Communist countries of Europe unless the President found it to be in the national interest so to do. I repeat that was in our appropriation act. That provision has been contained in each subsequent appropriation act, with the result that from that time on we could only do those things that the President might find to be in the national inerest.

Following that legislation the President in February 1964 found it to be in the national interest for the Export-Import Bank to finance the sale of agricultural products to the U.S.S.R. and the other Communist countries. The only exception I believe was East Germany, with which we had no relations.

Under that finding we financed wheat and corn to Rumania, about $25 million worth, and also about $5 million worth of feed grains to Poland. However, the U.S.S.R. did not approach us for a credit and we never made any.

Subsequently the President also found it to be in the national interest to finance all types of products to Yugoslavia. This again was in furtherance of our policy to assist Yugoslavia, with the result that the Bank continued to assist Yugoslavia both in agriculture and in hard goods.

Mr. FULTON. When was that?

Mr. SAUER. It was in February of 1961 also, Mr. Fulton, that the President made the finding with respect to Yugoslavia.

Mr. FULTON. 1964 or 1961?

Mr. SAUER. 1964. I said 1961; it was 1964.

In June of 1964 the President made a second finding with respect to Rumania. There, too, he found it to be in the national interest for the Bank to engage in financing the sale of all products. Following that finding, we did finance a petroleum plant-I say finance, we guaranteed credit by a commercial bank for a petroleum plant in Rumania. That was about $20 million. This has been the extent of our activities in the countries involved.

Since the purpose of the Export-Import Bank is to finance the foreign trade of the United States, and since it is the only Government agency which has the authority to engage in such transactions with the countries involved, it is quite appropriate that the Bank be the instrument for financing trade with Communist countries when the President finds it to be in the national interest to do so. On its part, the Bank is quite prepared within the statutory authority granted it by the Congress to carry out the spirit of the President's determination of October 7 past that it is in the national interest for the Bank to engage in short- and medium-term transactions involving the sale of all types of peaceful goods and services to Bulgaria, Czechoslavakia, Hungary, and Poland.

Mr. FULTON. When is that? I cannot hear you.

Mr. SAUER. October 7, 2 weeks ago.

Mr. FULTON. Bulgaria?

Mr. SAUER. Yes. Also, Czechoslavia, Hungary, and Poland. In other words, the President at that time made the same finding with respect to those four countries as he had previously made in the case of Rumania and Yugoslavia; that is, covering all goods as distinguished from merely

Mrs. BOLTON. Would it be at all proper for me to ask at this pointyou say the President makes findings. Who made them?

Mrs. KELLY. Mr. Sauer is our last witness, and as soon as he completes his statement, I will be delighted to call on you.

Mr. FULTON. Could we have the amounts again, because I cannot hear.

Mrs. KELLY. They appear in Mr. Sauer's statement.

Do you want to ask anything else, Jim?

Mr. FULTON. No; I just want to hear. If it is in the statement, that is fine.

Mrs. KELLY. Thank you so much, Mr. Sauer.

We will now proceed with the questions. I have one or two. I understood Mr. Stoessel to say that the President thought that it was necessary to improve relations with the East at this time because of the problems within NATO and the United Nations. Is that a correct interpretation of your statement, Mr. Stoessel?

Mr. STOESSEL. Madam Chairman, no. What I meant to indicate was that, one, there is obviously concern about NATO and the developments there. There is some questioning in some circles of our commitment to Europe, to NATO. I think the President felt it was desirable to reaffirm at this time our interest in a strong NATO and our commitment to Europe. He also, I feel, wanted to make clear that we favor better relations with Eastern Europe, but on a basis of unity in the West.

Mrs. KELLY. Has any objection been voiced by any of the NATO members to this new policy?"

Mr. STOESSEL. Madam Chairman, I would first like to say, as Mr. Greenwald has said, that we don't feel there has been a change in policy. This is a continuation of earlier policy. There was, as you recall, at the NATO meeting in the spring at Brussels a statement in the communique of that meeting expressing the agreement of the NATO powers that there should be further efforts to seek reconcilia tion with the East.

I think there is general agreement by all of the countries that this is a desirable policy. We have had in the meetings of the various committees in NATO since the Brussels meeting more discussion of the role of NATO with regard to furthering this reconciliation with Eastern Europe.

I think there is a general consensus that NATO has a very valuable role to play as a clearinghouse for ideas for making sure that the individual actions of the NATO countries contribute to the overall aim. There has been, I would say, a problem with France. As you know, we have our difficulties with France on most of the things in NATO these days, and this does not exclude this question of how we go about improving relations with Eastern Europe and the Soviet Union. The French are in favor of this, of course.

Mrs. KELLY. The French are in favor of this change in emphasis in our policy; is that right? What about Germany?

Mr. STOESSEL. They favor it. The French difference, I think, is with regard to the role of NATO. They are willing to discuss in NATO. but they don't want a common line to be concerted into NATO. They have made this quite clear.

They feel that the best way to approach the East is on a bilateral basis. They have made very clear that they do not favor a common agreement on a given line.

Mrs. KELLY. What about Germany?

Mr. STOESSEL. Germany is also is favor. Of course, GermanyMrs. KELLY. Was this change in emphasis discussed with the NATO countries prior to our taking this step?

Mr. STOESSEL. This was discussed at the Brussels meetings of NATO in the spring, and there have been meetings since that time. On Germany, with regard to her trade, of course, she is one of the leading nations in trading with Eastern Europe and the Soviet Union. Trade talks are now going on between West Germany and the Soviet Union. With Rumania, Germany is the largest trading partner of Rumania in the West. They favor this general policy.

Mrs. KELLY. I have one more question of the Department of Commerce before I ask other members to pose their questions. Is this change in policy in line with the recent changes in the NATO Cocom list?

Mr. MCNEILL. It is not a change in policy at all. It is simply a continuation of policy. It is our policy within the Department of Commerce on a continuing basis to review the list of products that require validated licenses for export, to see whether products may be removed from that list because they are basically of a peaceful nature. Mrs. KELLY. I realize that the trend toward a reduction of the Cocom lists really started in 1954 or 1953. What I would like to know, however, is whether the United States consulted with the other NATO nations before deciding to remove those 300 or 400 items from our export control list?

Mr. MCNEILL. Madam Chairman, we constantly review with our Cocom partners

Mrs. KELLY. I know you do. But this is quite a change, quite a large change to be made at one time. How recently was this decision made?

Mr. MCNEILL. None of the 400 items, to my knowledge, were included on the Cocom list, which is the common list of strategic products.

Mr. GREENWALD. Perhaps I could add one point of clarification. The United States has a longer list of items that we embargo than Cocom. The items on the U.S. list are not up to or down to, whichever way you want to put it, the international list.

Mrs. KELLY. The U.S. list

Mr. GREENWALD. Is still longer.

Mrs. KELLY. I would like to have for the record a listing of the recent changes in the Cocom lists. This could be submitted for the record.

Could I also have our U.S. export control list for the record?

Mr. GREENWALD. I am just trying to see-I understand that the changes in Cocom have been published by the Department of Commerce. I think Commerce Department can supply that.

Mrs. KELLY. I want it for the record.

I also want the difference between that list and the U.S. list.

Mr. GREENWALD. I think the list itself

Mrs. KELLY. Am I making myself clear? I hope I am.
I want a general comparison of the two lists.

Mr. MCNEILL. We can do that.

53332 Varnishes, finishes and enamels made of polyimides other than polypyromellitimide, polyimidazo-pyrrolones, aromatic polyamides, and polyparaxylylenes.

58120 Polyimides other than polypyromellitimide, polyimidazo-pyrrolones, aromatic polyamides, and polyparaxylylenes, and in products thereof.

59999 Hydraulic fluids, formulated wholly or in part with perfluoro-alkyl ethers.

65590 Textile tubing and hose lined with or covered with polytetrafluoroethylene or polychlorotrifluoroethylene.

66311 Diamond grinding wheels fabricated with polyimides (other than polypyromellitimide), polybenzimidazolas, polyimidazopyrrolones, aromatic polyamides, or polyparaxylylenes where the value of the contained polymeric substances is 50 percent or more of the total value of the materials used.

66494 Glass fiber optic plates specially designed optically for image intensifier or image converter tubes.

66700 Materials suitable for application in electromagnetic devices making use of the gyromagnetic resonance phenomenon.

68120, 68310-68323 Magnetic materials containing platinum or nickel, having any of the following characteristics: (a) grain oriented sheet or strip of a thickness of 0.1 mm. (0.004 inch) or less, (b) initial permeability 70,000 gauss-oersteds (0.0875 henry per meter) or over, (c) remanence 98.5 percent or over of maximum flux for materials having magnetic permeability, or (d) a composition capable of any energy product greater than 6 times 10° gauss-oersteds. 68931-68932 Magnesium base alloys containing 10 percent or more lithium. 68950 Magnetic materials containing cobalt or vanadium, having any of the following characteristics: (a) grain oriented sheet or strip of a thickness of 0.1 mm. (0.004 inch) or less, (b) initial permeability 70,000 gauss-oersteds (0.875 henry per meter) or over, (c) remanence 98.5 percent or over of maximum flux for materials having magnetic permeability, or (d) a composition capable of an energy product greater than 6 times 10° gauss-oersteds. 68950 Lithium alloys containing 50 percent or more lithium. 69211-69299, 69891, 69892, 69899 Jacketed containers for the storage or transportation of liquefied gases at temperatures below minus 274° F. (minus 170° C.) as follows: (a) all sizes having multi-laminar type insulation under vacuum, and (b) having other insulating systems, with a liquid capacity of 250 to 500 gallons, specially designed for gases boiling below minus 328° F. (minus 200° C.) and having an evaporation loss rate of less than 3 percent per day.

71142 Jet engines of 5,000 to 9,000 pounds thrust, turbo-prop and turbo-shaft engines of 2,500 horsepower or more or with a residual thrust of 1,000 pounds or more, and parts and accessories therefor.

71510 Gear grinding machines, generating type, capable of accepting gear blanks of 9 inches (228 mm.) work diameter or more, for the production of helical or herringbone gears.

71510 Machine tools designed for or equipped with open-loop or nonelectronic closed-loop numerical control systems specially designed for controlling coordinated simultaneous (contouring and continuous path) machining movements in a machine tool in two or more axes.

71523 Flame cutting machines designed for or equipped with open-loop or nonelectronic closed-loop numerical control systems specially designed for controlling coordinated simultaneous (contouring and continuous path) machining movements in a machine in two or more axes, and parts and accessories therefor.

71915 Cryogenic refrigeration equipment consisting of, or containing as components thereof, jacketed containers for storage or transportation at temperatures below minus 274° F. (minus 170° C.) with multi-laminar type insulation under vacuum, and specially designed parts, n.e.c.

71919 Processing vessels specially designed for chemically processing radioactive material; and specially designed parts and accessories, n.e.c.

1919 Other machines and equipment, n.e.c., specially designed for use in processing of irradiated nuclear materials to isolate or recover fissionable materials; and specially designed parts and accessories, n.e.c.

1922 Compressors for jet engines of 5,000 to 9,000 pounds thrust or for turboprop or turbo-shaft engines of 2,500 horsepower or more or with a residual thrust of 1,000 pounds or more; and parts therefor.