But we have a law controlling the issuing of estimates. It is so recognized by the Congress and the Government that we need some protection, even in law. Here in Commodity Credit Corporation we are turning around where we are dealing with $6 or $7 billion worth of commodities. Other than relying on the integrity and honesty of the people involved and I repeat they have always been to my knowledge-we don't have any special protection. It strikes me that this is an area which we should take up with the Secretary and his people prior to adjourning. Mr. Natcher? FUTURES TRADING Mr. NATCHER. From your statement I notice that the Commodity Exchange Authority provides for Federal regulation of trading in 23 commodities, of which there was futures trading in 18 during the fiscal year. In which five did we have no futures trading in during the past fiscal year? Mr. CALDWELL. I don't have that information immediately available, but I will furnish it for the record. (The information requested is as follows:) During the 1962 fiscal year there was no futures trading in the following commodities: barley, butter, cottonseed, peanuts, and rice. Mr. NATCHER. That is all. Mr. WHITTEN. Mr. Addabbo? RESULTS OF SURVEYS Mr. ADDABBO. What was the result of the three surveys you mentoined. Were any other regulations promulgated? Mr. CALDWELL. No, sir. Those surveys were to inform us about the activities of the market. We found it necessary to make no new regulations as a result of information obtained in those surveys. Mr. ADDABBO. In other words, the surveys didn't show any actual irregularities? Mr. CALDWELL. That is right. Mr. ADDABBO. No further questions. Mr. WHITTEN. Mr. Horan? Mr. HORAN. I want to thank these gentlemen for being here. I have no questions. Mr. WHITTEN. You did a good job, Mr. Caldwell. Mr. CALDWELL. Thank you, sir. THURSDAY, MARCH 14, 1963. FOREIGN AGRICULTURAL SERVICE WITNESSES ROLAND R. RENNE, ASSISTANT SECRETARY OF AGRICULTURE RAYMOND A. IOANES, ADMINISTRATOR, FOREIGN AGRICULTURAL SERVICE CLARENCE R. ESKILDSEN, ASSOCIATE ADMINISTRATOR, FOREIGN AGRICULTURAL SERVICE FRANK M. LeROUX, GENERAL SALES MANAGER, FOREIGN AGRICULTURAL SERVICE DOUGLAS M. CRAWFORD, ASSISTANT ADMINISTRATOR FOR AGRICULTURAL ATTACHÉS, FOREIGN AGRICULTURAL SERVICE W. A. MINOR, ASSISTANT ADMINISTRATOR FOR MANAGEMENT, FOREIGN AGRICULTURAL SERVICE THOMAS E. MORROW, DIRECTOR, BUDGET AND FINANCE DIVISION, FOREIGN AGRICULTURAL SERVICE CHARLES L. GRANT, DIRECTOR OF FINANCE AND BUDGET OFFICER, DEPARTMENT OF AGRICULTURE Mr. WHITTEN. Mr. Ioanes, we are glad to have you here from the Foreign Agricultural Service. Also, we are glad to have Dr. Renne, Assistant Secretary of Agriculture here, under whose jurisdiction this work comes. I think you have provided, have you not, for the record a biographical sketch? Dr. RENNE. I think you have that, Mr. Chairman. PURPOSE STATEMENT Mr. WHITTEN. At this point we shall enter in the record pages 149 through 151, 154, and 155, and 214 through 219 of the justifications. (The material referred to follows:) PURPOSE STATEMENT The primary function of the Foreign Agricultural Service is to help American agriculture in maintaining and expanding foreign markets for its products. The agency performs three principal kinds of service functions: It maintains a worldwide agricultural intelligence and reporting service, to assist U.S. agricultural industry in its export operations. This is done through a continuous program of analyzing and reporting foreign agricultural production, markets, and policies. It helps to develop foreign markets for U.S. farm products through administration of special export programs and through helping to secure international trade conditions that are favorable toward our products. It coordinates Department of Agriculture activities and relationships in the foreign field, including relations with international organizations and foreign governments. 1. International agricultural affairs.—The Service directs and coordinates Department participation in the formulation of trade programs and agreements to stabilize and expand world trade in American agricultural products, and to reduce restrictive tariff and trade practices against import of American agricultural commodities. Of special importance at this time is the relationships with the European Common Market and intensive efforts are being made to maintain access to the market for U.S. agricultural commodities. This requires comprehensive analysis of the developing situation in the Common Market countries and related trade areas and appropriate representation to officials of the European Economic Community. Recommendations for the departmental positions on trade agreements and international commodity agreements are formulated. Continuous review is made of the trade regulations of signatories to the General Agreement on Tariffs and Trade as these regulations affect the movement of American farm products in international trade. Policies, programs, positions, and standards of participation in public and private international organizations. are developed. The Service administers a program of import controls in accordance with section 22 of the Agricultural Adjustment Act of 1935, as amended. 2. Agricultural attachés.—The Service directs and coordinates a worldwide agricultural attaché service with particular emphasis on the development of markets for U.S. products, and on trade reporting from foreign areas designed to aid U.S. farmers and exporters. The Service represents U.S. agriculture in the principal countries of the world. 3. Export programs.-Maintenance and expansion of foreign markets for surplus agricultural products are promoted by (a) developing agreements with foreign countries for sales of U.S. agricultural commodities under Public Law 480, and following up on the shipments of those commodities; and (b) directing and financing the operation of market development projects for agricultural products. Market development projects are, in most cases, carried out in cooperation with commodity trade groups under cooperative agreements. These projects carried out in foreign countries expand markets for U.S. agricultural commodities. 4. Commodity programs.—Information on foreign market requirements for specific commodities is obtained, analyzed, and made available to farm and trade groups. Market programs are developed for use by producers, exporters, and Government officials to maintain and expand the market abroad for U.S. farm products. Assistance is rendered to domestic trade representatives in negotiations with foreign government officials, importers, and consumers and bringing together American exporters and foreign importers under conditions favorable to trade. 5. Barter and stockpiling.-The Service, in cooperation with other Government agencies, conducts a barter program designed to utilize surplus agricultural commodities, in lieu of dollars, in acquiring goods, materials, and equipment required by other Government agencies from other countries. This work is financed with funds transferred from "Administrative expenses, Commodity Credit Corporation." 6. General sales management.-The Service conducts a general sales management program to develop sales, and pricing policies and programs for sales for export, including sales for credit. The program also now includes price and quality review. Foreign data such as prices and stocks and rail, truck, barge, and ocean freight rates and other market information is collected and recorded for use in program development. Information concerning prices and other sales terms, sales programs, and commodity availabilities is furnished to U.S. exporters, foreign importers, and foreign government officials. This work is financed with funds transferred from "Administrative expenses, Commodity Credit Corporation." 7. Assistance to Agency for International Development.-The Service also participates in the administration of the agricultural portion of the foreign assistance program with funds allocated from the Agency for International Development. This work includes coordination of the Department's participation in the program and direction of the training program for foreign agricultural leaders, and the providing of technical information and advice in connection with the operation of the agricultural technical assistance program in foreign countries. As of November 30, 1962, there were 873 employees in the Foreign Agricultural Service. Of the total number of employees, 600 were located in Washington, D.C., 11 in the United States outside the Washington metropolitan area, and 262 were stationed in foreign countries. 1 Represents allotment from "Administrative expenses, Commodity Credit Corporation," in 1963. In 1964, it is proposed to transfer funds from this account in lieu of an allotment. Represents appropriations. An additional $3,906,323 was available in 1963 and $3,829,608 is estimated to be available in 1964 from unobligated balances brought forward under the appropriation "Salaries and expenses (special foreign currency program)." Mr. WHITTEN. First we have the "Salaries and expense" item. Please place the justification of the estimate in the record at this point. NOTE. The following justifications incorporate the changes in the basis for the 1964 estimates as shown above, and are presented on an available funds basis. The budget estimate for 1964 reflects an increase of $2,043,000 over the appropriation for 1963 on a comparable basis; the increase on an available funds basis is $1,038,285, including the advances and reimbursements from "Limitation on administrative expenses, Commodity Credit Corporation." Summary of increases and decreases, 1964 (on basis of available funds) For implementing the new Trade Expansion Act with respect to agricultural commodities; to work out and support arrangements necessitated by the EEC (Common Market); and to meet demands of increasing activities with international organizations-- +$108,000 To provide for 3 additional attaché posts in areas important to U.S. agriculture, to station a marketing specialist at a selected oversea marketing or distribution center and enable selected existing posts to meet increased workload caused by recent international agricultural developments-- To meet the demands in connection with the Common Market, increasing international commodity agreements and other marketing developments_ To expand and extend market development projects in dollar market areas__. +412, 000 +9, 285 To strengthen commodity price and quality review_ Reduction to reflect estimated savings due to the installation of a centralized data processing operation (MODE) for personnel and payroll data___ For pay act costs pursuant to Public Law 87-793_. Net increase__ +81, 500 +53, 000 -20,000 +394, 500 +1, 038, 285 95910-63-pt. 3———59 |