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The original documents are located in Box 7, folder "Commerce (2)" of the James M. Cannon Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 7 of the James M. Cannon Files at the Gerald R. Ford Presidential Library THE WHITE HOUSE WASHINGTON May 4, 1976 MEMORANDUM FOR PHILIP BUCHEN JOHN O. MARSH MAX FRIEDERSDORF JAMES M. CANNON FROM: L. WILLIAM SEIDMAN SUBJECT: Arab Boycott A attached. memora ndum for the President on the Arab Boycott issue is I would appreciate your comments and recommendations on this memorandum by 3:00 p.m. Wednesday, May 5, 1976. FORD i LIBRARI MEMORANDUM FOR: L. WILLIAM SEIDMAN FROM: JAMES CANNON SUBJECT: Arab Boycott I support Option 1. THE WHITE HOUSE WASHINGTON May 5, 1976 Optm 1 MEMORANDUM FOR: JIM CANNON FROM: The attached memorandum deals with the general issue Jr PAUL LEACH Parl SUBJECT: ARAB BOYCOTT or not to support any new proposed anti-Arab Boycott legislation. The specific issue involves whether or not to support a "compromise" on the "Stevenson Bill" which would have three main effects: 1. It would require disclosure of boycott request compliance reports submitted to the Commerce Department by U.S. firms, on the grounds that the Export Administration Act declares it to be the policy of the U.S. to oppose boycotts; 2. It would bar religious, racial, ethnic, or sex discrim- ination by U.S. exporters; 3. It would prohibit refusals by U.S. firms to do business with other firms pursuant to foreign boycott requests. I am not particularly well-versed on this matter and the decision memorandum is not fully illuminating. However, based on what I know and can glean from this memorandum, I would support Option 1, i.e., oppose any legislation. GERALD R. FORD CONFIDENTIAL DECLASSIFIED E.O. 12958, Sec. 3.5 THE WHITE HOUSE NSC By WHEN Memo, 11/24/98, State Dept. Guidelines WASHINGTON , NARA, Date 5/15/00 FORD LIBRARY & CERALD MEMORANDUM FOR THE PRESIDENT FROM: BRENT SCOWCROFT L. WILLIAM SEIDMAN SUBJECT: Arab Boycott and Related Discrimination The decisions announced in your statement of November 20, 1975 on the related issues of the Arab boycott and religious dis- crimination have been implemented. The Federal Reserve Board has issued a letter to member banks outlining their obligations with respect to Arab boycott and discrimination measures. The Justice Department has filed a civil anti-trust suit charging the Bechtel Corporation with refusing to deal with any U.S. sub-contractors on the Arab League boycott list and requiring its sub-contractors, in turn, not to deal with U.S. firms on the boycott list. The Department of Commerce has decided to release publicly letters charging United States firms with a violation of its regulations pertaining to the Arab boycott. The Department of Commerce has also ceased circulating tender offers requesting bids on projects from American firms if they contain a request to comply with the boycott. In addition, several state governments have adopted laws on the boycott issue, some of which go well beyond the policy guidelines approved by you. We have also engaged in extensive discussions with Arab Governments and Israel on the entire question, including numerous exchanges through diplomatic channels and during Secretary Simon's March trip to the Middle East. Secretary Simon in his discussions with both Arab and Israeli leaders distinguished between the boycott and reli- gious discrimination. He stated clearly that you desired an end to the boycott and that you felt that the only effective, peaceful way to end the boycott was to resolve the Arab-Israeli conflict. He also stated that we would oppose legislation directed to the boycott. The cumulative effect of these actions has been mixed. The Arab Governments, as well as American businesses, appear to understand and accept the anti-discrimination aspect of our policy. Saudi Arabia has taken steps to distinguish between religious discrimination and its political attitude toward Israel, and to ease somewhat the process of obtaining visas for persons of the Jewish faith, even though some problems CONF IDENTIAL CONFIDENTIAL FORD -2- remain. There have also been several specific indications of greater flexibility in the application of boycott regulations and some firms have been or soon will be removed from the list. Yet, there has also been some disruption of United States commercial dealings with the Arab world, primarily due to reluctance by American firms to risk possible legal action. Arab Governments, to varying degrees, have resented our boy- cott related actions, although thus far they are generally cooperating in quiet, gradual efforts to minimize difficul- ties. Despite this quiet cooperation, high-level Arab leaders (particularly in Saudi Arabia and Kuwait) indicate they are prepared to retaliate commercially against United States busi- ness if we continue to apply what they view as unwarranted public pressure. This memorandum seeks your guidance on the Administration's position on several pieces of pending legislation dealing with various aspects of the boycott/discrimination issue, all of which would, to various degrees, move the United States into a considerably tougher anti-boycott position than embodied in your November 20 statement. A summary of all the pending bills is attached at Tab A. Stevenson Bill The bill requiring the urgent formulation of an Administration position is an amendment to the Export Administration Act pro- posed by Senators Stevenson and Williams and a similar bill introduced in the House by Representative Koch. The proposed legislation would have three main effects: (1) It would require disclosure of boycott request compliance reports submitted to the Commerce Department by U.S. firms, on the grounds that the Export Administration Act declares it to be the policy of the U.S. to oppose boycotts. (2) It would bar religious, racial, ethnic, or sex discrim- ination by U.S. exporters. (3) It would prohibit refusals by U.S. firms to do business with other firms pursuant to foreign boycott requests. The provisions on disclosure of compliance with Arab boycott requests could have some negative effect on consumer-oriented businesses in this country, causing them either to avoid the Arab market completely or to go to third country affiliates in order to avoid a possible counterboycott. CONF IDENTIAL CONFIDENTIAL -3- GERALD FORD LIBRARY The provisions barring discrimination are identical for all intents and purposes to the measures announced by you on November 20. The provisions of the bill which prohibit U.S. firms from refusing to do business with other U.S. firms on the boycott list are unclear as to their intent and effect. As presently drafted these provisions are more far reaching than the Justice Department conception of the applicability of our anti-trust laws (as set forth in the Bechtel suit), and if enforced strictly would deal a serious blow to United States business with the Arab world. Even large multinational corporations now heavily engaged in the Arab world would probably shift procurement to third country affiliated or unrelated firms in order to avoid possible problems. Many smaller companies would probably terminate business with the Arab world. Given the policy which we have followed since your November 20 statement, the Arabs will tend to view Administration accept- ance of any additional legislation on the Arab boycott as a shift in the Administration's position in response to the Israeli lobby. There has been considerable interagency review of how best to deal with the Stevenson-Williams-Koch legislation. A Working Group, chaired by the NSC staff discussed the issue at length and prepared a paper which was discussed by the EPB Executive Committee on April 30. There is agreement that the Administration should seek to limit additional anti-boycott legislation to the absolute minimum, in accordance with your policy decision of last November which remains the best approach under present circumstances. How- ever, there is also agreement that it may be desirable to accept a compromise with Congress in the form of a suitably amended Stevenson-Williams-Koch bill if this will avoid pas- sage of worse legislation and if the only other alternative is a Presidential veto. Options Two options for dealing with the Stevenson-Williams-Koch bill are presented for your consideration. Option 1: Maintain the position outlined in your November 20 statement and strongly oppose all additional legis- lation as unnecessary and counterproductive, but do not indicate that you would necessarily veto any additional legislation thus leaving open the possi- bility of compromise later if sufficient opposition to the legislation does not develop. CONF IDENTIAL CONFIDENTIAL FORD -4- RALD Advantages: This would be fully consistent with your statement of November 20 and the position maintained by the Admin- istration since then that no additional legislation is needed. If efforts to block new legislation succeeded, it would retain Arab confidence of the Administration as well as encouraging them to ease the practical application of the boycott. It would avoid the serious danger of an Arab backlash (similar to the Soviet backlash over Jackson-Vanik) because they believed we were applying excessive public pressure. It would minimize the loss of business by U.S. firms to other countries due to U.S. anti-boycott regulations. If efforts to block new legislation failed, an oppor- tunity would remain to choose between trying to obtain an acceptable compromise or either vetoing or acquiescing to unacceptable legislation. Disadvantages: This approach could produce a confrontation between the Administration and Congress and Jewish groups given the strong pressures which exist for some additional action. It could also result in Congress pressing stronger legis- lation and rejecting last-minute efforts at compromise, than would have been the case were the Administration to seek a compromise from the outset. This approach could place the President in the position of having either to acquiesce to the legislation or veto the bill. Option 2: Modify your opposition to any additional legislation by beginning work immediately with key members of Congress to reach agreement on an amended bill. Two approaches to an amended bill have been considered. Both approaches would accept the sections of the bill on anti- discrimination and disclosure and seek clear agreement from key Members of Congress and Jewish leaders that there will be no additional legislative action. CONF IDENTIAL CONF IDENTIAL SALD FORD -5- Approach A: Attempt to delete the section of the bill on refusal to deal in exchange for agreement to the idea of public disclosure of boycott request compli- ance reports, either by administrative action or by enactment of that section of the bill. A public statement by the Administration supporting explicitly the efforts of the Justice Department to apply the Sherman Act to refusal to deal cases should be considered as a possible concession to obtain deletion of that section from the bill. Approach B: Attempt to amend the section of the bill on refusal to deal by substituting language proposed by Jus- tice which would substantially narrow its appli- cation and bring it into line with Justice's pre- sent concept of the applicability of the Sherman Act to refusal to deal actions by U.S. firms pur- suant to the Arab boycott. Advantages: Seeking a compromise from the outset through consulta- tions with key Members of Congress and Jewish leaders would avoid a confrontation with them and could ulti- mately make an acceptable compromise easier to achieve. Enactment of Stevenson's legislation should substantially undercut the prospects for more harmful legislation. The Administration could provide Congress with the precise changes it would like in the bills before they move SO far down the legislative path as to make changes difficult. Disadvantages: This would appear as a retreat from the Administration position held since November 20. Once the Administra- tion signalled a willingness to compromise, Members of Congress and others who support strong anti-boycott leg- islation may assume that they are in a strong position and do not need to accept a compromise. Some legislation would result which, depending on its nature, could create serious difficulties for U.S. foreign policy and economic interests in the Arab world and raise additional barriers to U.S. firms doing busi- ness in Arab countries. CONF IDENTIAL CONFIDENTIAL FORD -5- Approach A: Attempt to delete the section of the bill on refusal to deal in exchange for agreement to the idea of public disclosure of boycott request compli- ance reports, either by administrative action or by enactment of that section of the bill. A public statement by the Administration supporting explicitly the efforts of the Justice Department to apply the Sherman Act to refusal to deal cases should be considered as a possible concession to obtain deletion of that section from the bill. Approach B: Attempt to amend the section of the bill on refusal to deal by substituting language proposed by Jus- tice which would substantially narrow its appli- cation and bring it into line with Justice's pre- sent concept of the applicability of the Sherman Act to refusal to deal actions by U.S. firms pur- suant to the Arab boycott. Advantages: Seeking a compromise from the outset through consulta- tions with key Members of Congress and Jewish leaders would avoid a confrontation with them and could ulti- mately make an acceptable compromise easier to achieve. Enactment of Stevenson's legislation should substantially undercut the prospects for more harmful legislation. The Administration could provide Congress with the precise changes it would like in the bills before they move so far down the legislative path as to make changes difficult. Disadvantages: This would appear as a retreat from the Administration position held since November 20. Once the Administra- tion signallled a willingness to compromise, Members of Congress and others who support strong anti-boycott leg- islation may assume that they are in a strong position and do not need to accept a compromise. Some legislation would result which, depending on its nature, could create serious difficulties for U.S. foreign policy and economic interests in the Arab world and raise additional barriers to U.S. firms doing busi- ness in Arab countries. CONF IDENTIAL CONF IDENTIAL GERALD R. FORD CreRARY - -6- Decision Option 1 Maintain the position outlined in your Novem- ber 20 statement and strongly oppose all addi- tional legislation as unnecessary and counter- productive, but do not indicate that you would necessarily veto any additional legislation thus leaving open the possibility of compro- mise later if sufficient opposition to the legislation does not develop. Supported by: Option 2 Modify your opposition to any additional legis- lation be beginning work immediately with key members of Congress to reach agreement on an amended bill. Supported by: CONF IDENTIAL April 28, 1976 MAJOR ANTI-BOYCOTT LEGISLATION SENATE BILLS 1. Stevenson-Williams Bill (S. 953) Title I Would require that U.S. firms report to the Department of Commerce on whether they intend to comply and whether they have complied with boycott requests which they receive. Would require that boycott reports hereafter filed with the Department of Commerce be made public, except that com- mercial information regarding the value, kind, and quantity of goods involved in any reported transaction may be kept confidential. Would prohibit U.S. firms from furnishing, pursuant to a boycott request, any information regarding the race, religion, or nationality of its employees, shareholders, officers, or directors, or the employees, shareholders, officers, or directors of any other U.S. company. Would prohibit U.S. firms from refusing to do business with other U.S. firms pursuant to a boycott request. Maximum administrative penalties applicable under the Act would be increased from $1,000 to $10,000. In addition, would make it clear that export privileges may be suspended for a violation of the anti-boycott provisions of the Act. Would require public disclosure of Commerce Department charging or warning letters against U.S. companies for failing to comply with anti-boycott provisions of the Act. Would require that the Commerce Department provide the State Department with summaries of the information contained in boycott reports for appropriate action by the State Department. SENATE BILLS 2 Would require that the semi-annual reports to Congress under the Export Administration Act include an accounting of what action the Executive Branch has taken to effect the anti-boycott policy of the Act. Would clarify the Act to leave no doubt that it applies to banks, other financial institutions, insurers, freight forwarders, and shipping companies. Title II Would amend section 13(d) of the Securities Exchange Act to expand the disclosure requirements imposed thereunder on those who acquire the beneficial ownership of more than 5% of any equity security by requiring disclosure of the following: (a) The residence, nationality, and nature of the beneficial ownership of the person acquiring the securities. (The latter would include, for example, whether the beneficial owner has the right to direct the voting of the securities, the receipt of dividends, or the proceeds of sale); (b) The background and nationality of each associate of the purchaser who has a right to acquire additional shares of the insurer. Would impose new disclosure requirements as follows: Every holder of record, of, and any other person having an interest in, 2% or more of a class of any equity security, would be required to file reports as prescribed by the SEC at such time as the SEC may require. The SEC would have authority to make such exceptions to the above as are not inconsistent with the public interest or the protection of investors. The 2% threshhold is to be reduced to 1% on September 1, 1976 and to 1/2 of 1% on September 1, 1977. However, the SEC may extend or shorten such periods if the SEC, after public comment, concludes that such change is not inconsistent with the public interest or the protection of investors. FORD SENATE BILLS 3 The bill was originally reported out of the Senate Banking and Currency Committee on February 6, 1976. However, it was decided to defer full Senate action until legislation to provide a simple extension of the Export Administration Act was considered, at which time the two pieces of legislation would be combined. This did, in fact, occur at the subcommittee level on April 27 when the extension bill, S. 3084, was favorably reported to the full Committee with the Stevenson-Williams bill incorporated in it. Full Committee mark-up and final reporting of the legislation is expected Thursday, April 29 or Friday, April 30. 2. Ribicoff Bill (S. 3138) The bill would deny tax benefits on foreign source income to tax- payers who participate in or cooperate with the boycott of Israel. These benefits include the foreign tax credit and tax deferral, and DISC. The denial would apply to that foreign source income derived through direct or indirect dealings with boycotting countries. The bill is pending before the full Senate Finance Committee where no action is currently scheduled. FORD 4 HOUSE BILLS It is anticipated that those House bills pending before the International Relations Subcommittee on International Trade and Commerce will be considered as amendinents to legislation to extend the Export Administra- tion Act scheduled to come before the full committee some time in June. 1. Bingham Bill (H. R. 4967) FORD i LIBRARY ORRALD The bill would prohibit US companies from answering or complying in any way with boycott requests. The bill is pending before the IRC Subcommittee on International Trade and Commerce. 2. Drinan Bill (H. R. 5913, 5997, 6431, 6661 and others) The bill would make it unlawful for any US exporter to engage in such practices as: furnishing information to a foreign agent concerning the race, religion or national origin of its employees or the employees of firms with which it does business; -furnishing information on business dealings with a boycotted country or firm; or refusing, because of dealings with a foreign agent, to do business with a boycotted country or firm. The bill would require the Secretary of Commerce to revoke the export license of any exporter violating these provisions. The legislation is pending before the IRC Subcommittee on International Trade and Commerce. 3. Koch Bill (H. R. 11464) This bill is almost identical to the Stevenson-Williams Bill and has been dually referred to the House International Relations Committee and Interstate and Foreign Commerce Committee. 4. Holtzman Bill (H. R. 5246 and others) (almost 100 cosponsors) The bill would prohibit any business enterprise from using economic coercion to induce another not to do business with, employ or otherwise discriminate against (on the basis of race, religion, etc. ) any US or foreign person in respect to its activities in the United States. The bill would also make it unlawful to yield to such coercion or take discrimina- tory action to prevent the coercion from ever occurring. The bill is pending before the Judiciary Subcommittee on Monopolies. Some items in this folder were not digitized because it contains copyrighted materials. Please contact the Gerald R. Ford Presidential Library for access to these materials. THE WHITE HOUSE washington May 10, 1976 TO: JIM CANNON FROM: JOHN O, And For Direct Reply For Draft Response X For Your Information Please Advise Commerce May 10, 1976 Dear Jake: Thank you for your letter of May 6 and the attached clipping from the May 3 issue of Transport Topics. I fully understand how strongly you feel on the issue of deregulation of the trucking industry. I shall see to It that the comments contained in your letter and the Transport Topics article are called to the attention of the appropriate people here at the White House. Thanks again for taking the time to give me the benefit of your very strong views on this matter. With warmest personal regards, I remain, Sincerely, GERALD RF FORD LIBRARY John O. March, Jr. Counsellor to the President Mr. R. R. Smith Chairman of the Board Smith's Transfer Corporation P. O. Box 1000 Staunton, Virginia 24401 JOM:RAR:cb MAY 8 1976 SMITH'S TRANSFER CORPORATION General Office: P.O. Box 1000 Staunton, Virginia 24401 Area Code 703 886-6231 HAULMARK OF SERVICE R.R. SMITH CHAIRMAN OF THE BOARD May 6, 1976 Mr. John O. Marsh, Jr. Counsellor to the President FORD i LIBRARY The White House Washington, D. C. 20500 Dear Jack: Enclosed find comments which I clipped out of a recent paper which are self-explanatory. At a time when our President seems to be having many problems which I happen to believe comes mainly from poor advice-such as, his stand on deregulation of the trucking industry which sounds good to the average business man that is so fed up with govern- ment regulations and red tape; yet to anyone, with the exception of a few very large corporations, that has anything to do with the shipping or receiving of freight understands that deregulation is probably the worst thing that could happen in the efficient opera- tion of their business. As to the people in our industry, we are solidly against deregulation in any form and this position will be registered at the convention and at the polls in November. I happen to believe that the election, Mr. John O. Marsh, Jr. May 6, 1976 Page 2 whoever the opponent to the President, will be very close come November. Our industry could well make the difference in that outcome when you consider the truck- ing industry and the shippers and receivers in this country. I personally would like to see the President reelected. Isn't there something that you can do to change his position on deregulation? If this is done, I believe that we can get our industry solidly behind the President. Thanking you for your reaction and comments. With kind personal regards, Sincerely yours, FORD is LIBRARY DERALD R.R. Jake Smith Enclosure ATA Urges Democrats to Back ICC Regulation in Platform KANSAS CITY - Earl N. Hoekenga, a vice president at large of American Trucking Associations, has asked the Democratic party to make deregulation a campaign issue by endorsing economic regulation of motor carrier freight transportation in its 1976 platform. The trucking industry's represen- No. 2125 May 3, 1976 Guest Editorial President Gerald Ford has been pi registering surprise when the America ing Associations reacted in vigorous opp his proposal to deregulate the trucking If true, the President's surprise she been bewildering in itself, since more than Reprinted from the Mankato, Minn., Free Press GERALD FORD LIBRARY 11,000 of the industry's 15,000 members have gross annual incomes of less than $500,000. In other words, the association is composed of primarily small truckers, whose welfare - and that of the relatively small communities they serve - is directly threatened by removal of all dependent on commercial freight transportation. government controls. Some 500 points in Minnesota today thereby The trucking industry has been regulated have been left with only truck freight service. since 1935. It has grown from a hodge-podge of How many would be shorn of that, if the trucking local and long-distance carriers to a complex, in- industry was deregulated, and the small trucker tegrated network that surely ranks as one of the driven out of business by the big? They would not finest in the world. even have a mechanism of protest. Proponents of deregulation say that the pres- Not all big-name shippers are in favor of de- ent uniform rate structure is arbitrarily high, regulation. Much of their business comes from and that there would be immense annual savings small firm "feeders," just as smaller airlines by customers if truckers could come and go as (with and without subsidies) pump passengers they please, from one "territory" to another, and and freight into the long-lines haulers. charge whatever the traffic will bear. Competition is well and good, and keen compe- This is the way it was before 1935. But south- tition exists even with regulation. But a kind of ern Minnesotans with memories dating back that ruthless contention that blocks off free-flowing far will recall that trucking then was something arteries to rural America, in the name of other- of a monopoly, with preferential service given to wise commendable cost-cutting, is a disservice of high-volume shippers or those who happened to quantum proportions. be based in larger cities. It was not until regula- Rep. Tom Hagedorn, R-Minn., says he is in tion - the setting of rates, to allow the "little favor of "reregulation" rather than deregulation. guy" to compete, and power to license, so that a The Minnesota Public Service Commission also trucker could not unilaterally decide to pull out of supports a degree of regulation. Others want an otherwise unprofitable route - that smaller changes within the Interstate Commerce Com- communities finally received scheduled and de- mission (ICC) itself - - a "scraping off of the bar- pendable service we still have today. nacles," as it were, including a reduction in the It is easy to visualize Podunk Junction being number of commissioners from 11 to 6 or so, and bypassed by a trucker hell-bent to achieve the forbidding of political appointments. maximum load with the minimum number of "Free entry, everybody gets in on their own fee stops. We have only to look to the railroads, schedule" has a compelling ring. which even in the face of regulation continue to But somebody always gets hurt in that kind of tear up tracks or remove agents from many doz- free-swinging enterprise, and usually it's the lit- ens of cities, towns and villages that are still very tle guys like us. Page 12-May 3, 1976 TRANSPORT TOPICS Commerce THE WHITE HOUSE WASHINGTON (Shipping) June 22, 1976 MEMORANDUM FOR: DICK CHENEY FROM JIM CANNON the FORD i LIBRARY SUBJECT: The Administration's "Third-Flag" Bill In late May the President decided to propose our own "third- flag" legislation as an alternative to a Federal Maritime Commission ("FMC") draft bill and another bill already under discussion in the House (H.R. 7940). Each of the three bills would give the FMC substantial new authority to deal with state- controlled ocean shipping firms -- primarily Soviet-Flag --- which are allegedly "unfairly" competing with other profit- making shipping firms. The Administration bill, which would be a watered down version of the FMC draft bill, is now being drafted. This decision was based on information contained in a decision memorandum from OMB and staff comments collected by Jim Connor. I would strongly recommend that the President reconsider this decision for two reasons: 1. While OMB recommended against supporting any legislation, the decision memorandum suggested that some kind of Congressional action on a third-flag bill was likely and that an Administration bill might be a preferäble alternative to other bills. However, it would now appear that Congressior action is unlikely this year. Representative Pete McCloskey, the ranking Republican on the House Merchant Marine Sub- committee, reports that no one has made a good case for a bill and that he is determined to stop any bill. He argues that the chance of any action this session "are slim" and that the best Administration strategy is to "cool it" and wait to help him resist a bill, if necessary. 2. The decision memorandum failed to emphasize sufficiently that any increased economic regulatory authority for the FMC would be wholly inconsistent with the President's efforts to reduce economic regulation and to emphasize increased competition as a preferable alternative. If you agree with my recommendation that the President reconsider this issue, we will be happy to work with OMB in drafting the appropriate decision memorandum for the President. CC: VPaul O'Neill file THE WHITE HOUSE WASHINGTON July 16, 1976 MEMORANDUM FOR: JIM CANNON FROM: ART QUERN SUBJECT: Third Flag Legislation On the basis of a conversation with Paul O'Neill regarding our (Domestic Council) position on Third Flag legislation, I have withdrawn our objection to proceeding with the development of a draft administration bill. As you know, we were concerned that the Administration was going to take the initiative and submit its own Third Flag bill. We were convinced that this was unnecessary since Congress was unlikely to take any action this year. We also believed that such an initiative would carry with it problems regarding the President's position on regulatory reform and related issues. Paul O'Neill informed me that our current efforts are geared to the preparation of a draft bill to have on hand should we be asked for one. Currently, however, there is no intention to submit or initiate such legislation. CC: Paul O'Neill This Paul Leach Km FORD LIBRARY is GERALD file - THE WHITE HOUSE WASHINGTON June 21, 1976 MEMORANDUM FOR PHILIP W. BUCHEN JAMES M. CANNON MAX FRIEDERSDORF JOHN O. MARSH FROM: WILLIAM BRENT SCOWCROFT F. GOROG outb SUBJECT: Escape Clause Case - Shrimp A memorandum from Ambassador Dent on the shrimp escape clause case is attached. I would appreciate your comments and recommendations on this memorandum no later than c.o.b. Thursday, June 24, 1976. FORD i LIBRARY OERALD Attachment concer with The moninous June file THE WHITE HOUSE WASHINGTON June 23, 1976 MEMORANDUM FOR: BILL GOROG THROUGH: JIM CANNON FROM: PAUL LEACH Paul SUBJECT: Escape Clause Case-Shrimp I concur with the unanimous interagency recommendation that the President accept the findings of the ITC and direct the Secretaries of Commerce and Labor to give expeditious consideration to petitions for adjustment assistance from firms and workers in the industry and communities in which they are located. FORD LIBRARY & 9ERALD THE WHITE HOUSE WASHINGTON JMC I sent this to Leach for action, but he wants to know what sort of action you want him to take. Shouldn't he just assess the feasibility of Senator Long's requests? j orostaken By events July CC: Leach Commerce THE WHITE HOUSE WASHINGTON July 15, 1976 ADMINISTRATIVELY CONFIDENTIAL MEMORANDUM FOR: JIM CANNON FROM: JIM CONNOR JEE SUBJECT: Letter from Senator Long The attached memorandum from Max Friedersdorf was returned in the President's outbox with the following notation addressed to you: "Check with Secretary Butz, Fred Dent and Alan Greenspan." Please follow-up with appropriate action. cc: Dick Cheney Max Friedersdorf THE PRESIDENT HAS SEEN ... THE WHITE HOUSE WASHINGTON July 14, 1976 MEMORANDUM FOR THE PRESIDENT FROM: MAX FRIEDERSDORF m.b. SUBJECT: Senator Russell Long (D-La.) I have asked Jim Cannon and Jim Cavanaugh to assess the feasibility of the requests by Russell Long contained in the attached letter from the Senator. If Long's proposals have merit and represent actions the Administration could take, it might present an opportunity to approach Russell again on the Jobs Bill veto. FORD i LIBRARY GERALD Sinned Sicces Denate WASHINGTON, D.C. 20510 June 17, 1976 The Honorable Gerald R. Ford 1600 Pennsylvania Avenue Washington, D. C. 20500 Dear Mr. President: You are aware of my interest in domestic sugar production because of the importance of the sugar industry to my home state of Louisiana and due to my position as Chairman of the Finance Committee which has jurisdiction over sugar legislation. Domestic sugar producers have been without a specific sugar program since the expiration of the Sugar Act on December 31, 1974. On March 11 of this year, Senators Inouye, Curtis and Dole joined me in a letter to you expressing our concern over anticipated developments in the international sugar trade and their effect on domestic production. I attach a copy of that letter for your easy reference. Since that time, the price situation for our domestic producers has deteriorated considerably to the point of jeopardizing the continuation of the domestic industry. On the day preceding our March letter, the domestic raw price was 16.5 cents per pound. By June 3, less than three months later, the price had declined to 13.85. I am concerned that the price may decline even further. Passage of sugar legislation during the remainder of this year would be difficult, if not impossible, with the many other legislative matters to be handled. However, there are available to you options which could be used at your discretion to prevent disastrous consequences to domestic sugar production. There are actions which could be taken by you under existing statutory authority. 1. Increase the present tariff level from 62.5 cents per hundred pounds to as much as 1.875 cents per hundred pounds. This could be accomplished simply by amending Executive Order No. 4334 of November 16, 1974. FORD & GERALD LIBRARY Page two June 17 1976 2. Reduce the present foreign import quota of 7 million tons to a more realistic level. Total imports of foreign sugar in 1975 were only 3.9 million tons, and a restriction for 1976 at about that same level might result in a more reasonable price for sugar. Individual country quotas could be established if you considered it advisable. This also could be accomplished by amending Executive Order No. 4334 of November 16, 1974. 3. Direct the Secretary of Agriculture to establish a price support program for sugarcane and sugarbeets under authority contained in Title III of the Agricultural Act of 1949. The level. of support could be established from zero to 90 percent of parity. The level of support should be a. minimum of 70 percent of parity in order to be equitable with levels established for producers of milk, grains, and other essential commoditics. Seventy percent of parity would result in a price for raw sugar of 18.5 cents per pound. The cost of production currently ranges between 15.5 cents and 20 cents per pound. I would very much appreciate your advice as to what steps the Administration might take to correct the dangerous situation now facing our domestic sugar producers. Since this matter is so vital to the 29: domestic sugar-producing states, your early attention to the problem would be appreciated. Sincerely, Finance Chairman Committee FORD i LIBRARY THE WHITE HOUSE WASHINGTON July 26, 1976 Paul- 1 MEMORANDUM FOR: ROGER PORTER Prablem FROM: SUBJECT: Beef Mayaguez PAUL LEACH Imports Issue and the Jan I understand from USDA that your office is now deeply involved with the beef import question and the Mayeguez Foreign-Trade Zone issue. Since it doesn't seem to be an efficient use of our time to have duplicate efforts in this regard, I am sending you a letter which requires a draft response. This has been held in abeyance pending resolution of the Mayeguez question, but will certainly require some action within the near future. CC: Charles Leppert Jim Cannon FORD i LIBRARY GERALD Congress of the United States House of Representatibes Mashington, D.C. 20515 June 14, 1976 The Honorable Gerald R. Ford President of United States The White House Washington, D.C. 20500 Dear Mr. President: The distressed cattle industry, which is just emerging from the "Beef Depression" of 1973-1975, initiated by the price freeze of 1973 only to be hit with serious drought conditions which imperil its re- covery in 1976, has enough on its hands in coping with acts of God without having to suffer further from the burdens of man-made restraints. Of particular concern is the competition from meat imports, 95% of which are chilled and frozen beef. The level of these imports is too high even under a program of voluntary restraints as negotiated with the importing countries. In addition to those imports which are legal under the Meat Import Act of 1964, our cattlemen are now faced with circumventions which permit additional beef to flood the domestic market and add to the woes of our livestock producers. We have reference to the frozen beef from Australia and New Zealand which is being shipped to the packing plant in the free port of Mayaguez, Puerto Rico. There it is chopped up and processed into "stew beef" which places it in the "prepared and preserved" category upon which there is no limitation as far as import levels are concerned. Unfortunately, this category is not negotiable under the system of voluntary restraints, but we believe there is ample opportunity under Sec. 2 (e) of the Meat Import Act of 1964 to regulate the flow of all meat and make sure it is allocated to the importing country. This type of circumvention is patently wrong, Mr. President, and steps should be taken to either FORD LIBRARY is GERALD Honorable Gerald R. Ford June 14, 1976 Page two stop these imports altogether or see that this particular category is included with the other categories the levels of which can be controlled under the Meat Import Act. We' respectfully call upon the Administration to address itself to this problem immediately-- either to negotiate the voluntary restraints on meat imports at a level which would make allowances for the imports of "stew beef" and other "prepared and preserved" meats, or take other administrative action under the law to control the imports of this kind. This request comes to you from Representatives of cattle-producing areas, and it is important to note that the cattlemen, generally, have approved the farm policies of this Administration as developed and enunciated by Secretary Butz. Any measures of relief from this unfair competition would reinforce the belief of the cattlemen that you have an under- standing of their problems. FORD i LIBRARY GERALD Thank you for your prompt consideration of the problem and for advising us what steps you plan to take. Drought conditions are forcing many producers to put their COWS on the market at already disastrous prices in direct competition to this "stew beef". Time is of the essence. Sincerely, X Lasta Diigin Smith Chuck Grassley Time Fee tearter James Abdnn X j- John myers Honorable Gerald R. Ford June 14, 1976 Page John three Thome Den your Guver Varry Phirley n. Petize Birl Vital Stoyd Spence health \ Steve Symms Seith L.Seklius Larry Pressler Garna 16. Shrin Rd Baum get Robina Gene Fayer Anghan agent China Wilson (Jax) James Haley Waltr new, Smith Ray which Junes Jine Johnson Air FORD LIBRARY is GERALD Honorable Gerald R. Ford June 14, 1976 Page four 33 Delbert L. Latta Virginia Smith Charles E. Grassley Tim Lee Carter James Abdnor John T. Myers W. Henson Moore John Y. McCollister Joe Skubitz Charles Thone Del Clawson Don Young Tennyson Guyer Teno Roncalio BiLL Larry Winn, Jr. San Steiger Barry M. Goldwater, Jr. Shirley N. Pettis William M. Ketchum Marilyn Lloyd GCORGE O'Brien Floyd Spence Elford A. Cederber Mark Andrews Steven D. Symms Keith G. Sebelius Larry Pressler Garner E. Shriver Robert E. Bauman J. Kenneth Robinson Gene Taylor Abraham Kazen, Jr. Charles Wilson (Texas) Ray Roberts Neal Smith James A. Haley Walter B. Jones James P. Johnson Jim Wright Gunn McKay FORD LIBRARY & 9ERALD name changes above per Dan Harrant in Congresswoma seen June 21, 1976 Dear larv: Thank you for letting ns know that you concur in the June 14 letter to the President from Mrs. Virginia Smith and others regarding the impact of certain meat imports on the domestic industry. Please be assured that I shall make certain your name is added to those who have expressed their concern in this matter. 1 know the views you and your colleagues have expressed will be fully reviewed. With kind regards, Sincerely, Charles Lappert, JI. Deputy Assistant to the President FORD is LIBRARY 938870 The Honorable Marvin L. Each House of Representatives Washington, D.C. 20515 bec: w/inc. to James Cannon for handling with the June 14 letter to the President from Hrs. Virginia Smith and 38 of her colleagues. A June 16 interim (copy attached) was sent to each of those 39 cosigners, and the incoming sent to you for DRAFT reply. bee: w/inc. to Mr. Seidman - PYT bee: w/inc. to Amb. Frederick Dent - FYI CL:JUB:bmr identical to each of the 20 additional cougness June 16, 1975 Dear Virginia: Thank you for the June 1: letter to tae President in which you joined with 33 of your colleagues from cattle producing ATAXA El publice the ispact on the domestic industry of beat imports from Australia and Hey gaaland which are cozing into this country by way of the free port of Hayaguez, Puerto Pico. Please be assured I shall call your letter immitately 19 the President's attention. I know be will appreciate having your viewa regarding this situation and will wish to have the fully reviewed. You will hear further as scon 23 possible. With kind regards, Sincerely, Charles Deppart, J=. Deputy Assistant to the President the Honorable Virginia Smith Jouse of Representatives Wasnington, D.C. 20515 GERALD R. LIBRARY FORD bee: w/incoming to James Cannon for DRAFT REPLY bec: w/incoming to in. Seicman - FYI bcc: w/incoming to Anio. Prederick Dent - FYI CL:JEB:VO:ki identical to each of the 39 coreines June 13, 1976 20 man Marvin L. Esch Jack Hightower Tom Harkin John B. Conlan Paul Simon NA. W. R. Poage Edward Hutchinson Chairman, Mr. Chairman Wilbur D. Mills John Melcher Bizz Harold T. Johnson Bob Robert J. Lagomarsino many Manuel Lujan, Jr. Bill William L. Dickinson Ted Risenhoover Bo Ginn Harold Runnels Jim Santini Tom Steed Berkley Bedell Mr. Chairran Olin Teague FORD & LIBRARY GERALD Honorable Gerald R. Ford June Page three 14, 1976 age Thom Sen yourg Janneson Gujer July Bir Kitch Philey n. Petting 2tayd Spener health Steve Symms GERALD R. FORD Leith G.Seklius Larry Pressler Garner 7. Shriner Rd Baum Few Fasher James a 2 Haley Waltn nesl. Smith Ray Volunts China Wilson (Jex) Jane Johnson Additions Way his DumBer Dum M Fay cay Diseh,ue Veh When Johns Dorlan 2 Edwars tuthinism Aillure Mill Lane Job melcher Robet r Faguress manuel Cujar Ja Ted Sisenhover Bo Sinn Happed Norn Tom Stead Vead Kenkey / Bedere 10gm 2:00 Tuesday Deadline THE WHITE HOUSE Commerce WASHINGTON July 27, 1976 MEMORANDUM FOR: JIM CANNON FROM: PAUL LEACH Paul SUBJECT: Administration's Position on the "Bottlers' Bill" The attached Paul O'Neill memo to the President asks for a decision on whether or not to oppose this bill which would provide an antitrust immunity to the soft drink bottling industry. Markup may be tomorrow, so resolution of this issue has urgent priority. This issue was discussed at the EPB meeting on Monday and there was no objection to the Justice Department position: That the Administration oppose this bill. This position is consistent with past Justice Department opposition to similar bills. Since (1) the Administration has been consistently opposed to specialized exemptions from the antitrust laws and (2) some strange, normally pro-antitrust Senators (Cranston, Humphrey and McGovern) are among the sponsors and thus vulnerable to the charge of inconsistency, I would recommend that you agree with the Justice recommendation that we express strong Administration opposition. FORD LIBRARY s GERALD THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: Date: July 26, 1976 Time: FOR ACTION: CC (for information): JACK MARSH MAX FRIEDERSDORF BOB HARTMANN JIM CANNON PHIL BUCHEN DAVE GERGERN (For information) BILL SEIDMAN FROM THE STAFF SECRETARY DUE: Date: Tuesday, July 27, 1976 Time: 2:00 PM SUBJECT: OMB(O'Neill) Memo re Administration Position on S. 3421 (The Bottlers' Bill) (Quick turn around requested because hearings may start Wednesday, July 28) ACTION REQUESTED: For Necessary Action X For Your Recommendations Prepare Agenda and Brief Draft Reply X For Your Comments Draft Remarks REMARKS: FORD & LIBRARY CERALD 8 Dept The pontaon Justin due PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please James E. Connor telephone the Staff Secretary immediately. For the President file Commerce THE WHITE HOUSE WASHINGTON August 25, 1976 MEMORANDUM FOR THE PRESIDENT FROM: JIM CANNON SUBJECT: Proposed Legislation Relating to West Coast Shipping Strikes and the Effect on Hawaii FORD & LIBRARY GERALD Congressman Spark Matsunaga has written (Tab A) to you requesting clarification of your position on legislation (H.R. 4526/S. 1566) to protect Hawaii from West Coast shipping tie-ups. Congressman Matsunaga refers to a July 10, 1976 article in "The Honolulu Advertiser" (Tab B) in which you are reported to have expressed your support for such legislation to Bill Paul, an uncommitted Hawaiian delegate to the Republican National Convention. On June 18, 1976 Jack Anderson reported on AM America that you had advised three (not named) uncommitted Hawaiian delegates you would support legislation to protect Hawaii from shipping strikes. H.R. 4526/S. 1566 would attempt to prevent certain inter- ruptions in shipping between the West Coast and Hawaii, and between the West Coast and the other U.S. Pacific Islands caused by longshore and maritime strikes and lockouts which imperil the "health or well-being" of those living on these islands. This anti-strike provision would be enforceable upon petition of the Governors of Hawaii, Guam, America Samoa, and the High Commissioner of the Trust Territory of the Pacific Islands (or their designated representatives) to a United States District Court for an injunction or temporary restraining order. An injunction under this bill could be granted for up to 120 days. 2 Although no formal position has been reported by the Administration to the 94th Congress on legislation to protect Hawaii from West Coast shipping tie-ups, a position was taken during the 93rd Congress. The Administration position was in opposition to the legis- lation. I have attached (Tab C) a copy of a letter from Bill Usery, then Director of the Federal Mediation and Conciliation Service, sent to the Senate Chairman of the Committee on Labor and Public Welfare stating the Administration's opposition to the proposed legislation. Informal contacts through OMB with the concerned Depart- ments indicate continued opposition to the legislation with one exception (Interior). Before responding to Congressman Matsunaga on your behalf, I seek your direction as to the nature of the response you would prefer. Decision #1. Respond to the Congressman saying that the Administration has taken no position on H.R. 4526/S. 1566 in the 94th Congress and that the matter is under study. Approve Disapprove #2. Respond to the Congressman saying that the Administration opposed legislation similar to H.R. 4526/S. 1566 in the 93rd Congress and could be expected to do so again if similar legislation were given active consideration by the 94th Congress. Approve Disapprove #3. Respond to the Congressman saying that you are in sympathy with the intent of the legislation and have directed the necessary Departments and Agencies to review the legislation. Approve Disapprove Attachments Tab A Cong. Spark Matsunaga Letter Tab B "The Honolulu Advertiser" Article Tab C Copy of Bill Usery Letter FORD i LIBRARY GERALD 8-2 SPARK M. MATSUNAGA DEPUTY MAJORITY WHIP 1ST DISTRICT, HAWAII MEMBER: WASHINGTON OFFICE: COMMITTEE ON RULES 442 CANNON BUILDING 20513 Congress of the United States STEERING AND POLICY COMMITTEE HONOLULU OFFICE: house of Representatives CHAIRMAN, SUBCOMMITTEE 218 FEDERAL BUILDING OF SELECT 96813 COMMITTEE ON AGING Washington, D.C. 20515 JAB A July 27, 1976 The President The White House Washington, D.C. 20500 Dear Mr. President: I am enclosing a copy of an article which appeared in the July 10, 1976 issue of the Honolulu ME Advertiser. It reports that you have indicated your we support for legislation, introduced jointly in the House and the Senate by me and my colleagues from Hawaii, to protect Hawaii from West Coast shipping tie-ups (H.R. 4526, S. 1126). There is little you could do as President with regard to Hawaii specifically which will be more appreciated by Hawaii's 850,000 citizens than actively supporting such legislation. It is considered by a broad-based majority, including Republicans and Democrats, businessmen and union members, to be perhaps the most important proposal considered by Congress since the debate over Statehood for Hawaii. One recent poll indicated that fully 83.9% of Hawaii's residents favor enactment of such legislation. You will recall that in the 93rd Congress FORD i LIBRARY 077833 after a similar proposal sponsored by Hawaii's two Senators passed the Senate, my bill, H.R. 7189, was defeated in the House. The key to its defeat was the joint opposition of organized labor and the Administration. It is my continued conviction that the bill was defeated because of a widespread misunderstanding that the bill was anti-labor. It is not. It seeks only to assure the protection of Hawaii from the severe consequences of a prolonged termination of its "lifeline", shipping. The President July 27, 1976 Page Two In this regard, you kindly provided Senator Hiram L. Fong and me the opportunity to discuss the matter with you during the flight back to Washington aboard Air Force One last December 7. You indicated that you would direct a review of the matter. I was deeply gratified and encouraged to learn that your further examination of the issue has led you to support the proposed legislation. Because of the gravity of the situation, however, I hope you can understand my desire to obtain a clarification of the position of your Administration with regard to |the relevant bills. I therefore most respectfully request that I be provided with such a clarification. If I can be of any assistance whatsoever, please contact me. Your further attention to this issue of crucial importance to Hawaii is deeply appreciated by all of its people. Aloha and best wishes. Sincerely, Spark Matsunaga Member of Congress TAB B Honolulu Advertiser: July 10, 1976 Ford backs shipping strike bill in call to Hawaii delegate Paul By DOUGLAS WOO tial rival. Rengan, 100, said he sup- Congress, Paul met with Ford but being subtly pressured for his vote Advertiser Government Bureau ported the shipping legislation, Paul Ford declined to endorse the ship- in exchange for Ford's support of said. ping legislation. the shipping legislation. President Ford told a member of Pawani GOP National. Convention Ilist Paul, who "leans toward" Paul snid Ford apparently was not "Absolutely not," Paul said. "And that the white feilin T16-7/73.2 FEDERAL MEDIATION AND CONCILIATION SERVICE UNITED STATES GOVERNMENT WASHINGTON, D.C. 20427 June 3, 1974 TABC / Honorable Harrison A. Williams, Jr. Chairman, Committee on Labor and Public Welfare United States Senate Washington, D.C. 20510 Dear Mr. Chairman: This is in response to your request for the views of the Federal Mediation and Conciliation Service on S. 1566, a bill which seeks to prevent West Coast dock strikes from imperiling the health and safety of the citizens of Hawaii and the United States Pacific Islands. The proposed legislation would prohibit strikes or lockouts in the longshore or maritime in dustries on the West Coast, which interferes with FORD LIBRARY & GERALD shipping between the West Coast and Hawaii, Guam and other Pacific Islands, for a period of one hun- dred and sixty (160) days. The anti-strike provision is enforceable upon petition by certain designated par- ties to a United States District Court for an injunction or temporary restraining order. This would be in addi- tion to the injunctive relief available under Section 208 OF the LMRA, 1947. The Service is, of course, greatly concerned with the problem of work stoppages in the longshore and maritime industries. Moreover, the rationale of protect- ing the health and safety of the people of Hawaii and the United States Pacific Islands is compelling. However, a question arises as to whether this type of proposed legis- lation promotes the resolution of labor disputes that :fect the various forms of transportation throughout the country; whether selectively postponing a work stoppage - 2 - aids in settling the dispute which caused the disruption. In this regard, we agree with the recently published re- port and recommendations of the National Commission for Industrial Peace which stress the point that our national labor policy relies on collective bargaining as the pri- mary means of resolving labor disputes. The report also notes that the parties have been successfully searching for substitutes to economic strife and have placed in- creasingly greater reliance upon mediation and fact- finding as tools of voluntary dispute resolution. Although we recognize the economic disruption to Hawaii and other Pacific Islands, we question whether providing for additional selective injunctive relief would aid in encouraging labor and management to seek peaceful means of resolving their differences in collective bargain- ing instead of relying upon economic disruption. For that reason, we do not believe enactment of this bill would be desirable at the present time. The Office of Management and Budget advises that they have no objection to the submission of this report. Sincerely, W.J.Usery. for National Director FORD LIBRARY & Re THE WHITE HOUSE exports. WASHINGTON commerce September 23, 1976 976 SEP 24 AM 8 03 MEMORANDUM FOR: JIM CANNON ALAN GREENSPAN BRENT SCOWCROFT BILL SEIDMAN FRANK ZARB FROM: It appearsquite likely the Senate conferees JACK House MARSH Jul and FORD is LIBRARY GERALD on the Export Bill will agree to a very restrictive boycott amendment. If this does occur, we should begin efforts to study the impact of such legislation, particularly in an economic and energy perspective. These inputs will be essential for the President when he addresses the bill after it comes down from the Hill. The nuclear amendment should also not be overlooked and the information on its impact should be made available to the President. Dick Cheney it CC: Jim Cavanaugh Max Friedersdorf Bill Gorog Ronan M. Put 092401 THE WHITE HOUSE WASHINGTON September 23, 1976 976 SEP 24 AM 8 03 MEMORANDUM FOR: JIM CANNON ALAN GREENSPAN BRENT SCOWCROFT BILL SEIDMAN FRANK ZARB FROM: It appearsquite likely the House and Senate conferees JACK July MARSH on the Export Bill will agree to a very restrictive boycott amendment. If this does occur, we should begin efforts to study the impact of such legislation, particularly in an economic and energy perspective. These inputs will be essential for the President when he addresses the bill after it comes down from the Hill. The nuclear amendment should also not be overlooked and the information on its impact should be made available to the President. CC: Dick Cheney Jim Cavanaugh Max Friedersdorf Bill Gorog petro hyper of Ronan M. FORD & LIBRARY 038870 092401 Commerce October 13, 1976 MEMORANDUM FOR: FROM: JIM JIM CONNOR CANNON Art 2wsn SUBJECT: Proposed Presidential Letter to Karl Bakke I would caution against this proposed letter since the Bakke/Soviet agreement may not be something about which the President should be unequivocally pleased. While it is attractive to U.S. shipping companies, it will probably cause less rate competition. This could be detrimental to our exporters, importers and consumers. In addition, I understand that the negotiations went on without the necessary State Department involvement and the "agreement" has been presented as a fait accompli by the FMC. However, if this letter is sent, I would propose the changes suggested on the attached Scowcroft draft. Also, whatever happens I would recommend that this be run by Bill Seidman, Ed Schmults, CEA and OMB, since this deals with a sensitive maritime policy issue. Attachment FORD & LIBRARY GERALD Dear Mr. Chairman: Thank you for your informative letters of July 19 and September 17 concerning the Memorandum Agreement between the Federal Maritime Commission and the Soviet Ministry of Merchant Marine, which you signed last July. I am hopeful that your Agreement will lead to a more stable ocean liner trade and will result in healthier liner competition along with better service and lower prices for our exporters, importers and consumers. Please continue to keep me informed of any further significant developments. Sincerely, FORD i LIBRARY 93RALD The Honorable Karl E. Bakke Chairman Federal Maritime Commission 1100 L Street, N.W. Washington, D.C. 20373 THE WHITE HOUSE WASHINGTON Handled by John Eden at Commerce. Sheri 1/3/77 FORD in LIBRARY THE WHITE HOUSE WASHINGTON ,976 NOV 11 AM 9 36 Date: November 10, 1976 MEMORANDUM FOR: JAMES CANNON FROM: WILLIAM W. NICHOLSON SUBJECT: Henry P. Read, Superintendent of Schools, Patchogue-Medford Public Schools, Patchogue, New York The attached is for your appropriate handling. FORD i LIBRARY 076839 Thank you. 1(1101 Abedicine CC: Leach Lissy EDUCATION PATCHOGUE-MEDFORD PUBLIC SCHOOLS George A. Mason, Jr., Pres. Robert J. Mayer, Vice Pres. ADMINISTRATIVE OFFICES Jerome Botwinick 241 South Ocean Avenue, Patchogue, N.Y. 11772 Arthur Fuccillo Patricia A. McDonald Claire Meyer Alfred A. Volkmann HENRY P. READ Albert A. Benincasa, Clerk Superintendent of Schools (516) 654-4001 November 5, 1976 ACTION T/D SCHEDULE BD. President Gerald R. Ford DATE RECEIVED The White House 1600 Pennsylvania Avenue NOV 14 1976 Washington, D.C. MESSAGE SPEAKERS BUREAU Dear Mr. President: OTHER Common For more than a century public and private citizens have led developme fif ΓOCE our community with a balance among private homes, retail businesses, and light industry. The community is located in Suffolk County, Long Island, and has evolved from suburban to become more urban in character. The transi- tion was accomplished with acceptance and accommodation of new residents. Suddenly, after many years of effective growth, we continue to face increas- ing school enrollments, but we are frustrated by diminished employment opportunities and a substantial increase in the number of persons requiring public assistance. One effect of the change has been a lessening ability of the citizens to maintain their schools at a level which will allow maximum utilization by young students and adults. The Patchogue-Medford School District has applied to the Department of Commerce for $4, 972, 000 under the Local Public Works Development and Investment Program. Application material was completed and submitted under the prescribed deadline. All technical details were properly fulfilled. However, we have concerns that the application format does not lend itself to an accurate portrayal of the nature of our community. We may never be given full opportunity to adequately describe the critical difference that fed- eral funding could make to a community at the crossroads of positive prog- ress or major deterioration. Please grant us a few minutes of your time in order that we may share with MEDFORD SCHOOLS HOOLS 9421 1976 FORD & LIBRARY BICENTENNIAL President Gerald R. Ford November 5, 1976 Page 2 you the problems we face. A meeting would provide an opportunity for you to understand that the spirit of this legislation will be well served in the case of the Patchogue-Medford School District. We will anticipate hearing from you to establish a convenient time to meet with you or with one of your respected White House advisors to discuss our proposal. Sincerely yours Read Henry Superintendent of Schools HPR:sn cc: Board of Education FORD & LIBRARY Commerce Losers in the Trading Game rundated? per cent and are currently trying to demanding action now. But there can By Michael Manley wrestle our inflation rate back down be no action if the world orders its to 20 per cent a year! trading patterns so as to insure that KINGSTON, Jamaica - There is a At the root of this inflation lies a the two billion members of the Third continuing and increasingly sighificant deeper chronic problem that is disa- World are bound to be losers and the world dialogue about the relationship bling for the Third World: the problem metropolitan world's one billion mem- between the richer and poorer nations. of the terms of trade. This is not a bers permanently occupy the winner's The search for effective development phrase dealing with some refinement circle. It is against this background of strategies; the desirability of aid pro- of economic theory, but rather it de- futility that systems of inadequate and grams; the problem of the terms of scribes the brutal ground rules of a unrealistic aid are called increasingly trade; the role of the Third World in game in which we are cast as perma- into question and that the Third World international politics-these concerns nent losers. is turning its attention increasingly to occupy more and more attention of the Over the years, the prices received what is now described as a new world world's political leaders and analysts for exported raw materials, on which economic order. of human affairs. poor countries depend, have tended to be unstable with little tendency to We Jamaicans are part of the Third What emerges from all this is that rise, while prices of manufactured and World, and I am a part of a team try- world trade cannot and must not be processed goods exported by the met- ing to struggle with economic reality left to the mercy of purely economic ropolitan countries have tended to be in an island that is as full of promise forcès. Those who argue for free trade stable with a steady tendency to in- as it is beset by difficulties. We are both in terms of the right of nations trving to lay the foundations of a to exchange goods without let or hin- drance and of having prices determined

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    "ocrText": "The original documents are located in Box 7, folder \"Commerce (2)\" of the James M.\nCannon Files at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box 7 of the James M. Cannon Files at the Gerald R. Ford Presidential Library\nTHE WHITE HOUSE\nWASHINGTON\nMay 4, 1976\nMEMORANDUM FOR PHILIP BUCHEN\nJOHN O. MARSH\nMAX FRIEDERSDORF\nJAMES M. CANNON\nFROM:\nL. WILLIAM SEIDMAN\nSUBJECT:\nArab Boycott\nA attached. memora ndum for the President on the Arab Boycott issue is\nI would appreciate your comments and recommendations on this\nmemorandum by 3:00 p.m. Wednesday, May 5, 1976.\nFORD i LIBRARI\nMEMORANDUM FOR:\nL. WILLIAM SEIDMAN\nFROM:\nJAMES CANNON\nSUBJECT:\nArab Boycott\nI support Option 1.\nTHE WHITE HOUSE\nWASHINGTON\nMay 5, 1976\nOptm 1\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nThe attached memorandum deals with the general issue Jr\nPAUL LEACH\nParl\nSUBJECT:\nARAB BOYCOTT\nor not to support any new proposed anti-Arab Boycott legislation.\nThe specific issue involves whether or not to support a\n\"compromise\" on the \"Stevenson Bill\" which would have three\nmain effects:\n1. It would require disclosure of boycott request compliance\nreports submitted to the Commerce Department by U.S. firms,\non the grounds that the Export Administration Act declares\nit to be the policy of the U.S. to oppose boycotts;\n2. It would bar religious, racial, ethnic, or sex discrim-\nination by U.S. exporters;\n3. It would prohibit refusals by U.S. firms to do business\nwith other firms pursuant to foreign boycott requests.\nI am not particularly well-versed on this matter and the\ndecision memorandum is not fully illuminating. However, based\non what I know and can glean from this memorandum, I would\nsupport Option 1, i.e., oppose any legislation.\nGERALD R. FORD\nCONFIDENTIAL\nDECLASSIFIED\nE.O. 12958, Sec. 3.5\nTHE WHITE HOUSE\nNSC By WHEN Memo, 11/24/98, State Dept. Guidelines\nWASHINGTON\n,\nNARA,\nDate\n5/15/00\nFORD LIBRARY & CERALD\nMEMORANDUM FOR THE PRESIDENT\nFROM:\nBRENT SCOWCROFT\nL. WILLIAM SEIDMAN\nSUBJECT:\nArab Boycott and Related Discrimination\nThe decisions announced in your statement of November 20, 1975\non the related issues of the Arab boycott and religious dis-\ncrimination have been implemented. The Federal Reserve Board\nhas issued a letter to member banks outlining their obligations\nwith respect to Arab boycott and discrimination measures. The\nJustice Department has filed a civil anti-trust suit charging\nthe Bechtel Corporation with refusing to deal with any U.S.\nsub-contractors on the Arab League boycott list and requiring\nits sub-contractors, in turn, not to deal with U.S. firms on\nthe boycott list. The Department of Commerce has decided to\nrelease publicly letters charging United States firms with a\nviolation of its regulations pertaining to the Arab boycott.\nThe Department of Commerce has also ceased circulating tender\noffers requesting bids on projects from American firms if they\ncontain a request to comply with the boycott.\nIn addition, several state governments have adopted laws on\nthe boycott issue, some of which go well beyond the policy\nguidelines approved by you. We have also engaged in extensive\ndiscussions with Arab Governments and Israel on the entire\nquestion, including numerous exchanges through diplomatic\nchannels and during Secretary Simon's March trip to the Middle\nEast. Secretary Simon in his discussions with both Arab and\nIsraeli leaders distinguished between the boycott and reli-\ngious discrimination. He stated clearly that you desired an\nend to the boycott and that you felt that the only effective,\npeaceful way to end the boycott was to resolve the Arab-Israeli\nconflict. He also stated that we would oppose legislation\ndirected to the boycott.\nThe cumulative effect of these actions has been mixed. The\nArab Governments, as well as American businesses, appear to\nunderstand and accept the anti-discrimination aspect of our\npolicy. Saudi Arabia has taken steps to distinguish between\nreligious discrimination and its political attitude toward\nIsrael, and to ease somewhat the process of obtaining visas\nfor persons of the Jewish faith, even though some problems\nCONF IDENTIAL\nCONFIDENTIAL\nFORD\n-2-\nremain.\nThere have also been several specific indications of greater\nflexibility in the application of boycott regulations and\nsome firms have been or soon will be removed from the list.\nYet, there has also been some disruption of United States\ncommercial dealings with the Arab world, primarily due to\nreluctance by American firms to risk possible legal action.\nArab Governments, to varying degrees, have resented our boy-\ncott related actions, although thus far they are generally\ncooperating in quiet, gradual efforts to minimize difficul-\nties. Despite this quiet cooperation, high-level Arab leaders\n(particularly in Saudi Arabia and Kuwait) indicate they are\nprepared to retaliate commercially against United States busi-\nness if we continue to apply what they view as unwarranted\npublic pressure.\nThis memorandum seeks your guidance on the Administration's\nposition on several pieces of pending legislation dealing with\nvarious aspects of the boycott/discrimination issue, all of\nwhich would, to various degrees, move the United States into\na considerably tougher anti-boycott position than embodied in\nyour November 20 statement. A summary of all the pending bills\nis attached at Tab A.\nStevenson Bill\nThe bill requiring the urgent formulation of an Administration\nposition is an amendment to the Export Administration Act pro-\nposed by Senators Stevenson and Williams and a similar bill\nintroduced in the House by Representative Koch.\nThe proposed legislation would have three main effects:\n(1) It would require disclosure of boycott request compliance\nreports submitted to the Commerce Department by U.S. firms, on\nthe grounds that the Export Administration Act declares it to\nbe the policy of the U.S. to oppose boycotts.\n(2) It would bar religious, racial, ethnic, or sex discrim-\nination by U.S. exporters.\n(3) It would prohibit refusals by U.S. firms to do business\nwith other firms pursuant to foreign boycott requests.\nThe provisions on disclosure of compliance with Arab boycott\nrequests could have some negative effect on consumer-oriented\nbusinesses in this country, causing them either to avoid the\nArab market completely or to go to third country affiliates\nin order to avoid a possible counterboycott.\nCONF IDENTIAL\nCONFIDENTIAL\n-3-\nGERALD FORD LIBRARY\nThe provisions barring discrimination are identical for all\nintents and purposes to the measures announced by you on\nNovember 20.\nThe provisions of the bill which prohibit U.S. firms from\nrefusing to do business with other U.S. firms on the boycott\nlist are unclear as to their intent and effect. As presently\ndrafted these provisions are more far reaching than the Justice\nDepartment conception of the applicability of our anti-trust\nlaws (as set forth in the Bechtel suit), and if enforced\nstrictly would deal a serious blow to United States business\nwith the Arab world. Even large multinational corporations\nnow heavily engaged in the Arab world would probably shift\nprocurement to third country affiliated or unrelated firms\nin order to avoid possible problems. Many smaller companies\nwould probably terminate business with the Arab world.\nGiven the policy which we have followed since your November 20\nstatement, the Arabs will tend to view Administration accept-\nance of any additional legislation on the Arab boycott as a\nshift in the Administration's position in response to the\nIsraeli lobby.\nThere has been considerable interagency review of how best to\ndeal with the Stevenson-Williams-Koch legislation. A Working\nGroup, chaired by the NSC staff discussed the issue at length\nand prepared a paper which was discussed by the EPB Executive\nCommittee on April 30.\nThere is agreement that the Administration should seek to limit\nadditional anti-boycott legislation to the absolute minimum, in\naccordance with your policy decision of last November which\nremains the best approach under present circumstances. How-\never, there is also agreement that it may be desirable to\naccept a compromise with Congress in the form of a suitably\namended Stevenson-Williams-Koch bill if this will avoid pas-\nsage of worse legislation and if the only other alternative is\na Presidential veto.\nOptions\nTwo options for dealing with the Stevenson-Williams-Koch bill\nare presented for your consideration.\nOption 1: Maintain the position outlined in your November 20\nstatement and strongly oppose all additional legis-\nlation as unnecessary and counterproductive, but do\nnot indicate that you would necessarily veto any\nadditional legislation thus leaving open the possi-\nbility of compromise later if sufficient opposition\nto the legislation does not develop.\nCONF IDENTIAL\nCONFIDENTIAL\nFORD\n-4-\nRALD\nAdvantages:\nThis would be fully consistent with your statement of\nNovember 20 and the position maintained by the Admin-\nistration since then that no additional legislation is\nneeded.\nIf efforts to block new legislation succeeded, it would\nretain Arab confidence of the Administration as well\nas encouraging them to ease the practical application\nof the boycott. It would avoid the serious danger of\nan Arab backlash (similar to the Soviet backlash over\nJackson-Vanik) because they believed we were applying\nexcessive public pressure.\nIt would minimize the loss of business by U.S. firms\nto other countries due to U.S. anti-boycott regulations.\nIf efforts to block new legislation failed, an oppor-\ntunity would remain to choose between trying to obtain\nan acceptable compromise or either vetoing or acquiescing\nto unacceptable legislation.\nDisadvantages:\nThis approach could produce a confrontation between the\nAdministration and Congress and Jewish groups given the\nstrong pressures which exist for some additional action.\nIt could also result in Congress pressing stronger legis-\nlation and rejecting last-minute efforts at compromise,\nthan would have been the case were the Administration\nto seek a compromise from the outset.\nThis approach could place the President in the position\nof having either to acquiesce to the legislation or\nveto the bill.\nOption\n2: Modify your opposition to any additional legislation\nby beginning work immediately with key members of\nCongress to reach agreement on an amended bill.\nTwo approaches to an amended bill have been considered. Both\napproaches would accept the sections of the bill on anti-\ndiscrimination and disclosure and seek clear agreement from\nkey Members of Congress and Jewish leaders that there will be\nno additional legislative action.\nCONF IDENTIAL\nCONF IDENTIAL\nSALD FORD\n-5-\nApproach\nA: Attempt to delete the section of the bill on\nrefusal to deal in exchange for agreement to the\nidea of public disclosure of boycott request compli-\nance reports, either by administrative action or\nby enactment of that section of the bill.\nA public statement by the Administration supporting\nexplicitly the efforts of the Justice Department\nto apply the Sherman Act to refusal to deal cases\nshould be considered as a possible concession to\nobtain deletion of that section from the bill.\nApproach B: Attempt to amend the section of the bill on refusal\nto deal by substituting language proposed by Jus-\ntice which would substantially narrow its appli-\ncation and bring it into line with Justice's pre-\nsent concept of the applicability of the Sherman\nAct to refusal to deal actions by U.S. firms pur-\nsuant to the Arab boycott.\nAdvantages:\nSeeking a compromise from the outset through consulta-\ntions with key Members of Congress and Jewish leaders\nwould avoid a confrontation with them and could ulti-\nmately make an acceptable compromise easier to achieve.\nEnactment of Stevenson's legislation should substantially\nundercut the prospects for more harmful legislation.\nThe Administration could provide Congress with the\nprecise changes it would like in the bills before they\nmove SO far down the legislative path as to make changes\ndifficult.\nDisadvantages:\nThis would appear as a retreat from the Administration\nposition held since November 20. Once the Administra-\ntion signalled a willingness to compromise, Members of\nCongress and others who support strong anti-boycott leg-\nislation may assume that they are in a strong position\nand do not need to accept a compromise.\nSome legislation would result which, depending on its\nnature, could create serious difficulties for U.S.\nforeign policy and economic interests in the Arab world\nand raise additional barriers to U.S. firms doing busi-\nness in Arab countries.\nCONF IDENTIAL\nCONFIDENTIAL\nFORD\n-5-\nApproach\nA: Attempt to delete the section of the bill on\nrefusal to deal in exchange for agreement to the\nidea of public disclosure of boycott request compli-\nance reports, either by administrative action or\nby enactment of that section of the bill.\nA public statement by the Administration supporting\nexplicitly the efforts of the Justice Department\nto apply the Sherman Act to refusal to deal cases\nshould be considered as a possible concession to\nobtain deletion of that section from the bill.\nApproach B: Attempt to amend the section of the bill on refusal\nto deal by substituting language proposed by Jus-\ntice which would substantially narrow its appli-\ncation and bring it into line with Justice's pre-\nsent concept of the applicability of the Sherman\nAct to refusal to deal actions by U.S. firms pur-\nsuant to the Arab boycott.\nAdvantages:\nSeeking a compromise from the outset through consulta-\ntions with key Members of Congress and Jewish leaders\nwould avoid a confrontation with them and could ulti-\nmately make an acceptable compromise easier to achieve.\nEnactment of Stevenson's legislation should substantially\nundercut the prospects for more harmful legislation.\nThe Administration could provide Congress with the\nprecise changes it would like in the bills before they\nmove so far down the legislative path as to make changes\ndifficult.\nDisadvantages:\nThis would appear as a retreat from the Administration\nposition held since November 20. Once the Administra-\ntion signallled a willingness to compromise, Members of\nCongress and others who support strong anti-boycott leg-\nislation may assume that they are in a strong position\nand do not need to accept a compromise.\nSome legislation would result which, depending on its\nnature, could create serious difficulties for U.S.\nforeign policy and economic interests in the Arab world\nand raise additional barriers to U.S. firms doing busi-\nness in Arab countries.\nCONF IDENTIAL\nCONF IDENTIAL\nGERALD R. FORD CreRARY\n- -6-\nDecision\nOption 1\nMaintain the position outlined in your Novem-\nber 20 statement and strongly oppose all addi-\ntional legislation as unnecessary and counter-\nproductive, but do not indicate that you would\nnecessarily veto any additional legislation\nthus leaving open the possibility of compro-\nmise later if sufficient opposition to the\nlegislation does not develop.\nSupported by:\nOption 2\nModify your opposition to any additional legis-\nlation be beginning work immediately with key\nmembers of Congress to reach agreement on an\namended bill.\nSupported by:\nCONF IDENTIAL\nApril 28, 1976\nMAJOR ANTI-BOYCOTT LEGISLATION\nSENATE BILLS\n1. Stevenson-Williams Bill (S. 953)\nTitle I\nWould require that U.S. firms report to the Department of\nCommerce on whether they intend to comply and whether\nthey have complied with boycott requests which they receive.\nWould require that boycott reports hereafter filed with the\nDepartment of Commerce be made public, except that com-\nmercial information regarding the value, kind, and quantity\nof goods involved in any reported transaction may be kept\nconfidential.\nWould prohibit U.S. firms from furnishing, pursuant to a\nboycott request, any information regarding the race, religion,\nor nationality of its employees, shareholders, officers, or\ndirectors, or the employees, shareholders, officers, or\ndirectors of any other U.S. company.\nWould prohibit U.S. firms from refusing to do business with\nother U.S. firms pursuant to a boycott request.\nMaximum administrative penalties applicable under the Act\nwould be increased from $1,000 to $10,000. In addition,\nwould make it clear that export privileges may be suspended\nfor a violation of the anti-boycott provisions of the Act.\nWould require public disclosure of Commerce Department\ncharging or warning letters against U.S. companies for\nfailing to comply with anti-boycott provisions of the Act.\nWould require that the Commerce Department provide the\nState Department with summaries of the information contained\nin boycott reports for appropriate action by the State Department.\nSENATE BILLS\n2\nWould require that the semi-annual reports to Congress under\nthe Export Administration Act include an accounting of what\naction the Executive Branch has taken to effect the anti-boycott\npolicy of the Act.\nWould clarify the Act to leave no doubt that it applies to banks,\nother financial institutions, insurers, freight forwarders, and\nshipping companies.\nTitle II\nWould amend section 13(d) of the Securities Exchange Act to\nexpand the disclosure requirements imposed thereunder on\nthose who acquire the beneficial ownership of more than 5%\nof any equity security by requiring disclosure of the following:\n(a) The residence, nationality, and nature of the beneficial\nownership of the person acquiring the securities. (The\nlatter would include, for example, whether the beneficial\nowner has the right to direct the voting of the securities,\nthe receipt of dividends, or the proceeds of sale);\n(b) The background and nationality of each associate of the\npurchaser who has a right to acquire additional shares\nof the insurer.\nWould impose new disclosure requirements as follows:\nEvery holder of record, of, and any other person having an\ninterest in, 2% or more of a class of any equity security,\nwould be required to file reports as prescribed by the SEC\nat such time as the SEC may require. The SEC would have\nauthority to make such exceptions to the above as are not\ninconsistent with the public interest or the protection of\ninvestors.\nThe 2% threshhold is to be reduced to 1% on September 1, 1976\nand to 1/2 of 1% on September 1, 1977. However, the SEC may\nextend or shorten such periods if the SEC, after public comment,\nconcludes that such change is not inconsistent with the public\ninterest or the protection of investors.\nFORD\nSENATE BILLS\n3\nThe bill was originally reported out of the Senate Banking and\nCurrency Committee on February 6, 1976. However, it was\ndecided to defer full Senate action until legislation to provide a\nsimple extension of the Export Administration Act was considered,\nat which time the two pieces of legislation would be combined.\nThis did, in fact, occur at the subcommittee level on April 27\nwhen the extension bill, S. 3084, was favorably reported to the\nfull Committee with the Stevenson-Williams bill incorporated in\nit. Full Committee mark-up and final reporting of the legislation\nis expected Thursday, April 29 or Friday, April 30.\n2. Ribicoff Bill (S. 3138)\nThe bill would deny tax benefits on foreign source income to tax-\npayers who participate in or cooperate with the boycott of Israel.\nThese benefits include the foreign tax credit and tax deferral, and\nDISC. The denial would apply to that foreign source income derived\nthrough direct or indirect dealings with boycotting countries.\nThe bill is pending before the full Senate Finance Committee where\nno action is currently scheduled.\nFORD\n4\nHOUSE BILLS\nIt is anticipated that those House bills pending before the International\nRelations Subcommittee on International Trade and Commerce will be\nconsidered as amendinents to legislation to extend the Export Administra-\ntion Act scheduled to come before the full committee some time in June.\n1. Bingham Bill (H. R. 4967)\nFORD i LIBRARY ORRALD\nThe bill would prohibit US companies from answering or complying in\nany way with boycott requests.\nThe bill is pending before the IRC Subcommittee on International Trade\nand Commerce.\n2. Drinan Bill (H. R. 5913, 5997, 6431, 6661 and others)\nThe bill would make it unlawful for any US exporter to engage in such\npractices as:\nfurnishing information to a foreign agent concerning the race, religion\nor national origin of its employees or the employees of firms with which\nit does business;\n-furnishing information on business dealings with a boycotted country\nor firm; or refusing, because of dealings with a foreign agent, to do\nbusiness with a boycotted country or firm.\nThe bill would require the Secretary of Commerce to revoke the export\nlicense of any exporter violating these provisions.\nThe legislation is pending before the IRC Subcommittee on International\nTrade and Commerce.\n3. Koch Bill (H. R. 11464)\nThis bill is almost identical to the Stevenson-Williams Bill and has been\ndually referred to the House International Relations Committee and\nInterstate and Foreign Commerce Committee.\n4. Holtzman Bill (H. R. 5246 and others) (almost 100 cosponsors)\nThe bill would prohibit any business enterprise from using economic\ncoercion to induce another not to do business with, employ or otherwise\ndiscriminate against (on the basis of race, religion, etc. ) any US or\nforeign person in respect to its activities in the United States. The bill\nwould also make it unlawful to yield to such coercion or take discrimina-\ntory action to prevent the coercion from ever occurring.\nThe bill is pending before the Judiciary Subcommittee on Monopolies.\nSome items in this folder were not digitized because it contains copyrighted\nmaterials. Please contact the Gerald R. Ford Presidential Library for access to\nthese materials.\nTHE WHITE HOUSE\nwashington\nMay 10, 1976\nTO:\nJIM CANNON\nFROM: JOHN O, And\nFor Direct Reply\nFor Draft Response\nX\nFor Your Information\nPlease Advise\nCommerce\nMay 10, 1976\nDear Jake:\nThank you for your letter of May 6 and the attached\nclipping from the May 3 issue of Transport Topics.\nI fully understand how strongly you feel on the issue\nof deregulation of the trucking industry.\nI shall see to It that the comments contained in your letter\nand the Transport Topics article are called to the attention\nof the appropriate people here at the White House.\nThanks again for taking the time to give me the benefit\nof your very strong views on this matter.\nWith warmest personal regards, I remain,\nSincerely,\nGERALD RF FORD LIBRARY\nJohn O. March, Jr.\nCounsellor to the President\nMr. R. R. Smith\nChairman of the Board\nSmith's Transfer Corporation\nP. O. Box 1000\nStaunton, Virginia 24401\nJOM:RAR:cb\nMAY 8 1976\nSMITH'S TRANSFER CORPORATION\nGeneral Office: P.O. Box 1000 Staunton, Virginia 24401 Area Code 703 886-6231\nHAULMARK OF SERVICE\nR.R. SMITH\nCHAIRMAN OF THE BOARD\nMay 6, 1976\nMr. John O. Marsh, Jr.\nCounsellor to the President\nFORD i LIBRARY\nThe White House\nWashington, D. C. 20500\nDear Jack:\nEnclosed find comments which I clipped out of a\nrecent paper which are self-explanatory.\nAt a time when our President seems to be having\nmany problems which I happen to believe comes mainly\nfrom poor advice-such as, his stand on deregulation\nof the trucking industry which sounds good to the\naverage business man that is so fed up with govern-\nment regulations and red tape; yet to anyone, with\nthe exception of a few very large corporations, that\nhas anything to do with the shipping or receiving of\nfreight understands that deregulation is probably the\nworst thing that could happen in the efficient opera-\ntion of their business.\nAs to the people in our industry, we are solidly\nagainst deregulation in any form and this position\nwill be registered at the convention and at the polls\nin November. I happen to believe that the election,\nMr. John O. Marsh, Jr.\nMay 6, 1976\nPage 2\nwhoever the opponent to the President, will be very\nclose come November. Our industry could well make the\ndifference in that outcome when you consider the truck-\ning industry and the shippers and receivers in this\ncountry.\nI personally would like to see the President\nreelected. Isn't there something that you can do to\nchange his position on deregulation? If this is done,\nI believe that we can get our industry solidly behind\nthe President.\nThanking you for your reaction and comments.\nWith kind personal regards,\nSincerely yours,\nFORD is LIBRARY DERALD\nR.R. Jake Smith\nEnclosure\nATA Urges Democrats to Back\nICC Regulation in Platform\nKANSAS CITY - Earl N.\nHoekenga, a vice president at large\nof American Trucking Associations,\nhas asked the Democratic party to\nmake deregulation a campaign issue\nby endorsing economic regulation of\nmotor carrier freight transportation\nin its 1976 platform.\nThe trucking industry's represen-\nNo. 2125\nMay 3, 1976\nGuest Editorial\nPresident Gerald Ford has been pi\nregistering surprise when the America\ning Associations reacted in vigorous opp\nhis proposal to deregulate the trucking\nIf true, the President's surprise she\nbeen bewildering in itself, since more than\nReprinted from the\nMankato, Minn., Free Press\nGERALD FORD LIBRARY\n11,000 of the industry's 15,000 members have\ngross annual incomes of less than $500,000.\nIn other words, the association is composed of\nprimarily small truckers, whose welfare - and\nthat of the relatively small communities they\nserve - is directly threatened by removal of all\ndependent on commercial freight transportation.\ngovernment controls.\nSome 500 points in Minnesota today thereby\nThe trucking industry has been regulated\nhave been left with only truck freight service.\nsince 1935. It has grown from a hodge-podge of\nHow many would be shorn of that, if the trucking\nlocal and long-distance carriers to a complex, in-\nindustry was deregulated, and the small trucker\ntegrated network that surely ranks as one of the\ndriven out of business by the big? They would not\nfinest in the world.\neven have a mechanism of protest.\nProponents of deregulation say that the pres-\nNot all big-name shippers are in favor of de-\nent uniform rate structure is arbitrarily high,\nregulation. Much of their business comes from\nand that there would be immense annual savings\nsmall firm \"feeders,\" just as smaller airlines\nby customers if truckers could come and go as\n(with and without subsidies) pump passengers\nthey please, from one \"territory\" to another, and\nand freight into the long-lines haulers.\ncharge whatever the traffic will bear.\nCompetition is well and good, and keen compe-\nThis is the way it was before 1935. But south-\ntition exists even with regulation. But a kind of\nern Minnesotans with memories dating back that\nruthless contention that blocks off free-flowing\nfar will recall that trucking then was something\narteries to rural America, in the name of other-\nof a monopoly, with preferential service given to\nwise commendable cost-cutting, is a disservice of\nhigh-volume shippers or those who happened to\nquantum proportions.\nbe based in larger cities. It was not until regula-\nRep. Tom Hagedorn, R-Minn., says he is in\ntion - the setting of rates, to allow the \"little\nfavor of \"reregulation\" rather than deregulation.\nguy\" to compete, and power to license, so that a\nThe Minnesota Public Service Commission also\ntrucker could not unilaterally decide to pull out of\nsupports a degree of regulation. Others want\nan otherwise unprofitable route - that smaller\nchanges within the Interstate Commerce Com-\ncommunities finally received scheduled and de-\nmission (ICC) itself - - a \"scraping off of the bar-\npendable service we still have today.\nnacles,\" as it were, including a reduction in the\nIt is easy to visualize Podunk Junction being\nnumber of commissioners from 11 to 6 or so, and\nbypassed by a trucker hell-bent to achieve\nthe forbidding of political appointments.\nmaximum load with the minimum number of\n\"Free entry, everybody gets in on their own fee\nstops. We have only to look to the railroads,\nschedule\" has a compelling ring.\nwhich even in the face of regulation continue to\nBut somebody always gets hurt in that kind of\ntear up tracks or remove agents from many doz-\nfree-swinging enterprise, and usually it's the lit-\nens of cities, towns and villages that are still very\ntle guys like us.\nPage 12-May 3, 1976 TRANSPORT TOPICS\nCommerce\nTHE WHITE HOUSE\nWASHINGTON\n(Shipping)\nJune 22, 1976\nMEMORANDUM FOR:\nDICK CHENEY\nFROM\nJIM CANNON\nthe\nFORD i LIBRARY\nSUBJECT:\nThe Administration's \"Third-Flag\" Bill\nIn late May the President decided to propose our own \"third-\nflag\" legislation as an alternative to a Federal Maritime\nCommission (\"FMC\") draft bill and another bill already under\ndiscussion in the House (H.R. 7940). Each of the three bills\nwould give the FMC substantial new authority to deal with state-\ncontrolled ocean shipping firms -- primarily Soviet-Flag ---\nwhich are allegedly \"unfairly\" competing with other profit-\nmaking shipping firms. The Administration bill, which would be\na watered down version of the FMC draft bill, is now being\ndrafted.\nThis decision was based on information contained in a decision\nmemorandum from OMB and staff comments collected by Jim Connor.\nI would strongly recommend that the President reconsider this\ndecision for two reasons:\n1. While OMB recommended against supporting any legislation,\nthe decision memorandum suggested that some kind of\nCongressional action on a third-flag bill was likely and\nthat an Administration bill might be a preferäble alternative\nto other bills. However, it would now appear that Congressior\naction is unlikely this year. Representative Pete McCloskey,\nthe ranking Republican on the House Merchant Marine Sub-\ncommittee, reports that no one has made a good case for a\nbill and that he is determined to stop any bill. He argues\nthat the chance of any action this session \"are slim\" and\nthat the best Administration strategy is to \"cool it\"\nand wait to help him resist a bill, if necessary.\n2. The decision memorandum failed to emphasize sufficiently\nthat any increased economic regulatory authority for the\nFMC would be wholly inconsistent with the President's\nefforts to reduce economic regulation and to emphasize\nincreased competition as a preferable alternative.\nIf you agree with my recommendation that the President\nreconsider this issue, we will be happy to work with OMB in\ndrafting the appropriate decision memorandum for the President.\nCC: VPaul O'Neill\nfile\nTHE WHITE HOUSE\nWASHINGTON\nJuly 16, 1976\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nART QUERN\nSUBJECT:\nThird Flag Legislation\nOn the basis of a conversation with Paul O'Neill regarding\nour (Domestic Council) position on Third Flag legislation,\nI have withdrawn our objection to proceeding with the\ndevelopment of a draft administration bill.\nAs you know, we were concerned that the Administration\nwas going to take the initiative and submit its own Third\nFlag bill. We were convinced that this was unnecessary\nsince Congress was unlikely to take any action this year.\nWe also believed that such an initiative would carry with\nit problems regarding the President's position on regulatory\nreform and related issues.\nPaul O'Neill informed me that our current efforts are\ngeared to the preparation of a draft bill to have on\nhand should we be asked for one. Currently, however,\nthere is no intention to submit or initiate such legislation.\nCC: Paul O'Neill\nThis\nPaul Leach\nKm\nFORD LIBRARY is GERALD\nfile\n-\nTHE WHITE HOUSE\nWASHINGTON\nJune 21, 1976\nMEMORANDUM FOR PHILIP W. BUCHEN\nJAMES M. CANNON\nMAX FRIEDERSDORF\nJOHN O. MARSH\nFROM:\nWILLIAM BRENT SCOWCROFT F. GOROG outb\nSUBJECT:\nEscape Clause Case - Shrimp\nA memorandum from Ambassador Dent on the shrimp escape\nclause case is attached.\nI would appreciate your comments and recommendations on this\nmemorandum no later than c.o.b. Thursday, June 24, 1976.\nFORD i LIBRARY OERALD\nAttachment concer with The\nmoninous\nJune\nfile\nTHE WHITE HOUSE\nWASHINGTON\nJune 23, 1976\nMEMORANDUM FOR:\nBILL GOROG\nTHROUGH:\nJIM CANNON\nFROM:\nPAUL LEACH Paul\nSUBJECT:\nEscape Clause\nCase-Shrimp\nI concur with the unanimous interagency recommendation\nthat the President accept the findings of the ITC and\ndirect the Secretaries of Commerce and Labor to give\nexpeditious consideration to petitions for adjustment\nassistance from firms and workers in the industry and\ncommunities in which they are located.\nFORD LIBRARY & 9ERALD\nTHE WHITE HOUSE\nWASHINGTON\nJMC\nI sent this to Leach for\naction, but he wants to know\nwhat sort of action you want\nhim to take.\nShouldn't he just assess the\nfeasibility of Senator Long's\nrequests?\nj orostaken By\nevents July\nCC: Leach\nCommerce\nTHE WHITE HOUSE\nWASHINGTON\nJuly 15, 1976\nADMINISTRATIVELY CONFIDENTIAL\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nJIM CONNOR JEE\nSUBJECT:\nLetter from Senator Long\nThe attached memorandum from Max Friedersdorf was returned\nin the President's outbox with the following notation addressed\nto you:\n\"Check with Secretary Butz, Fred Dent\nand Alan Greenspan.\"\nPlease follow-up with appropriate action.\ncc: Dick Cheney\nMax Friedersdorf\nTHE PRESIDENT HAS SEEN\n...\nTHE WHITE HOUSE\nWASHINGTON\nJuly 14, 1976\nMEMORANDUM FOR THE PRESIDENT\nFROM:\nMAX FRIEDERSDORF m.b.\nSUBJECT:\nSenator Russell Long (D-La.)\nI have asked Jim Cannon and Jim Cavanaugh to assess the feasibility\nof the requests by Russell Long contained in the attached letter from\nthe Senator.\nIf Long's proposals have merit and represent actions the Administration\ncould take, it might present an opportunity to approach Russell again on\nthe Jobs Bill veto.\nFORD i LIBRARY GERALD\nSinned Sicces Denate\nWASHINGTON, D.C. 20510\nJune 17, 1976\nThe Honorable Gerald R. Ford\n1600 Pennsylvania Avenue\nWashington, D. C. 20500\nDear Mr. President:\nYou are aware of my interest in domestic sugar\nproduction because of the importance of the sugar industry\nto my home state of Louisiana and due to my position as\nChairman of the Finance Committee which has jurisdiction\nover sugar legislation.\nDomestic sugar producers have been without a specific\nsugar program since the expiration of the Sugar Act on\nDecember 31, 1974. On March 11 of this year, Senators Inouye,\nCurtis and Dole joined me in a letter to you expressing our\nconcern over anticipated developments in the international\nsugar trade and their effect on domestic production. I\nattach a copy of that letter for your easy reference.\nSince that time, the price situation for our domestic\nproducers has deteriorated considerably to the point of\njeopardizing the continuation of the domestic industry. On\nthe day preceding our March letter, the domestic raw price\nwas 16.5 cents per pound. By June 3, less than three months\nlater, the price had declined to 13.85. I am concerned that\nthe price may decline even further.\nPassage of sugar legislation during the remainder of\nthis year would be difficult, if not impossible, with the\nmany other legislative matters to be handled. However, there\nare available to you options which could be used at your\ndiscretion to prevent disastrous consequences to domestic\nsugar production. There are actions which could be taken by\nyou under existing statutory authority.\n1. Increase the present tariff level from 62.5 cents\nper hundred pounds to as much as 1.875 cents per hundred pounds.\nThis could be accomplished simply by amending Executive Order\nNo. 4334 of November 16, 1974.\nFORD & GERALD LIBRARY\nPage two\nJune 17 1976\n2. Reduce the present foreign import quota of 7 million\ntons to a more realistic level. Total imports of foreign\nsugar in 1975 were only 3.9 million tons, and a restriction\nfor 1976 at about that same level might result in a more\nreasonable price for sugar. Individual country quotas could\nbe established if you considered it advisable. This also\ncould be accomplished by amending Executive Order No. 4334 of\nNovember 16, 1974.\n3. Direct the Secretary of Agriculture to establish a\nprice support program for sugarcane and sugarbeets under\nauthority contained in Title III of the Agricultural Act of\n1949. The level. of support could be established from zero to\n90 percent of parity. The level of support should be a.\nminimum of 70 percent of parity in order to be equitable with\nlevels established for producers of milk, grains, and other\nessential commoditics. Seventy percent of parity would result\nin a price for raw sugar of 18.5 cents per pound. The cost of\nproduction currently ranges between 15.5 cents and 20 cents\nper pound.\nI would very much appreciate your advice as to what\nsteps the Administration might take to correct the dangerous\nsituation now facing our domestic sugar producers. Since this\nmatter is so vital to the 29: domestic sugar-producing states,\nyour early attention to the problem would be appreciated.\nSincerely,\nFinance Chairman Committee\nFORD i LIBRARY\nTHE WHITE HOUSE\nWASHINGTON\nJuly 26, 1976\nPaul-\n1\nMEMORANDUM FOR:\nROGER PORTER Prablem\nFROM:\nSUBJECT:\nBeef Mayaguez PAUL LEACH Imports Issue and the Jan\nI understand from USDA that your office is now deeply\ninvolved with the beef import question and the Mayeguez\nForeign-Trade Zone issue.\nSince it doesn't seem to be an efficient use of our\ntime to have duplicate efforts in this regard, I am sending\nyou a letter which requires a draft response. This has\nbeen held in abeyance pending resolution of the Mayeguez\nquestion, but will certainly require some action within\nthe near future.\nCC:\nCharles Leppert\nJim Cannon\nFORD i LIBRARY GERALD\nCongress of the United States\nHouse of Representatibes\nMashington, D.C. 20515\nJune 14, 1976\nThe Honorable Gerald R. Ford\nPresident of United States\nThe White House\nWashington, D.C. 20500\nDear Mr. President:\nThe distressed cattle industry, which is just\nemerging from the \"Beef Depression\" of 1973-1975,\ninitiated by the price freeze of 1973 only to be hit\nwith serious drought conditions which imperil its re-\ncovery in 1976, has enough on its hands in coping with\nacts of God without having to suffer further from the\nburdens of man-made restraints.\nOf particular concern is the competition from meat\nimports, 95% of which are chilled and frozen beef. The\nlevel of these imports is too high even under a program\nof voluntary restraints as negotiated with the importing\ncountries. In addition to those imports which are legal\nunder the Meat Import Act of 1964, our cattlemen are now\nfaced with circumventions which permit additional beef to\nflood the domestic market and add to the woes of our\nlivestock producers.\nWe have reference to the frozen beef from Australia\nand New Zealand which is being shipped to the packing\nplant in the free port of Mayaguez, Puerto Rico. There\nit is chopped up and processed into \"stew beef\" which\nplaces it in the \"prepared and preserved\" category upon\nwhich there is no limitation as far as import levels\nare concerned. Unfortunately, this category is not\nnegotiable under the system of voluntary restraints, but\nwe believe there is ample opportunity under Sec. 2 (e) of\nthe Meat Import Act of 1964 to regulate the flow of all\nmeat and make sure it is allocated to the importing\ncountry.\nThis type of circumvention is patently wrong,\nMr. President, and steps should be taken to either\nFORD LIBRARY is GERALD\nHonorable Gerald R. Ford\nJune 14, 1976\nPage two\nstop these imports altogether or see that this\nparticular category is included with the other\ncategories the levels of which can be controlled\nunder the Meat Import Act.\nWe' respectfully call upon the Administration\nto address itself to this problem immediately--\neither to negotiate the voluntary restraints on meat\nimports at a level which would make allowances\nfor the imports of \"stew beef\" and other \"prepared\nand preserved\" meats, or take other administrative\naction under the law to control the imports of this\nkind.\nThis request comes to you from Representatives\nof cattle-producing areas, and it is important to\nnote that the cattlemen, generally, have approved\nthe farm policies of this Administration as developed\nand enunciated by Secretary Butz. Any measures of\nrelief from this unfair competition would reinforce\nthe belief of the cattlemen that you have an under-\nstanding of their problems.\nFORD i LIBRARY GERALD\nThank you for your prompt consideration of the\nproblem and for advising us what steps you plan to\ntake. Drought conditions are forcing many producers\nto put their COWS on the market at already disastrous\nprices in direct competition to this \"stew beef\".\nTime is of the essence.\nSincerely,\nX Lasta Diigin Smith\nChuck Grassley\nTime Fee tearter\nJames Abdnn\nX j-\nJohn myers\nHonorable Gerald R. Ford\nJune 14, 1976\nPage John three\nThome\nDen your\nGuver\nVarry Phirley n. Petize\nBirl Vital\nStoyd Spence\nhealth \\ Steve Symms\nSeith L.Seklius Larry Pressler\nGarna 16. Shrin Rd Baum\nget Robina Gene Fayer\nAnghan agent China Wilson (Jax)\nJames Haley Waltr new, Smith\nRay which\nJunes\nJine Johnson\nAir\nFORD LIBRARY is GERALD\nHonorable Gerald R. Ford\nJune 14, 1976\nPage four\n33\nDelbert L. Latta\nVirginia Smith\nCharles E. Grassley\nTim Lee Carter\nJames Abdnor\nJohn T. Myers\nW. Henson Moore\nJohn Y. McCollister\nJoe Skubitz\nCharles Thone\nDel Clawson\nDon Young\nTennyson Guyer\nTeno Roncalio\nBiLL\nLarry Winn, Jr.\nSan Steiger\nBarry M. Goldwater, Jr. Shirley N. Pettis\nWilliam M. Ketchum\nMarilyn Lloyd\nGCORGE O'Brien\nFloyd Spence\nElford A. Cederber\nMark Andrews\nSteven D. Symms\nKeith G. Sebelius\nLarry Pressler\nGarner E. Shriver\nRobert E. Bauman\nJ. Kenneth Robinson\nGene Taylor\nAbraham Kazen, Jr.\nCharles Wilson (Texas)\nRay Roberts\nNeal Smith\nJames A. Haley\nWalter B. Jones\nJames P. Johnson\nJim Wright\nGunn McKay\nFORD LIBRARY & 9ERALD\nname changes above per\nDan Harrant in Congresswoma\nseen\nJune 21, 1976\nDear larv:\nThank you for letting ns know that you\nconcur in the June 14 letter to the\nPresident from Mrs. Virginia Smith and\nothers regarding the impact of certain\nmeat imports on the domestic industry.\nPlease be assured that I shall make\ncertain your name is added to those\nwho have expressed their concern in\nthis matter. 1 know the views you\nand your colleagues have expressed\nwill be fully reviewed.\nWith kind regards,\nSincerely,\nCharles Lappert, JI.\nDeputy Assistant\nto the President\nFORD is LIBRARY 938870\nThe Honorable Marvin L. Each\nHouse of Representatives\nWashington, D.C. 20515\nbec: w/inc. to James Cannon for handling with the\nJune 14 letter to the President from Hrs. Virginia\nSmith and 38 of her colleagues. A June 16\ninterim (copy attached) was sent to each of\nthose 39 cosigners, and the incoming sent to\nyou for DRAFT reply.\nbee: w/inc. to Mr. Seidman - PYT\nbee: w/inc. to Amb. Frederick Dent - FYI\nCL:JUB:bmr\nidentical to each of the 20 additional cougness\nJune 16, 1975\nDear Virginia:\nThank you for the June 1: letter to tae\nPresident in which you joined with 33\nof your colleagues from cattle producing\nATAXA El publice the ispact on the domestic\nindustry of beat imports from Australia\nand Hey gaaland which are cozing into\nthis country by way of the free port of\nHayaguez, Puerto Pico.\nPlease be assured I shall call your letter\nimmitately 19 the President's attention.\nI know be will appreciate having your viewa\nregarding this situation and will wish to\nhave the fully reviewed. You will hear\nfurther as scon 23 possible.\nWith kind regards,\nSincerely,\nCharles Deppart, J=.\nDeputy Assistant\nto the President\nthe Honorable Virginia Smith\nJouse of Representatives\nWasnington, D.C. 20515\nGERALD R. LIBRARY FORD\nbee: w/incoming to James Cannon for DRAFT REPLY\nbec: w/incoming to in. Seicman - FYI\nbcc: w/incoming to Anio. Prederick Dent - FYI\nCL:JEB:VO:ki\nidentical to each of the 39 coreines\nJune 13, 1976\n20\nman Marvin L. Esch\nJack Hightower\nTom Harkin\nJohn B. Conlan\nPaul Simon\nNA.\nW. R. Poage\nEdward Hutchinson\nChairman,\nMr. Chairman Wilbur D. Mills\nJohn Melcher\nBizz Harold T. Johnson\nBob Robert J. Lagomarsino\nmany Manuel Lujan, Jr.\nBill William L. Dickinson\nTed Risenhoover\nBo Ginn\nHarold Runnels\nJim Santini\nTom Steed\nBerkley Bedell\nMr. Chairran Olin Teague\nFORD & LIBRARY GERALD\nHonorable Gerald R. Ford\nJune\nPage\nthree 14, 1976 age Thom\nSen yourg\nJanneson Gujer\nJuly\nBir Kitch\nPhiley n. Petting\n2tayd Spener\nhealth Steve Symms\nGERALD R. FORD\nLeith G.Seklius Larry Pressler\nGarner 7. Shriner Rd Baum\nFew Fasher\nJames a 2 Haley Waltn nesl. Smith\nRay Volunts\nChina Wilson (Jex)\nJane Johnson\nAdditions\nWay his\nDumBer Dum M Fay cay\nDiseh,ue\nVeh When\nJohns Dorlan\n2\nEdwars tuthinism\nAillure Mill\nLane\nJob melcher\nRobet r Faguress\nmanuel Cujar Ja\nTed Sisenhover\nBo Sinn\nHapped\nNorn Tom Stead Vead\nKenkey / Bedere 10gm\n2:00\nTuesday Deadline\nTHE WHITE HOUSE\nCommerce\nWASHINGTON\nJuly 27, 1976\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nPAUL LEACH\nPaul\nSUBJECT:\nAdministration's Position\non the \"Bottlers' Bill\"\nThe attached Paul O'Neill memo to the President asks for\na decision on whether or not to oppose this bill which\nwould provide an antitrust immunity to the soft drink\nbottling industry.\nMarkup may be tomorrow, so resolution of this issue has\nurgent priority.\nThis issue was discussed at the EPB meeting on Monday and\nthere was no objection to the Justice Department position:\nThat the Administration oppose this bill. This position\nis consistent with past Justice Department opposition to\nsimilar bills.\nSince (1) the Administration has been consistently opposed\nto specialized exemptions from the antitrust laws and (2)\nsome strange, normally pro-antitrust Senators (Cranston,\nHumphrey and McGovern) are among the sponsors and thus\nvulnerable to the charge of inconsistency, I would\nrecommend that you agree with the Justice recommendation\nthat we express strong Administration opposition.\nFORD LIBRARY s GERALD\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.:\nDate: July 26, 1976\nTime:\nFOR ACTION:\nCC (for information):\nJACK MARSH\nMAX FRIEDERSDORF\nBOB HARTMANN\nJIM CANNON\nPHIL BUCHEN\nDAVE GERGERN (For information)\nBILL SEIDMAN\nFROM THE STAFF SECRETARY\nDUE: Date: Tuesday, July 27, 1976\nTime:\n2:00 PM\nSUBJECT:\nOMB(O'Neill) Memo re Administration Position on S. 3421\n(The Bottlers' Bill)\n(Quick turn around requested because hearings may start Wednesday,\nJuly 28)\nACTION REQUESTED:\nFor Necessary Action\nX For Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX For Your Comments\nDraft Remarks\nREMARKS:\nFORD & LIBRARY CERALD\n8 Dept The pontaon\nJustin\ndue\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\nJames E. Connor\ntelephone the Staff Secretary immediately.\nFor the President\nfile\nCommerce\nTHE WHITE HOUSE\nWASHINGTON\nAugust 25, 1976\nMEMORANDUM FOR THE PRESIDENT\nFROM:\nJIM CANNON\nSUBJECT:\nProposed Legislation Relating\nto West Coast Shipping Strikes\nand the Effect on Hawaii\nFORD & LIBRARY GERALD\nCongressman Spark Matsunaga has written (Tab A) to you\nrequesting clarification of your position on legislation\n(H.R. 4526/S. 1566) to protect Hawaii from West Coast\nshipping tie-ups. Congressman Matsunaga refers to a\nJuly 10, 1976 article in \"The Honolulu Advertiser\" (Tab B)\nin which you are reported to have expressed your support\nfor such legislation to Bill Paul, an uncommitted Hawaiian\ndelegate to the Republican National Convention. On\nJune 18, 1976 Jack Anderson reported on AM America that\nyou had advised three (not named) uncommitted Hawaiian\ndelegates you would support legislation to protect Hawaii\nfrom shipping strikes.\nH.R. 4526/S. 1566 would attempt to prevent certain inter-\nruptions in shipping between the West Coast and Hawaii,\nand between the West Coast and the other U.S. Pacific\nIslands caused by longshore and maritime strikes and\nlockouts which imperil the \"health or well-being\" of those\nliving on these islands. This anti-strike provision\nwould be enforceable upon petition of the Governors of\nHawaii, Guam, America Samoa, and the High Commissioner\nof the Trust Territory of the Pacific Islands (or their\ndesignated representatives) to a United States District\nCourt for an injunction or temporary restraining order.\nAn injunction under this bill could be granted for up to\n120 days.\n2\nAlthough no formal position has been reported by the\nAdministration to the 94th Congress on legislation to\nprotect Hawaii from West Coast shipping tie-ups, a\nposition was taken during the 93rd Congress. The\nAdministration position was in opposition to the legis-\nlation. I have attached (Tab C) a copy of a letter from\nBill Usery, then Director of the Federal Mediation and\nConciliation Service, sent to the Senate Chairman of the\nCommittee on Labor and Public Welfare stating the\nAdministration's opposition to the proposed legislation.\nInformal contacts through OMB with the concerned Depart-\nments indicate continued opposition to the legislation\nwith one exception (Interior).\nBefore responding to Congressman Matsunaga on your behalf,\nI seek your direction as to the nature of the response\nyou would prefer.\nDecision\n#1. Respond to the Congressman saying that the Administration\nhas taken no position on H.R. 4526/S. 1566 in the\n94th Congress and that the matter is under study.\nApprove\nDisapprove\n#2. Respond to the Congressman saying that the Administration\nopposed legislation similar to H.R. 4526/S. 1566 in the\n93rd Congress and could be expected to do so again if\nsimilar legislation were given active consideration by\nthe 94th Congress.\nApprove\nDisapprove\n#3. Respond to the Congressman saying that you are in\nsympathy with the intent of the legislation and have\ndirected the necessary Departments and Agencies to\nreview the legislation.\nApprove\nDisapprove\nAttachments\nTab A Cong. Spark Matsunaga Letter\nTab B \"The Honolulu Advertiser\" Article\nTab C Copy of Bill Usery Letter\nFORD i LIBRARY GERALD\n8-2\nSPARK M. MATSUNAGA\nDEPUTY MAJORITY WHIP\n1ST DISTRICT, HAWAII\nMEMBER:\nWASHINGTON OFFICE:\nCOMMITTEE ON RULES\n442 CANNON BUILDING\n20513\nCongress of the United States\nSTEERING\nAND POLICY COMMITTEE\nHONOLULU OFFICE:\nhouse of Representatives\nCHAIRMAN, SUBCOMMITTEE\n218 FEDERAL BUILDING\nOF SELECT\n96813\nCOMMITTEE ON AGING\nWashington, D.C. 20515\nJAB A\nJuly 27, 1976\nThe President\nThe White House\nWashington, D.C. 20500\nDear Mr. President:\nI am enclosing a copy of an article which\nappeared in the July 10, 1976 issue of the Honolulu\nME\nAdvertiser. It reports that you have indicated your\nwe\nsupport for legislation, introduced jointly in the\nHouse and the Senate by me and my colleagues from\nHawaii, to protect Hawaii from West Coast shipping\ntie-ups (H.R. 4526, S. 1126).\nThere is little you could do as President\nwith regard to Hawaii specifically which will be\nmore appreciated by Hawaii's 850,000 citizens than\nactively supporting such legislation. It is\nconsidered by a broad-based majority, including\nRepublicans and Democrats, businessmen and union\nmembers, to be perhaps the most important proposal\nconsidered by Congress since the debate over\nStatehood for Hawaii. One recent poll indicated\nthat fully 83.9% of Hawaii's residents favor\nenactment of such legislation.\nYou will recall that in the 93rd Congress\nFORD i LIBRARY 077833\nafter a similar proposal sponsored by Hawaii's two\nSenators passed the Senate, my bill, H.R. 7189, was\ndefeated in the House. The key to its defeat was\nthe joint opposition of organized labor and the\nAdministration.\nIt is my continued conviction that the bill\nwas defeated because of a widespread misunderstanding\nthat the bill was anti-labor. It is not. It seeks\nonly to assure the protection of Hawaii from the\nsevere consequences of a prolonged termination of\nits \"lifeline\", shipping.\nThe President\nJuly 27, 1976\nPage Two\nIn this regard, you kindly provided Senator Hiram\nL. Fong and me the opportunity to discuss the matter\nwith you during the flight back to Washington aboard\nAir Force One last December 7. You indicated that you\nwould direct a review of the matter.\nI was deeply gratified and encouraged to learn\nthat your further examination of the issue has led\nyou to support the proposed legislation. Because of\nthe gravity of the situation, however, I hope you\ncan understand my desire to obtain a clarification of\nthe position of your Administration with regard to\n|the relevant bills.\nI therefore most respectfully request that I\nbe provided with such a clarification. If I can be\nof any assistance whatsoever, please contact me.\nYour further attention to this issue of crucial\nimportance to Hawaii is deeply appreciated by all of\nits people.\nAloha and best wishes.\nSincerely,\nSpark Matsunaga\nMember of Congress\nTAB B\nHonolulu Advertiser: July 10, 1976\nFord backs shipping strike bill\nin call to Hawaii delegate Paul\nBy DOUGLAS WOO\ntial rival. Rengan, 100, said he sup-\nCongress, Paul met with Ford but\nbeing subtly pressured for his vote\nAdvertiser Government Bureau\nported the shipping legislation, Paul\nFord declined to endorse the ship-\nin exchange for Ford's support of\nsaid.\nping legislation.\nthe shipping legislation.\nPresident Ford told a member of\nPawani GOP National. Convention\nIlist Paul, who \"leans toward\"\nPaul snid Ford apparently was not\n\"Absolutely not,\" Paul said. \"And\nthat the white feilin\nT16-7/73.2\nFEDERAL MEDIATION AND CONCILIATION SERVICE\nUNITED STATES GOVERNMENT\nWASHINGTON, D.C. 20427\nJune 3, 1974\nTABC\n/\nHonorable Harrison A. Williams, Jr.\nChairman, Committee on Labor and Public Welfare\nUnited States Senate\nWashington, D.C. 20510\nDear Mr. Chairman:\nThis is in response to your request for the\nviews of the Federal Mediation and Conciliation Service\non S. 1566, a bill which seeks to prevent West Coast\ndock strikes from imperiling the health and safety of\nthe citizens of Hawaii and the United States Pacific\nIslands.\nThe proposed legislation would prohibit\nstrikes or lockouts in the longshore or maritime in\ndustries on the West Coast, which interferes with\nFORD LIBRARY & GERALD\nshipping between the West Coast and Hawaii, Guam\nand other Pacific Islands, for a period of one hun-\ndred and sixty (160) days. The anti-strike provision\nis enforceable upon petition by certain designated par-\nties to a United States District Court for an injunction\nor temporary restraining order. This would be in addi-\ntion to the injunctive relief available under Section 208\nOF the LMRA, 1947.\nThe Service is, of course, greatly concerned\nwith the problem of work stoppages in the longshore and\nmaritime industries. Moreover, the rationale of protect-\ning the health and safety of the people of Hawaii and the\nUnited States Pacific Islands is compelling. However, a\nquestion arises as to whether this type of proposed legis-\nlation promotes the resolution of labor disputes that\n:fect the various forms of transportation throughout the\ncountry; whether selectively postponing a work stoppage\n- 2 -\naids in settling the dispute which caused the disruption.\nIn this regard, we agree with the recently published re-\nport and recommendations of the National Commission for\nIndustrial Peace which stress the point that our national\nlabor policy relies on collective bargaining as the pri-\nmary means of resolving labor disputes. The report also\nnotes that the parties have been successfully searching\nfor substitutes to economic strife and have placed in-\ncreasingly greater reliance upon mediation and fact-\nfinding as tools of voluntary dispute resolution.\nAlthough we recognize the economic disruption\nto Hawaii and other Pacific Islands, we question whether\nproviding for additional selective injunctive relief would\naid in encouraging labor and management to seek peaceful\nmeans of resolving their differences in collective bargain-\ning instead of relying upon economic disruption. For that\nreason, we do not believe enactment of this bill would be\ndesirable at the present time.\nThe Office of Management and Budget advises that\nthey have no objection to the submission of this report.\nSincerely,\nW.J.Usery. for\nNational Director\nFORD LIBRARY &\nRe\nTHE WHITE HOUSE\nexports.\nWASHINGTON\ncommerce\nSeptember 23, 1976\n976 SEP 24 AM 8 03\nMEMORANDUM FOR:\nJIM CANNON\nALAN GREENSPAN\nBRENT SCOWCROFT\nBILL SEIDMAN\nFRANK ZARB\nFROM:\nIt appearsquite likely the Senate conferees\nJACK House MARSH Jul and\nFORD is LIBRARY GERALD\non the Export Bill will agree to a very restrictive\nboycott amendment.\nIf this does occur, we should begin efforts to study\nthe impact of such legislation, particularly in an\neconomic and energy perspective. These inputs will\nbe essential for the President when he addresses the\nbill after it comes down from the Hill.\nThe nuclear amendment should also not be overlooked\nand the information on its impact should be made\navailable to the President.\nDick Cheney\nit\nCC:\nJim Cavanaugh\nMax Friedersdorf\nBill Gorog\nRonan M. Put\n092401\nTHE WHITE HOUSE\nWASHINGTON\nSeptember 23, 1976\n976 SEP 24 AM 8 03\nMEMORANDUM FOR:\nJIM CANNON\nALAN GREENSPAN\nBRENT SCOWCROFT\nBILL SEIDMAN\nFRANK ZARB\nFROM:\nIt appearsquite likely the House and Senate conferees\nJACK July MARSH\non the Export Bill will agree to a very restrictive\nboycott amendment.\nIf this does occur, we should begin efforts to study\nthe impact of such legislation, particularly in an\neconomic and energy perspective. These inputs will\nbe essential for the President when he addresses the\nbill after it comes down from the Hill.\nThe nuclear amendment should also not be overlooked\nand the information on its impact should be made\navailable to the President.\nCC:\nDick Cheney\nJim Cavanaugh\nMax Friedersdorf\nBill Gorog\npetro\nhyper of Ronan M.\nFORD & LIBRARY 038870\n092401\nCommerce\nOctober 13, 1976\nMEMORANDUM FOR:\nFROM:\nJIM JIM CONNOR CANNON Art 2wsn\nSUBJECT:\nProposed Presidential Letter\nto Karl Bakke\nI would caution against this proposed letter since the\nBakke/Soviet agreement may not be something about which\nthe President should be unequivocally pleased. While\nit is attractive to U.S. shipping companies, it will\nprobably cause less rate competition. This could be\ndetrimental to our exporters, importers and consumers.\nIn addition, I understand that the negotiations went on\nwithout the necessary State Department involvement and\nthe \"agreement\" has been presented as a fait accompli\nby the FMC.\nHowever, if this letter is sent, I would propose the\nchanges suggested on the attached Scowcroft draft.\nAlso, whatever happens I would recommend that this be\nrun by Bill Seidman, Ed Schmults, CEA and OMB, since\nthis deals with a sensitive maritime policy issue.\nAttachment\nFORD & LIBRARY GERALD\nDear Mr. Chairman:\nThank you for your informative letters of July 19\nand September 17 concerning the Memorandum Agreement\nbetween the Federal Maritime Commission and the\nSoviet Ministry of Merchant Marine, which you signed\nlast July. I am hopeful that your Agreement will lead\nto a more stable ocean liner trade and will result in\nhealthier liner competition along with better service\nand lower prices for our exporters, importers and\nconsumers.\nPlease continue to keep me informed of any further\nsignificant developments.\nSincerely,\nFORD i LIBRARY 93RALD\nThe Honorable\nKarl E. Bakke\nChairman\nFederal Maritime Commission\n1100 L Street, N.W.\nWashington, D.C. 20373\nTHE WHITE HOUSE\nWASHINGTON\nHandled by John Eden at Commerce.\nSheri 1/3/77\nFORD in LIBRARY\nTHE WHITE HOUSE\nWASHINGTON\n,976 NOV 11 AM 9 36\nDate:\nNovember 10, 1976\nMEMORANDUM FOR:\nJAMES CANNON\nFROM:\nWILLIAM W. NICHOLSON\nSUBJECT:\nHenry P. Read, Superintendent of\nSchools, Patchogue-Medford Public\nSchools, Patchogue, New York\nThe attached is for your appropriate handling.\nFORD i LIBRARY 076839\nThank you.\n1(1101\nAbedicine\nCC: Leach\nLissy\nEDUCATION\nPATCHOGUE-MEDFORD PUBLIC SCHOOLS\nGeorge A. Mason, Jr., Pres.\nRobert J. Mayer, Vice Pres.\nADMINISTRATIVE OFFICES\nJerome Botwinick\n241 South Ocean Avenue, Patchogue, N.Y. 11772\nArthur Fuccillo\nPatricia A. McDonald\nClaire Meyer\nAlfred A. Volkmann\nHENRY P. READ\nAlbert A. Benincasa, Clerk\nSuperintendent of Schools\n(516) 654-4001\nNovember 5, 1976\nACTION\nT/D\nSCHEDULE BD.\nPresident Gerald R. Ford\nDATE RECEIVED\nThe White House\n1600 Pennsylvania Avenue\nNOV 14 1976\nWashington, D.C.\nMESSAGE\nSPEAKERS BUREAU\nDear Mr. President:\nOTHER Common\nFor more than a century public and private citizens have led developme fif ΓOCE\nour community with a balance among private homes, retail businesses, and\nlight industry. The community is located in Suffolk County, Long Island, and\nhas evolved from suburban to become more urban in character. The transi-\ntion was accomplished with acceptance and accommodation of new residents.\nSuddenly, after many years of effective growth, we continue to face increas-\ning school enrollments, but we are frustrated by diminished employment\nopportunities and a substantial increase in the number of persons requiring\npublic assistance. One effect of the change has been a lessening ability of\nthe citizens to maintain their schools at a level which will allow maximum\nutilization by young students and adults.\nThe Patchogue-Medford School District has applied to the Department of\nCommerce for $4, 972, 000 under the Local Public Works Development and\nInvestment Program. Application material was completed and submitted\nunder the prescribed deadline. All technical details were properly fulfilled.\nHowever, we have concerns that the application format does not lend itself\nto an accurate portrayal of the nature of our community. We may never be\ngiven full opportunity to adequately describe the critical difference that fed-\neral funding could make to a community at the crossroads of positive prog-\nress or major deterioration.\nPlease grant us a few minutes of your time in order that we may share with\nMEDFORD SCHOOLS HOOLS\n9421\n1976\nFORD & LIBRARY\nBICENTENNIAL\nPresident Gerald R. Ford\nNovember 5, 1976\nPage 2\nyou the problems we face. A meeting would provide an opportunity for you\nto understand that the spirit of this legislation will be well served in the\ncase of the Patchogue-Medford School District.\nWe will anticipate hearing from you to establish a convenient time to meet\nwith you or with one of your respected White House advisors to discuss our\nproposal.\nSincerely yours\nRead\nHenry\nSuperintendent of Schools\nHPR:sn\ncc: Board of Education\nFORD & LIBRARY\nCommerce\nLosers in the Trading Game rundated?\nper cent and are currently trying to\ndemanding action now. But there can\nBy Michael Manley\nwrestle our inflation rate back down\nbe no action if the world orders its\nto 20 per cent a year!\ntrading patterns so as to insure that\nKINGSTON, Jamaica - There is a\nAt the root of this inflation lies a\nthe two billion members of the Third\ncontinuing and increasingly sighificant\ndeeper chronic problem that is disa-\nWorld are bound to be losers and the\nworld dialogue about the relationship\nbling for the Third World: the problem\nmetropolitan world's one billion mem-\nbetween the richer and poorer nations.\nof the terms of trade. This is not a\nbers permanently occupy the winner's\nThe search for effective development\nphrase dealing with some refinement\ncircle. It is against this background of\nstrategies; the desirability of aid pro-\nof economic theory, but rather it de-\nfutility that systems of inadequate and\ngrams; the problem of the terms of\nscribes the brutal ground rules of a\nunrealistic aid are called increasingly\ntrade; the role of the Third World in\ngame in which we are cast as perma-\ninto question and that the Third World\ninternational politics-these concerns\nnent losers.\nis turning its attention increasingly to\noccupy more and more attention of the\nOver the years, the prices received\nwhat is now described as a new world\nworld's political leaders and analysts\nfor exported raw materials, on which\neconomic order.\nof human affairs.\npoor countries depend, have tended to\nbe unstable with little tendency to\nWe Jamaicans are part of the Third\nWhat emerges from all this is that\nrise, while prices of manufactured and\nWorld, and I am a part of a team try-\nworld trade cannot and must not be\nprocessed goods exported by the met-\ning to struggle with economic reality\nleft to the mercy of purely economic\nropolitan countries have tended to be\nin an island that is as full of promise\nforcès. Those who argue for free trade\nstable with a steady tendency to in-\nas it is beset by difficulties. We are\nboth in terms of the right of nations\ntrving to lay the foundations of a\nto exchange goods without let or hin-\ndrance and of having prices determined"
}