Now, when you get into that kind of thing, it raises some serious questions. Were you aware of any purchase of Argentine beef for the school lunch program?

Secretary FREEMAN. No. All food distributed to school lunch programs by the Department is domestically produced. We can only assume that if Argentine beef has been served it was purchased locally by the school with its own funds, although we urge schools to purchase domestically produced foods.

Mr. HORAN. Mr. Chairman, I wonder, did you ask to have the statute involved here inserted in the record?

Mr. WHITTEN. Yes, I would like the appropriate section to be included in the record.

Mr. HORAN. Could we also have chronologically, the instances wherein section 22, since its inception in 1938, has been used?

Mr. WHITTEN. We might ask Mr. Grant to make a note to add that, if he will.

(The information referred to follows:)

SECTION 22 OF THE AGRICULTURAL ADJUSTMENT ACT (OF 1933), AS REENACTED AND AMENDED

(As of December 31, 1963)

"SEC. 22. (a) Whenever the Secretary of Agriculture has reasons to believe that any article or articles are being or are practically certain to be imported into the United States under such conditions and in such quantities as to render or tend to render ineffective or materially interfere with, any program or operation undertaken under this title or the Soil Conservation and Domestic Allotment Act, as amended, or section 32, Public Law No. 320, Seventy-fourth Congress, approved August 24, 1935, as amended, or any loan, purchase, or other program or operation undertaken by the Department of Agriculture, or any agency operating under its direction, with respect to any agricultural commodity or product thereof, or to reduce substantially the amount of any product processed in the United States from any agricultural commodity or product thereof with respect to which any such program or operation is being undertaken, he shall so advise the President, and, if the President agrees that there is reason for such belief, the President shall cause an immediate investigation to be made by the United States Tariff Commission, which shall give precedence to investigations under this section to determine such facts. Such investigation shall be made after due notice and opportunity for hearing to interested parties, and shall be conducted subject to such regulations as the President shall specify (7 U.S.C. 624 (a)).

"(b) If, on the basis of such investigation and report to him of findings and recommendations made in connection therewith, the President finds the existence of such facts, he shall by proclamation impose such fees not in excess of 50 per centum ad valorem or such quantitative limitations on any article or articles which may be entered, or withdrawn from warehouse, for consumption as he finds and declares shown by such investigation to be necessary in order that the entry of such article or articles will not render or tend to render ineffective, or materially interfere with, any program or operation referred to in subsection (a) of this section, or reduce substantially the amount of any product processed in the United States from any such agricultural commodity or product thereof with respect to which any such program or operation is being undertaken: Provided, That no proclamation under this section shall impose any limitation on the total quantity of any article or articles which may be entered, or withdrawn from warehouse, for consumption which reduces such permissible total quantity to proportionately less than 50 per centum of the total quantity of such article or articles which was entered, or withdrawn from warehouse, for consumption during

a representative period as determined by the President: And provided further, That in designating any article or articles, the President may describe them by physical qualities, value, use, or upon such other bases as he shall determine.

"In any case where the Secretary of Agriculture determines and reports to the President with regard to any article or articles that a condition exists requiring emergency treatment, the President may take immediate action under this section without awaiting the recommendations of the Tariff Commission, such action to continue in effect pending the report and recommendations of the Tariff Commission and action thereon by the President (7 U.S.C. 624(b)). "(c) The fees and limitations imposed by the President by proclamation under this section and any revocation, suspension, or modification thereof, shall become effective on such date as shall be therein specified, and such fees shall be treated for administrative purposes and for the purposes of section 32 of Public Law No. 320, Seventy-fourth Congress, approved August 24, 1935, as amended, as duties imposed by the Tariff Act of 1930, but such fees shall not be considered as duties for the purpose of granting any preferential concession under any international obligation of the United States (7 U.S.C. 624 (c)).

"(d) After investigation, report, findings, and declaration in the manner provided in the case of a proclamation issued pursuant to subsection (b) of this section, any proclamation or provision of such proclamation may be suspended or terminated by the President whenever he finds and proclaims that the circumstances requiring the proclamation or provision thereof no longer exist or may be modified by the President whenever he finds and proclaims that changed circumstances require such modification to carry out the purposes of this section (7 U.S.C. 624 (d)).

"(e) Any decision of the President as to facts under this section shall be final (7 U.S.C. 624 (e)).

"(f) No trade agreement or other international agreement heretofore or hereafter entered into by the United States shall be applied in a manner inconsistent with the requirements of this section (7 U.S.C. 624 (f)).”

Authority.-Section 22 of the Agricultural Adjustment Act, as amended, directs the Secretary of Agriculture to advise the President whenever he has reason to believe that any article or articles are being imported under such conditions and in such quantities as to render or tend to render ineffective or materially interfere with any price support or other program, relating to agricultural commodities, undertaken by the Department of Agriculture, or to reduce substantially the amount of any product processed in the United States from any agricultural commodity or product thereof with respect to which any such program or operation is being undertaken. If the President agrees there is reason for such belief, he directs the Tariff Commission to conduct an investigation including a public hearing, and to submit a report to him of its findings and recommendations. The President is authorized, based on such findings, to impose such fees or quotas in addition to the basic duty as he shall determine necessary. The additional fees may not exceed 50 percent ad valorem and the quotas proclaimed may not be less than 50 percent of the quantity imported during a previous representative period, as determined by the President. Furthermore, the President may designate the affected article or articles by physical qualities, value, use, or upon such other basis as he shall determine.

Whenever the Secretary of Agriculture reports to the President that a condition exists requiring emergency treatment, the President may take action without awaiting the report of the Tariff Commission. Any such action by the President shall continue in effect pending the report and recommendations of the Tariff Commission and action thereon by the President.

No trade agreement or other international agreement entered into at any time by the United States may be applied in a manner inconsistent with the requirements of section 22.

The import quotas on specified dairy products and certain grain products, as explained further in this bulletin, are administered by the Import Staff, Foreign Agricultural Service, U.S. Department of Agriculture, Washington 25, D.C., through the issuance of import licenses and special permits. The import quotas for dairy products are prorated among, and import licenses are issued to, eligible applicants who had imported the commodity during a specified period. Import

Regulation 1, Revision 2, issued by the Department of Agriculture, governs the granting of the import licenses. Quotas on the other commodities not requiring import licenses or special permits are administered by the Bureau of Customs, U.S. Treasury Department, Washington 25, D.C., on a "first-come, first-served" basis. The authority to import commodities under section 22 does not relieve the importer from compliance with other applicable laws and regulations.

History. Section 22 was originally added to the Agricultural Adjustment Act of 1933 by the act of August 24, 1935. It has been amended several times and was revised in its entirety by section 3 of the Agricultural Act of 1948 and again by section 3 of the act of June 28, 1950. It was further amended by sections 8(b) and 104 of the Trade Agreements Extension Acts of 1951 and 1953, respectively.

Since section was enacted, import controls have been imposed with respect to 11 different commodities or groups of commodities. These include (1) wheat and wheat flour; (2) cotton, certain cotton wastes, and cotton products; (3) specified dairy products; (4) rye, rye flour, and rye meal; (5) barley, hulled or unhulled, including rolled, ground, and barley malt; (6) oats, hulled or unhulled, and unhulled ground oats; (7) shelled almonds; (8) shelled filberts; (9) peanuts and peanut oil; (10) tung nuts and tung oil; and (11) flaxseed and linseed oil.

Commodities released from control.-All or a part of nine of these commodities or groups of commodities have been removed from import controls. These are, by type of control and effective date, as follows:

Commodities currently under control.-The commodities remaining under control and the dates on which the initial controls were imposed are discussed in the following sections I through IV.

1. COTTON, CERTAIN COTTON WASTE AND COTTON PRODUCTS

Nonlicensed country quotas on long staple and short staple cotton and on cotton waste were imposed on September 20, 1939. Cotton having a staple length of 11/16 inches or more was removed from the long staple cotton quota on December 19, 1940, but was again included effective August 1, 1958, at which time this quota was subdivided on the basis of staple length. The country quota on long staple cotton was changed to a global quota on July 29, 1942. The global quota on certain cotton products became effective on September 11, 1961.

Annual country and global quotas currently in effect are as follows:

Provided that of the 6,065,642 pounds, not more than 1,500,000 pounds shall consist of harsh or rough cotton (except cotton of perished staple, grabbots, and cotton pickings), white in color and having a staple of 12 inches or more in length, and not more than 4,565,642 pounds shall consist of other cotton.

1 The exact quantity is unknown but adjudged to have been less than 1,000 pounds, see Tariff Commission report to the President on "Certain Cotton Product," TC Publication 31, of September 1961.

British West Indies (other than Barbados, Bermuda, Jamaica, Trinidad and Tobago)

21, 321

British West Africa (other than Gold Coast and Nigeria).

16, 004

Nigeria.

French Africa (other than Algeria, Tunisia, and Madagascar)

Total__

5, 377

689

14, 516, 882

The annual average imports of 23,173,884 pounds of various types of cotton wastes during the representative period included receipts of waste types which were not put under quota. Data for all specific types of waste are not available.

2 Not more than 33% percent shall be filled by cotton wastes other than comber waste made from cotton of 1316 inches or more in staple length in the case of United Kingdom, France, the Netherlands, Switzerland, Belgium, Germany, and Italy.

Importations of wheat and specified wheat products, with the exceptions listed, are subject to nonlicensed quota controls. The quotas were instituted by Presidential proclamation dated May 28, 1941. The basic quotas have not been changed, although certain exceptions were made during World War II.