Business: Relief for Distress

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To relieve the "genuine distress" of the lead and zinc industry. President Eisenhower announced the expected quotas that will cut imports of the two metals 33% from their current levels. Set at 80% of the 1953-57 average, the quotas will allow imports of 354,720 short tons of lead, v. a five-year average of 481,638 tons, and 520,960 short tons of zinc, v. a five-year average-of 651,200 tons.

The announcement came as 21 foreign ministers from Latin American nations gathered in Washington for an informal conference, brought a quick protest from countries dependent on lead and zinc exports. Peru's Raul Porras Barrenechea told Secretary of State Dulles: "Imposition of quotas amounts to economic aggression." Said Dulles: "It is the hope of the United States that the quota system will be a temporary measure."

Mindful of the U.S. Tariff Commission's recommendations for boosting tariffs, foreign nations regarded quotas as much the lesser evil. They were fully aware that U.S. mine production has fallen while imports have climbed (see chart). Canadian politicians railed at the ruling, but Canadian miners were more subdued. "It's easier to get rid of a quota than a tariff," said V. C. Wansbrough, vice president of the Canadian Metal Mining Association.

Hardest hit nation will be Peru, which stands to lose $12,000,000 a year in dollar earnings, or about 4% of all export income. Mexico also faces a loss of $12,000,000 in the year ahead, plans to minimize unemployment by giving smaller mines a break on apportionment of quotas within the country. Bolivia will lose $1,000,000, Australia $5,000,000. Some governments will have to cut back budgets to accommodate reduced revenues, may possibly slap on discriminatory quotas against U.S. goods in retaliation. But the State Department hopes the quotas will give an important push toward working out an international agreement to stabilize the prices of lead and zinc, hopes that the necessity for the quotas will then be eliminated.