This latter point applies equally to the statement in the President's message concerning the authority for the United States Trade Representative to establish new precedents relating to antidumping and countervailing duty matters. The message does not enlarge upon this statement. However, one could argue that it is

intended to allow the United States Trade Representative to make decisions now made by the Secretary of the Treasury; e.g. the

United States Trade Representative could decide that a particular adjustment to foreign market value will, in the future, be permitted under the Act.

I cannot emphasize enough that neither a reorganization plan nor the Presidential message accompanying it can expand or narrow the scope of a legislative grant of authority.

If the President wishes to change the present statutory scheme, he can do so only through the legislative 'process.

Mr. BROOKS. Our next witness is Hon. Gillis Long, who has been detained and is unable to be present.

I ask unanimous consent that his statement be put in the record at this point.

Without objection, it is so ordered.

[Mr. Long's prepared statement follows:]

OPENING REMARKS OF GILLIS W. LONG, October 18, 1979

SUBCOMMITTEE ON LEGISLATION AND NATIONAL SECURITY, COMMITTEE ON GOVERNMENT OPERATIONS

Thank you Mr. Chairman and Members of the Subcommittee. I want to thank you all for the opportunity to appear before you again to discuss the question of reorganizing our trade bureaucracy. Mr. Chairman, I am convinced that trade reorganization is one of those often overlooked areas that is critical to our international economic performance in the 1980's.

Just over a month ago, I appeared before your subcommittee to express my keen disappointment in the President's first proposal on trade reorganization. Shortly after my testimony, I had a long, frank, and I think fruitful, discussion with the staff of the Office of Management and Budget. There were similar meetings with other interested parties in the House and the Senate.

Since that time, Mr. Chairman, the President has come forward with a modified trade reorganization plan and announced the formation of a new trade team. I am pleased that I can say nice things about both.

I know that Governor Askew has long had an interest in improving the export performance of the United States, and I think we have every reason to expect a first-rate performance from the Governor and his strong supporting cast.

I was also pleased when the President submitted his trade reorganization plan to the Congress. The proposal still does not go far enough, and it leaves an unmet need for further restructuring to another year. But I do feel that many of my own deep concerns about the original proposal have been met in the President's reorganization plan.

The central point has been met: The United States Trade Representative is given a clear leadership role as the American spokesman on trade matters. The President has eliminated the previous ambiguity about whether the Trade Representative, the Trade Policy Committee, the Secretary of Commerce, or the " Undersecretary for Trade was the American voice on trade matters.

Under the President's plan, the Trade Representative will .be given responsibilities in several new areas. The emphasis on including service industries such as banking and insurance in the formulation of trade policy should strengthen our international position. I was particularly glad to see that the trade representative was given explicit responsibility for the development of U.S. export policy an area that has long been neglected and one that is vital to the international economic health of the country.

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There were several other apparently small changes in the role of the Trade Representative that should improve policymaking and coordination in the future. The Trade Representative will now be on the Board of the Export-Import Bank and the Overseas Private Investment Corporation. Even more important, the Trade Representative will now be a member of the National Advisory Council on International Monetary and Financial Policies. For the first time, the Trade Representative will have an institutional voice on exchange rate and other international financial policies that have such a major impact on our trade performance. The addition of the Department of Labor to the trade negotiating committee should assure the Trade Representative of valuable advice from an important constituency.

The President has chosen to consolidate operational responsibility for part of the trade agreements implementation, export promotion and enforcement of our laws against unfair trade practices in an expanded Department of Commerce. As you know, Mr. Chairman, I have serious reservations about any longrun decision to split policymaking and operations. There is too much opportunity for the right policy brain not to know what the left operational hand is doing. Worse, in cases where the hand is faster than the bureaucratic eye, there is the danger of policy confusion and inconsistency. All that said, I understand that the Commerce Department is doing its diligent best to make a smooth and effective transition to its new trade role.

Mr. Chairman, last month I told your Committee that the country needs a full-fledged Department of Trade. My own compromise proposal for a small, independent Special Trade Agency was designed to be the first, politically possible step in that direction. Even that half loaf has proved too ambitious for the present. I can accept the proferred quarter loaf with a relish, but also with a good deal of anticipation, for there is much more baking to be done.

Before we look to the future of U.S. trade, Mr. Chairman, there are certain features of the President's reorganization proposal that should be clarified. First, under the President's plan, the Trade Representative will have greatly expanded responsibilities: But power without people can force any trade representative to neglect some areas while he tends to others. So far, the Office of Management and Budget has been unwilling to commit itself to any specific figure for the Trade Representative's staff. In fact, the OMB has engaged in something of a fan dance with figures Mr. Chairman, as an absolute minimum, the Trade Representative should have a staff of one-hundred and thirty to one-hundred and fifty (130-150). As we go forward with the reorganization plan, I think we must have a clear commitment from OMB about staffing levels.

Second, the President has not issued a final executive order on trade reorganization. I think most participants in the trade reorganization debate are satisfied with the language of the draft executive order that accompanied the President's trade reorganization proposal. I, for one, would feel much better if the final executive order had already been issued.

Mr. Chairman, I am convinced that the President has

taken a thoughtful first step in the right direction. Although there remains much to be done in streamlining and strengthening our trade bureaucracy, the President has given us a good start. It was also another instance in which the Administration worked

closely and responsively with the Congress. I am already looking forward to working with them again as we move to put the United States on an equal footing with our major trading partners.