COMMODITY CREDIT CORPORATION

Price support, export, supply and related programs and special

milk:

Price support program:

Basic:

*Denotes receipt, gain, or decrease.

1 Commodity expenditures include storage, handling, and transportation costs.

As reflected in 1963 supplemental:

1963

1964

As reflected in 1963 supplemental:

1963

Net expenditures.....

$105.3

$174. 4

1964

Increase or decrease in assets and liabilities.

*105.3

174.4

In supplemental..

Used in supplemental, fiscal year 1964: acquisitions, $885.6; sales proceeds, $883.6.

Mr. HORAN. I might correct the record. Apples and oranges are not price supported.

Secretary FREEMAN. May I correct the record and say I have done some battling in Great Britain and France and Belgium and a few other places for markets for apples and oranges, and we are considering an action that will probably go to GATT in relation to France and their markets.

Mr. WHITTEN. It is this committee that insisted some years ago that section 32 funds be used for that purpose, so we are aware of that, too.

Mr. HORAN. I have always heard the phrase as three-prongedfood, clothing, and shelter. I noticed in your statement you only refer to food and fiber. Is that a new departure?

Secretary FREEMAN. No. I have always said food and fiber, but maybe I better go back and correct it. I would not object to saying food, fiber, and shelter.

Mr. HORAN. Thank you. I wish that you would.

TEXTILE INDUSTRY IN LATIN AMERICA

Mr. ADDABBO. Mr. Secretary, will the development of the textile industry in Mexico, Chile, or some other South American countries help or aggravate this problem in cotton?

Secretary FREEMAN. Well, I think we would have to ask where and what, to really see what they were producing, what market they were servicing, and exactly what it would mean.

Mr. ADDABBO. I understand that there are proposals under the Alliance for Progress programs to develop the textile industry in Mexico and Chile at the present time and possible expansion to other South American countries.

Secretary FREEMAN. I think that is correct.

Mr. ADDABBO. This would hurt the textile industry definitely, but what about the cotton problem?

Secretary FREEMAN. Well, you get to the question that you would have to take a look at a number of things.

First of all, if they were going to produce at a very low price for a finished product and dump it in here it would create problems. We are now operating under some voluntary agreements with other countries in regard to the amount of material that will come in, and so this will be the first question. Would this proposed installation result in differences where they could undersell for reasons we have discussed? How would it relate to the expanding consumption in some other places, like in those countries themselves?

Now, a number of countries-India, Pakistan, and some otherswhere their textile mills primarily are straining their resources to service their own domestic market, as they begin to move up a bit they produce a relatively low-cost item. There is tremendous demand for it as soon as their people have any income, and this does not represent a direct competition with us. That is a market that probably we couldn't service anyway, and the market is created by the very fact of the development of the domestic textile industry, which overlaps with some other developments within the country.

There has been a substantial expansion of consumption internationally of cotton. Our proportion of that market is not as great as it was, let us say, 10 years ago. But the question does not really lend itself to a precise answer unless you take a look at a place and the proposed kind of installation and the local economic program, the market it would service, and how it would fit into the agreement which sets amounts that do come into this country.

Mr. ADDABBO. Are these countries in South America presently cotton producing countries?

Secretary FREEMAN. Mexico, of course, is a big cotton producing country. A number of South American countries produce cotton, Brazil being the biggest producer.