FOREIGN ECONOMIC AND. COMMERCIAL POLICY


697


try to the licensing of certain minimum volumes of non-essential im-
port products. Belgium, for example, is understood to be maintaining
export licenses on steel products which are in plentiful supply in
Belgium, in order toý be in a position if necessary to create shortages
in the markets of countries where Belgian steel occupies an oligopolis-
tic position. This bargaining position is then used to assure the
acceptance by the other country of Belgian glass, lace, vegetables, and
similar products.* Indeed, in a review of its quantitative restrictions
before an OEEC group last October, Belgium stated that it would be
her policy to restrict exports to debtor countries by "an equal percent-
age in all categories across the board to maintain a balance between
essentials and less essentials".t Similarly, Italy in April 1949 was
understood to be licensing the export of steel to Austria and to be
requiring Austrian steel buyers to bargain with Italian vegetable ex-
porters in order to obtain steel export permits.1
   (2) A second motivation in maintaining export restrictions, closely
 analogous to the first, was to use such restrictions as a means of
 bargaining for products from trading partners which were in short
 supply.
   (3) In addition, countries desirous of fostering their fabricating
 industries have restricted the export of the raw materials and semi-
 processed products of those industries but have been more liberal in
 licensing the export of finished products. This practice has persisted
 in some cases, even though no shortage of raw materials or semi-
 processed products exists in the exporting country to justify the
maintenance of the restrictions.§ Thus, South Africa requires ex-
porters to sell 75% of their cattle hides and 50%   of their goatskins
to local tanners. I Similarly, the Dominican Republic and Haiti
maintain a prohibition on the export of mahogany and certain other
hardwoods for the dual purpose of conservation and the protection of
local handicraft industries.¶ Similarly, Brazil prohibits the export
of Hevea rubber plants** and oiticica (a source of drying oil) seedstt ;
indonesia prohibits the export of coffee and oil palm         planting

   * Cf. ECE, "Economic Survey of Europe in 1948", reprinted as
Committee
 Print of U.S. H. Rep., Com. on For. Affairs, p. 93: "Moreover, Belgium
was able
 to press its trading partners to accept considerable quantities of less
essential
 goods as a condition for the sale of scarce items." [Footnote in the
source text.]
 f Repto Tel. 7038, Paris, Oct. 25, 1949, Confidential. [Footnote in the
source
 text. Documents cited in source text footnotes have not been verified or
other-
 wise accounted for.]
 t Report on Efforts being made by Participating Countries to Reduce or Elimi-
 nate Trade Barriers, Bilateral Trade Treaties Desk, Trade Section, OSR,
Paris,
 p. 10, Confidential. [Footnote in thesource text.]
   § This practice has resulted in many of the so-called "dual
pricing" situations
 found in Europe today. [Footnote in the siource text.]
   11 Tel. No. 8, Pretoria, Jan. 9, 1950, Confidential. [Footnote in the
source text.]
   ¶ Foreign Commerce Weekly, Vol. XV, No. 11, June 10, 1944, p. 16,
and id., Vol.
XXVII, No. 5, May 3, 1947, p. 15. [Footnote in the source text.]
  ** Memo from C. 0. Erlanson, Assoc. Head, Div. of Plant Exploration and
Intro-
duction to S. B. Fracker, Research Coordinator, Agric. Research Adm., June
9,
1949. [Footnote in the source text.]
  tt Decree Law No. 904, Nov. 30, 1938, cited in memo to E. R. Sasscer, In
Charge,
Div. of For. Plant Quarantines, Dept. of Agric., June 14, 1949. [Footnote
in the
source text.]