or decorated with etchings or gilded designs, or both No 5 each + 35 $ each + 12.5% ad val. 55% ad yol. 649.83 00 Other No 8.7t each + 35 $ each + 13.5% ad val. 55% ad val. 649.85 00 Blades, handles, and other parts No 2.75$ each + 11c each + 13.5% ad val. 55% ad val. Budding, grafting, and pruning knives, and blades, handles, and other parts thereof: 649.87 00 Knives No 8.7t each + 35 each + 13.5% ad val. 55% ad val. 649.39 00 Other No 2.754 each + 11t each 13.5% ad val. 55% ad val. 649.91 Cuticle or corn knives, cuticle pushers, nail files, nail cleaners, nail nippers and cliprers, all the foregoing used for manicure or pedicare purposes, and parts thereof; tweezers 18.5% ad val. 60% ad val. 20 Tuesence No. 40 Other X Knives not specifically provided for elsewhere in this subpart, and cleavers, with or without their handles: 650.01 00 Without their handles No 0.464 each + 84 each + "5" ad.val. 45% ad val. 650.03 00 Cleavers with their handles No 2 ¢ each + 8 each + 8.5% ad val. 45% ad val. Knives with their handles: 650.05 00 With silver handles No 4 t each + 16¢ each + 8.5% ad val. 45% ad val. 650.07 00 with silver-plated handles No It each + 84 each + 7.5% ad val. 45% ad val. FORD GERALD LISTARY EXHIBIT [VI MASS MERCHANTS (SALES AT LIST PRICE) Total Hard Hand Tool Line Sales Sales 1960 $ 4,000,000,000 $ 32,000,000 1965 6,400,000,000 76,000,000 1970 10,200,000,000 138,000,000 1975 14,400,000,000 326,000,000 1980 20,200,000,000 682,000,000 The newness and unique methods of mass merchandising accounted for the 10% growth rate in the sixties. Chilton a Publishing Company forecasts this market to continue its bold growth, but at a slightly lower rate (7%). Hand tool sales, however, should continue at the higher past rate of 16% as the display, promotional and pricing techniques of mass merchandisers are draw- $082 it LIBRARY ing tool customers from other markets. Information provided by: AHMA, MRI, Chilton, Litton Research EXHIBIT VI MASS MERCHANTS hard line sales hand tool sales AVERAGE GROWTH RATE AVERAGE GROWTH RATE millions millions dollars 1960-72 10% dollars 1960-72 16% 1972-80 7% 1972-80 16% 20,000 800 15,000 600 10,000 400- 5,000 200- 1960 '65 '70 '75 '80 1960 '65 '70 '75 '80 FORD i LIBRARY GERALD AT LIST PRICES EXHIBITVII TOTAL HAND TOOL MARKET MARKET SHARES BY SALES OUTLET CATEGORY 100% 100% 100% 100% 100% AUTOMOTIVE WHOLESALERS 36% 34% 29% 15 MASS MERCHANTS 13% 19% 22% 26% 29% INDUSTRIAL DISTRIBUTORS 2418 8% to HARDWARE 17% 14% 7% 5% STORES 10% IMPORTS 6% 6% it. 2% OTHER 7% 9% 7% 8% 9% 1960 '65 '70 '75 '80 FORD it LIBRARY GERALD NATIONAL COOCIL FOR UNITED STATES-CHI TRADE MAILING LIST RECIPIENTS CODE of / OFFICIAL NATIONAL COUNCIL CONTACT: MR WILLIAM M BATTEN DIRECTOR J C PENNEY COMPANY INC 1301 AVENUE OF THE AMERICAS NEW YORK NY 10019 957-6639 Add ALTERNATE REPRESENTATIVES: 1.) MR. W.J. NePPL Ex. V. Pres. All at - - 2.) MR. B.L. Humm (J.C.Ponney Co. Inc. Dir. of Merchandise 1301 Ave of The Americas NY, NY 10019) 3.) Mr. H.B. Eddius ex. Dept. WASHINGTON, D.C. REPRESENTATIVE: REPRESENTATIVES OF SUBSIDIARIES OR AFFILIATES: MAGAZINE RECIPIENTS, DOMESTIC AND FOREIGN: MR. ROBERT BOULOGNE INTERNATIONAL BUYING J.C. PENNEY PURCHASING CORPORATION 1301 AVENUE OF THE AMERICAS NEW YORK, N.Y. 10019 FORD i LIBRARY GERALD plane 11/26 Hi Barbara: Attached per our telephone conversation of this morning. Barbara, Mrs. Batten has made a request which I said I would pass along to you. She wondered if she could get a listing of home addresses for the delegation that went to China, including Amb. Phillips and Mr. Theroux. She wants to send Christmas cards. If you could send this (between all of your other duties), addressing it to Mr. Batten here at the office, I would appreciate it - Mrs. Batten will too! file Liz FORD & LIBRARY CERALD The Mayflower (202) 347-3000 Batten 6/3/74 Penny- hiason office und to $1.6 milhin - punchased by brown J.C. - Thing Bugar 5-man furtshayn told could gu to RM but fundy St D.K to 11 Textils visit Ribin Thank Shayhar WESTERN corp. INTERNATIONAL HA HOTELS ALD R. FORD LIBRARY Partners in travel with United Air Lines J.C They group plad $200,000 Fan brugh I biges - disendheart- ment Mumm failed I - the with axaments nearhed in > Shanha - man Mem lak They hand to Unit Qc- wh Lossin ИЯЗ Mill M n) Batten -2 The Mayflower (202) 347-3000 need design help Quality marketing sich better understanding FORD & LIBRARY GERALD WESTERN INTERNATIONAL HOTELS Partners in travel with United Air Lines JCPenney Clifford D. Anderson Go Director of Public Relations March 14, 1974 Christopher H. Phillips The National Council for United States-China Trade MAR 151974 1100 Seventeenth Street, N.W. Washington, D. C. 20036 Dear Mr. Phillips: As requested in your letter of February 25th to Mil Batten, we are pleased to enclose a check in the amount of $2,500 for our 1974 dues to The National Council for United States-China Trade. Sincerely, Anlensons CDA/dw Enc. FORD is LIBRARY GERALD J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 June 12, 1974 Mr. William M. Batten Chairman of the Board J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mil: During the June 3 Board Meeting, you asked if I could give you a breakdown of non-recurring expense items included in our financial statements for the first four months of 1974. You also asked for a comparison of the first four months' expenditures with anticipated expenditures con- tained in the 1974 budget as approved by the Board at its December 12 meeting. When you raised these questions, I neglected to mention that we had included among the materials provided you for the Board Meeting a copy of the proposed 1974 budget. If you have not already seen it, you will find it attached to the minutes of the December 12 Board Meeting. Total expendi- tures were estimated at $392,500. You will recall that in discussing the proposed 1974 budget in December, it was recognized that the Council would probably operate at a loss during 1974, but that a $200,000 year end cash carryover would provide a cushion against any deficit which might occur. It was understood, of course, that this imbalance would have to be of limited duration and that by the year end a balance should be achieved either by an increase in member- ship or a reduction of expenditures. As to non-recurring costs, the income statement (copy enclosed) reflects a figure of $15,732 for magazine costs. of these costs, $6,437 represents one-time mechanical artwork and promotion costs. The balance sheet (copy enclosed) reflects FORD is LIBRARY GERALD Mr. William M. Batten June 12, 1974 Page Two a figure for fixed assets of $17,347, net ,of depreciation, and these costs are also one-time costs for furniture and office equipment. I hope the foregoing is responsive to your questions, but please let me know if there is any further information I can provide you. Sincerely yours, Christopher H. Phillips dt enc. d: Hange of Burnhan FORD is LIBRARY GERALD J.C Penney Picks New Chief Executive Donald V. 7/31/74 Selbert Is Sears Expects Lower Set to HeadChain Net in the Quarter By ISADORE BARMASH Sears, Roebuck & Co., Inc., Donald V. Seibert, vice the nation's largest retailer, president and director of cor- expects that its net income porate planning and develop- in the second quarter ending ment of the J. C. Penney Company, was selected yes- today will be lower than last terday to become chairman year. The company forecast and chief executive officer of yesterday that its earnings the country's second-largest would equal 95 cents a share, retail chain. The 51-year-old against a restated $1.02 a Mr. Seibert will succeed Wil- share in the like 1973 quar- liam M. Batten, who retires ter. Oct. 1 but will remain as a Arthur M. Wood, chairman director. and chief executive officer, The announcement was said that the earnings decline greeted by some retail ob- came from the fact that servers' yesterday with sur- "sales in June and July have prise since it was felt that been less buoyant than ex- Mr. Seibert was a dark horse. perienced a year ago." As a He was tapped for the com- result, he said, operating re- pany's fifth chairmanship sults will show only modest since its founding in 1902 Donald V. Seibert improvement over the com- over Jack B. Jackson, presi- parable period last year. dent and chief operating offi- and the youngest of the top As additional contributors cer, who is 58 years old; Wal- Penney officers, was selected to the earnings decline, Mr. ter J. Neppl, executive vice for the company's posts as Wood cited higher interest president, 52, and Kenneth S. chairman and chief executive expense in the quarter that Axelson, vice president for officer. would increase by 9 to 10 finance and administration, Penney's said yesterday cents a share over last year. 52. that Mr. Jackson and Mr. The contribution of the All- However, the choice of Mr. Neppl would continue in their state group of companies is Seeibert has a precedent in- current posts to which they expected to be only slightly volving Mr. Batten. In 1958, more than in the second 1973 Mr. Batten, then 48 years old Continued on Page 47, Column 5 quarter, he added. New York times Chairman and Chief Executive Named at J. nney Company Continued From Page 41 ships outside the company." Mr. Batten himself has served were appointed in 1972. for two years as chairman of the Business Advisory, Coun- Three vice presidents were cil of the Department of elected senior vice presi- Commerce and as a member dents, the company said, in- of the Committee for Eco- cluding Mr. Axelson; Charles nomic Development. T. Stewart, general counsel Asked what he considered and director of public affairs, to be Mr. Seibert's greatest and George S. Stewart, direc- accomplishment, Mr. Batten tor of corporate facilities and replied that it was the work services. he did in taking responsibil- In a brief interview yester- ity of the catalogue-sales op- day, Mr. Batten responded to eration in 1964 and "turning questions about Mr. Seibert's it around from a loss to a appointment with three ob- profit by 1972.' servations. When Penney's entered the "What we along with any catalogue field in 1962 by other large corporation have buying the General Merchan- tried to do is to develpp the dise Company, that concern best management team pos- had a profit on a small sales sible," he said, "and make base. But Penney's in acquir- maximum use of the talents ing it decided to expand it we have and to get them in far beyond its former base the right slots. and expended a considerable "In the uase of the chair- sum "and much effort" in man and chief executive, it is bringing it to the Penney's important to have a conti- scale. nuity of management since it However, Mr. Batten added takes quite a long time to that the catalogue achieve- get things doane in a large ment was not the only one comgany and for any man for the chairman-elect. to leave his imprint. Mr. "Whatever assignment we Seibert has already had 27 have given Mr. Seibert he years of service with Pen- has done in an outstanding ney's and is only 51 years fashion." old, so that he will provide Mr. Batten will retire in good continuity. October at 65 after the com- He added that Mr. Seibert's pany's normal management talents "fit the role of chair- retirement age policy at 60 man as we see it at Penney's was extended five years in in terms of providing "over- 1969 to enable him to carry all directions," planning lead- on with a number of engoing ership and major relation- programs. JUL 10 1974 JCPenney Purchasing Corporation July 8, 1974 The National Council for U.S. -China Trade 1100 Seventeenth Street N.W. Suite 513 Washington, D.C. 20036 Dear Sir: Please send me one copy of the U.S. CHINA BUSINESS REVIEW, No. 3, Vol. 1, May-June 1974. Thank you for your cooperation. Very truly yours, Robert Brbert Bulognes) Boulogne International Buying RB/lz ok/ses put on on #9 file FORD & LIBRARY GERALD J.C. Penney Purchasing Corporation, 1301 Avenue of the Americas, New York, N.Y. 10019 September 26, 1974 Mr. G.R. Hogenson Vice President J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mr. Hogenson: Many thanks for your letter of September 23 and for its enclosure. The summary report you provided, which is most interest- ing, will be shared with Ambassador Bush but otherwise held strictly confidential. All of us regret that you could not be personally with us for the briefing of Mr. Bush. With best regards. Sincerely, Eugene A. Theroux Vice President EAT/alm FORD is LIBRARY GERALD tib: J.C.Dunny J.C. every Neppl 212-957-6662 ET TT Sept. 11 Robert B. Gill Vice President General Merchandise Manager of Home, Leisue The and Automotive 1301 Avenue of n America New York, New York 10019 Robert Boulogue Execultive 0 Vice Prident J.C. Penney Purchasing Corporation 1301 Avenue for America New York, New York 10019 FORD is LIBRARY GERALD 13th or 14th Sept profer AM J.C. Penney Co W Batten 11/6/74 MEMORANDUM TO: Members of the Board FROM: Christopher H. Phillips I am enclosing the agenda for the December 4 meeting, as well as a copy of the proposed 1975 budget. The meeting will be held at the Embassy Row Hotel, 2015 Mass- achusetts Avenue, in the "Le Directoire" room, which is located off the hotel lobby on the ground floor. The Chinese Liaison Office has invited Board members to a luncheon to be given at the residence of Ambassador Huang Chen at 2301 "S" Street, at the conclusion of our meeting. It is for this reason we decided to meet at the Embassy Row Hotel which is only a few blocks from the Ambassador's residence. Would you please let me know whether or not you plan to attend the luncheon so that we can provide the Chinese with a list of those who will be present. Sometime prior to the Board meeting we will be sending you additional material, including the minutes of the last meeting. Enclosures CHP/alm FORD & LIBRARY GERALD (XXXX 331-0290 October 2, 1974 Mr. William M. Batten Chairman of the Board J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mil, This is just a reminder that the Board of the National Council will meet in Washington on Wednesday, December 4. We hope your calendar is clear and that you will be able to attend. As agenda and other details of the meeting will reach you shortly. with best regards. Sincerely, Christopher H. Phillips in FORD & LIBRARY GERALD January 17, 1975 Mr. William M. Batten Chairman of the Board J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mil, At the December 4 Board meeting, it was suggested that I supply members with a breakdown of the Council's membership by industry groups. This was intended to assist Board members in their effort to recruit new Council members. You will find this information contained in Enclosure No. 1. Last summer I wrote several hundred letters to companies whose business fell into one of several industry categories in which the Chinese have shown interest worldwide. This effort produced minimum results, but we did receive about a dozen re- plies indicating possible future interest in the National Council. The names of those companies expressing a potential interest is contained in Enclosure No. 2. I believe the key to success in expanding our membership thes year will be direct approaches by our Board members to the heads of companies they know personally who they have rea- son to believe might be interested in developing long term trade relations with China. Just how such approabhes should be made will obviously be a matter of personal judgment. I thought, however, you might like to see the letter we have written to all current members, transmitting 1975 dues statements. You will find this as Enclosure No. 3. I am also enclosing five copies of the National Council brochure and five membership application forms for your use in mailings. Please let me know if there is anyaadditional material I can provide you. FORD & LIBRARY BERALD - 2 - January 17, 1975 Letter to Mr. Batten We will be msot appreciative of any help you can give us in our efforts to expand the National Council's membership dur- ing the critical year which lies ahead of us. With kind regards. Sincerely, Christopher H. Phillips CHP/alm enclosures F FORD & LIBRARY GERALD January 24, 1975 D. V. Seibert, Chairman J. C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mr. Seibert: This will acknowledge receipt of your check for $2,500.00 for 1975 dues in the National Council for U.S. -China Trade. We are grateful for your continued interest in and support of the Council and we look forward to working with you during the coming year. Sincerely yours, Christopher H. Phillips CHP/gbr GERALD to FORD The National Council for United States-China Trade 1100 Seventeenth Street, N.W. Telephone (202) 659-9490 Washington, D.C. 20036 659-9693 STATEMENT D. V. Seibert, Chairman Mr william M. Batton _________________________ Chairman J. C. Penney Company, Inc. 1301 Avenue of the Americas file Date: December 4, 1974 New York, New York 10019 7 OK H89 DESCRIPTION AMOUNT 1975 ANNUAL DUES $2,500.00 FORD & LIBRARY GERALD The National Council for United States-China Trade 1100 Seventeenth Street, N.W. Telephone (202) 659-9490 Washington, D.C. 20036 659-9693 STATEMENT Mr. William M. Batten 7 Chairman J. C. Penney Company, Inc. 1301 Avenue of the Americas file Date: December 4, 1974 New York, New York 10019 1 DESCRIPTION AMOUNT 1075 ANNUAL DUES $2,500.00 12/13/24 FORD is LIBRARY GERALD February 11, 1975 Mr. G. R. Hogenson Vice President and General Merchandise Manager J. C. Penney Company Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mr. Hogenson: Many thanks for your very helpful letter and attached itinerary in connection with the forthooming visit of the Chinese Textile delegation. Our delegation coordinator, Miss Reynolds, is fitting your two and one-half day program into the New York schedule, and she will be in touch with Bob Boulogne shortly. The delegation is due to arrive in Washington on the 15th and will probably leave for New York about the 20th. They will remain in New York for at least two and one-half weeks. Miss Reynolds will provide Bob Boulogne with the precise dates of their visit with you as soon as possible. We greatly appreciate your help and cooperation in making this visit the success I am confident it will be. with kind regards. Sincerely, Christopher H. Phillips CC: Suzie Reynolds FORD & LIBRARY QERALD G.R. Hogenson Vice President and General Merchandise Manager February 4, 1975 Mr. Christopher H. Phillips, President The National Council for United States-China Trade 1100 Seventeenth Street, N. W. Washington, D. C. 20036 Dear Mr. Phillips: In response to your letter dated January 23, 1975, we have attached a proposed itinerary requesting that the China National Textile Import & Export Corporations representatives spend two and one-half days with us at the JCPenney Company. As you know, there is a great need for the Chinese and ourselves to gain a much better understanding of some very fundamental issues. These issues relate to quality of merchandise, sizing, legal requirements, labeling, packaging, etc. The itinerary which we have developed devotes the major portion of the time we hope to spend with the Chinese representatives to these subjects. We would begin our meeting by covering background information about the U.S. retail market, as well as apparel and textile trends, particularly the importance of synthetic and synthetic blends, versus natural fibers. We would discuss our company's position in U.S. retailing, as well as review what we import and how we work with other countries on import merchandise. To add to the background and understanding of U.S. retailing and our company, we are proposing a tour of our Roosevelt Field JCPenney Company Store during the afternoon of the first day. The second day would be spent in work sessions, reviewing our experience on Chinese merchandise purchased to date. These work sessions would involve those people who, for the most part, have made buying trips to China and who can best cover the subjects involved. These sessions would largely relate to the fundamental issues I mentioned earlier. FORD & LIBRARY GERALD J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 Mr. Christopher H. Phillips, President The National Council for U.S. - -China Trade 1100 Seventeenth Street, N. W. Washington, D. C. 20036 Page Two The last half-day, the third day, would be spent in reviewing the largest volume apparel and textile import items, covering such subjects as competitive costs, quality, packaging, labeling, how our company representatives work in the various overseas markets. We would complete the day with an assessment and discussion of our company's future potential relative to Chinese textile imports and the best approach towards achieving that potential. We believe that these sessions will be very worthwhile and are, in fact, very necessary if our business with the China National Textile Import & Export Corporations is to progress on a sound and lasting bases. We hope that you will agree that the itinerary we have proposed will be a productive one and justifies the two and one-half days we have requested. Mr. Robert Boulogne, Manager of our International Buying Department, is presently in the Far East and will return to New York on Monday, February 10th. He will coordinate all of the preparations for the two and one-half day meeting. We will appreciate the earliest possible notice as to the exact dates we can expect the Chinese Delegation here at Penneys. We do, of course, appreciate the opportunity to meet and work with the China National Textile Imports & Export Corporations' representatives. Kindest regards. Sincerely, GRH:cd Attachments cc: Ms. Suzanne Reynolds Textile Delegation Coordinator FORD & LIBRARY GENALD April 9, 1975 Ms. Liz Zwoller J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Liz, Pursuant to our telephone conversation of April 8, 1975, I am enclosing the National Council's list of Board of Directors. Hope you find it of some use. Best wishes, Sincerely, Barbara E. O'Hara Executive Assistant BEO/alm enclosure FORD & LIBRARY GERALD Please file under J.C. PENNY APR 1 5 1975 CLIPPER INDUSTRIES, inc. 84 Eighteenth Street, Brooklyn. N. Y. 11232 (212) 788-5713 IMPORTERS Cable Address-Clipperind April 14, 1975 Mr. Christopher H. Phillips THE NATIONAL COUNCIL FOR UNITED STATES-CHINA TRADE 1100 Seventeenth Street, N.W. Washington, D.C. 20036 Dear Mr. Phillips: We are pleased to learn that our company, Clipper Industries, Inc., has been approved for affiliate importer membership in the National Council. We hope to be able to participate as much as possible in your programs designed to increase the mutually beneficial trade relationship with the People's Republic of China. In answer to your request for additional information about us, enclosed is a copy of our current catalog which illustrates our product line. Represented in this catalog are about 25 items which are made in the P.R.C. and are stocked by us and are available for purchase on a continuing basis. In confidence to yourself, we are the basket supplier to Sears, Roebuck & Co. and J.C. Penney Co., Inc., as well as most major department stores in the U.S., and these items of Chinese manufacture are presently available in most of these stores. I have had the pleasure of having been invited to Peking on two separate occasions, Shanghai on three, as well as attending the Kwangchow Fair. I have found doing business with the Chinese to be both a pleasant and rewarding ex- perience. If there is any other information we may ever supply to you, please do not hesitate to ask. Yours truly, CLIPPER INDUSTRIES, INC. FORD & LIBRARY GERALD Robert Robert Eisenberg Ensenberg RE/sd enc. Visit our New York Showroom 1150 Broadway, Room 912, New York City, Phone (212) 689-9350 June 27, 1975 Mr. Harold Eddins J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mr. Eddins: Enclosed, please find labels for dinner invitations to be sent out to all members. Best Wishes, Suzanne R. Reynolds SRR/alm enclosures FORD & LIBRARY GERALD July 24, 1975 Mr. Harold Eddins Executive Office J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Hal, Would you please add the following member's name to the list of those receiving invitations for the New York reception/dinner? Thank you. Mr. Ronald Dow MNT Chemical Company American Can American Can Lane Greenwich, Connecticut 06830 Best regards, Sincerely yours, George Driscoll Director Business Advisory Services GD/alm CC1 Rick Swigart FORD i LIBRARY GERALD JCPenney AUG 27 1975 Recorded 8/28 August 25, 1975 Mr. George Driscoll National Council for U.S.-China Trade 1100 Seventeenth St., N.W. Washington, D.C. 20036 Dear George: Attached is a period transmittal of checks received from National Council members to attend the New York reception and dinner on September 11, 1975. We would appreciate your processing these checks and giving the New York region credit for this much money to apply against the expense of the reception and dinner. Sincerely, Har Harold B. Eddins HBE/kae Attached FORD is LIBRARY GERALD J.C. Penney Company, Inc., 1301 Avenue of the Americas, New York, New York 10019 FILE: MEMCO J. C. Penney October 1, 1975 Mr. Hal Eddins J. C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Hal: The CCPIT story is written, the photographs are almost all in, and the magazine is nearly complete. From my end of things, the CCPIT visit is almost over, and there is time to write this well over-due note. This is to thank you very much, indeed, for a really first class program in New York. I thought that, whatever else happened on the trip, the Chinese had the message by the time they left New York and, considering the time involved, the quality of that message was about the best they could get. I hope I can talk to you sometime about the section of the trip in New York. I learned a great deal. I guess we all learned a lot, including how to make changes at the last minute. While I am sure Chris Phillips will be writing to you, I want to personally thank you for a very worthwhile experience. With best wishes, Sincerely, y Nicholas Ludlow Director Publications and Research NL/ks FORD is LIBRARY GERALD October 8, 1975 Mr. Harold Eddins Executive Office J.C. Penney Company, Inc 1301 Avenue of the Americas New York, New York 10019 Dear Hal: This is an overdue but nonetheless sincere note of thanks for the really outstanding job you did in organizing the CCPIT visit to New York. I know only too well the enormous amount of time and energy you devoted to the job and how exhausting and frustrating it sometimes was. I hope you feel as I do, however, that your labors were well rewarded by the obvious success of the visit. Overall, I believe the CCPIT visit to this country was most productive, though specific results may not be apparent for sometime. There is no doubt that the Delegation was impressed by what it saw, and that it returned to China far better informed about the American Sconomy and the American society than when it arrived here. On behalf of the National Council and especially those of us here on the staff, my warmest thanks for the indespensable help you provided in assuring a successful outcome of this important visit. With best regards. Sincerely, Cheistopher H. Phillips CC. Mr. William M. Batten FORD & LIBRARY CERALD October 8, 1975 Mr. William M. Batten Director J.C. Penney Company, Inc 1301 Avenue of the Americas New York, New York 10019 Dear Mil: I am enclosing a copy of a letter I have just written to Hal Eddins. As I mentioned to you in San Frnacisco, he did a superb job under frequently trying circumstances. My thanks to you for having made Hal available to help us organize not only the New York visit but the entire national program. We are indebted to you both. With best regards. Sincerely, Christopher H. Phillips Enclosure. FORD is LIBRARY GERALD OCT 22 197 Rease file October 20, 1975 Mr. George Driscoll The National Council for U.S. -China Trade 1100 Seventeenth Street, N.W. Washington, D. C. 20036 Dear George: After you called last week asking for a list of New York people who Chris may want to write and thank for their assist- ance in planning for the CCPIT visit, I failed to make a note on my calendar, and just remembered it over the weekend. How- ever, rather than giving you a list of people, it may be helpful if I include a copy of my letter to these people. It might give you and Chris a lead as to what you might want to comment upon in your thank you. In addition to the attached, it would be most appropriate for Chris to write to Mr. Alfred Eisenpreis, New York City Adminis- trator who represented Mayor Beame at the reception and dinner. His address is 225 Broadway, New York, New York 10007. Sincerely, Hal Harold B. Eddins HBE/b1 Executive Office FORD & LIBRARY GERALD J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 September 18, 1975 Mr. David Rockefeller Chairman of the Board The Chase Manhattan Bank 1 Chase Manhattan Plaza New York, New York 10015 Dear Mr. Rockefeller: On behalf of the New York Planning Committee for the CCPIT delegation we extend a most sincere thank you for the support of yourself and Chase Manhattan Bank in making their visit a success. We are indebted to Chase for providing a Chase plane, so ably hosted by Kathy Schwering and Ken Arndt, to transport part of the delegation and staff from Washington to New York. In addition, we appreciated the planning, developing and imple- menting that your people did on the successful bankers program. We are grateful to the two interpreters -- Fong Chi and Tjho Tjoe-Fo -- who added to our ability to communicate; and for coordinating the Friday evening program for the delegation at the Hayden Planetarium. Your personal participation at the reception and dinner and your address at the bankers program added significantly to the week. Delegate members continued to comment on your remarks into Friday evening. Several of the delegates had met you in China and were eagerly looking forward to greeting you again. Again our many thanks for your contributions. Sincerely, Harold B. Eddins HBE/ba Executive Office FORD is LIDRARY CERALD September 24, 1975 Mr. Vernon Beauleau Director of Sales Brown's Limousine Service J. F. Kennedy Airport Bldg. #69 Jamaica, New York 11430 Dear Tony: Just a note to thank you for the excellent pre- planning work you did with our New York City Planning Committee for the China Council for the Promotion of International Trade delegation. The reliability of your planning and Tony's im- plementation was simply outstanding. Your selection of Tony was a master stroke. This guy made himself part of the group and built up such a confidence in us that when the moment came for us to step aboard the bus, we knew it would be exactly where we were told it would be. Again, on behalf of the National Council U.S.- China Trade may we extend our most sincere appreciation for all the work you did to make the delegation visit so successful. With kind regards. Sincerely, Harold B. Eddins HBE/ba Executive Office FORD & LIBRARY GERALD X September 23, 1975 Mr. Bill Chow Trader Vic's Restaurant Fifth Avenue & 59th Street New York, New York 10019 Dear Bill: On behalf of the National Council U.S.- China Trade, we send our sincere thanks for making Friday evening, September 12th, so delightful and interesting for the China Council for the Promotion of International Trade Delegation and the New York City Planning Committee. The food was gourmet and the service was outstanding. Later, the delegation told us how pleased they were with dinner. It certainly was the best way to close out a busy week. Thanks again for your thoughtfulness and for the pleasant dinner. Sincerely, Harold B. Eddins Executive Office HBE/b1 FORD i LIBRARY GERALD September 22, 1975 Mr. Tony Marble The Plaza Hotel 59th and Fifth Avenue New York, New York 10019 Dear Tony: Well, we did it! The China Council for the Promotion of International Trade has been herè and completed a highly successful program without a single incident. This just didn't happen, it is the way it was planned and you played a major role in the execution of the program. The delegation was highly complimentary of the hotel and the excellent services performed without seemingly any fuss or bother. This takes communication, coor- dination and motivation -- and the source of these had to be you. May I take this opportunity to sincerely thank you on behalf of the National Council U.S.-China Trade and New York Planning Committee for the CCPIT visit. I'm sure you will play down these compliments, however, I would like you to know that in all the years of working with hotels for meetings, company conventions, etc. your performance was a stand out. I know the Chinese will not soon forget their stay at The Plaza because of the experiences they had in other hotels they were housed -- specifically Washington, Moline and Chicago. Again, our many thanks. Sincerely, Harold B. Eddins HBE/b1 Executive Office BERALD FORD cc: Joe Mogush, hotel mgr. September 19, 1975 Mr. Ed Aborn Tenco 720 W. Edgar Road Linden, N. J. 07036 Dear Ed: May I take this opportunity to thank you for your contribution toward making the CCPIT delegation visit so successful. Ed, you really put the crown on the week. The delegation really enjoyed the sights, but equally important was the hospitality demonstrated by you and Peter. There was a spirit of warmth and friendship on the cruise which was so important to the Chinese. Again, our many thanks from the National Council U.S.-China Trade and the New York Planning Committee. Sincerely, Harold B. Eddins HBE/b1 Executive Office P.S. - your yacht is beautiful! I'm sure you and Mrs. Aborn will spend many happy days in your retirement aboard her. FORD is LIBRARY QERALD September 18, 1975 Mr. G. A. Castanzo, Vice Chairman First National City Bank 399 Park Avenue New York, New York 10022 Dear A1: On behalf of the National Council U.S.-China Trade and the New York City Planning Committee may we thank you for your cooperation in making the CCPIT delegation visit to New York a success. First National City Bank's participation played a significant role in the success of the visit. We especially appreciated your help in the planning and developing of the bankers' luncheon and seminar. That half day, as well as the evening program, were highlights of their visit. A special note of thanks to you for hosting one of the delegates at the reception and dinner. The warmth and friendship displayed by the hosts at each table throughout the evening added importantly to the affair. The delegates continued to remark on the occasion throughout Friday and Saturday. Although tired and weary as they boarded their plane for Moline, Illinois on Saturday noon they were most gracious with their comments regarding the New York visit. Again our many thanks. Sincerely, Harold B. Eddins BERALD FORD LIBRARY HBE/ba Executive Office P.S. - A1, I would also like for you to know how much I appreciated the participation of Jim Griffin in this project. His counsel and advice was invaluable in finalizing our plans. September 18, 1975 Mr. Mark E. Buchman Vice President and Regional Manager Manufacturers Hanover Trust Co. 350 Park Avenue New York, New York 10022 Dear Mark: Just a note to personally thank you for the tremendous job you did in coordinating and putting together the bankers' program for the CCPIT delegation. This program was certainly a highlight of their New York City visit. Surprisingly, they asked more questions at this seminar than at any other presentation during the week. Some of the delegates continued to remark about the bankers' program on into Saturday as we did some sightseeing and before we got them off to Moline. Again thank you not only for arranging the bankers' program, but for your part in the New York City Planning Committee. With kind regards. Sincerely, Harold B. Eddins HBE/ba Executive Office QERALD R FORD - September 18, 1975 Mr. Rawleigh Warner Chairman Mobil Oil Corporation 150 East 42nd Street New York, New York 10017 Dear Mr. Warner: On behalf of the New York City Planning Committee may we extend to you our most sincere thank you for hosting one of the delegate tables at the CCPIT reception and dinner. I can relate to you that the delegates were tremendously pleased with the atmos- phere and friendliness during the reception and dinner, and I am sure you made a great contribution to this spirit. Again our most sincere thanks. With kind regards. Sincerely, Harold B. Eddins HBE/ba Executive Office FORD & LIBRARY SERALD September 18, 1975 Mr. Don Kendall Chairman Pepsi Company Anderson Hill Road Purchase, New York 10577 Dear Mr. Kendall: On behalf of the New York City Planning Committee may we sincerely thank you for hosting one of the delegate tables at the CCPIT reception and dinner. I must also apologize that you did not receive the information that we changed the meeting room where the table hosts and the delegates were to meet prior to the reception. I can only report to you that the delegates were highly pleased with the reception and dinner, and I am sure part of that had to do with your hosting a table. Again our personal thanks. With kind regards. Sincerely, Harold B. Eddins HBE/ba Executive Office FORD & LIBRARY SERALD September 18, 1975 Mr. Howard Hawkins Executive Vice President RCA Corporation 30 Rockefeller Plaza New York, New York 10020 Dear Mr. Hawkins: On behalf of the New York City Planning Committee and the National Council U.S.- China Trade may we sincerely thank you for the support extended by yourself, as well as RCA, in making the CCPIT visit to New York a success. I realize it was a late request, but we were so grateful for your hosting one of the delegates at the reception and dinner. I must apologize that the letter you received did not include the room number the table hosts were to meet the delegate. However, I would pass on to you Mr. Han's later remarks that he had such a delight- ful evening with you and the other council members at his table. Again our most sincere thanks. With kind regards. Sincerely, Harold B. Eddins HBE/ba Executive Office FORD & LIBRARY GERALD September 17, 1975 Mrs. Veronica Yhap, President Dragon Lady Traders, Inc. 1185 Park Avenue New York, New York 10028 Dear Veronica: Well, we did it! In my opinion we accom- plished our original objectives and hope- fully we accomplished the objectives of the delegation. On behalf of the National Council and our planning group (of which you were a member), may we extend to you a "job well done" thank you. Your counsel was invaluable to me and I'm sure the bankers, importers and National Council members appreciated your commitment and dedication to the improvement of under- standing with the Chinese delegation. Again my most sincere thanks. Sincerely, Harold B. Eddins HBE/ba Executive Office BESALD 2005 , September 16, 1975 Mr. Kurt E. Reinsberg Sr. Vice President Associated Metals & Minerals Corp. 733 Third Avenue New York, New York 10017 Dear Kurt: Well, we made it! The entire five days came off exactly as we planned it, and in my opinion we achieved our original objectives for their visit to New York City. You of all people should have a great deal of pride in this accomplishment. You played such an important role in putting together the whole day to improve the Chinese understanding of the Importers business community, you were so generous with your time to be with the Chinese in Washington, to be one of the hosts of the reception and dinner in New York, to be a council representative to bring the delegates from Washington to New York and to undertake the very difficult day in explaining the Importers concerns. I for one want to extend my personal thank you for your tremendous efforts. Now that this is over I hope we at least touch base from time to time since I enjoyed my association with you. With kind regards. Sincerely, Hal Harold B. Eddins HBE/ba Executive Office FORD is LIBRARY GERALD J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 : September 16, 1975 Mr. Edmond Chu Planning and Development General Motors Overseas Oper. 767 Fifth Avenue New York, New York 10022 Dear Eddie: May I take this opportunity to thank you on behalf of the National Council for U.S.- China Trade and the CCPIT for your signifi- cant contribution to the delegation's visit to New York City. I know you and General Motors Overseas Op- erations should feel a great deal of pride that through your contribution to foster better understanding between the business community in New York City and our country with the Chinese our original objectives have been achieved. Again our most sincere thanks. Sincerely, Hal Harold B. Eddins HBE/ba Executive Office cc: H. Gage D. Kerwath SORD EXERARY J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 September 16, 1975 Mr. Gabriel Hauge Chairman of the Board Manufacturers Hanover Trust Co. 350 Park Avenue New York, New York 10022 Dear Mr. Hauge: Just a personal note to let you know how much I enjoyed working with you and to thank you for your significant contribution to the success of the CCPIT visit to New York City. The feedback we have received on the reception and dinner from the Chinese, as well as our business friends, has been greater than we antic- ipated. The bankers luncheon and the afternoon program was the crowning activity of the entire week. Although I never met you prior to working on this delegation visit, you more than exceeded the kind remarks of your colleague, Mil Batten, as a man who gets things done in the right way. I appre- ciated playing a small roll in the entire pro- ceedings. If you need my assistance at any time, please do not hesitate to call me. With kind regards. Sincerely, Hal Harold B. Eddins HBE/ba Executive Office FORD i LIBRARY GERALD J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 September 16, 1975 Mr. Edward Ney, President Young & Rubicam International 285 Madison Avenue New York, New York 10017 Dear Ed: On behalf of the New York City CCPIT Planning Committee may I offer you our most sincere thank you for the support and involvement of Young & Rubicam in the Chinese delegation visit to New York. Your program achieved our objectives and formed an umbrella for the entire week's activi- ties. I firmly believe that this investment will not only improve our understanding, but substan- tially aid the business community in their future dealings with the Chinese (and I'm sure Young & Rubicam). I understand that the Chinese requested from Bill Reilly to be able to visit a J.K. Gill store when on the West Coast. I'm not sure whether that's possible, however, the informa tion is in the hands of the National Council. Hopefully, they would be able to work it in. Again our most sincere thanks for the efforts and excellent cooperation of Young & Rubicam in this important endeavor. Sincerely, Hal Harold B. Eddins HBE/ba FORD i LIBRARY GERALD J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 September 16, 1975 Mr. Mark Stroock Young & Rubicam International 285 Madison Avenue New York, New York 10017 Dear Mark: May I take this opportunity to express to you the most sincere thank you of the National Council for U.S.-China Trade and the New York City Planning Committee for your significant contribution in arranging for the 1/2 day program for the Chinese delegation. It was a pleasure to work with someone who has his head screwed on right and approaches problems coolly and confidently. In my note to Mr. Ney I remarked that in my opinion the original objectives you and I talked about for the Young & Rubicam and Continental Can morning were achieved, and they were the umbrella for the entire visit. You, of course, should take a great share of the credit here. Again our most sincere thank you. Sincerely, Hal Harold B. Eddins HBE/ba Executive Office BERALD FORD LIBRARY J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 September 16, 1975 Mr. Bill Reilly Vice Chairman Young & Rubicam International 285 Madison Avenue New York, New York 10017 Dear Bill; On behalf of the National Council for U.S.- China Trade and the New York City CCPIT Planning Committee may we extend to you our most sincere thank you for the support and planning of Young & Rubicam for the Chinese delegation visit to New York. In a letter to Ed Ney and Mark I mentioned that our original plan was for your program to be an umbrella for the entire week's visit and to gain an understanding with the Chinese of what it takes to do business in the United States. In my opinion we gained this understanding, probably more than we had hoped for. It was certainly the result of Young & Rubicam and Continental Can's fine presentations. Again our most sincere thank you. Sincerely, Hal Harold B. Eddins HBE/ba Executive Office FORD i LIBRARY GERALD J.C. Penney Company, Inc. 1301 Avenue of the Americas, New York, New York 10019 September 19, 1975 Mr. Jerry Landon Continental Can International 633 Third Avenue New York, New York 10007 Dear Jerry: On behalf of the National Council and the New York Planning Committee we wish to thank you for your contribution toward making the CCPIT delegation visit a success. Apparently, from the delegation's reaction and Mr. Li's comments to you, your presentation was important and timely. Packaging is one of their key problem areas. Perhaps they have finally recognized this and are prepared to improve. Of course, on Thursday, as well as Friday morn- ing, we hit the area again to impress upon them the importance packaging plays in the marketing process. Would you be so kind as to pass on to Ron Ginn, Frank Mechura and Ed Broadwell our appreciation for their participation. Again our thanks to you. Sincerely, Harold B. Eddins FORD HBE/ba Executive Office September 18, 1975 Miss Katherine Schwering Assistant Treasurer The Chase Manhattan Bank 1 Chase Manhattan Plaza New York, New York 10015 Dear Kathy: Just a note to thank you for your significant contribution in making the CCPIT visit to New York such a success. Kathy, we have much to thank you for -- a plane, so ably hosted by you and Ken, two interpreters (who made a great impression on the Chinese), sharing the burden of developing the bankers program, Mr. Rockefeller's participation as a host at the reception and dinner and his address at the bankers seminar and the planning and implementing of the Friday evening program which was also hosted by you and Ken. In addition, you were most helpful with your counsel and guidance during the planning process. Again many thanks to you. Sincerely, Harold B. Eddins HBE/ba Executive Office FORD & LIBRARY GERALD September 18, 1975 Dr. W. J. Ronan The Port Authority 1 World Trade Center New York, New York 10048 Dear Dr. Ronan: On behalf of the National Council for U.S.-China Trade and the New York Planning Committee we thank you for your contribution in making the CCPIT delegation visit to New York SQ successful. Although tired and weary when they left New York City, the delegation could not have been more pleased with their visit. A large share of the credit should go to the Port Authority. Your organization, planning and execution was flawless. Your people really know how to get the job done. A special note of thanks should go to Neil VanHorn, Sid Schachter, Fred Shaw, Russell Smith, Jimmie Wong, Don Moffitt, Derwood Hall, Tony Tozzoli, as well as many others. We also appreciated the welcome remarks you gave at the beginning of their first day in New York. They set a tone of welcome and friendship which continued throughout their visit. Your presence at the head table with Gabe continued this spirit of warmth. Again many thanks. Sincerely, Harold B. Eddins HBE/b1 Executive Office GERALD September 18, 1975 Mr. Sidney A. Schachter Deputy Director World Trade Institute Suite 55W 1 World Trade Center New York, New York 10048 Dear Sid: On behalf of the National Council U.S.- China Trade and the New York Planning Committee may we thank you for your contribution in making the CCPIT dele- gation visit to New York City such a success. Sid, it was a pleasure to work with you and your staff. You know how to get the job done with the highest standards. Sorry you did not get the meet the delegates, but your people represented you in an excellent manner. A special note of thanks to Russell Smith, Jimmie Wong, Don Moffit, as well as others. Again our many thanks. Sincerely, Harold B. Eddins HBE/ba Executive Office P.S. - Attached is a copy of my letter to Dr. Ronan. FORD & LIBRARY GERALD September 18, 1975 Mr. Fred Shaw Port Authority 1 World Trade Center New York, New York 10048 Dear Fred: On behalf of the National Council U.S.- China Trade and the New York Planning Committee may we thank you for your contribution and participation in making the CCPIT delegation visit to New York City such a success. Fred, you have a great group of guys in your organization and each a professional in organizing and implementing plans successfully. For me, it was a pleasure to work with each of you. A lot of companies in the city could learn a lot from the way you handle things to achieve a feeling of warmth and friendship for guests such as the delegation. Again our many thanks. Sincerely, Harold B. Eddins HBE/ba Executive Office P.S. - Attached is a copy of my letter to Dr. Ronan. January 28, 1976 Mr. William M. Batten, Director J. C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mr. Batten: This will acknowledge with appreciation the receipt of your firm's 1976 membership dues in the National Council. We are grateful for your continued support of the Council, and we hope that during the coming year you will avail yourselves of our staff and resources to help in any way possible in the development of your commercial relations with China. With best wishes for the New Year. Sincerely, Christopher H. Phillips FORD i LIBRARY GERALD February 5, 1976 Mr. William M. Batten Director J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, New York 10019 Dear Mil: This will acknowledge with appreciation the receipt of J.C. Penney's 1976 membership dues in the National Council. We are gratedul for your continued support of the Council, and we hope that during the coming year your colleagues will avail themselves of our staff and resources to help in any way poskible in the development of J.C. Penney's commercial relations with China. Sincerely, Christopher H. Phillips FORD i LIBRARY QERALD January 10, 1977 Mr. Robert Boulogne Director, International Buying J. C. Penney Company, Inc. 1301 Avenue of the Americas New York, N.Y. 10019 Dear Mr. Boulogne: We acknowledge with appreciation your firm's 1977 membership dues in the National Council. With a new leadership in both Washington and Peking, 1977 could be a significant year in the further develop- ment of U.S.-Chinese relations. Your continued support of the Council at this time is therefore particularly welcome. Sincerely, Christopher H. Phillips CHP:jc FORD is LIBRARY GERALD FYI/ACTION DATE Action Info. PHILLIPS SEARLS LUDLOW DRISCOLL PHIPPS REYNOLDS 1.8PR JACKSON CAPERONES 2. ppe POON KING GREEN PETERMAN COOPER MARTIN SIMMONS, A. SIMMONS, K. VELIE ROBINSON LAM FORD is LIBRARY GERALD JCPenney December 16, 1976 Mr. Christopher H. Phillips The National Council for United States-China Trade 1050 Seventeenth Street, N.W. Washington, D.C. 20036 Dear Chris: I have received your note regarding next year's dues. For your information Hal Eddins will be taking care of this. I am certain the Council will be getting our check accordingly. Although Mr. Batten is now unable to be as active in this area, the JCPenney Company continues to be fully supportive in the promotion of trade between the United States and China and whatever help we can offer the Council towards this goal will be offered. It would be appropriate to tell you at this time that I 1 have enjoyed working with Suzanne Reynolds on your staff and think that her help and participation on the Importers' Steering Committee has been extremely useful. Very truly yours, Robert Boulogne RB/1z less FORD & LIBRARY QERALD J.C. Penney Company, Inc. JAN 20 1977 JCPenney SR January 18, 1977 Ms. Suzanne Reynolds National Council for U.S.-China Trade 1050 Seventeenth St., N.W. Washington, D.C. 20036 Dear Suzanne: Finally here are the rewritten minutes of the December 16th Textile Committee Meeting, Best Bod regards, Robert Boulogne RB/1z CC - Veronica Yhap ENC. FORD i LIBRARY GERALD J.C. Penney Company, Inc. MINUTES OF THE NATIONAL COUNCIL FOR UNITED STATES-CHINA TRADE Thursday, December 16, 1976 Held at the Springs Building 104 West 40th Street, N.Y., N.Y. The meeting was attended by the following members of the National Council for United States-China Trade- Textile Committee: Barry, Mary Auburn University, School of Home Economics Baumann, Hans Rudolph-Desco Co., Inc. Boulogne, Robert Co-Chairman, JCPenney Company, Inc. Chang, Joseph Tennant Cooper, Resse Gerli & Co., Inc. DeKeijzer, Arne NCUSCT (National Council for United States-China Trade) Donnelly, Joseph Chromolloy Everett, James Monsanto Chemicals Fisher, Robert George F. Fisher, Inc. Goldberger, Paul Tripac Int. Gordon, Jim United Merchants and Manufacturers Harding, Edward Springs Mills, Inc. Heineman, Frank Men's Wear International Lee, Y. Bill Lee Associates Levinson, Max M. Lowenstein & Sons Link, J. E. Celanese Corporation Oxendine, Lynn Texfi Industries, Stunzi Sons Silk Pelzer, Marvin W. Vera Industries Reynolds, Suzanne NCUSCT (National Council for United States-China Trade) Shamash, Jack S. Shamash & Sons Shanks, Lewis W.J.S. Company Tung, John Monsanto Chemicals Yhap, Veronica Co-Chairman, Dragon Lady Traders Suzanne Reynolds opened the meeting by welcoming the largest group of Committee members ever to meet together. Represen- tatives of greige goods, garments, silk, tapestry and fiber business attended the Textile Committee meeting. -1- -2- She said that she would like to point out that more group effort is necessary as far as United States/ China trade is concerned. She advised that the Committee was established in 1975 to help to improve the exchange of information with Chinatex. She indicated that the Chinese are more used to dealing with groups of people rather than individuals. This Committee working with Chinatex has already had some success in resolving a few common problems. Opportunities to buy in U.S. dollars Ability to provide specific quality findings, not available in China such as snaps, zippers, others with some of Chinatex's branches Obtaining reasonable amount of counter and sales samples Acceptance of some customers' labels She mentioned that U.S. dealings with the People's Republic of China differs substantially from their dealings with the European Market. The standards in the U.S. are more demanding especially in the areas of washability, shrinkage, packing, labelling and customers' own size specifications. Therefore, Chinatex needs more information and more help and that is why the Committee is so necessary. Miss Reynolds introduced the people present. She mentioned that Veronica Yhap, Co-Chairman of the Textile Committee, heads the textile section and Robert Boulogne co-chairs the garment section. Veronica Yhap suggested that with so many different interests represented in the textile group that it would be advantageous to form small sub-groups concentrating on their own specifi- cations. These would arrange their own meetings but with either Veronica Yhap or Bob Boulogne present to coordinate their activity in the main Textile Committee. On this basis two additional groups were formed at this meeting. -3- A fiber group to be headed by Jerry Link which will basically represent the exporting interest for the fiber members. A silk group with Messrs. Fisher, Baumann and Shamash deciding at a later date who is to head it (since this meeting Jack Shamash has been selected). It was suggested that the entire Committee will meet twice a year. Its major project will be to outline a semi-annual report to be presented to Chinatex regarding the mutual problems of the textile importers and exporters as it regards China Trade. Each responsible group would complete its own section and the full report would be finalized at least one month prior to each Commodities Fair. It was further noted that members of the Committee attending the Fair would attempt to set a convenient date to arrange a semi-formal meeting with Chinatex to present the report. Any discussions held at that meeting would then be reported to all of the members. The next report will of course be aimed for the Spring Fair of 1977 and some of the suggested topics to be included in this report are: 1. Problems and complaints on deliveries, quality, communications, documentation, letters of credit, etc. 2. Market information updating Chinatex on United States' conditions from each of the four groups: textile, clothing, fiber exports, silk. Veronica Yhap mentioned that Committee members had previously provided detailed statistical information on market trends and future projections and this data was well received by Chinatex. FORD is LIBRARY GERALD -4- Mr. Boulogne then passed a sheet (see attached) with statistical information obtained from the United States Department of Commerce. This compared the U.S. textile imports from China for the first nine months of 1977 with years 1973 to 1975. It was pointed out that these figures should help to maintain the proper perspective on Chinese textile imports into this country. In com- parison with total United States imports, China's quantities are still minor and growth is very slow. In addition to the attached statistics, it was pointed out at this meeting that fiber sales to China during the last Fair amounted to approximately ten million dollars. Silk members also indicated that raw silk imports also not included in the attached figures were about three million dollars for 1976. The meeting continued with the following topics: Quality Claims - The question was brought up that if merchandise is not as specified, how should one proceed with a claim? Some members said they were afraid to complain because if one does not accept the merchandise, the supplier might not accept another order. Many members of the Committee seem to agree it was hopeless to file a claim. Mr. Levinson said he had some damaged goods, mostly weaving defects, and he decided not to file a claim. He said he never told them about it but requested better inspections on future contracts. Veronica Yhap indicated she also had damaged goods but she stressed that a friendly way should be used to try to settle claims, and that Chinatex will be fair. The entire group agreed that the question of claims and settling of same should be included in the next report. -5- Inspection - It was pointed out that inspections have to be improved. Chinatex should be made aware that such inspections would benefit both parties. More inspections by buyers should be allowed to reduce quality problems. It was suggested that an international inspection company be identified to help in this area. Some members mentioned that Superintendents has done work in other international markets and they might be also effective in China. Veronica Yhap asked if the Chinese require an inspection clause on U.S. fiber exports. The representatives of the fiber companies commented that they sell against specifications and these are very specific and very demanding. It was mentioned that the Chinese do not allow tolerances on their purchasing. Silk Problems - The silk representatives indicated they were having the following problems: a) Inadequate description of merchandise b) There is no way to tell where goods come from (which mill manufactured it) c) Some bales come from different areas and are mixed together d) Goods can have dyestreaks The silk representatives further stated that when they purchase similar merchandise from Japan the producers are careful not to mix bales and indicate different manufacturing points. The result is that it is much easier to get to the root of the problem. It was stated that in the fiber business goods have to be coded. If not, it is very difficult should merchandise have to go back to the laboratories. Other Problems A Committee member said that the Chinese were very unwilling to give out information. There does not seem to be any even exchange. We are always asked for more information. We keep giving but receive little from their side. QERALD FORD LIBRARY -6- Other various problems were brought out: Lack of documents upon arrival of goods Frequent request for Letter of Credit amendments Chinese do not consider late delivery as a breach of contract In one instance communication problems were the cause of a cancellation of large parts of a contract There is a penalty for lateness in selling to them, why not a penalty against their late shipments? It was said that in China time is not of the essence. They do not fully understand our urgent needs or timing but we have to have leeways in timing with banks, letter of credits, documents, etc. Comments on the Last Fall Fair Committee members reported that: Chinese were not as cooperative in the last fair. Their attitude was that the market was going to improve and no concessionson prices were given. Chinese indicated they base their prices on World Cotton prices. They felt that prices could go higher and were apparently waiting for such higher prices. It was stated however China had no wage increase in ten years. Some of the members stated that cotton towel and bed sheet prices were the same this year as last year, but silks were up 5%, garments were up 25%, wool was also up. Most Committee members visiting the Fair had the impression that China did not need the business and was oversold. -7- Some members criticized the type of tactic used by the Chinese, whereas, if one asks for a certain construction and it is not available, they offer a program with entirely different construction expecting the buyer to accept such changes. Such tactics are also used to give some customers so called "exclusivity." The feeling among the group was that China should decide more carefully with whom they want to do business. Too many new customers are being invited inspite of short supplies. Older customers are often cut-back to accommodate new ones. It should be stressed to China that continuity of programs and dependence of buyers on needed quantities is very important. Meeting with Chinatex at the Fair Veronica Yhap reported on her meeting with Chinatex during the Fall Fair and some of the following comments were brought up: 1. The question came up on the possibility of having one fair yearly. This however was discounted and the Chinese will continue to hold two fairs a year. The question was also raised of having "mini fairs" in textiles. The Chinese however said they had no plans for this as it was not practical to do so at the moment. 2. From their side China complained that U.S. buyers are extremely demanding. They also mentioned that some U.S. firms are applying to China for visitors visas and then cancelling trips after receiving the invitation. 3. At the meeting representatives of Chinatex also stated they felt the situation would be better next year and that production would increase. - 8 - Chinatex - Next Visit to the United States Veronica Yhap mentioned that she had again recommended to Chinatex that they visit this country again. A visit in early spring, before the Spring Fair, would be the best timing. The Committee members agree we must receive a firm date early and that at least four-weeks notice be given otherwise it is hard to make necessary plans. Suzanne Reynolds stated that, as this would be Chinatex's second visit to the US, the Corporation wanted a more flexible schedule, allowing it more time to visit with old customers. A tightly structured program such as was conducted last time to give the delegation an introduction to the textile market would not be necessary this time. Although the delegation would prefer to come on its own, The State Department insists that a delegation have a designated host, and has approved the National Council for United States-China Trade. It was agreed that no plans could be made at this time and that future notice from the Chinese would be awaited. With this the meeting was adjourned. THE NATIONAL COUNCIL FOR UNITED STATES - CHINA TRADE Textile Committee December 16, 1976 U.S. IMPORTS FROM CHINA ($000) 1973 1974 1975 1976 (up to September) COTTON FABRICS 7,235 25,640 26,249 25,500 SILK FABRICS 455 124 195 590 HAT BODIES 268 771 1,785 1,700 MADE-UP TEXTILES 323 418 1,668 2,520 (towels, linen, etc.) CARPETS 1,388 698 857 2,500 CLOTHING 1,565 5,485 8,838 9,080% (see breakdown) TOTAL TEXTILE 11,234 33,136 39,592 41,890 TOTAL IMPORTS 64,800 114,700 157,260 145,000 *1976 Breakdown Clothing - textile fabrics, not knit or crochet 4,772 Accessories -- textile fabrics, not knit or crochet 1,558 Clothing - accessories of leather 94 Clothing, accessories - knit or crochet 1,735 Millinery, hats & caps. 927 FORD i LIBRARY GERALD FEB - 9 1977 JCPenney EKSK Any February 2, 1977 Ms. Suzanne R. Reynolds THE NATIONAL COUNCIL FOR UNITED STATES-CHINA TRADE 1050 Seventeenth Street, N.W. Washington, D.C. 20036 Dear Suzanne: As per our telephone conversation of today's date, sent out Mr. Boulogne would appreciate if the attached 2/9/77-am memorandum is typed on the National Council's letterhead and distributed to Messrs. Link and Shamash with copy to Mr. Krieger. Many thanks for your help, Very truly yours, Laurie Laurie Zampardi R. Boulogne's secretary /lz ATT. FORD & LIBRARY GERALD J.C. Penney Company, Inc. TO: J. Link J. Shamash As agreed during our most recent Textile Committee Meeting we plan to prepare a report for China National Textile in time for the next Kwangchow Spring Fair. The purpose of this report is twofold: To clearly point out to the Textile Corporation the more serious problems being encountered with the majority of textile trades. Such problems are to be substantive and constructive suggestions to improve them would be helpful. To report to Chinatex on the most recent market conditions and future trends as we see them in the various areas in which we are trading. The more informative we are the more creditability we will build with Chinatex which in turn should place us in a better position to resolve our mutual problems. It is suggested that either a meeting be held within your group or if this is not possible that a questionnaire be sent to various interested parties which you feel can make a contribution towards this report. Don't forget the deadline for this report is March 15th. FROM: Textile Committee Co-chairman Veronica Yhap Co-chairman Robert Boulogne FORD à LIBRARY CC - G. Krieger Call JCPenney Purchasing Corporation May 11, 1982 Ms. Carolyn Brehm Director, Importer Services The National Council for United States-China Trade 1050 Seventeenth Street, N. W. Washington, D. C. 20036 Dear Ms. Brehm: Please put the following people from the JCPenney Company, 1301 Ave. of the Americas, New York, N. Y. 10019, on the mailing list for the China Business Review: H. P. Eddins W. R. Howell D. F. Miller- J. F. Tierney- J. J. Kennedy- W. H. Sinfield- J. A. McConville - W. B. Tygart- T. J. Lyons Please delete W. J. Neppl. Please add the name of our Far East Manager, Mr. Richard Stanton - whose address is: JCPenney Purchasing Corp. Suites 1104-06 Peninsula Centre Tsimshatsui East Kowloon, Hong Kong Thank you very much. Sincerely, JCPENNEY PURCHASING CORPORATION WHS: fd Walter H. Sinfield Executive Vice President FORD i LIBRARY GERALD J.C. Penney Purchasing Corporation, 1301 Avenue of the Americas, New York, N.Y. 10019 01/26/82 THE NATIONAL COUNCIL FOR UNITED STATES-CHINA TRADE PAGE 421 LINE 1: KEYLINE PREFIX NAME ENTRY DATE CABLE ADDRESS 4 LINE 2: LIST CODES STATUS TITLE TX DATE ADDRESS 1 LINE 3: SIC CODES CAT.CD COMPANY PHONE # ADDRESS 2 LINE 4: BULK CODE # OF COPIES PARENT TELEX # CITY/STATE/ZIP # *3*10019EDDI*2H1301* MR H P EDDINS 08/81 21295 4 AR A 10/81 1301 AVENUE OF THE AMERICAS 1 J C PENNEY CO INC (212) 957-4321 J C PENNEY CO INC NEW YORK BY 10019 a 4 *3*10019NEPP*1W1301* MR W J NEPPL 08/81 21295 PR A EXECUTIVE VICE PRESIDENT 10/81 1301 AVENUE OF THE AMERICAS 1 J C PENNEY CO INC (212) 957-4321 . J C PENNEY CO INC NEW YORK NY 10019 . *3*10019SINF*4W1301* MR WALTER H SINFIELD 01/82 TEX A DIRECTOR OF INTL BUYING 01/82 1301 AVE OF THE AMERICAS € 1 J C PENNEY CO INC J C PENNEY CO INC NEW YORK NY 10019 SUB TOTAL FOR (PENNEY CO INC) = 3 GERALD FORD LIBRARY J. C. PENNEY COMPANY, INC. es CHEMICAL BANK INVOICE AMOUNT DESCRIPTION JCP CODE NUMBER DATE DOLLARS CTS. 4/14/82 1982 Annual Membership Dues 7460 980001 7,500 00 - FORD is LIBRARY QERALD TOTAL AMOUNT OF CHECK 7,500 00 JCP-5137 (REV. 9/77) 562800 ********* The National Council for United States-China Trade 1050 Seventeenth Street. N.W. Telephone (202) 828-8300 Washington, D.C. 20036 STATEMENT 7 Mr. Walter H. Sinfield Director, International Buying Date: J.C. Penney Company, Inc. April, 14, 1982 1301 Avenue of the Americas New York, NY 10019 ECEIVE JUL 19 1982 DESCRIPTION AMOUNT 1982 Annual Membership Dues OK $7,500.00 7.HBreddins AMOUNT DUE $7,500.00 7460-980001 7500.00 & cc Dues payable upon receipt GERALD LIDRARY ? FORD PLEASE RETURN PINK COPY WITH YOUR REMITTANCE NATIONAL ARCHIVES AND RECORDS SERVICE WITHDRAWAL SHEET (PRESIDENTIAL LIBRARIES) FORM OF DOCUMENT CORRESPONDENTS OR TITLE DATE RESTRICTION Invoice Invoice form with copy of check from J.C. Penney Co. for 1982 07/13/1982 C Annual Membership Dues for the National Council for United States-China Trade- open with account number redacted FILE LOCATION National Council for U.S.-China Trade Records, Box 216, folder "J. C. Penney Co. Inc." RESTRICTION CODES (A) Closed by Executive Order 12356 governing access to national security information. (B) Closed by statute or by the agency which originated the document. EMD 11/12/2013 (C) Closed in accordance with restrictions contained in the donor's deed of gift. GENERAL SERVICES ADMINISTRATION GSA FORM 7122 (REV. 5-82) ********* T The National Council for United States-China Trade 1050 Seventeenth Street. N.W. Telephone (202) 828-8300 JCPenney J.C. PENNEY COMPANY, INC. NEW YORK, NEW YORK 10019 562800 № 958515 JUL 13 1982 CHEMICAL BANK 277 PARK AVE., NEW YORK, N.Y. 10017 1-12 210 PAY EXASTLY 7.500 AND O CTS J.C. PENNEY COMPANY, INC. TO THE ORDER The National Council for United States- OF China Trade FORD 1050 17th Street, N.W. Washington, D.C. 20036 RPP GERALD J.C. PENNEY COMPANY, INC. es CHEMICAL BANK INVOICE AMOUNT DESCRIPTION JCP CODE NUMBER DATE DOLLARS CTS. 4/14/82 1982 Annual Membership Dues 7460 980001 7,500 00 \ TOTAL AMOUNT OF CHECK 7,500 00 JCP-5137 (REV. 9/77) 562800 Bo -Check to Rick 7/19/82. note. Could not find yellow Pat mords coky of sink. invoice so ********* The National Council for United States-China Trade 1050 Seventeenth Street. N.W. Telephone (202) 828-8300 Washington, D.C. 20036 STATEMENT 7 Mr. Walter H. Sinfield Director, International Buying Date: J.C. Penney Company, Inc. April, 14, 1982 1301 Avenue of the Americas New York, NY 10019 7 DESCRIPTION AMOUNT 1982 Annual Membership Dues $7,500.00 AMOUNT DUE $7,500.00 Dues payable upon receipt BERALD R. FORD 24 LIBRARY PLEASE RETURN PINK COPY WITH YOUR REMITTANCE ********* The National Council for United States-China Trade 1050 Seventeenth Street, N.W. Telephone (202) 828-8300 Washington, D.C. 20036 STATEMENT Mr. WLJ. Neppl 7 Executive Vice President J.C. Penney Co. Inc. Date: December 4, 1981 1301 Avenue of the Americas New York, NY 10019 7 DESCRIPTION AMOUNT 1982 Annual Membership Dues -- Code 1 $7,500.00 AMOUNT DUE $7,500.00 Annual Dues Payable in January, 1982 FORD i LIBRARY SERVID PLEASE RETURN PINK COPY WITH YOUR REMITTANCE ********* The National Council for United States-China Trade 1050 Seventeenth Street, N.W., Washington, D.C. 20036 Cables: USCHINTRAD Telex: 89-7416 Telephone (202) 828-8300 July 23, 1982 Mr. Walter H. Sinfield Director, International Buying J.C. Penney Company, Inc. 1301 Avenue of the Americas New York, NY 10019 Dear Mr. Sinfield, We acknowledge with appreciation your firm's 1982 dues in the National Council. Your continued support of the National Council is greatly valued and we welcome your active participation in the Council's work during the year. We look forward to working closely with you and to responding to questions and suggestions you may have from time to time. Sincerely, Roger W. Sullivan Vice President RWS/bb FORD is LIBRARY GERALD