Letter to Senate Majority and Minority Leaders Urging New Trade Legislation.

THE TRADE legislation before the Senate has portentous implications for the health of our economy and the vitality of trade among nations.

I vigorously reaffirm my original proposals contained in HR 14870. I also urge enactment of quotas on textile imports, in view of our inability to reach negotiated agreements with the major foreign suppliers to deal with this problem, and authorization to create Domestic International Sales Corporations to promote U.S. exports.

The legislation now pending as reported by the Senate Finance Committee goes far beyond these proposals in some important respects and fails far short in others. These changes could have not only harmful short-term consequences within our country, but also, in the long term, they could trigger international trade practices destructive of the economy of the entire free world.

The bill would place quotas on shoe imports. It would invite import restrictions on numerous additional products because the escape clause in the present law has been loosened excessively. It would place import restrictions on several additional specific products. It does not include authority to abolish the American Selling Price system. It does not include the Domestic International Sales Corporations.

The well being of the United States requires new trade legislation. I must urge, therefore, that the Senate examine these matters with great care in an endeavor to put this legislation into acceptable form. I would hope that such legislation could be passed in this session of Congress.

Sincerely,

RICHARD NIXON