Statement by the President on the Administration's Program for the Domestic Wool Industry.

ON JULY 9, 1953, on the advice of the Secretary of Agriculture, I requested the United States Tariff Commission to make an investigation, under Section 22 of the Agricultural Adjustment Act, to determine the effect of imports of certain varieties of sheep's wool on the operation of the domestic price-support program for wool.

I now have the Report of the Tariff Commission, in which a majority of its members recommend the imposition of certain fees on imports of wool in addition to the prevailing duties.

At the same time as the Tariff Commission inquiry was initiated, I requested the Secretary of Agriculture to make a comprehensive study of the domestic factors which have contributed to the decline in sheep numbers and wool production in the United States, with a view toward the development of a sound and prosperous domestic wool industry consistent with an expanding international trade.

On the basis of this study, which was carefully analyzed and discussed by the interested agencies of the Executive Branch, I determined that domestic wool growers required continued price or income assistance in a more effective form than is now provided. I accepted the principal recommendations of the Secretary of Agriculture, which provide for government assistance to growers under an incentive payment plan during periods when wool prices are below the desired support level.

These recommendations have been submitted to the Congress. Hearings have been held before the Senate Committee on Agriculture and Forestry and a bill embodying these recommendations has been approved by that Committee. The enactment of this program by the Congress would eliminate the necessity for an increase in import fees or other limitations on wool imports, a course of action which I do not believe would best serve either the wool growing industry or the national interest. I am confident that this new program will appreciably contribute to the achievement of a sound and prosperous domestic wool industry, an essential component of a healthy overall economy and a strong defense.

In view of the fact that the Administration's new wool program is specifically designed to help remedy those conditions which prompted the Tariff Commission's investigation, I am taking no action on the Commission's Report.