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118569214
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United States Trade Representative (USTR)
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doc
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document
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1
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id
118569214
contentType
document
title
United States Trade Representative (USTR)
identifierLocal
94
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Records of the Office of the Chief of Staff (Reagan Administration)
James Cicconi's Agency Files
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118569214
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1985-12-31
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1985
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1981-01-01
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1981
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USTRemot 3/10 JC f JAB not seen THE UNITED STATES TRADE REPRESENTATIVE WASHINGTON 20506 March 10, 1982 3/13 "Ic Please call MEMO TO: Broch + tell him FROM: James William Baker E. Brock G guy mow in four as issue. appoids Togar an this Jim, just briefly, I want to concur with Rich Williamson's note to you regarding the Balanced Budget Constitutional Amendment. Thank him, ite As I said in our earlier conversation, I regret the present timing dilemma we face on this issue. If we were going to avoid having it tied to some revenue measure, it would be far better to bring it out in mid to late September. However, the matter may be beyond our control in that regard. JABE I am convinced that a significant effort will be made to attach it to the debt PS. Tell ceiling bill no later than May. Other efforts will be designed to ride on the first him to help reconciliation process. In either event, we may have a forcing action which, unless seized early, could deprive us of the leadership role I think we need. his ideas I'm still not convinced as to the best way to proceed, but I did want to pass coming our along my sense that serious effort should be made to arrive at a decision on the question before the matter becomes moot. very. Done. he appreciative. 5/17 P.S. I'm sure you've heard by now that Liddy Dole was absolutely spectacular at Saints and Sinners Roast today. You might want to give her a pat on the back, it's well deserved. USTR memor THE DEPUTY UNITED STATES TRADE REPRESENTATIVE WASHINGTON File June 15, 1981 Fordwear TO: HONORABLE JAMES A. BAKER III CHIEF OF STAFF THE WHITE HOUSE FROM: David R. Macdonald I realize that there is little time to amend the briefing paper for the President on non-rubber footwear. Nevertheless, I thought the attached might be valuable for your considera- tion. Attachment To Frank- has real no 6/17 MOT THE UNITED STATES TRADE REPRESENTATIVE WASHINGTON 20506 BACKGROUND PAPER FOR THE PRESIDENT'S MEETING ON NON-RUBBER FOOTWEAR RELIEF This is to provide background for your meeting with the ten Senators coming in to attempt to influence your decision in favor of a continuation of import quotas on footwear. The ITC (Tariff Commission) in 1977 found that imports from Taiwan and Korea were injuring U.S. non-rubber footwear industry. President Carter caused USTR to negotiate Orderly Marketing Agreements (quotas) with these two countries. These 4- year agreements expire at the end of this month. In response to the industry request to extend relief for three more years, the ITC has recommended that the OMA for Taiwan be continued for two years (other than athletic footwear), but that the OMA for Korea not be renewed. Procedurally, this ITC recommendation goes to you -- mechanically, it is staffed out through the Trade Policy Commit- tee system, which supplies you with an options paper and recom- mendations. We would point out the following: 1. The Senators are not entitled to any particular reaction by you concerning your preferences, because you have not received the recommendations of the Trade Policy Commit- tee. 2. If the quotas were extended, the statute says that the extension cannot exceed three years nor be more restric- tive than that now in place. 3. Because this is an extension of relief, there is no Congressional override. 4. Perhaps some questions by you to the Senators would show both that you care and are familiar with the problems involved. - 2 - Possible Questions To The Senators: A. How do you think the industry's profitability ought to impact upon any decision in this case? (FYI. The ITC found that before-tax profits for the U.S. industry as a whole, which parallels the non-rubber segment, rose 96% from 1977 to 1980 ($123 million to $242 million). Also, the ratio of pre-tax profit to stockholders' equity rose from 19.3 to 28.3 percent). B. Do you think that the industry has been sufficiently aggressive in its capital and research expenditures during the four-year restraint period to enable itself to meet foreign competition? (FYI. The ITC found cap- ital expenditures increased by 8.3 percent in real terms during the period 1977 to 1980, while R&D expenditures increased by only 2.2 percent). C. What is your opinion of the following assertions which I understand to be correct: (a) Taiwan has upgraded its footwear to become competi- tive with high class U.S. producers? (b) Other exporting countries not under restraint agreements have taken the place of Taiwan and Korea? Possible General Comments I am glad to have heard your views, and I can assure you that they will be taken into account when I consider the recommend- ations of the Trade Policy Committee. I cannot help but comment that the enactment of the bipartisan economic program should give a boost to the U.S. footwear industry, and I hope you will sup- port that program in order that we won't see as many of these difficult import problems in the future. David R. Macdonald June 15, 1981