The situation may be stated another way: The United States has not, so far as apples and pears are concerned, built up its tariff barriers and other restrictions to keep commodities out of this country. Pear duties have remained constant for many years while apple duties have been reduced 40 percent since November 1935. We have not put ourselves in position to trade horses and, therefore, any concessions which Argentina may make which would fall short of being equal to our own requirements would be very far from satisfactory or just. In a court of equity a complainant is supposed to come into court with clean hands. No one can escape the sound conclusion that Argentina has deliberately built up every type of restriction for the purpose of keeping the United States entirely out of her market, while she has gone ahead under those barriers and built up her production and developed her foreign markets.

Comparison of United States and Argentine duties on 1 box of apples and pears (44 pounds net, 50 pounds gross)

Comparison of United States and Argentine duties on 1 carload of apples and pears using 500 boxes to the car

TABLE VI-A.-Imports of pears and grapes from Argentina to United States

TABLE VII.-Exports of apples and pears from United States to Finland, for years 1924-44 (export season for July 1 to June 30) 1

TABLE VIII.-Exports of apples and pears from United States to Sweden, for years 1924-44 (export season from July 1 to June 30) 1

TABLE IX.-Exports of apples and pears from United States to Brazil, for years 1928-44 (export season from July 1 to June 30)1

TABLE X.-Canadian imports of United States apples, net

NOTE.

26, 160 18, 761 118,565 34, 383 5, 322

133, 150
83.728

cent per pound as above.

Do.

636, 521

Do.

315, 220

Do.

33,098

Do.

Following the passage of the Hawley-Smoot Tariff Act, 1930, the Ottawa accord was and became effective.

negotiated

1 War conditions for these years. Fixed ceiling prices prevailed in Canada as in the United States during much of this period. Dump duties were not imposed, but ceilings were below those prevailing in the United States and Canadian exchange was at a discount.

TABLE XI.-Canadian exports to United States (carloads for crop season Aug. 1 to May 31 to show the development of understandings between the 2 countries) [U. S. Department of Agriculture data]

1600,000 boxes by an understanding. Canada had a surplus of 2,000,000 boxes, which they desired to ship. The United States regarded this proposal as excessive, since we had plenty of our own, hence a limitation to 600,000 was arranged.

'Canada crop was short and United States exported to Canada 736,000 bushels.

Or 650,000 bushels distributed in 22 States. In 1942-43 an understanding was reached between the 2 governments by which a limitation of 800,000 boxes was reached, 400,000 to be shipped between September and December and 400,000 between January and April. In consideration of permitting 50,000 additional boxes in December the total was reduced to 650,000 boxes.

• Short crop.

Canadian fresh apples may be shipped into the United States in any quantity the Canadians desire. In order to secure a degree of stability in the market, an understanding has been reached in recent years between the Canadian Department of Agriculture and the U. S. Department of Agriculture with representatives of the industries in both countries and the imports for 1944-45 were based on what is known as the Chicago formula. This is based on population, an estimate of the quantity of apples which can be used in fresh form in both the United States and Canada, an estimate on the quantity of the crop which will be placed in form for processing, the quantity which will be exported, and the combination of these gives the total utilization. These figures are applied against the crop estimate and when there is a surplus, the combined totals of the 2 countries are added together and divided by the combined population. This combined surplus divided by the combined population gives a per capita surplus. The per capita surplus multiplied by the population of the United States gives the quantity the United States is supposed to use and this quantity minus the surplus available in the United States constitutes the basis for the quantity the Canadians may import into the United States in order to equalize.

Under this formula a total of approximately 1,672,000 bushels was to enter the United States in fresh form and 932,000 bushels of Canadian processor apples were to be admitted into the United States. The Canadian Government issues permits governing the export from Canada. Under this formula the Canadian population factor was based on 11,500,000 and the United States 135,000,000. The quantity of apples for fresh use for Canada was 8,000,000 bushels and that for the United States 75,000,000. The quantity for the processor was 4,000,000 bushels for Canada and 36,000,000 for the United States. An additional million bushels were to be sent to the United States by Canada for processing. Approximately a million bushels were to be exported by Canada to the United Kingdom and 720,000 bushels to the United Kingdom from the United States. This gave a total utilization figure for Canada of 14,000,000 bushels and a total utilization figure for the United States of 111,720,000 bushels. The crop estimate for Canada as revised finally was 16,840,000 bushels. The crop estimate of the United States was placed at 124,212,000 bushels.

Using the combined surplus of nearly 15,000,000 bushels and the combined population of 146,500,000, a factor was reached of a surplus equivalent to 0.102 bushel per capita. This, multiplied by the 135,000,000 population, gave the United States share of surplus 13,770,000 bushels. The 13,770,000 bushels, minus the apparent surplus in the United States of 12,447,000 bushels, gave a balance of 1,323,000 bushels which Canada was to ship to the United States to equalize the supplies for the 2 countries. The Canadian crop overran the previous estimates so that the quantity shipped by Canada had to be increased to allow a total in fresh form of approximately 1,672,000 bushels, in addition to 932,000 bushels to be shipped from Canada for processing.

TABLE XI-A.-Volume and value of apples imported by Canada from United States and by United States from Canada, year ending Mar. 31

TABLE XII.-Showing the exports of United States box apples to Europe and eastern South America for the seasons 1919-20 to 1939-1940

(A)=Total for season to these points

(B) Via rail to United States Atlantic ports

(C) Loaded at United States Pacific coast ports and moved via Panama Canal

21,867,770-of these were exported via British Columbian ports during United States maritime strike. *Subject to correction due to war restrictions.

4 Details unavailable on account of war conditions.

NOTE. The above are not complete United States box apple shipments to Europe, because, while the port of Montreal is open, there is a movement of American apples, pears, plums to Europe, via this port, some of which originates as far south as California. During the season 1939-40 the movement of box apples via Montreal was 760,500 boxes, a considerable portion of which was of Canadian origin.

Source: International Apple Association.

Mr. FRASER. The International Apple Association is a nonprofit membership organization that has been in existence for 51 years. We have in our membership over 1,000 of the leading producers and shippers of apples and pears in the United States. We also had members prior to the war in 20 countries. We have a great interest in the development of international trade.

During 1930-31 we began to have so much difficulty that we became interested in the problem and it led to our coming to you to aid in the working out of the trade-agreements program. Since that time we have consistently supported the policy. We are here now in support of the extension of the act.

On page 4 I would like to direct your attention to our position in the United States. During 1914-15 we exported 7,054,503 bushels of apples. There was a marked rescession during the period of World War I. By 1920-21 we had recovered to the point where we exported 7,955,303 bushels. By 1930 our exports had reached 20,361,472 bushels. That was 20 percent of our commercial production of apples.

Then came the Hawley-Smoot tariff and we ran into trouble. Instead of 20 percent we had a marked decline. We submit the data in table I. We keep the data on our movements.