Senator Cannon.

Senator CANNON. Thank you very much, Senator Engle.

I would first like to present the statement from Senator Magnuson,. which is as follows:

I sincerely regret being unable to attend hearings on trade patterns in the Pacific Ocean area beginning May 20 in Los Angeles and continuing on May 23 in San Francisco. Unfortunately, prior binding commitments prohibit my participation at this time. However, I intend to carefully review the testimony taken at these hearings.

During the past hearings on Pacific trade patterns, the committee has learned a great deal about American exports to, and imports from, this vital area. Of course, those of us from the Pacific coast know full well how important this trade is to the economy of our States and to the Nation as a whole. My own State of Washington exports both agricultural and manufactured products to many nations in the Pacific, but predominantly to Japan-our annual exports to Japan amounting to over $40 million-and we also benefit through the goods of other States shipped out of Washington's ports. With the continued economic growth of Japan, Taiwan, the Philippines, and other populous nations, the potential for further growth is tremendous.

The Senate Committee on Commerce has consistently worked toward an expansion of trade. Our hearings on this subject predate last year's Trade Expansion Act. But, in my estimation, there is a need for the United States to give greater attention to the trade potential in the Pacific.

I am certain that Senator Engle, whom I have asked to chair the hearings in California, together with Senator Bartlett and Senator Cannon, who will also aid in these hearings, will develop a full and useful record on this subject. Please give my personal greetings to Governor Brown and the witnesses testifying on behalf of Governor Burns, as well as all other witnesses at these hearings.

It is a pleasure for me to present this statement on behalf of Senator Magnuson for the committee, and on my own behalf I want to express my appreciation for the opportunity to join here today with the chairman of this hearing, Senator Engle, in receiving the testimony that may be presented in order that we might better evaluate the problems and try to assist in a proper solution of something that is so vital to the western portion of the United States and the Pacific area.

Thank you very much, Mr. Chairman.

Senator ENGLE. Thank you, Senator Cannon.

Our first witness this morning will be Mr. Francis Wilcox, the general manager of Sunkist Growers, president of the Los Angeles Chamber of Commerce, on behalf of the regional export expansion council.

Frank, we are very glad to have you here today.

Frank Wilcox is an old friend of mine. I have know him for many years, and he is one of our distinguished business and civic leaders.

We are delighted that you would come here as president of the Los Angeles Chamber of Commerce, especially to speak on behalf of the regional export expansion council, which is an organization of deep interest to us.

You may proceed with your prepared statement, if you have one, or you may ad lib, if you care to do so.

STATEMENT OF FRANCIS WILCOX, GENERAL MANAGER OF SUNKIST GROWERS, PRESIDENT OF THE LOS ANGELES CHAMBER OF COMMERCE, LOS ANGELES, CALIF., ON BEHALF OF THE LOS ANGELES REGIONAL EXPORT EXPANSION COUNCIL

Mr. WILCOX. Thank you, Senator Engle and Senator Cannon. May I, on behalf of Los Angeles, welcome both of you gentlemen and your staff here to our area. We are honored that you would come and hold one of your hearings in southern California so that we may have the opportunity of not only telling you our story but also of having a personal visit with you-with my compliments and best wishes to both of you.

It is my privilege to represent the Los Angeles Chamber of Commerce and to make a statement with reference to the importance of world trade in this area, particularly referring to the consistent interest and promotion of world trade by the Los Angeles Chamber of Commerce since its formation 75 years ago.

It is certainly significant that this hearing is being conducted in Los Angeles during World Trade Week, as I am sure Senator Engle realizes that it is a national observance proclaimed by the President of the United States. However, it is with pride that we call attention to the fact that in 1927 the Los Angeles Chamber of Commerce, realizing the necessity for directing attention to the importance of our harbors and the close relationship of world trade to economic development of the area and the well-being of its citizens, first initiated World Trade Week. The following year, other cities, particularly on the Pacific coast, followed this worthwhile example, and in 1936 it was first proclaimed as a national observance by the President of the United States.

The Los Angeles Chamber of Commerce has pursued a vigorous world trade development program since 1898, when it exhibited at the Guatemala Exhibition and the Hamburg Fair in Germany. It has for more than 40 years sponsored trade development campaigns with the Orient, South America, Europe, and other important markets. Our organization has always maintained a strong world trade committee and world trade department staffed with experienced and trained world trade specialists. The world trade department issues a special bulletin containing world trade leads and international reports. Close contact is maintained with 180 chambers of commerce abroad, as well as with our own governmental agencies, foreign government organizations and trade groups.

May I state here, Senator Engle, that we are very pleased with the functions of the Government officers in the Los Angeles area, particularly that of the Department of Commerce under the direction of Mr. Ed Bates.

The world trade committee consistently studies matters relating to world trade and has supported legislation that would be helpful in increasing commerce with other nations. Since the beginning, the Los Angeles Chamber of Commerce has endorsed the reciprocal trade agreement program. With the expansion of the industry of this great metropolitan area, the chamber sponsors conferences, workshops, institutes to inform the business interests of the community as to the means of how to export and import, how to expand world markets,

problems in doing business abroad, effects and future trade with the European Common Market, as well as the trade opportunities in every other major world area. Close contact is maintained with consular and trade officials of other countries, and today Los Angeles has 46 consulates and 17 trade offices. The world trade department works closely with the very efficient and well staffed district office of the U.S. Department of Commerce and other local governmental agencies.

Of particular interest to this hearing, perhaps, has been our vigorous trade promotion with the countries bordering the Pacific. Regular trade missions have covered these markets carefully and published trade opportunities which exist there. It is well known that the trade with Japan is of first importance and has shown phenomenal growth, particularly in the last 10 years. Although other countries of the Pacific area do not report a market of equal importance with Japan, every effort is made to assist producers and manufacturers of California products to increase their trae with such markets as the Philippines, the Republic of China, Korea, Hong Kong, Malaya, Vietnam, et cetera. Statistical data is not included in our statement, for this information is compiled and made available only through the Bureau of Census, U.S. Department of Commerce.

In this regard, we would like to state that your assistance would be appreciated in getting the Bureau of Census to furnish data broken down by customs districts, showing the dollar value, our world trade with individual countries, both as to exports and imports, commodities of principal importance and countries of designation and origin, and we urge that this be done at a very early date, as one of the first and prime steps in increasing our business, both exports and imports. Finally, we should like to restate the position of the Los Angeles Chamber of Commerce with which you are familiar, that serious injury and increasing costs will result to the world trade interests of this area, unless adequate customs facilities are maintained in the central downtown Los Angeles metropolitan area. Supporting data for our position has been made available on numerous occasions to your office and to committees of Congress, who have jurisdiction in such matters.

Now, may I leave my script for a moment, Senator Engle, and say, first, that we are very fortunate in having two of the finest ports that I think exist, not only in the United States, but throughout the world. These ports give facilities for the bringing in of goods and also for the taking out of goods.

One matter that has concerned us, and which I am sure an interest is shown by all factors, is the matter of our labor difficulties which have occurred from time to time. Without placing the responsibility for that matter on any one group, we feel that continuous, constant operation at the ports is necessary in order to further develop our export-import trade. This is particularly true in connection with the many perishable commodities that we have, such as the particular commodity that I am interested in, citrus fruits.

We have lost shipping opportunities for a matter of several weeks on various occasions during the last few years. This interrupts our trade and this trade that is lost cannot be gained with this type of operation.

Next, I should like to mention the fact that we have in this area, I think, through banks, through insurance companies, through other

private institutions fine credit operations for carrying on exportimport trade.

I should here like to encourage further operations of the ExportImport Bank so that there are full credit functions for the selling of goods produced and manufactured in this area.

May I say here that the Export-Import Bank has greatly developed its function during the last 12 to 18 months, and we feel that this, coupled with private institutions, now gives us generally a good credit situation for exports and imports.

Finally, in this regard I should like to mention barriers. It is my opinion, and this is a personal opinion, that this does not require additional legislation because under our Recpirocal Trade Agreement Acts and under other legislation that we have on the statute books it seems that this is one of negotiation.

As you know, Japan, because of its dollar situation-and I do not speak this critically but simply as a fact statement--has built substantial barriers. Some of these barriers continue. They are not only of the tariff-barrier nature but they are of quotas which definitely restrict commodities going into Japan.

Again, I can refer to this specifically in connection with citrus and citrus products, and that is typical of a number of other products which are definitely restricted.

We are concerned here in this area with restrictions that are being placed by the Philippines. Each time a business is developed there, it seems that there are restrictions that in many cases almost prohibit the exports from the United States.

I think I recognize, as much as any person, the need of importing so that there can be proper exchange, dollar exchange with all of these specific Pacific countries, and we propose to do just that.

In the world trade activity, as we function through the Los Angeles Chamber of Commerce, and through this World Trade Week, which is in effect on this occasion, we pay as much attention to imports as we do to exports, and this is demonstrated in all of our bulletins.

In closing, may I thank you two leaders of this country for your position of coming here and for the opportunity which many of us have of pointing out the extensive and vigorous programs and projects not only of the Los Angeles Chamber of Commerce but of private institutions which we feel are necessary in carrying out a vigorous field of world trade. You may be sure that we will continue to work with you in cooperating with the port authorities of Los Angeles and Long Beach, and the Los Angeles International Airport, and the numerous organizations and associations in the field of world trade and shipping. We feel confident that trade from this area will show substantial increase.

The committee that was established here some years ago by the Department of Commerce, taking in a cross-section of all of our business leaders, our civic organizations, our universities, and institutions, of which I was privileged to be chairman for a number of yes, has contributed much to bringing detailed data and information to many new businesses that were not previously in the export-import business. This is now being carried on under the chairmanship of Dean Dodson, dean of the school of business and commerce at the University of Southern California. Many of us have the privilege of continuing

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to be members of that organization, and we pledge to you and pledge to the Department of Commerce continued interest in this regard.

In this regard I think that we have a responsibility as business people working closely where it is desirable with Government agencies to be sure that trade with Pacific countries is not neglected, even though we recognize now that much of the publicity, much of the activity is being carried on in the European countries because of the Common Market.

I shall be glad to attempt to answer any questions if there are such, and, again, thank you for your friendship and support of our industries.

Senator ENGLE. Thank you very much, Mr. Wilcox, for that very excellent statement and the background which was given to us with respect to the activities of your organization and the city of Los Angeles.

I will have to say that I was a little astonished to hear that the first exhibit was at the fair in 1898 in Hamburg. Is that what you said? Mr. WILCOX. That is right, yes.

Senator ENGLE. I would like to ask you some questions a little later about how these trade exhibits are going at the present time, but before I do that would you indicate what kind of success your company, which is a very great and important company in this particular field of operation, has had in getting into these overseas markets?

Mr. WILCOX. Last year, in 1962, of our fresh citrus fruits from California and Arizona, about 22 percent went into export markets. That shows the importance.

The major part of this has gone to the European countries because of restrictions in Japan and the other Pacific coast markets. We do have, and have established definite relationships with, processors in Japan, in Hong Kong, and in the Philippine Islands. These are contracts and negotiations similar to those established by Coca-Cola; in fact, some of them are the same firms where we furnish the raw product and then permit them to use the name of Sunkist in their franchise drink operations.

Senator ENGLE. This overseas business is largely, I take it, in the form of concentrates and one thing and another; it is not in the natural fruit?

Mr. WILCOX. In the natural fruit, in the European markets, that represents about 80 percent; in the Pacific markets, about 50 percent is fresh and about 50 percent are the so-called concentrates.

Senator ENGLE. I have talked to Senator Holland of Florida, from time to time about this problem. Relatively, how do we stand with reference to Florida? Do we export more or less in the citrus field?

Mr. WILCOX. On fresh fruit we export considerably more; on products they are the largest exporters. We work very closely with the Florida business interests and with Senator Holland.

Senator ENGLE. Incidentally, I call Senator Holland the third Senator from California, because of his intense and continuing interest in this whole problem, and he has been one of the major leaders, and, as you indicate, he has always been friendly and cooperative with the industry not only in California, but in Arizona and Texas and elsewhere in the country, where we have a vital interest in these matters.