Although honey is commonly regarded as the chief product of honeybees, the broader agricultural outlook indicates that pollination is the bee's chief product, and that honey is merely a byproduct of this much more important activity. In order to have a bee population in the United States capable of doing the pollinating job, however, beekeepers must either receive direct payment for the pollination done by their bees or they must receive an adequate return from the honey for sale, to make the operation of the hives profitable.

The committee believe that the time will come when farmers in general will recognize the value of bees in their agricultural operations and, where crosspollination is essential to good crops, will be willing to pay for the services of bees, just as they would pay for fertilizer or anything else essential to production of their crops.

The committee believe, however, that the time has not yet come when farmers in general are sufficiently aware of the value of honeybees to pay beekeepers for the use of their bees. On the contrary, it is rather general practice at the present time for beekeepers to pay farmers for the privilege of putting bees in their clover fields or elsewhere, in order to have access to flowering crops.

Since the close of the war, the price of honey has dropped to the point where beekeepers are finding it impossible to obtain their costs of production. It appears obvious to the committee that, if these vitally important insects are to be maintained in sufficient numbers to pollinate our crops, the beekeeping industry must have immediate. assistance. Until the time comes when beekeepers can receive an adequate return from pollination services, the committee believe that a price support for honey, as provided in this bill, is the only answer to this problem.

AMENDMENT OF THE PHILIPPINE REHABILITATION ACT OF 1946

JULY 13, 1949.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. MANSFIELD, from the Committee on Foreign Affairs, submitted the following

REPORT

[To accompany H. R. 5535]

The Committee on Foreign Affairs, to whom was referred the bill (H. R. 5535) to amend the Philippine Rehabilitation Act of 1946, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

Consideration of the bill by the committee.-This bill embodies legislation recommended in a letter dated June 21, 1949, from the Honorable James E. Webb, then Acting Secretary of State, to the Speaker. The bill was introduced July 7 and considered by the committee on July 12. The committee concurred in the legislation unanimously.

Purpose of the Philippine Rehabilitation Act.-The bill pertains to two rehabilitation programs authorized under sections 302 (a) and 303 (a) of the Philippine Rehabilitation Act of 1946 (Public Law 370, 79th Cong.). As recalled in the letter of the Acting Secretary of State:

Public Law 370 authorized these rehabilitation programs as a manifestation of good will to the Filipino people. In passing the law the Congress recognized the deep moral obligation of this Government to help rehabilitate the war-devastated Philippine economy. At the time the destruction occurred the Philippine Islands were American territory and the Filipino people were fighting along with and for the United States, not simply as allies but as American Nationals. In addition to this moral obligation, there was the added consideration that the independence granted by the United States to the Philippines could only be placed on a firm footing if some assistance were extended to the newly formed Government in meeting the critical problems arising out of the war devastation.

The programs concerned.-Section 302 (a) of the act provided:

As recommended in a report based upon an investigation made in the Philippines by the Public Roads Administration of the Federal Works Agency and to the extent that the findings in such report are approved by the President, the Public Roads Administration is authorized, after consultation with the Philippine

Government, to plan, design, restore, and build, in accordance with its usual contract procedures, such roads, essential streets, and bridges as may be necessary from the standpoint of the national defense and economic rehabilitation and development of the Philippines.

Section 303 (a) of the act provided:

As recommended in a report based upon an investigation made in the Philippines by the Corps of Engineers of the United States Army and to the extent that the findings in such report are approved by the President, the Corps of Engineers is authorized, after consultation with the Philippine Government, to carry out a program for the rehabilitation, improvement, and construction of port and harbor facilities in the Philippines, such work to be done by contract. insofar as practicable, under the direction of the Secretary of War and the supervision of the Chief of Engineers, and in accordance with established procedures applicable to river and harbor projects

Financial situation of the programs.-Appropriations of $120,000,000 were authorized under section 301 of the act to carry out the programs indicated above and two other programs, provided for in sections 304 and 305 of the act, related to restoration and repair of public property and to public health work. These funds were made subject to Presidential allocation among the programs "from time to time but not later than the fiscal year 1950." In pursuance of this authority the President has assigned $40,000,000 to the road program, $17,800,000 to the river and harbor program, $56,967,000 to the program regarding public property, and $5,233,000 to the health program. Appropriations have been made in the following sums: $33,000,000 by Public Law 521, Seventy-ninth Congress; $40,286,150 by Public Law 166, Eightieth Congress; and $18,924,000 by Public Law 597. Eightieth Congress. Additional appropriations of $14,789,850 are contained in H. R. 4016 as passed by the House April 7, 1949, and now in conference between the House and the Senate. The total of all these appropriations is $107,000,000. This leaves a balance of $13,000,000 subject to further appropriation. The committee was informed that as of March 31, the latest date for which such data were available, $6,372,000 of funds appropriated and allocated for road work and $4,468,000 of funds appropriated and allocated for harbor work remained unobligated. The committee was informed that the balance had not appreciably decreased in the meantime. There is the further factor that the road program was accorded forward contracting authority of $14,000,000 by Public Law 597, Eightieth Congress, subject, of course, to the stipulation that the original authorization should not be exceeded.

Lag in the two programs concerned.-No extension of time is sought for the programs related to public property and to public health. Their completion within the originally anticipated time is assured. The two programs here concerned, however, have lagged behind the original schedule. The contributing circumstances have been the shortage of qualified contractors in the Philippines, stringency in local housing for technical personnel from the United States, delays in obtaining equipment for road work, bridge building, and harbor rehabilitation; and shortages of material, particularly of steel. It should be made clear, moreover, that this lag has not been unfavorable in its effects. From the standpoint of the welfare of the Philippine economy the lag has been in some ways helpful. A greater concentration of work in the earlier stages and a sudden and outright

cessation of the rehabilitation effort financed by the United States would likely produce unfavorable economic repercussions.

The need of extended authority to use funds.-It is anticipated that virtually all of the operating funds in the two programs concerned, whether already appropriated or covered by the cited forward contracting authority, will have been obligated by the close of the current fiscal year. The portion remaining unobligated by the end thereof will be of no appreciable significance. The principal problem pertains to administration and supervision of the work undertaken. It is necessary to insure that money will still be available after a year from now, and during fiscal year 1951, to enable the Government to supervise the work still in progress so as to assure that the funds are spent properly and for the purpose intended. The bill H. R. 5535 has the sole purpose of extending for 1 year the time when funds already authorized may be applied to these two programs. The bill does not increase the amount of the obligation of the United States Government. It will not be in any way a factor in the Federal fiscal position.

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