Secondly, in between times, preceding this next negotiation, which I assume will be early in 1964, we are trying to drum up support among the users of tobacco in the Common Market countries so that they will support the demands we make, so that we will have trade support for what we want to do. Mr. NATCHER. Our chairman, Mr. Whitten, has mentioned the fact that several years ago, in making an inspection tour in Russia and other countries, he received certain information concerning our agricultural commodities which was to me of great importance. In his report back to our committee, Mr. Ioanes, he made the statement that information gathered at a number of the meetings raised serious question about the present U.S. policy of offering tobacco in world trade channels at 90 percent of parity levels. Now, as you know, tobacco is under its own program from the standpoint of support price. Do you find that the system that we now have conflicts considerably with the sale of tobacco abroad under our present tobacco program from the standpoint of what can be done and the sale of our surplus tobacco? Mr. IOANES. No, not in the way the program is set up, with the cooperatives handling the mechanics of the program, I think that is all right. I think over the years that the thing that has sold our tobacco in world markets more than any other factor has been our quality. I find, for example, that as you travel around the world there is an advantage for a cigarette manufacturer to be able to say, "There is American tobacco in my blend," even if there is just 2 percent or 3 percent, they want it there. I would say this, Mr. Chairman, that in recent years the quality margin we have had is not as great as it used to be. I am not going to say that we have lost it entirely, because that isn't true. But we must pay attention to the question of the quality of our tobacco. And we are trying to do just that. Thirty percent of our flue-cured, and I think about 10 or 15 percent of our burley is exported annually. It is very important. It is literally all commercial sales. Production is growing in other countries. They are improving their quality. And we have to keep on improving ours. Mr. NATCHER. Do you know about the sale of some 82 million pounds of flue-cured tobacco recently? Mr. IOANES. I know that as a result of the recent announcements bids have been accepted-I thought it was 72 million, but perhaps it is 82 million by now. Mr. NATCHER. 72 up through February 11, probably. Mr. IOANES. Right. Mr. NATCHER. Was this matter discussed with you at all before this tobacco was sold? Mr. IOANES. The policy under which that tobacco was sold, the policy leading to the sale was a process that we participated in. The responsibility for the sales is in the Commodity Stabilization Corporation. This is not one of the activities that was transferred to FAS. Mr. NATCHER. I understand. I think that is all, Mr. Chairman. 95910-63-pt. 3-64 INCREASE FOR ADDITIONAL ATTACHÉ POSTS Mr. ADDABBO. In speaking of the three additional attaché posts there was mentioned the sum of $412,000. What will that actually cover? Is that all for salaries? Mr. IOANES. No, sir. This is the cost of all the things that go along with it, the secretary, the local assistant, the cost of housing for the attachés, if he is in a country where an educational allowance is required, the cost of that, and a living allowance-it includes all those costs. And the $412,000, Mr. Congressman, is not just for those three new posts, it also includes several assistant attachés in other locations. It includes one marketing specialist that I mentioned we thought might go into Hong Kong. And it includes some local assistants in other posts as well, not just the three new posts. Mr. ADDABBO. Will any of these new posts be in the super grades? Mr. IOANES. None of them will, no sir. We wouldn't mind, but it happens that we don't have them. Mr. ADDABBO. I thought you would check that with Mr. Grant. Mr. IOANES. Yes. Mr. Grant, we solicit your help. TRANSFER FROM COMMODITY CREDIT CORPORATION Mr. ADDABBO. In the last paragraph on page 8 you say: The language for 1964 provides that the total of $1,417,000 to be transferred from the Commodity Credit Corporation to be merged with the "salaries and expense" appropriation and so forth. Would this in any way affect the budget of CCC, or is it included in that budget? Mr. GRANT. This is included within the total administrative expense limitation set up for the Commodity Credit Corporation, but the language proposes to transfer that amount to the FAS appropriation. Mr. ADDABBO. Will that in any way result in a shortage in CCC, and will it come in for a supplemental later on? Mr. GRANT. No, this would not involve a supplemental. This is included in the costs of the Commodity Credit Corporation, and there would be a request for an appropriation 2 years hence to reimburse the Corporation for its capital losses. This would be one element in that capital restoration, along with many other activities and items. Mr. IOANES. Could I say this, that no more money is being spent for this service because it shows in our budget than there would be if it showed in the CCC budget. Mr. ADDABBO. Wouldn't it make it simpler bookkeeping if we kent them apart, in other words, what your budget is and what CCC's budget is? All of this duplication of figures could be avoided. Mr. GRANT. It is not really duplication. The Congress will authorize under our proposal an administrative expense limitation for Commodity Credit Corporation. Of that amount $1,417,000 is to be used by the Foreign Agricultural Service for these activities. Now, we propose to include it in the language in order that the Congress can exercise control by making a determination on the amount to be made available to the Foreign Agricultural Service. It is not added into the total appropriation for the Foreign Agricultural Service. We merely bring it into their language so that you can see the whole picture of how much they have. Now, it would be simpler, of course, if I understand your question, to make a direct appropriation to the Foreign Agricultural Service for all of this. But since this $1,417,000 is for carrying out a function which is provided and financed by CCC, this proposal is made in order to show what the total costs of the Corporation's activities really are. It is just like the other activities of the Corporation which are administered by the Agricultural Stabilization Conservation Service. And we have a similar provision in the ASCS appropriation for administrative expenses for the work that ASCS does for CCC. Mr. ADDABBO. It appears to be a complicated system. Mr. GRANT. Yes; it is. Mr. ADDABBO. No further questions, Mr. Chairman. Mr. WHITTEN. Mr. Horan? FOREIGN AGRICULTURE SERVICE RELATIONSHIP TO ECONOMIC RESEARCH SERVICE Mr. HORAN. Another branch of the Government wanted $3,000 to research Common Market trade. That is an increase. And they also wanted an increase of $110,000 for long-range prospects of supply, demand, and trade in foreign countries. I notice you have an increase of $81,500 to meet the demands in connection with the Common Market. Mr. IOANES. Yes; that is right, sir. Mr. HORAN. Well, we thought that we set up the Foreign Agricultural Service to do these things. Mr. IOANES. You correct me if I am wrong, Mr. Grant, but I think you are talking about the appropriation request for the Economic Research Service, Mr. Horan. Mr. GRANT. That is right. Mr. IOANES. And as you probably recall, at the same time that certain functions were transferred to FAS 2 years ago, namely, the sales manager and barter and stockpiling, certain other functions were transferred to the Economic Research Service. Among those things that were transferred were the functions having to do with longer time economic research. And so in accordance with that, certain things that FAS had been undertaking, such as longtime demand supply studies, were transferred to the Economic Research Service. Now, those studies, Mr. Horan, are becoming available for various countries of the world, and they need to put together the results. That is why the item appears there of $110,000 for the longtime studies. With respect to the Common Market, they now have a responsibility for the longtime economic research. And what they have in mind, I am sure, is the fact that they want to look ahead with respect to what is going to happen to dairy production, or beef production, or wheat production in the Common Market. And that is their function. Ours at the present time is limited to that shorter range economic study and commodity analysis tied to our current problems. Mr. HORAN. I am glad you told me that, because from your explanation I wouldn't have known that. Mr. IOANES. I am sorry if I said anything wrong. If I did, Mr. Grant can correct me. Mr. GRANT. No, I think that is a good statement of the situation. Mr. HORAN. I think that is all, Mr. Chairman. Mr. WHITTEN. Mr. Michel? Mr. MICHEL. I think the chairman asked for a list of agricultural attachés and the countries to which they were going. Mr. IOANES. Yes. AGRICULTURAL EXPORTS Mr. MICHEL. I wonder if we might also have, probably in conjunction with that request, the volume in dollars of sales to that country of agricultural products broken down into two categories; sales for dollars, and sales in local currencies. Mr. IOANES. We would be glad to do that. Mr. MINOR. This is for the new posts. Mr. MICHEL. I would like to have them for every country in which we have got an agricultural attaché. Mr. IOANES. And it might not hurt, if I might suggest it, if we don't have an attaché some place, to add those too. Mr. MICHEL. Right. (The material referred to is as follows:) Agricultural attachés and U.S. agricultural exports, July-June 1961–62 NORTHERN NORTH AMERICA AND EUROPE Agricultural attachés and U.S. agricultural exports, July-June 1961-62-Continued Yemen. (See Arabia Peninsula States, not elsewhere classified.) Iran, Teheran: T. O. Engebretson, Iran.. Liberia, Monrovia: James Gehr: Gambia (See British West Africa and Sierra Leone.) Mali. (See Western Africa, not elsewhere classified.) Portuguese Guinea. (See Western Portuguese Africa, not elsewhere classified.) Sierra Leone. (See British West Africaand Sierra Leone). See footnotes at end of table, p. 2101. |