areas and appropriate representation to officials of the European Economic Community. Recommendations for the departmental positions on trade agreements and international commodity agreements are formulated. Continuous review is made of the trade regulations of signatories to the General Agreement on Tariffs and Trade as these regulations affect the movement of American farm products in international trade. The Service administers a program of import controls in accordance with section 22 of the Agricultural Adjustment Act of 1935, as amended.

Agricultural attachés.-Agricultural attachés located in 61 posts assist in the development of markets abroad for U.S. agricultural commodities. A compre hensive schedule of foreign agricultural market and trade reporting is maintained to meet the needs of the American agricultural industry.

Export programs.-Maintenance and expansion of foreign markets for surplus agricultural products are promoted by (a) developing agreements with foreign countries for sales of U.S. agricultural commodities under Public Law 480, and following up on the shipments of those commodities; and (b) directing and financing the operation of market development projects for agricultural products. Market development projects are, in most cases, carried out in cooperation with commodity trade groups under cooperative agreements. These projects carried out in foreign countries expand markets for U.S. agricultural commodities.

Commodity programs.-Information on foreign market requirements for specific commodities is obtained, analyzed, and made available to farm and trade groups. Market programs are developed for use by producers, exporters, and Government officials to maintain and expand the market abroad for U.S. farm products. Assistance is rendered to domestic trade representatives in negotiations with foreign government officials, importers, and consumers and bringing together American exporters and foreign importers under conditions favorable to trade.

Barter and stockpiling.-The Service, in cooperation with other Government agencies, conducts a barter program designed to utilize surplus agriculture commodities in lieu of dollars, in acquiring from other countries, goods, materials, and equipment required by other Government agencies and for the national and supplemental stockpiles. This work is financed from other funds transferred from "Administrative expenses, Commodity Credit Corporation."

General sales management.-The Service conducts a general sales management program to develop dollar export sales for Government-owned surplus agricultural commodities and pricing policies and programs for sales for export including sales for credit. The program also now includes price and quality review for commodities sold under Public Law 480. Foreign data such as prices and stocks and rail, truck, barge, and ocean freight rates and other market information is collected and recorded for use in program development. Information concerning prices and other sales terms, sales programs, and commodity availabilities is furnished to U.S. exporters, foreign importers, and foreign government officials. This work is financed with funds transferred from "Administrative expenses, Commodity Credit Corporation."

Assistance to International Agricultural Development Service.-FAS provides management services to the International Agricultural Development Service pursuant to Secretary's Memo 1541, Supplement 1, dated August 2, 1963. That Service administers the Department's participation in the agricultural phases of the foreign economic assistance programs.

Available funds and man-years, 1963 and estimated 1964 and 1965

Salaries and expenses:

Summary of increases, 1965

To increase effectiveness in administration of the Public Law 480 sales program and to strengthen planning and coordination of market development cooperator projects and trade fair activities____

To expand market development program-

For increased pay act costs (Public Law 87-793)

Total salaries and expenses-

Allotment from Commodity Credit Corporation:

For increased pay act costs (Public Law 87-793) as follows:
Administrative expense limitation----

+$72,500 +1, 698, 000 +203, 000

+1, 973, 500

Other (corporate fund).

For administration of foreign donations (title III, Public Law 480), previoulsy financed from sec. 32 funds: Administrative expense limitation____.

+42,000 +2,000

For ocean transportation functions transferred from the Agricultural Stabilization and Conservation Service:

+70,000

Basis for estimates.-The estimates incorporate the following changes: In the fiscal year 1964, pursuant to Secretary's memorandums 1535 and 1547, respectively, the ocean transportation functions previously handled by Agricultural Stabilization and Conservation Service and the foreign donations functions under title III of Public Law 480 previously handled by Agricultural Marketing Service were transferred to Foreign Agricultural Service.

The ocean transportation work has been financed partly from the Commodity Credit Corporation administrative expense limitation (for those functions which are the assigned responsibility of the Department) and partly from other corporate funds (for services performed for the Agency for International Development). It is proposed that this arrangement continue.

Operating expenses related to foreign donations may properly be charged either to section 32 or CCC funds. When the foreign donations work was the responsibility of the Agricultural Marketing Service, it was performed in the same organizational unit which handles the domestic donations program under section 32. The expenses of carrying out the work were paid from section 32 funds, in the interest of simplified administrative procedures. Beginning in 1965, it is proposed that the foreign donations work be financed under the CCC administrative expense limitation, because of its closer relationship to the programs of the Corporation.

Mr. WHITTEN. Mr. Charles S. Murphy, Under Secretary of Agriculture, is back with us. We are always glad to have him here because we do get into policy matters. It is always better to have someone from the Secretary's office to deal with those problems as they arise.