Nixon Asks Broad Authority to Grant U.S. Trade Benefits to Any Countries Including USSR

President Nixon asked authority today to extend U.S. governmental trade benefits to any country, including the Soviet Union, without prior Congressional sanction when he deemed it in the national interest. But he offered Congress a compromise in the form of a veto on the issue of granting most favored nation status.

The President’s request was contained in a 134-page legislative proposal to Congress entitled the “Trade Reform Act of 1973.” His proposals appeared to be asking for more Presidential power over trade than any other American President in history to help meet the competition U.S. industry faces in overseas markets.

The President’s request no sooner reached Congress when Sen. Henry M. Jackson (D.Wash.) introduced the legislative measure bearing his name which would withhold most favored nation status from any country that denies its citizens the right to emigrate and which imposes more than nominal emigration fees. The Jackson measure is obviously aimed at the Soviet Union and the exorbitant diploma tax it levies on citizens seeking to emigrate, virtually all of whom are Jews.

The Jackson amendment is supported by 76 Senators. An identical measure introduced in the House by Reps. Wilbur Mills (D.Ark.) and Charles Vanik (D.Ohio) has the support of 275 Representatives.

In his proposal; Nixon said he would notify Congress at least 90 days in advance of concluding an agreement and if neither the House nor the Senate moved to block it, it would go into effect. He made it clear that he wanted the authority to grant the Soviet Union most favored nation treatment–tariff concessions, U.S. credits and investment guarantees–and thereby ensure repayment by the Soviet government of its World War II lend-lease debt.

Referring directly to the diploma tax imposed on Soviet Jews, Nixon said, “I recognize the deep concern which many in the Congress have expressed over the tax levied on Soviet citizens wishing to emigrate to new countries. However, I do not believe that a policy of denying most favored nation treatment to Soviet exports is a proper or even an effective way of dealing with this problem.” Nixon had on previous occasions expressed his wish to engage in “quiet diplomacy” on the emigration issue.

Sen. Jacob K. Javits, a leading supporter of the Jackson legislation, indicated that the veto proposal embodied in the Presidential statement would prevail. “It is my expectation that the Congress will build a check–that is a veto–in those areas of the bill which accord the President unusual new authorities,” he said.