Chairman RICHARDS. And different types of programs with individual countries. Mr. VORYS. Here is defense support. We know what that means. That is economic aid. But it is certainly different from direct forces support, which is also economic aid. Then there is development assistance, which is an entirely different thing and has an entirely different connotation. Mr. HOLLISTER. You can build a road in one country and build a road in another country and they call it by different terms. Mr. VORYS. Development assistance in Latin America has a different kind of meaning than it has in the Middle East and Asia. I think development assistance is the one in our whole concept. which is the fuzziest and needs a little reappraisal. Chairman RICHARDS. The structure of the bill may require additional study. If that point comes up in the committee, we will want to hear the lawyers on that. Mr. CUTTER. We will have them. We have two of them here now. Chairman RICHARDS. We will call you in later on that, gentlemen. Mr. HOLLISTER. There were a few points I wanted to cover. Perhaps I can file a memorandum. I did want to talk about the surplus. agricultural products. Chairman RICHARDS. We may want to hear from you while we are writing up the bill. Without objection, the committee will receive for the record of the hearings such additional statements as Mr. Hollister and Mr. Murphy may wish to submit. (The following statements were subsequently submitted for inclusion in the record at this point:) STATEMENT SUBMITTED BY HON. JOHN B. HOLLISTER, DIRECTOR, INTERNATIONAL COOPERATION ADMINISTRATION I. AGRICULTURAL SALES Interest was expressed during the hearings in the aggregate volume of agricultural sales financed by Government aid programs since World War II. The Department of Agriculture has furnished some figures for the record. I present to you some charts dealing with this subject and give you some further figures. Since World War II, there have been about $33 billion of exports of agricultural commodities from the United States. Governmentfinanced programs have accounted for $12 billion of these, or 37 percent. A tabulation of the detail of these exports has been furnished you by Mr. Garnett for the record. From the beginning of the Marshall plan aid in April 1948 through December 31, 1955, total United States agricultural exports amounted to about 24 to 25 billion dollars. During this same period, ICA or its predecessor agencies have financed over $6 billion of agricultural exports; including $2.2 billion of cotton, nearly $2 billion of bread grains, nearly $600 million of coarse grains and over $500 million of tobacco as well as substantial amounts of other products. Thus about onequarter of all the agricultural exports from the United States were financed from the mutual security program or its predecessors. This fact is not generally understood. Your interest, of course, is principally in those sales of agricultural exports which are directly financed from the mutual security program under section 402 of the Mutual Security Act and similar section 550 of prior act. For fiscal years 1954 to 1957 this is shown in broad outline on chart A attached. The solid part of each bar (top) indicates the shipments to Europe. The shaded area (bottom) indicates the shipments to other areas. As the program shifts its emphasis to other areas than Europe, it becomes more difficult to use agricultural commodities. This is because in many of the areas in Asia and the Middle East, to which the bulk of mutual security assistance is now moving, there is far less opportunity to dispose of agricultural imports than in Europe. In the current year we have made exceptional efforts and we will certainly move a little better than $300 million in agricultural exports. The charts, prepared a few days ago, do not fully reflect this accomplishment. In the light of the difficulties encountered this year, I think $250 million is about all we can hope to accomplish in fiscal year 1957, although we shall try, as we have in the past, to exceed our quota. I call your attention to the fact that the column for fiscal year 1954 does not include certain grants furnished in the form of agricultural commodities. Chart B shows a breakdown of the total disposal of agricultural commodities (including certain grants in fiscal year 1954 not reflected in chart A) during the period from July 1, 1953, to March 31, 1956. (The chart referred to is as follows:) CHART B ICA DISPOSAL OF SURPLUS AGRICULTURAL COMMODITIES Total FY 1954, 1955, 1956 (thru March 31) * Chart C shows our estimated total program, for the current fiscal year, 1956, of sales under section 402 of the Mutual Security Act, through March. (The chart referred to appears on p. 922.) We expect to do somewhat better than the $299 million programed at the end of March. By then $259 million had been actually obligated. The bar charts at the right show the breakdown by commodities. Our section 402 program, as Mr. White testified to you over 2 weeks ago, is closely related to the program under Public Law 480. (a) Public Law 480, title II (under which agricultural commodities are donated for emergency purposes) is administered by ICA. (b) The balance of the program is primarily administered by the Department of Agriculture, although certain programs involving the relending of the local currency paid for commodities sold under title I are administered by ICA. Chart D shows the total breakdown for fiscal year 1956 by obligations as of March 31, 1956. (The chart referred to appears on p. 923.) 75009 - 5659 |