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COMMITTEE ON WAYS AND MEANS

: DAN ROSTENKOWSKI, Illinois, Chairman
SAM M. GIBBONS, Florida BARBER B. CONABLE, Jr., New York
J.J. PICKLE, Texas JOHN J. DUNCAN, Tennessee
CHARLES B. RANGEL, New York BILL ARCHER, Texas
FORTNEY H. (PETE) STARK, California GUY VANDER JAGT, Michigan
JAMES R. JONES, Oklahoma PHILIP M. CRANE, Illinois
ANDY JACOBS, JR., Indiana BILL FRENZEL, Minnesota
HAROLD FORD, Tennessee JAMES G. MARTIN, North Carolina
ED JENKINS, Georgia RICHARD T. SCHULZE, Pennsylvania
RICHARD A. GEPHARDT, Missouri BILL GRADISON, Ohio
THOMAS J. DOWNEY, New York W. HENSON MOORE, Louisiana
CECIL (CEC) HEFTEL, Hawaii CARROLL A. CAMPBELL, JR.,
WYCHE FOWLER, JR., Georgia South Carolina
FRANK J. GUARINI, New Jersey WILLIAM M. THOMAS, California

JAMES M. SHANNON, Massachusetts
MARTY RUSSO, Illinois
DON J. PEASE, Ohio
KENT HANCE, Texas
ROBERT T. MATSUI, California
BERYL ANTHONY, Jr., Arkansas
RONNIE G. FLIPPO, Alabama
BYRON L. DORGAN, North Dakota
BARBARA. B. KENNELLY, Connecticut

John J. Salmon, Chief Counsel
Joseph K. Dowley, Assistant Chief Counsel
Robert J. Leonard, Chief Tax Counsel
A.L. SINGLEton, Minority Chief of Staff

SUBCommittee on TRADE
SAM M. GIBBONS, Florida, Chairman

DAN ROSTENKOWSKI, Illinois GUY VANDER JAGT, Michigan
JAMES R. JONES, Oklahoma BILL ARCHER, Texas
ED JENKINS, Georgia BILL FRENZEL, Minnesota
THOMAS J. DOWNEY, New York RICHARD T. SCHULZE, Pennsylvania
DON J. PEASE, Ohio PHILIP M. CRANE, Illinois

KENT HANCE, Texas
CECIL (CEC) HEFTEL, Hawaii
MARTY RUSSO, Illinois
RUFUs YERxA, Professional Staff
MARY JANE WIGNot, Professional Staff
FRANKLIN C. PHIFER, Jr., Professional Staff
JANET NUzum, Professional Staff
George J. WEISE, Professional Staff
JoANNA Shelton, Professional Staff

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to w V\" \o CON TENTS so Press release of Friday, July 13, 1984, announcing the hearing........................... WITNESSES U.S. Trade Representative, Hon. William E. Brock.................................................

Department of Commerce, Alan F. Holmer, Deputy Assistant Secretary fol port Administration......

Aoi. Grape Growers Alliance for Fair Trade, John Weidert and Joseph
1Carlo...........................................................................................................................
Brown, Doreen L., Consumers for World Trade........................................................
Brown-Forman Corp., James H. Lundquist, Gunter von Conrad, and Matthew
J. Clark....
Clark, Matthew J., Joseph E. Seagram & Sons, Inc.; Schieffelin & Co.; Brown
Forman Corp.; Heublein Inc.; and Hiram Walker & Sons, Inc..........................
Clawson, James B., Wine Institute..............................................................................
Coelho, Hon. Tony, a Representative in Congress from the State of California.
Consumers for World Trade, Doreen L. Brown........................................................
Davis, Rex D., National Association of Beverage Importers............ ----
Distillery, Wine & Allied Workers International Union, Abe Weiss...................
Fo and Allied Service Trades Department, AFL-CIO, Jay Harvey and Ab
eiss---------------------------------------------------------------------........................................................
Harvey, Jay, Food and Allied Service Trades Department, AFL–CIO................
Hon Inc., James H. Lundquist, Gunter von Conrad, and Matthew J
ark-----------------------------------------------------------------------------------------------------------------------------
Hiram Walker & Sons, Inc., James H. Lundquist, Gunter von Conrad, an
Matthew J. Clark.....

Joseph E. Seagram & Sons, Inc., James H. Lundquist, Gunter von Conrad
and Matthew J. Clark.....
Lundquist, James H., Joseph E. Seagram & Sons, Inc.; Schieffelin & Co
Brown-Forman Corp.; Heublein Inc.; and Hiram Walker & Sons, Inc............
Matsui, Hon. Robert T., a Representative in Congress from the State c
California.....
National Association of Beverage Importers, Rex D. Davis..................................
solin & Co., James H. Lundquist, Gunter von Conrad, and Matthew -
ark-----------------------------------------------------------------------------------------------------------------------------
Silverman, Arthur H., Wine Institute.......................................................................
Thomas, Hon. William M., a Representative in Congress from the State (
California...
Vicario, Joseph, American Grape Growers Alliance for Fair Trade.
von Conrad, Gunter, Joseph E. Seagram & Sons, Inc.; Schieffe
Brown-Forman Corp.; Heublein Inc.; and Hiram Walker & Sons, Inc............
Weidert, John, American Grape Growers Alliance for Fair Trade......................
Weiss, Abe, Food and Allied Service Trades Department, AFL–CIO, and Di
tillery, Wine & Allied Workers International Union..........................................
Wine Institute, Arthur H. Silverman and James B. Clawson...............................

SUBMISSIONS FOR THE RECORD
Department of Agriculture, Hon. John R. Block, Secretary, letter....................

Association of American Vintners, Nathan G. Stackhouse, Jr., statement.......

Conte, Hon. Silvio O., a Representative in Congress from the State of Mass

chusetts, statement.....

- French Federation of Wine and Spirits Exporters, Max N. Berry and Marsh

A. Echols, statement......................... National Council of Farmer Cooperatives, statement...................

U.S. Council for an Open World Economy, David J. Steinberg, statemen

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MARKET EXPANSION FOR U.S.-PRODUCED WINE

TUESDAY, JULY 24, 1984

House of REPRESENTATIVES, CoMMITTEE ON WAYS AND MEANS, SUBCOMMITTEE ON TRADE, Washington, DC. The subcommittee met at 9:30 a.m., pursuant to notice, in room B–318, Rayburn House Office Building, Hon. Sam M. Gibbons (chairman of the subcommittee) presiding. [The press release announcing the hearing follows:]

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DETAILS FOR SUBMISSION OF REQUESTS TO BE HEARD

Witnesses will be heard who previously testified or requested to appear. Additional requests to be heard must be made by telephone to Harriett Lawler [telephone (202) 225–3627) by noon, Friday, July 20, 1984. The request should be followed by a formal written request addressed to John J. Salmon, Chief Counsel, Committee on Ways and Means, U.S. House of Representatives, Room 1102 Longworth House Office Building, Washington, D.C. 20515. In view of the limited time available to hear witnesses, the Subcommittee may not be able to accommodate all requests to be heard. Those persons and organizations not scheduled for an oral appearance will be encouraged to submit written statements for the record of the hearing. All persons requesting to be heard, whether they are scheduled for oral testimony or not, will be notified as soon as possible after the filing deadline. It is urged that persons and organizations having a common position make every effort to designate one spokesman to represent them in order for the Subcommittee to hear as many points of view as possible. Witnesses are requested to briefly summarize their written statements with the understanding that a more detailed statement may be included in the printed record of the hearing. This process will afford more time for Members to question witnesses. In addition, witnesses may be grouped as panelists with strict time limitations for each panelist. In order to assure the cost productive use of the limited amount of time available for questions, witnesses appearing before the Subcommittee are required to submit 100 copies of their prepared statements to the full Committee office, Room 1102 Longworth House Office Building, at least 24 hours in advance of their scheduled appearances. Requests to be heard must contain the following information: (1) The name, full address, and capacity in which the witness will appear, as well as a telephone number where he or his designated representative may be reached; (2) A list of any clients or persons, or any organization for whom the witness appears; and (3) A topical outline or summary of the comments and recommendations in the full statement. The above information should also be incorporated in the prepared statements to be presented in person as well as those filed for the printed record of the hearing.

WRITTEN STATEMENTs in Lieu of PERSONAL APPEARANCE

Persons submitting a written statement in lieu of a personal appearance should submit at least six copies of their statement, by close of business, Friday, July 27, 1984, to John J. Salmon, Chief Counsel, Committee on Ways and Means, U.S. House of Representatives, Room 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements for the the record of the printed hearing wish to have their statements distributed as to the press and the interested public, they may provide 75 additional copies for this purpose to the Committee office before the hearing begins.

Chairman GIBBONs. Good morning ladies and gentlemen. As everyone knows, this is a meeting of the Subcommittee on Trade of the Committee on Ways and Means. This morning we have a hearing on the wine equity legislation. This is really a continuation of hearings that we began last November. We are seeking ways to reduce foreign barriers to trade and to expand the export market opportunities for U.S. wine producers. We are focusing on the bill H.R. 3795. introduced by our colleague, Mr. Coelho. Since then, a new proposal has developed seeking to remove criticisms of the original bill. Congressman Coelho and his panel will lead off this morning and Ambassador Brock will present the overall administration position. Gentlemen, why don't you go right ahead and proceed. I want to welcome all of you here this morning. It's a pleasure to see you.

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