QUESTIONS PREPARED BY SENATOR SALTONSTALL Senator HOLLAND. Before we move ahead with this matter, Mr. Moore, I handed to you a list of questions prepared by Senator Saltonstall, who could not be here for this hearing. He had to attend another hearing. I suggested that you be ready to make replies called for and to properly respond to those questions. Are you ready to go into those matters now? Mr. MOORE. I am, Senator Holland. I would like to ask that Mr. McCoy come to the table as a witness. I would like to refer certain questions to him after making an opening statement or after answering the first question, if I may. INTERAGENCY TEXTILE COMMITTEE Senator HOLLAND. I am doing this at the request of Senator Saltonstall, although I am in complete sympathy with the questions asked and the position taken by him. I am very much interested in the proposal to establish an Interagency Textile Committee which I understand will be coordinated by the Business and Defense Services Administration. I realize that you are here this morning in support of funds for the mobilization functions of BDSA, but I would appreciate your giving this committee some information on your plans for the Interagency Textile Committee, which is of interest to most members of this committee. I am glad to see the Senator from Maine present, whom I am sure has a very great interest in this particular matter. As you may know, the conferees on the regular fiscal 1960 Department of Commerce bill considered a budget proposal of $200,000 the first year for this Interagency Committee. However, the conferees would not agree to this item because no budget estimate had been submitted to the Congress. COMMITTEE FINANCING I now understand that the Department does not propose to submit a budget request for funds to finance this committee work, but that the work will be accomplished within funds already appropriated to the Department for fiscal year 1960. Is my understanding correct? Mr. MOORE. The understanding that this committee will be financed from sums from the agencies is correct. Senator HOLLAND. Do you mean Commerce or BDSA? Mr. MOORE. No; the agencies that make up the Committee. Senator HOLLAND. Do you mean that the funds will come from the various agencies which have representation on the Interagency Committee? Mr. MOORE. On the Interagency Committee to support the activities of this committee. LETTER FROM THE PRESIDENT TO SECRETARY STRAUSS Here, I believe, Senator, is quite, should I say, a lack of accurate communications. Under date of May 18, 1959, the President wrote to Secretary Strauss. May I read excerpts from that letter? I have given considerable thought to the formation of an Interagency Textile Committee, such as recommended by the special subcommittee of the Committee on Interstate and Foreign Commerce, headed by Senator Pastore. This proposal has also been recommended to me by Senator Saltonstall and Governors Powell, DelSesto, and Furcolo. I think an ad hoc committee, chaired by the Department of Commerce, would be appropriate. The Committee would address itself to a number of important problems affecting the textile industry. The Committee should be composed of Assistant Secretaries or men of equivalent rank, from the Departments of Agriculture, Commerce, Defense, Labor, State, and Treasury, and from the Council on Foreign Economic Policy. The Committee should report informally to the Secretary of Commerce. Studies should be undertaken soon so that the Committee could give its counsel to the Secretary of Commerce before the 1960 session of the Congress. undertake the formation of this group as soon as you conveniently can. Please Senator HOLLAND. Those quotations are from a letter addressed by the President to Secretary Strauss on what date? Mr. MOORE. May 18, 1959. Senator HOLLAND. All right. LETTER FROM SECRETARY OF COMMERCE Mr. MOORE. Upon receipt of this letter, the various Secretaries and heads of the agencies mentioned were contacted, and this type of a letter was written, signed by the Secretary of Commerce, on May 22, 1959. I will read only excerpts. Senator HOLLAND. The whole letter will be placed in the record. (The letter referred to follows:) The Honorable the SECRETARY OF AGRICULTURE, MAY 22, 1959. DEAR MR. SECRETARY: By letter dated March 27 the Acting Secretary of Commerce invited you to nominate an Assistant Secretary to serve on an Interagency Textile Committee. In a reply dated April 3, Acting Secretary Morse nominated Assistant Secretary Clarence L. Miller to represent the Department of Agriculture. There is attached a copy of a letter to me from the President suggesting that I undertake formation of an ad hoc interagency committee, chaired by the Department of Commerce. The Committee will, as the President suggests, "address itself to a number of important problems affecting the textile industry." The Committee will be an informal consultative and advisory group to me on matters relating to the textile industry. I shall be glad to have Assistant Secretary Miller, whom you previously nominated, to be a member of this group. In view of the delay that has occurred in the establishment of this Committee, I shall be grateful for a response at your earliest convenience. Sincerely yours, LEWIS L. STRAUSS, THE WHITE HOUSE, Hon. LEWIS L. STRAUSS, DEAR LEWIS: I have given considerable thought to the formation of an Interagency Textile Committee, such as recommended by the special subcommittee of the Committee on Interstate and Foreign Commerce, headed by Senator Pastore. This proposal has also been recommended to me by Senator Saltonstall and Governors Powell, Del Sesto, and Furcolo. I think an ad hoc committee, chaired by the Department of Commerce, would be appropriate. The Committee would address itself to a number of important problems affecting the testile industry. The Committee should be composed of Assistant Secretaries or men of equivalent rank from the Departments of Agriculture, Commerce, Defense, Labor, State, and Treasury, and from the Council on Foreign Economic Policy. The Committee should report informally to the Secretary of Commerce. Studies should be undertaken soon so that the Committee could give its counsel to the Secretary of Commerce before the 1960 session of the Congress. Please undertake the formation of this group as soon as you conveniently can. Sincerely, DWIGHT D. EISENHOWER. IMPORTANT EXCERPTS Mr. MOORE. I will read the excerpts that I think are particularly important. The Committee will be an informal, consultative, and advisory group to me on matters relating to the textile industry. I shall be glad to have Assistant Secretary Miller he is speaking to Secretary Benson of Agriculture whom you previously nominated to be a member of this group. The thing that I wanted to point out was that it was an informal, consultative, and advisory group. Senator HOLLAND. This letter went out from the Secretary of Commerce to the heads of the other departments mentioned in the President's letter? Mr. MOORE. That is true, sir. I do not have with me all of those copies, but as I understand, that went out to all of them. PRESS RELEASE Then a press release was made, which was dated June 8, 1959. The Interagency Textile Committee and the Ad Hoc Committee, which the President in his letter of May 18 to Secretary of Commerce Strauss directed should be established, held its first meeting today at the Commerce Department. The chairman of the committee is Carl F. Oechsle, Assistant Secretary of Commerce for Domestic Affairs. Other members include Thomas C. Mann, Assistant Secretary of State for Economic Affairs; A. Gilmore Flues, Assistant Secretary of the Treasury; Courtney Johnson, Assistant Secretary of the Army; Clarence L. Miller, Assistant Secretary of Agriculture; Newell Brown, Assistant Secretary of Labor; Paul H. Cullen, Secretary, Council of Foreign Economic Policy; and A. Henry Thurston, Director of Textile and Clothing Division, Business and Defense Administration, Department of Commerce, is Executive Chairman of the Committee. The Committee will report informally to the Secretary of Commerce. It plans to undertake studies so it can give its counsel to the Secretary before the 1960 session of the Congress. The Committee was set up on the recommendation of the Senate Committee on Interstate and Foreign Commerce following a report on problems of the domestic textile industry, submitted by a special subcommittee. The point I am making is this, sir: that such a committee was not to have funds to do any operating. It was simply an administrative advisory committee to the Secretary of Commerce. This question that you read pertaining to the Interagency Textile Committee can be answered that the funds that they will use, which really consist only of time and effort on the part of these men, can be absorbed by the agencies. EMPLOYMENT OF EXPERTS Senator HOLLAND. I understand from our hearings in this committee on the annual bill that certain experts may have been secured and employed to assist the Interagency Committee. Is my understanding correct? Mr. MOORE. Your understanding may be completely correct, but that was not our understanding, sir. Senator HOLLAND. We will strike the question and answer because I am advised that that understanding applied to the Transportation Committee and not to this one. The second question: How much do you expect this work to cost for the first year? I think your answer has already taken care of that. You are not asking any additional funds. Third, do you expect to fund this work through your regular agency requests in future years? Again, you have no such expectation at this time. Mr. MOORE. Because this may be only a temporary committee and may break up. Senator HOLLAND. 4. Which agencies within and outside the Department of Commerce will participate in the study? I think you have already put a clear showing on that into the record. 5. Do you expect to hire any additional personnel for this work and, if so, what types of experts or advisory personnel? Mr. MOORE. Not for this committee, sir. Senator HOLLAND. 6. Will industry participate in this study? RELATION TO DEFENSE MOBILIZATION FUNCTIONS Senator HOLLAND. 7. Will the work on this study be related in any way to the defense mobilization functions of BDSA for which restoration funds have been requested? Mr. MOORE. Not in that context, although it could well be related to defense mobilization work. Senator HOLLAND. Now I have completed asking the questions which Senator Saltonstall left with me. If there are other questions in this same field, I will be glad to yield so they can be asked. Senator Smith? Senator SMITH. Mr. Chairman, I only want to clarify in my own mind the matter of the makeup of this committee. This committee that we are discussing now is not on the same basis that the Transportation Study Committee is? ADDITIONAL STUDY ON TEXTILES Mr. MOORE. No, it is not, Senator; and possibly I should say here that there was another recommendation in the report of the subcommittee that an additional research study should be made. But it did not come, from our understanding, within the province of the Interagency Textile Committee. Senator SMITH. Would that be on the basis of the transportation study? Mr. MOORE. That, I would assume, if the Congress so desired, would be on the basis of the transportation study; yes. Senator SMITH. That would be, then, the study that would require a budget estimate? Mr. MOORE. That is true. Senator SMITH. I am a little confused because I had thought, Mr. Chairman, that this textile study that we have been discussing was on |