Federal Trade Commission
Received Documents
Jan. 16, 1996
P894219
B18354900025

                  CONGRESS OF THE UNITED STATES
                       Washington, DC 20515

                "Made in the USA Policy Comment"
                      FTC File No. P894219
                        January 11, 1996

Office of the Secretary
Federal Trade Commission
Room 159
Sixth and Pennsylvania Avenue, NW
Washington, DC 20580

Dear Secretary:

We are writing to comment on the Federal Trade Commission's (FTC)
decision to hold public hearings on "Made in the USA".
advertising and labeling claims.  It is our understanding that
the FTC will use the forum to determine whether or not to
maintain or alter legal standards for "Made in the USA" claims.

We commend the FTC's dedication to American manufacturers and
consumers.  However, we feel that the 100 percent rule and
component precedent originally set forth by the Hyde Athletic
Industries, Inc.  Consent Agreement (File No. 922-3236) penalizes
companies committed to maintaining production facilities in the
United States.

As we continue to open our borders, many American businesses are
relocating abroad in search of lower wages and taxes.  Some
companies, however, have made a clear commitment to investing in
American workers.  They manufacture predominantly in the United
States and they rely on the marketing advantage of the "Made in
America" label to offset the higher costs of production they
incur.  Although these companies use some foreign components and
labor, they consider their products to be made in America.

Unable to fulfill the new requirements, American companies
profiting from the "Made in America" label may be forced to
follow current trends and move their production abroad.  High-
paying jobs will move overseas, and the American manufacturing
base will continue to shrink.

We hope that you will take the future of American manufacturing
and the American worker into account before applying this new                   PRINTED ON RECYCLED PAPER

standard.  The proportion of domestic content necessary to make a
product "American" must be flexible enough to reflect the
increasingly international nature of many industries.

We appreciate your consideration of these views.
                            Sincerely,

Marty Meehan                                     Neil Abercrombie
Member of CongressMembe    r of Congress
Tel. (202) 225-3411                           Tel. (202) 225-2726
FAX (202) 226-0771                             FAX (202) 225-4580


Joseph Moakley                                      John W. Olver
Member of Congress                             Member of Congress
Tel. (202) 225-8273                           Tel. (202) 225-5335
FAX (202) 225-3984FAX (202) 226-1224                             
                                                                 
Peter Blute
Member of Congress
Tel. (202) 225-6101
FAX (202) 225-2217