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Mr. WHITTEN. Do we have in the record the 21 studies that you have made with foreign currencies and where they are located. Could we have that for the record?

(The information requested follows:)

Following is a listing of the long-term foreign supply and demand studies which have been or are being carried out with foreign currency funds under market development activities of Foreign Agricultural Service:

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Mr. WHITTEN. In addition, how many other studies have you made and what publications have you made concerning these? Can you get the State Department to read them?

Mr. KOFFSKY. We have not published yet any of the other studies, other than some of the 21 long-range supply and demand studies, but we can provide a list.

(The matter referred to follows:)

The following research studies also are being conducted with foreign cur rency funds under market development activities of Foreign Agricultural Service:

1. Survey of consumer expenditures for food and fiber, on and off development projects. Contract with India begun June 1960. To be completed in 1964. 2. Effects of Public Law 480 on economic development and trade (effects on exports of U.S. farm products).

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The following studies have been undertaken with foreign currency funds available to the Agricultural Research Service:

1. The influence of planning and management on success in farming:

Finland:

Date of contract: July 19, 1960.

Completion date: 5-year study.

2. Economics of alternative use of land for agriculture and forestry: Finland:

Date of contract: July 24, 1961.

Completion date: 5-year study.

3. Factors which promote or impede changes in agricultural organization and production:

Israel:

Date of contract: May 18, 1962.

Completion date: 3-year study.

4. Marketing rice in Colombia : Colombia:

Date of contract: October 31, 1961.

Completion date: 3-year study.

Mr. WHITTEN. When was this reorganization made, and just what was done? Tell me briefly and enlarge it in the record. I am trying to find out how long this has been in your agency.

Dr. JOHNSON. We can supply the agreement between the two agencies for the record.

(The material requested follows:)

The part of Secretarial Memorandum No. 1446, dated February 24, 1961, which deals with transfer of economic research functions, reads as follows:

"TRANSFER OF FUNCTIONS INCIDENT TO REORGANIZATION

"1. Department structure.-Current organization of the Department provides for four groupings of program agencies, under the general direction and supervision of Department officials attached to the Office of the Secretary. To provide for more effective coordination of functions involving research in agricultural economics and statistical reporting, the decision has been made to realine such functional activities in a fifth grouping under similar central guidance. determination will result in departmental structure as follows:

"Assistant Secretary, Federal-States Relations.

"Assistant Secretary, Marketing and Foreign Agriculture.
"Assistant Secretary, Agricultural Stabilization.

"Director, Agricultural Credit.

"Director, Agricultural Economics.

This

"2. Economics functions transferred.-The Director of Agricultural Economics is assigned responsibility for arrangements incident to the transfer of statistical reporting and economics research functions, involving adjustiments outlined below, affecting three existing agencies."

STATISTICAL REPORTING SERVICE

This agency will be headed by an Administrator and will assume program responsibilities now placed in organizational units of the Agricultural Marketing Service, including basically:

Agricultural Estimates Division.

Statistical Standards Division.

Related and supporting activities.

ECONOMIC RESEARCH SERVICE

This agency will be headed by an Administrator and will assume program responsibilities now placed in organization units of other agencies, including basically:

Agricultural Marketing Service:

Functions of the Deputy Administrator, Economics and Statistics, and the Agricultural Economics Division;

Chairman, Outlook and Situation Board;
Market Development Research Division;
Marketing Economics Research Division;

Related and supporting activities.

Agricultural Research Service: Functions of the Farm Economics Research Division, with related and supporting activities.

Foreign Agricultural Service:

Foreign Agricultural Analysis Division.

Part of the Trade Policy Division, including the

International Monetary P

Trade Statistics Branch

Related and supporting a

Mr. WHITTEN. Do we have in the record the 21 studies that you have made with foreign currencies and where they are located. Could we have that for the record?

(The information requested follows:)

Following is a listing of the long-term foreign supply and demand studies which have been or are being carried out with foreign currency funds under market development activities of Foreign Agricultural Service:

[blocks in formation]

Mr. WHITTEN. In addition, how many other studies have you made and what publications have you made concerning these? Can you get the State Department to read them?

Mr. KOFFSKY. We have not published yet any of the other studies, other than some of the 21 long-range supply and demand studies, but we can provide a list.

(The matter referred to follows:)

The following research studies also are being conducted with foreign cur rency funds under market development activities of Foreign Agricultural Service:

1. Survey of consumer expenditures for food and fiber, on and off development projects. Contract with India begun June 1960. To be completed in 1964. 2. Effects of Public Law 480 on economic development and trade (effects on exports of U.S. farm products).

[blocks in formation]

The following studies have been undertaken with foreign currency funds available to the Agricultural Research Service:

1. The influence of planning and management on success in farming:

Finland:

Date of contract: July 19, 1960.

Completion date: 5-year study.

2. Economics of alternative use of land for agriculture and forestry: Finland:

Date of contract: July 24, 1961.

Completion date: 5-year study.

3. Factors which promote or impede changes in agricultural organization and production:

Israel:

Date of contract: May 18, 1962.
Completion date: 3-year study.

4. Marketing rice in Colombia: Colombia:

Date of contract: October 31, 1961.
Completion date: 3-year study.

Mr. WHITTEN. When was this reorganization made, and just what was done? Tell me briefly and enlarge it in the record. I am trying to find out how long this has been in your agency.

Dr. JOHNSON. We can supply the agreement between the two agencies for the record.

(The material requested follows:)

The part of Secretarial Memorandum No. 1446, dated February 24, 1961, which deals with transfer of economic research functions, reads as follows:

"TRANSFER OF FUNCTIONS INCIDENT TO REORGANIZATION

"1. Department structure.—Current organization of the Department provides for four groupings of program agencies, under the general direction and supervision of Department officials attached to the Office of the Secretary. To provide for more effective coordination of functions involving research in agricultural economics and statistical reporting, the decision has been made to realine such functional activities in a fifth grouping under similar central guidance. This determination will result in departmental structure as follows:

"Assistant Secretary, Federal-States Relations.

"Assistant Secretary, Marketing and Foreign Agriculture.
"Assistant Secretary, Agricultural Stabilization.

"Director, Agricultural Credit.

"Director, Agricultural Economics.

"2. Economics functions transferred.—The Director of Agricultural Economics is assigned responsibility for arrangements incident to the transfer of statistical reporting and economics research functions, involving adjustiments outlined below, affecting three existing agencies."

STATISTICAL REPORTING SERVICE

This agency will be headed by an Administrator and will assume program responsibilities now placed in organizational units of the Agricultural Marketing Service, including basically:

Agricultural Estimates Division.

Statistical Standards Division.

Related and supporting activities.

ECONOMIC RESEARCH SERVICE

This agency will be headed by an Administrator and will assume program responsibilities now placed in organization units of other agencies, including basically:

Agricultural Marketing Service:

Functions of the Deputy Administrator, Economics and Statistics, and the Agricultural Economics Division;

Chairman, Outlook and Situation Board;
Market Development Research Division;

Marketing Economics Research Division;

Related and supporting activities.

Agricultural Research Service: Functions of the Farm Economics Research Division, with related and supporting activities.

Foreign Agricultural Service:

Foreign Agricultural Analysis Division.

Part of the Trade Policy Division, including the

International Monetary Branch.

Trade Statistics Branch.

Related and supporting activities.

"3. Designation.-Pending official action to place in effect the organizational changes outlined, Dr. Willard W. Cochrane is designated as Acting Director, Agricultural Economics."

More specific arrangements concerning the handling of economic research are outlined in the following memorandum of understanding between the Foreign Agricultural Service and the Economic Research Service:

"The statement on functions transferred from the Foreign Agricultural Service to the Economic Research Service (and on cooperation between FAS and ERS dated May 22, 1961) set forth in broad outline the basic transfer of functions and activities together with a general understanding concerning cooperative conduct of certain technical programs. The memorandum of understanding of July 14. 1961, sets forth agreements with regard to ERS support of FAS foreign market development work. These agreements are supplemented by the following provisions concerning responsibility for research activities:

"1. All economic research in the Department, both domestic and foreign, is of interest to FAS in its manifold activities because of its value in the conduct of foreign agricultural programs. Therefore, close communication should be maintained between the two Services on all research activities, but especially on those related to foreign economics. Foreign problems on which research is needed may be suggested by either agency, and opportunity for discussion by representatives of both agencies will be provided before research is undertaken.

"2. ERS was organized because it was desirable to combine in one service the major economic research activities of the Department. This Service now is responsible for the economic research on foreign problems as well as those in the domestic field.

"3. In the transfer of research activities from FAS to ERS it was recognized that development of certain commodity information designed to service market development, Public Law 480 and other program operations of FAS should continue to be carried out by the commodity divisions and other units of FAS. This will involve analyses of specific problems encountered in seeking markets abroad for farm commodities, including appraisals of foreign competition and demand. and studies needed for planning, conducting, and evaluating program operations; also, the analysis and investigative work necessary for current servicing of FAS responsibility in formulating and guiding Department policy with respect to tariff or other trade policy matters.

"4. In their projections of supply and demand by countries and regions, in development of world food budgets, in research on supply-and-demand relationships, in special studies of export programs of the United States and other countries, and in research on effects of specific trade policies, ERS undertakes research on farm commodity problems as their production, prices, trade, and consumption are likely to affect the economic situation in the United States and economic development in other countries.

"5. It is recognized that both Services are concerned with development of commodity information as it affects world trade, although from different viewpoints: ERS from the viewpoint of research, FAS from the viewpoint of operations. Cooperative work on commodities, therefore, is likely to be desirable in many instances. Sometimes cooperation on commodity analyses will be informal. and consist only of consultation in planning the work and in occasional consultation on progress. In projects of significant interest to both Services, it is proposed that working arrangements and responsibilities be agreed upon before the work is started. The following points should be agreed upon:

"(a) Feasibility and coverage of undertaking.

"(b) Which service has primary interest and, therefore, leadership on the work to be done.

"(c) Assignment of personnel.

"(d) Arrangement of financing.

"6. This memorandum of understanding supplements the memorandum of understanding of July 14, 1961."

OCTOBER 16, 1961.

OCTOBER 17, 1961.

NATHAN M. KOFFSKY,

Administrator, Economic Research Service.

ROBERT C. TETRO,

Administrator, Foreign Agricultural Service.

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