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Mr. KUNZE. There is another agency that supplies for us, the Bureau of Federal Supply. They have not bought very much, but they possibly should be added also.

The CHAIRMAN. The Treasury Department buys for them.

Mr. KUNZE. It is the same unit. They have bought very few things, so far; drugs, pharmaceuticals, things like that.

Mr. WHITE. I was about to tell you that some of these task forces have already reported back and a few of the projects are already in the development stage. Among these are a more complete commodity supplier data report; a new EČA booklet designed especially for the small-business man; a more satisfactory yardstick of what is small business, so as to measure accomplishment. This is being attacked from both within and without ECA. The task force being made up of representatives of the Department of Commerce, both Senate and House committee staffs, and the designee from the Statistical Division of ECA. We are exploring how to develop a catalog of likely exporters, along the lines of a directory of United States small-business suppliers, to be distributed overseas; also a break-down of industries likely to lend themselves to small-business participation; and, faster and more complete procurement authorization information from abroad.

In addition to these immediate and logical projects we plan to attack a few hard ones, using an air lift approach. By that I mean, we are not going to spend our time figuring out the reasons why it cannot be done, but rather, we will try to chip away at the project and perhaps will come up with a pleasant surprise or two. I have in mind such things as assisting a group of 16 New England manufacturers, all in the metalworking field, who complement each other and who believe they can collectively handle a prime contract, give some people employment and make some money doing it.

Such collective small-business efforts to compete may prove much more effective since they will more nearly approximate the competition offered by big business.

But, let me emphasize, we are not going to wait for the finished program. Our plans call for doing some additional, helpful things for small business now and as frequently as possible in the immediate future. We have spent 22 days on the job, and I believe we have made a

Our program will be positive. It will not be a crusade of lip service. It will not be a mere “wailing wall.” Small-business men want to know how they can get some business, and we aim to help them find out.

I believe we have a businessman's program on self-assistance. Everything is being designed to help small manufacturers who are willing and able to participate in exporting, let us say, those who are imbued with old-fashioned trading ingenuity, to gradually become exporters and thereby begin to participate in the ECA programs.

We assume, of course, that all. manufacturers do not want to, nor should they be urged to become exporters, even if that is the only way they can participate in the ECA programs.

We must educate them more on what ECA does or does not do. If, through a vigorous disseminating program which tells the small manufacturer what ECA can and cannot do, he becomes convinced that there is nothing in the ECA program for him unless he be an exporter, and if he decides that he wants no part of exporting, then it should follow that he might also stop complaining about not getting business by way of ECA programs.

However, if he is willing and able to export, we will leave no stone unturned to help him.

In the end, of course, every manufacturer will still have to sell his own products, either directly or through an appointed representative. He will still have to plug to capture his part of the overseas market, just as he puts forth his sales effort in the domestic market. Small Business Division plans to do is furnish, at a speed to be useful, as much information as possible, both to and from overseas, to enable equal opportunity for all business.

I look upon this Small Business Division as ECA's opportunity to make its greatest contribution to the domestic economy, without losing sight of its main mission.

Mr. Hoffman has emphatically told me, in one-syllable words, that he expects the Small Business Division to do everything possible for small business—and then a little more. Small business, to borrow his wordsis the hard core of American free enterprise and may well prove to be our second line of defense in this atomic age.

In conclusion, I wish to say that I believe that the Division is well on its way toward laying the groundwork to carry out the intent of your small-business amendment. This is due in no small part to the splendid cooperation we are receiving from every source, not the least of which is the staff of this subcommittee.

The CHAIRMAN. Mr. White, first of all, as chairman, on behalf of the committee, I want to thank you for the information you have given us, and for your appearance here. What objections are there to requiring foreign countries to set up purchasing missions here?

Mr. WHITE. I do not know anything about that, sir.
The CHAIRMAN. Could we do it?
Mr. WHITE. I have been concentrating on business procedures.

The CHAIRMAN. Do you think that we could put an amendment on the appropriation bill. I wonder what objection there would be to tying an amendment up with the appropriation, requiring all these countries to set up purchasing missions.

Mr. William J. Hoff (assistant general counsel ECA). The chief danger is getting away from private purchasing. You get into Government purchasing. That is one of the chief dangers.

The CHAIRMAN. The only thing that can be done, then, is to secure the records and give these people a list of names.

Mr. White. Give them some know-how. They will get that. That is available.

The CHAIRMAN. I have nothing else to ask at this time.

Mr. L'HEUREUX. You are looking into the program of making the plywood and lumber policy covered in ECA Release No. 563 applicable to all industries as far as possible?

(The release referred to follows:)

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ECONOMIC COOPERATION ADMINISTRATION RELEASE No. 563 WASHINGTON, Ápril 29.- The Economic Cooperation Administration issued the following statement today:

The following is a statement of the new policy effected by ECA regarding purchases of lumber and plywood:

In the future ECA will request all participating countries desiring to purchase lumber or lumber products for dollars to afford the United States lumber industry an opportunity to compete for the business. Before writing a procurement authorization where the requested area of source is other than the United States, EÇA will find out

(a) What it is they intend to purchase. (b) Why any other country, instead of the United States is named as the source. (c) Whether definite specifications were furnished bidders.

(d) Whether firm bids were requested and obtained from the United States lumber industry and any other pertinent information we deem necessary.

ECA policy on non-ECA dollar purchases by participating countries will be as follows:

In order to be consistent with the United States policy of nondiscrimination and in line with the general policy of ECA, which is to encourage participating countries to be economical in the use of their resources and particularly their dollar resources, ECA will request participating countries (when using non-ECA dollars)

(a) To make dollar purchases in the cheapest source.

(b) To canvass all possible dollar sources, including United States sources, in order to insure they are obtaining the lowest possible bids, and

(c) Certainly not to pay more from any dollar source than United States suppliers quote.

ECA recognizes that current market prices are not the sole consideration in the placing of purchase contracts. Where participating countries find that xceptional circumstances warrant paying higher prices with non-ECÀ dollars from certain dollar sources than prevail in others, they should be prepared to submit reasonable justification for such action to ECA.

ECA is always willing to discuss with representatives of industry any problems affecting their industries. Meetings may be arranged with Howard Bruce, Deputy Administrator; Samuel W. Anderson, Director, Industry Division; or Mathias Niewenhous, Chief, Lumber Branch, Industry Division.

Mr. WHITE. I understand it is under constant study, but each industry must stand on its own. There is a different state of facts and conditions for each industry.

Mr. L'HEUREUX. And you are working on the other suggestion made by Senator Maybank, that of developing a more detailed breakdown of purchases to be made by participating countries so that the printing and binding industry, for example, will know how much of that item is to be purchased in the various countries, in order that they can put their bids in on time? In the past ECA made announcements in the following general form:

Industrial machinery, including tertile, food products, machinery, wood working, printing and binding, office machines (commodity code No. 780)

(In thousands of dollars]

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Mr. WHITE. I hope we will have something constructive to report. That is a very hard thing to attack. It is being attacked, but it is not easy. Yes, it is being studied.

The CHAIRMAN. Thank you again, Mr. White. That concludes this hearing. (Thereupon, at 12 noon the hearing was adjourned.)

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