Message to the Congress on Adjustment Assistance for the Stainless Steel Flatware Industry.

To the Congress of the United States:

As required by Section 203(b) (2) of the Trade Act of 1974, I am transmitting this report to the Congress setting forth my determination to provide adjustment assistance to the U.S. stainless steel table flatware industry producing flatware covered by the affirmative finding of March 1, 1976 of the United States International Trade Commission (USITC) under section 201(d)(1) of the Trade Act. As my decision does not provide import relief to that industry, I am setting forth both the reasons why I have determined that import relief is not in the national economic interest and other actions I am taking to help the flatware industry, workers, and communities.

I have decided, considering the interests of both the American consumers and producers, that expedited adjustment assistance is the most effective remedy for the injury to the U.S. stainless steel table flatware industry and its employees as a result of imports.

My decision was based upon my evaluation of the national economic interest. A remedy involving import restraints would have resulted in higher prices for American consumers at a time when lowering the rate of inflation is essential.

Import restraints would also have exposed industrial and agricultural trade to compensatory import concessions or retaliation against U.S. exports. This would have been detrimental to American jobs and damaged U.S. exports.

Adjustment assistance can benefit the smaller enterprises which have been seriously injured. Import relief would disproportionately benefit firms which produce a substantial part of domestic output, and which are able to compete with imports.

Adjustment assistance is consistent with the President's efforts to control inflation, including costs to all consumers, which import restrictions would raise.

In considering the effect of import restraints on the international economic interests of the United States, as required by the Trade Act of 1974, I have concluded that such restraints would be contrary to the U.S. policy of promoting the development of an open, nondiscriminatory and fair world economic system. The goal of this policy is to expand domestic employment and living standards through increased economic efficiency.

I have directed the Secretaries of Commerce and Labor to give expeditious consideration to any petitions for adjustment assistance filed by stainless steel flatware firms producing articles covered by the USITC report, and their workers, and communities.

GERALD R. FORD

The White House,

April 30, 1976.