Mr. ESKILDSEN. We have about 17 separate country programs so far.

AGRICULTURAL EXPORTS UNDER BARTER, FISCAL YEAR 1962

Mr. WHITTEN. I have been told that you supplied some 3 million bushels of feed to Australia and New Zealand under one of these export programs, which in turn had been used to help them increase the production of cattle. Do you know anything about that?

Mr. ESKILDSEN. We have not provided any feed to Australia or New Zealand under the Public Law 480 programs. The only reference I could think of would be possibly to the CCC export credit sales program.

Mr. WHITTEN. Could you see whether we have recently made any sales on a long-term basis to any of these competitors?

Mr. ESKILDSEN. I am certain, Mr. Chairman, we have not made any sales under title IV or title I, or furnished commodities under title II. It is possible that some sales of some commodities under the CCC export credit sales program have been made and it is also possible some barter shipments may have gone to those countries.

Mr. WHITTEN. I would like the full story on barter and credit sales and the countries to which they have gone, for wheat, corn, and other grains. I mentioned the two countries, but I would like to know what other countries and what the terms may have been.

(The information requested follows:)

The following schedules show by kind of commodity and country of destination agricultural commodity exports under barter contracts for fiscal years 1962 and 1963. Although bartered cotton and tobacco have been exported in some years to Australia and New Zealand, no other agricultural commodities have been shipped to these countries under the barter program.

Barter records do not indicate whether or not any of the bartered wheat exports were used for animal feeding. However, because virtually all of the wheat moving under barter was of the qualities used for processing into flour, it is assumed that it would have been uneconomic to use this wheat for feeding purposes.

Country of destination-Agricultural exports under barter, fiscal year 1962 [Value in thousands of dollars]

Country of destination-Agricultural exports under barter, fiscal year 1962-Con.

Source: From operating records, subject to adjustment upon final accounting.

Country of destination-Agricultural exports under barter, fiscal year 1963

3 Formerly Belgian Congo and Congo, Republic of the.

Source: From operating records, subject to adjustment upon final accounting.

COMMODITY CREDIT CORPORATION EXPORT CREDIT SALES PROGRAM

AUTHORITY

The Commodity Credit Corporation initiated the export credit sales program on February 7, 1956, under the general authority contained in the CCC Charter Act, as an additional means to reduce Government holdings of surplus agricultural commodities and to expand dollar sales of such commodities.

PROGRAM POLICIES

Commodities eligible under the program are those in CCC inventory including tobacco under CCC loans. CCC will defer payment to qualifying exporters for periods up to 3 years depending upon their need to extend credit to foreign buyers in certain areas and under specified circumstances. The program is designed to promote additional dollar export business by the extension of credit to exporters who make sales which extends to the importer the full credit benefits extended to them.

The length of the credit period granted varies according to countries and varies inversely according to the countries' general financial rating. A prime aim of the program is to avoid displacing obvious U.S. cash dollar sales. Generally speaking, CCC credit may be extended if it is determined such credit

31-088-64-pt. 3-32

will serve to (a) maintain, expand, or obtain new dollar markets, (b) meet foreign competition, or (c) displace Soviet bloc country commodity export sales.

PROGRAM PROCEDURES

Upon acceptance by CCC of the bank obligation, CCC will not hold the exporter responsible for payment but will look only to the U.S. bank for payment. To the extent that the bank obligation is issued on the basis of the importer's line of credit, the exporter's line of credit will not be used.

Applications under the CCC export credit sales program set forth the dollar value and quantity of commodities to be purchased, the port of export and country of destination, the period during which purchases will be made, the period of deferred payment desired, the extent to which the credit will be extended to importers, and the name of the bank in the United States which will assure payment and the document to be executed for this purpose. If the application is approved, the exporter may, but is not obligated to, purchase commodities from CCC.

If the exporter intends to use the credit, however, he must buy the commodities within the purchase period and in accordance with the applicable CCC export sales announcements to the extent commodities are available in CCC inventories, or under loan in the case of tobacco. He must also furnish to CCC, in accordance with the applicable export sales announcements, proof of exportation of the commodities purchased (or substitute commodities) after they have been exported and documentary evidence the commodities have been imported into the country designated in the credit approval.

Payment for the value of commodities plus interest must be paid on the day following the expiration of deferred-payment period. Interest is payable at the rate announced by CCC as being in effect on the date of purchase and will run from the delivery date to expiration date of the deferred-payment period. Payment may be made earlier than the expiration date in which case the interest shall run to the date of payment. Interest rates are announced each month by CCC and are established for a period of 90 days in each credit approval.

Following is a list, by country, of export credit sales of grains for the period January 1962 through February 1964. It reflects no sales to Australia or New Zealand.

Purchases under the CCC export credit sales program (grains only), January 1962 to February 1964