dent may, to further the foreign policy of the United States, and to aid in fulfilling our international responsibilities to exercise the necessary vigilance over exports from the standpoint of their strategic and economic significance, the President may export on such terms and conditions as he deems reasonable and necessary. That is the essence of the language. So the Maritime Administration's authority with regard to these shipping matters goes back to the authority delegated to the Secretary of Commerce in supervising and policing exports. So the Export Control Bulletin No. 883, which we will have for the record, dated November 13, was published. (The document referred to follows:) CURRENT EXPORT BULLETIN No. 883 SUPPLEMENT TO THE COMPREHENSIVE EXPORT SCHEDULE U.S. DEPARTMENT OF COMMERCE, OFFICE OF EXPORT CONTROL, Subject: Exportations of Agricultural Commodities to Subgroup A Destinations.1 PURPOSE AND EFFECT Current Export Bulletin No. 881, dated October 11, 1963, announced that where specified conditions were met, the Office of Export Control would give favorable consideration to the issuance of export licenses covering the exportation of agricultural commodities and manufacturers thereof to certain Subgroup A countries." Subsequently, in a press release dated October 18, 1963, the Department stated that the shipping restrictions were to apply only to wheat and wheat flour. Today's Bulletin makes further revisions in the licensing conditions for agricultural commodities and manufacturers thereof moving to these Subgroup A countries. Exportations of Wheat and Wheat Flour In compliance with the President's original announcement that this wheat and wheat flour will be carried in United States flag carriers as available, and pursuant to a finding by the Maritime Administration as to the amount of suitable United States flag carriers not required for hauling Public Law 480 type cargoes, and which will be available for shipment of commercial transaction commodities to the Subgroup A countries, at least 50 percent of the wheat and wheat flour will be exported on United States flag carriers. If a United States flag carrier is not available at reasonable rates, the exporter must obtain prior authorization from the Maritime Administration to ship less than 50 percent on United States flag carriers. In addition, upon completion of shipping arrangement for all the wheat and wheat flour to be exported under an export license, the exporter is now required to notify the Maritime Administration of the export license number, the name(s) of the carrier (s), the carrier's flag of registration, and the quantity of each shipment. Communications with Maritime Administration regarding these provisions should be addressed to the Office of Ship Operations, Maritime Administration, 441 G Street, N.W., Washington, D.C., 20235. The applicant's certification required on the license application has been modified to include the shipping commitments set forth above and to include a statement that the wheat or wheat flour proposed for exportation was produced in the United States. Additionally, all details of the financing arrangements, in 1 The reporting requirements contained herein have been approved by the Bureau of the Budget, in accordance with the Federal Reports Act of 1942. 2 These Subgroup A countries are Albania, Bulgaria, Czechoslovakia, East Germany (Soviet Zone of Germany and the Soviet Sector of Berlin), Estonia, Hungary, Latvia, Lithuania, Outer Mongolia, Rumania, and the Union of Soviet Socialist Republics. cluding the names of financial institutions or facilities participating in the financing, must be included on the license application. If the financing arrangements are not completed at the time of application submission, the applicant shall state on the license application that the Office of Export Control will be provided this information promptly as soon as the financing arrangements are completed. Further, the name and address of the supplier is no longer required on the license application (item 10 of application form). In another revision of the regulation, the Office of Export Control will now give favorable consideration to a license application in which the export transaction has not been registered with the Department of Agriculture at the time of submission of the license application provided that the exporter undertakes to notify the Office of Export Control promptly when the registration is made. As previously announced, no American exporter will be permitted to participate in these wheat and wheat flour export transactions to an extent greater than 25 percent of the total quantity expected to be purchased in the United States. Exportations of Other Agricultural Commodities The applicant's certification on a license application covering the exportation of any agricultural commodity or manufacture thereof, other than wheat or wheat flour, now specifies only that (1) the terms of sale will be cash or normal commercial credit, (2) the exportation will not be financed under Public Law 480, (3) the sale does not involve the exporter in any barter arrangement, and (4) the commodities were produced in the United States. In addition, the applicant is required to disclose on his license application the specific terms of sale, i.e., cash, credit and credit terms as well as the details of the financing arrangements, including the names of the financing institutions or facilities participating in the financing; and to accompany his license application by a Form FC-842 completed by the foreign purchaser. If the financing arrangements are not completed at the time of application submission, the applicant shall state on the application that the Office of Export Control will be provided this information promptly as soon as the financing arrangements are completed. These revisions apply to any agricultural commodity or manufacture thereof subject to license, other than wheat or wheat flour, whether or not price-supported or subsidized for export. It is pointed out that the restriction regarding the 25-percent participation in export licensing by any one American exporter was and still is applicable only to the licensing of wheat and wheat flour. Similarly, the shipping restrictions apply only to wheat and wheat flour. Requirement for Additional Copy of Declaration The exporter is required to present to the Collector an additional copy of the Shipper's Export Declaration upon clearing a shipment of any agricultural commodity or manufacture thereof moving to a Subgroup A destination under authority of a validated export license. Exportations Under General License GLSA Exporters are reminded that any agricultural commodity subject to the provisions of General License GLSA (see § 371.24 and Supplement No. 1 to Part 371 of the Comprehensive Export Schedule) may be exported to the Subgroup A countries listed in footnote 2 above without the need for submitting a license application or obtaining an export license from the Department's Office of Export Control. Accordingly, §§ 373.5 and 379.3(c) (3) of the Comprehensive Export Schedule are amended to read as set forth below. "§ 373.5 "LICENSING POLICY FOR AGRICULTURAL COMMODITIES AND MANUFACTURES THEREOF COVERING SHIPMENTS TO SUBGROUP A DESTINATIONS AND CUBA "(a) Exportations and Reexportations to Cuba, Communist China, North Korea, and the Communist-controlled area of Viet-Nam. "It is the general policy of the Office of Export Control to deny applications for validated licenses to export, and requests for authorizations to reexport, any agricultural commodity or manufacture thereof to Cuba, Communist China, North Korea, or the Communist-controlled area of Viet-Nam. "(b) Exportations and Reexportations of Wheat and Wheat Flour. "(1) Destinations and estimated total to be licensed.-The Office of Export Control will issue licenses for exportation to all Subgroup A countries except Communist China, North Korea, or the Communist-controlled area of Viet-Nam. All such export licenses issued will bear an expiration date of May 31, 1964. "(2) Percentage of participation.-No American exporter will be permitted to participate in these wheat and wheat flour export transactions to an extent greater than 25 percent of the total quantity expected to be purchased in the U.S. License applications which meet all the requirements for approval will be processed promptly if there is sufficient evidence that the provisions of the 25 percent participation rule is met. "(3) Certification. The exporter shall enter the following certification on the license application in the space entitled ‘additional information' or on an attachment thereto : "I (We) certify that with respect to the commodities described on this application (1) the price will be on the basis of the prevailing world price at the time the contract is concluded; (2) the payment will be made in United States dollars or gold; (3) the terms of sale will be cash or normal commercial credit; (4) the explortation from the U.S. will not be financed under Public Law 480; (5) the sale does not involve (me) (us) in any barter arrangement; (6) the commodities were produced in the United States; (7) at least 50 percent of the commodities exported under any export license resulting from this application will be exported in United States flag ocean carriers unless authorization to do otherwise is obtained from the Maritime Administration; and (8) upon completion of shipping arrangements for all the commodities to be exported under any export license resulting from this application, the Maritime Administration will be notified promptly of the name(s) of the carrier (s), the carrier's flag of registration, the quantity of each shipment, and the export license number under which the shipment (s) is made.'' NOTE. Communications with Maritime Administration should be addressed to the Office of Ship Operations, Maritime Administration, 441 G Street NW., Washington, D.C., 20235. "(4) Additional information.-The following information shall be included on the license application or on an attachment thereto : "(i) The proposed shipping date, if known; "(ii) The specific terms of sale, i.e., cash, credit and credit terms if applicable; "(iii) All the details of the financing arrangements, including the names of financial institutions or facilities participating in the financing, must be included on the application. If the financing arrangements are not completed at the time of application submission, the applicant shall state on the application that the Office of Export Control will be provided this information promptly as soon as the financing arrangements are completed. The notification shall refer to the application case number, or if the case number is unknown, the export license number, the applicant's reference number, or the date of submission of the application. "(iv) The name and address of the firm which registered the export sale transaction with the U.S. Department of Agriculture, together with the registration number assigned by the Department of Agriculture. If the export sale transaction has not been registered with the Department of Agriculture at the time of application submission, the applicant shall state on the application that the Office of Export Control will be advised promptly as soon as the Department of Agriculture registration is made. The notification to the Office of Export Control shall refer to the application case number, or if the case number is unknown, the export license number, the applicant's reference number or the date of submission of the application." NOTE. The applicant is not required to complete item 10 of the application with regard to the name and address of the supplier. "(5) Single transaction statement by consignee and purchaser.—Each application shall be accompanied by a Form FC-842, Single Transaction Statement by Consignee and Purchaser, completed in accordance with the provisions of § 373.65." NOTE. In accordance with the provisions of $$ 371.4 and 372.12, wheat and wheat flour may not be reexported to any Subgroup A country unless specific authorization is received from the Office of Export Control. "(c) Exportations and Reexportations of Agricultural Commodities and Manufactures Thereof Other Than Wheat or Wheat Flour. "(1) Destinations.-License applications covering agricultural commodities and manufactures thereof, other than wheat or wheat flour, will be considered for approval in accordance with the provisions of this par. (c) for exportations to any Subgroup A country except Communist China, North Korea, or the Communist-controlled area of Viet-Nam. "(2) Certification.-The exporter shall enter the following certification on the license application in the space entitled 'additional information' or on an attachment thereto : *'I (We) certify that with respect to the commodities described on this appliIcation (1) the terms of sale will be cash or normal commercial credit; (2) the exportation from the United States will not be financed under Public Law 480; (3) the commodities were produced in the United States; and (4) the sale will not involve (me) (us) in any barter arrangement.' “(3) Terms of sale.-The specific terms of sale, i.e., cash, credit, and credit terms if applicable, shall be entered on the license application in the space entitled 'additional information' or on an attachment thereto. "(4) Financing Arrangements.-All the details of the financing arrangements, including the names of the financing institutions or facilities participating in the financing, shall be entered on the license application. If the financing arrangements are not completed at the time of application submission, the applicant shall state on the application that the Office of Export Control will be provided this information promptly as soon as the financing arrangements are completed. The notification shall refer to the application case number or if the case number is unknown, the export license number, the applicant's reference number, or the date of submission of the application. "(5) Completed Form FC-842.-Each application shall be accompanied by a Form FC-842, Single Transaction Statement by Consignee and Purchaser, completed in accordance with the provisions of § 373.65. "(6) Reexportations.-Requests for authorization to reexport agricultural commodities and manufactures thereof, other than wheat and wheat flour, will be considered for approval in accordance with the provisions of this par. (c) (6) for shipment to any Subgroup A country except Communist China, North Korea, or the Communist-controlled area of Viet-Nam if the exportation from the United States was not financed under the Public Law 480 program, or the Agency for International Development program, and if the terms of sale of the exportation from the United States were cash or normal commercial credit. Such requests shall be submitted by letter to the Office of Export Control by the United States exporter in accordance with the provisions of $372.12 and shall contain the following certification: "'I (We) certify that with respect to the commodities described herein (1) the exportation from the United States was not financed under the Public Law 480 program, or the Agency for International Development program; and (2) the terms of sale of the exportation from the United States were cash or normal commercial credit.'" Par. 379.3 (c) (3) is amended to include the following subparagraph (iv): "(iv) Exportations of any agricultural commodity moving under a validated license to a Subgroup A destination." Reprint pages for the Comprehensive Export Schedule incorporating changes announced in this Bulletin will be furnished in a forthcoming Current Export Bulletin. FORREST D. HOCKERSMITH, Director, Office of Export Control. Mr. GILES. It contains in there the provision that at least 50 percent of the wheat and wheat flour will be exported on U.S.-flag vessels if available and if U.S.-flag vessels are not available at reasonable rates, the exporter must obtain prior authorization from the Maritime Administration to ship less than 50 percent. So the Secretary of Commerce assigned to the Maritime Administration the responsibility for policing this shipping requirement. I think the next major development in this picture, Mr. Chairman, was the Cargill shipment. As you may recall, the Cargill Co. made a sale of 200,000 tons of wheat to Hungary. This was the first sale to either one of the Soviet bloc countries. On the first 100,000 tons of their sale to Hungary the Cargill Co. was able to get the required 50-percent American-flag tonnage and did not apply for any waiver of the shipping requirement. On the second 100,000 tons the Cargill Co. was not able to obtain the 50 percent, that is, 50,000 tons on American-flag vessels, and on November 22 this particular company filed a request with the Maritime Administration for a waiver of that shipping requirement. Mr. HAGEN. May I ask a question, Mr. Chairman? The CHAIRMAN. Have you finished making your statement in reference to this transaction? Mr. GILES. Not with reference to Cargill. The CHAIRMAN. Just let him finish his statement. Mr. GILES. At that time, Mr. Chairman, we took the matter under consideration. We distributed the information throughout the shipping trade and informed them we had this request for a waiver, and we made every effort to find available shipping at our published rates in accordance with what we had put out, and the shipping simply was not available. The CHAIRMAN. That is the second 100,000 tons? Mr. GILES Yes, sir. The CHAIRMAN. The first 100,000 tons went 50-50? The CHAIRMAN. You reviewed the field and you couldn't find an The CHAIRMAN. That is, at the same rate that the first 50,000 tons had been carried at? Mr. GILES. Yes, sir; the minus 20 percent rate. Mr. HAGEN. Mr. Chairman, that was what I wanted to ask. What was the rate that Cargill paid for that shipping and what was the rate they paid on this first 50,000 tons. Mr. GILES. What was the actual rate they paid on the American shipping? Mr. HAGEN. Yes. Mr. GILES. I can't answer that, sir. I am assuming that it was certainly at the top of the guideline. Mr. HAGEN. The top? Mr. GILES. At the minus 20 percent rate for the larger vessels. Mr. HAGEN. Did they get larger vessels? Did they use larger ones? Mr. GILES. Some of it was shipped on berth liners on the first shipment. Mr. HAGEN. You say it was the top of your guideline rate? Mr. GILES. I am saying the rate for the Soviet bloc commercial shipments in the so-called minus 20 percent, that is, the rate applicable to vessels over 15,600 deadweight tons. Mr. HAGEN. The larger vessels, but for the smaller ones you have the larger rate plus 20 percent; is that correct? Mr. GILES. We have not changed the rate on the smaller vessels. That has remained the same as it had been the previous year. Mr. HAGEN. Do you have any idea what the rate was? Mr. GILES. On the Cargill shipments? Mr. HAGEN. Yes. |