Ask the Scholar

{
    "localId": "7337183",
    "label": "Remarks of the President to the American Conference on Trade [Ford Speech or Statement]",
    "core": "doc",
    "dtoType": "document",
    "citationUrl": "https://catalog.archives.gov/id/7337183"
}

{
    "id": "7337183",
    "sourceUrl": "https://catalog.archives.gov/id/7337183",
    "contentType": "document",
    "title": "Remarks of the President to the American Conference on Trade [Ford Speech or Statement]",
    "citationUrl": "https://catalog.archives.gov/id/7337183",
    "collections": [
        "White House Press Releases (Ford Administration)",
        "Press Releases"
    ],
    "iiifBase": "https://s3.amazonaws.com/NARAprodstorage/opastorage/live/83/3371/7337183/content/library/document/0248/whpr19741203-017.pdf",
    "thumbnailUrl": "https://s3.amazonaws.com/NARAprodstorage/opastorage/live/83/3371/7337183/content/library/document/0248/whpr19741203-017.pdf",
    "largeImageUrl": "https://s3.amazonaws.com/NARAprodstorage/opastorage/live/83/3371/7337183/content/library/document/0248/whpr19741203-017.pdf",
    "imageCount": 1,
    "hasImages": true,
    "source": "import",
    "hasTranscription": false
}

{
    "url": "https://catalog.archives.gov/id/7337183",
    "naId": 7337183,
    "levelOfDescription": "item",
    "productionDates": [
        {
            "day": 3,
            "logicalDate": "1974-12-03",
            "month": 12,
            "year": 1974
        }
    ],
    "recordType": "description",
    "ocrSource": "nara-archive"
}

{
    "seq": 1,
    "pageIndex": 0,
    "type": "document",
    "url": "https://s3.amazonaws.com/NARAprodstorage/opastorage/live/83/3371/7337183/content/library/document/0248/whpr19741203-017.pdf",
    "mediaId": "341209ea1cee12ad",
    "ocrText": "Digitized from Box 5 of the White House Press Releases at the Gerald R. Ford Presidential Library\nFOR IMMEDIATE RELEASE\nDECEMBER 3, 1974\nOFFICE OF THE WHITE HOUSE PRESS SECRETARY\nTHE WHITE HOUSE\nREMARKS OF THE PRESIDENT\nTO THE\nAMERICAN CONFERENCE ON TRADE\nTHE SHERATON PARK HOTEL\n8:42 P.M. EST\nThank you very much, Walter, distinguished\nmembers of the Cabinet, public officials, dedicated\nAmerican citizens, ladies and gentlemen:\nIt is a great privilege and a very high\nhonor to have the opportunity of participating in this\nAmerican Conference on Trade. At the outset, let me assure\nyou that I thank you and I congratulate you on the magnificent\nefforts that you have made during the day, and previously,\nand I exhort you to continue your efforts until we are\nsuccessful in the achievement of the objective that has\nbeen determined, which is in the best interest of our\ncountry.\nWithin the last several weeks, I traveled about\nhalf way around the world. I met leaders of Japan, Korea\nand the Soviet Union, and I am here tonight to call on\nyou, my fellow Americans, to come with me on an even\ngreater journey, a journey that could be without a question\nof a doubt the most important in our lives, yours and\nmine, and will affect countless of Americans for many, many\nyears to come.\nIt is, very simply put, to redefine, to reshape\nthe role of the United States in world trade. Those of\nyou who are serious and cognizant, and all of you are, about\nthe problems we face on this globe, you know that it is a new\nworld out there. We are witnessing today a worldwide\neconomic revolution.\nNew, acute economic problems and concerns have\nmoved onto the world scene with startling swiftness.\nNations, large as well as small, are redefining their\nnational interests. Some talks in terms of economic bloc\nor area advantages, and there are those who face the\nincreasing threat of a simple, very stark reality --\nsurvival.\nMORE\nPage 2\nThe United States, and most nations, face the\nmost serious economic challenge of the post-war period.\nProblems of energy, food, inflation, recession, pose\nunprecedented threats in all parts of the world. They\nthreaten employment; they threaten income. They jeopardize\ninternational economic cooperation, and they menace\npolitical and security relationships that the United\nStates has taken a generation to construct.\nUnless\napproach these problems constructively\nand cooperatively with our principal trading partners,\nwe in the world may face a crisis of the most serious\nproportions. These times call for positive, constructive\nAmerican leadership.\nThe United States cannot afford to drift in a\nsea of international uncertainty at a time when its highest\neconomic interests call for very decisive action. We\ncannot honestly claim leadership of the free world if\nwe do not influence with practical policies and real\npurpose greater economic cooperation.\nWe must be under no illusion that we can go it\nalone. I think that is why all of you are here tonight\nand why I am here. And that is the reason the journey\nwe undertake here must go on vigorously, effectively\nand constructively.\nThe word must go out from here tonight to the\nAmerican people, and to the people of other nations,\nand especially our friends in the Congress, that America\nhas made a very serious decision. We must pass the Trade\nReform Act now.\nIt is essential to the future of the United\nStates trade policy and that of the world as well. The\nhealth of our domestic economy and the strength -- yes, the\nverystructure -- of our international economic relations\nare deeply involved.\nThe Congress must act -- and I say this with the\nutmost seriousness -- or its inaction will gravely\naffect my efforts or anybody else's efforts to turn our\neconomy upward. It will severely limit my ability\nor the ability of anybody else, to work for international\neconomic cooperation abroad.\nMORE\nPage 3\nYou and I know that this legislation will, in all\nprobability, be long delayed, possibly stymied forever, if it\nis not passed in the current session of this Congress. From\na very practical point of view, it means that for the next\nyear or more when the economic situation calls for decisive\ndecisions, I will serve as your President without the power\nto fulfill my responsibilities in the crucial area of our\nNation's trade.\nThis vital bill, the Trade Reform bill, has been\npending before Congress for nearly two years. Actually, no\nPresident of the United States has had the authority to\nnegotiate international trade matters since 1967. Inter-\nnational trade relations have not been really revamped since\nthat time. It has been 40 years, as we look back over the\npages of history, since passage of the Nation's historic and\nfundamental Trade Agreements Act of 1934.\nThe central issue of trade reform is the close inter-\nrelationship between our domestic economy on the one-hand and\nour economic interrelations. And let us look at this important\ninterrelationship for just a moment.\nAdmittedly, the American economy is in a recession at\nthe present time. Inflation pressures are many. Fear of\nunemployment is increasing among our people.\nThe highest priority of this Administration in the\nweeks and months ahead, as has been said since I took office\nfour months ago, will be to attack these growing and changing\neconomic problems, and one of the most effective ways to start\nis to pass the trade reform legislation in our national\nself-interest. Obviously, I will need the full cooperation of\nthe Congress. That is essential for all 213 million Americans.\nI will, and I have certainly welcomed the comments\nby the Senate Majority Leader, Mike Mansfield, for bipartisan\ncooperation. I commend the Senate Committee on Finance and\nChairman Russell Long for acting with restraint and not\nattaching unrelated amendments.\nThe international economy faces very similar difficulties\nInflation is a world-wide problem. Most of the economies of the\nindustrialized world have swung into a downward cycle, partly\nas a consequence of inflationary distortions.\nInternational cooperation is absolutely essential\nif the world is to conquer this twin illness of global recession\nand global inflation. We in the United States must develop\na coordinated domestic and international approach to inflation\nand to recession. Trade is vital, essential, critical to that\nprogram.\nTwo-way trade for America amounted to $163 billion\nfor the first 10 months of this calendar year. Those are the\nlatest figures. This leaves our current trade balance at a\ndeficit of some $2.3 billion. This is due chiefly to\nMORE\nPage 4\nthe huge increase in the cost of imported oil. In the first\n10 months of this year, oil imports cost us $20.1 billion\ncompared to $7.8 billion for all of 1973. Thus, without the\nenormous increase in oil costs, we would have a good-sized\nsurplus this year.\nThe United States enjoyed a $1.3 billion surplus\nlast year. This is important to note: our exports, for the\nfirst 10 months of this year, are running at an annual rate\nof 36 percent above 1973.\nMORE\nPage 5\nThese exports add up to many jobs for Americans\nin all parts of our country and in all sectors of our\nsociety. Some three million American workers owe their livelihood\nto our American exports -- from stevedores to aircraft\nmachinists to white collar workers staffing American\ncorporations.\nEven the smallest of our business organizations\nin this country, three out of five successful American\nexporters have fewer than 100 employees. More than\n20 percent of American farm income derives from sales\nabroad.\nTrade -- everybody in this room knows -- is\nthe bread and butter issue to workers and businesses in\nour community, large, small, in all parts of our\n50 States. That means farms on the one hand, business on\nthe other, and industry as a whole.\nOver the years the effect of trade on our\neconomy has been highly favorable. The U.S. economy,\nconsumers, workers, benefit from imports as well as\nexports. The explanation is relatively simple -- our\ntotal imports for the first ten months of this year\namounted to approximately $83 billion. About $37 billion\nof that figure were essential to American production,\nmetals, foods, chemicals, minerals, including oil.\nMany American businesses are heavily dependent on\nimported materials. Let me offer just a couple of\nspecific examples of how imports help us as an industrial\nnation.\nWe are almost entirely dependent on foreign\ncountries for such vital materials as chromium, platinum,\ntitanium and manganese. More than 85 percent of our\naluminium comes from overseas; so does most of our bauxite.\nWhen we add the vigor from these imports to the\nstrength of exporting, we can see the significance of\ntrade to America's economic health.\nTrade adds to the income, the income of the\nAmerican labor force and to our economic pre-eminence\nin the world at large.\nThere will be no plus in our balance of trade\nthis year because of the severe high cost of importing oil.\nOtherwise, we could be and would be very much in the\nblack.\nMORE\nPage 6\nNationally, I consider the price we are paying\nfor oil as much too high. It is raising havoc on\nour domestic economy. If you deduct the increased cost\nof oil imports, the U.S. exhibits a favorable trade\nbalance of nearly $8 billion during the first six months\nof 1974.\nOil price increases are upsetting the\nentire international economic system. The adjustments,\nthe answers, must come from international bargaining,\nfrom international cooperation, and that is the top priority\nof this Administration.\nThe overall effect of our trade is highly\nfavorable, but the Trade Reform Act makes specific\nprovision to assist those who might be adversely\naffected by imports.\nNo sector of our economy will be left to face\nserious disruption. The legislation clearly states --\nand I will vigorously support such provisions -- that\nwe will assist workers, firms, communities adversely\naffected by imports.\nIn these very difficult times, it may be\ntempting for some in our great country to turn inward.\nPowerful forces in this country are not only thinking\nbut actually urging an inward course on legislation, not\nonly in the Trade Reform Act but in many other\npieces of legislation.\nThis, in my judgment, would reverse American post-\nwar trade and other policies and would be enormously\nharmful to us as to the rest of the globe, our\nallies as well as our adversaries.\nIt is my strong feeling -- and I say this with\nthe deepest conviction -- let us turn outward to view\nthe complex picture of international trade. Our nation\nlives and acts in the world community within a very\nintricate framework. It is the framework of political\nsecurity and economic ties that binds nations everywhere\ntogether.\nThere are those in the world who believe that\nunilateral and bilateral action, promoting their own\nself-interest, is the quickest and the most promising\nsolution to their problems. I categorically reject\nthat view.\nWe must believe, and I certainly do, that this\npolicy can only lead to conflict, an unending series of\nflare-ups and disputes in all parts of the world.\nMORE\nPage 7\nIn contrast, the United States believes, and\nI am committed to this policy if the Congress will\nurgently let me negotiate, that the only real answer is\nthe long-range solution of total world cooperation.\nI seek multilateral solutions to common\nproblems that will benefit all nations, but I need the\nTrade Reform Act, and I need it now, if the President of the\nUnited States is to have any voice in the international scene.\nLet me spell out, if I might, some of the con-\nsequences if I do not obtain this legislation from this\nCongress before it adjourns.\nThe coming GATT international trade negotiations\ninvolving 105 members would be dealt a crippling setback.\nI would like the necessary legislative authority to\nimplement my accords or any accords; therefore, it would\nbe virtually impossible to arrive at any substantial\ntrade agreements.\nThe United States international, political,\nmilitary, economic commitments would be seriously under-\nmined. This, in my opinion, would encourage unrest and\nwould certainly encourage world instability.\nBut let's be even more precise, if I might. In\nenergy, Secretaries Kissinger and Bill Simon are working\ndiligently on international cooperation, but\nthis cooperation cannot be one in a world involved with\nincreasing strife in trade.\nThe international monetary system needs\nsignificant improvement. If we slide back into trade wars,\nwe undermine our honest efforts to keep the international\nmonetary system functioning effectively. Friendly trade\nis a must if we are to improve our market imbalances.\nTrade is necessary so that developing countries\ncan pay back various forms of outside assistance. Some\nof the developing nations are directly involved in our\nown growth. They own raw materials and other commodities\nin short supply, essential to our development.\nThe Trade Reform Act offers me sufficient\nnegotiating authority to achieve a substantial reduction\nin tariff levels on a worldwide basis. It would allow me\nto work toward greater market access for U.S. products\nabroad, adding innumerable thousands of jobs in our own\n50 States.\nMORE\nPage 8\nThis means jobs for Americans. That means\na healthier economy. That means Congress has a duty and\nan obligation to pass this legislation now.\nLet me use one other fact, if I might. I can\nassure you from my recent experiences that the Soviets\nare not sitting back. They are not looking for a seat\nas a spectator. They want and they will get part\nof the action.\nThe Soviets are ready to trade, politically,\neconomically, but it will take time. It will take\nnegotiation on the one hand, so very hard bargaining on\nthe other.\nWe have made a good beginning politically, a\nbreakthrough on controlling the latest generation of\nnuclear weapons, a breakthrough for peace.\nLet us make the same breakthrough for trade,\nessential for detente and progress around the world.\nIn 1973 the United States achieved a trade\nsurplus of more than $1 billion from the Soviet Union.\nAnother $900,000 surplus came from other Communist\ncountries around the world. Trade with these nations\nwas, therefore, a very crucial factor in our overall trade\nsurplus of $1.7 billion in 1973.\nThe Soviets will not deal unless we work to\nachieve mutually beneficial economic policies, including\nthe elimination of discrimination against their trade,\nand unless we are willing to provide appropriate levels\nof credit within the framework established by the\nCongress.\nLet's be very clear about this. Our competitive\ntrading partners of Western Europe and Japan are\nissuing credits to Communist countries with which they are\nnow trading. Their record shows that the Soviet credit\nis good. The credits we issue are small compared to\nour Western trading partners.\nThe world today looks to the United States of\nAmerica for leadership. We have provided this since the\nend of World War II. We did not provide it prior to World\nWar II. Therefore, I would find it inexcusable, as\nwould many Members of Congress and many Americans, if this\nlegislation were to die as a result of delay and\nprocrastination.\nMORE\nPage 9\nThe Congress and the Executive Branch have\ncooperated more closely -- and I might say at a greater\nlength -- on this bill than in any other single\npiece of legislation in the past six years. I can\nrecount in the four months that I have been\nPresident a number of meetings with various Senators,\nvarious other Members of the Congress, in trying to find\na reasonable, constructive compromise on how we might\nmove this legislation forward, and I can assure you that I\nwill personally continue these efforts in the remaining\nweeks of this session of the Congress.\nAnd let me add this, if I might. And I see how\nmany members of my Cabinet are here -- three, four.\nThey are being told tonight, and everybody in their\ndepartment, that this is the job of highest priority to\nget this legislation through between now and adjournment.\nAnd I will add a P.S. If they don't get it\nthrough, they are at fault, and you are, too. (Laughter)\nMORE\nPage 10\nWell, let me just conclude with these observations\nand comments.\nI would find it inexcusable if this legislation were\nto become encumbered with nonrelated or nongermane amendments.\nThis is somewhat technical, but those of us who have struggled\nin the Congress for sometime know precisely what it means.\nThesewould be unrelated amendments, not related to the funda-\nmentals of trade legislation under any circumstances.\nThey would be amendments that had no prior con-\nsideration at all in the Senate Committee on Finance. They\nwould be extraneous to the subject matter that has brought all\nof you to the Nation's Capitol.\nI think the time has come; it is far too serious\nfor this important legislation to be encumbered by these non-\nrelated or nongermane amendments. So, as you go through the\nhalls and into the offices on Capitol Hill, make the point\nstrongly, effectively, that this legislation must stand on\nits own and should not be overwhelmed with amendments that\nhave no relationship to trade per se.\nAt this critical moment in our legislative history on\nthis legislation, I don't think we can afford the gamesmanship\nof nonrelated, nongermane amendments.\nI see some former colleagues of mine in the House\nof Representatives. In the main, we were able to keep non-\ngermane amendments out of the House version of the bill.\nThe burden is now on the United States Senate to do exactly\nthe same.\nAnd let me conclude with these final observations,\nif I might. I happen to believe that a society is great if its\npeople think greatly, if its people act greatly, and this is\na moment for greatness in America.\nThe journey which we together have started here\ntonight has no end. For the labor we undertake will never\nbe complete: to help build a world economy that will contribute\nto the health and prosperity of people everywhere throughout\nthis globe.\nEvery nation must carry its share of that great\nburden to uplift itself on the one-hand and others as we move\nahead.\nEvery nation. must reach out, out to others, to work\ntogether, to share in sweat and in sacrifice, secure in the\nknowledge that none will have to go it alone. This truly,\nas I see it, could be one of the world's finest hours. With\nyour help, with our cooperation and with the dedication of\neverybody, we can make it SO. Thank you very much.\nEND\n(AT 9:09 P.M. EST)"
}