$BIL. 6 U. S. Farm Exports Set Value Record; 1 Includes private relief, mostly CCC donations to private welfare agencies for oversea distribution. 2. Dollar sales increase.—About 69 percent of U.S. exports in 1962 were sales for dollars; these totaled $3.5 billion, compared with $3.4 billion in the previous year (chart No. 2). Dollar sales included, in addition to unassisted commercial sales, shipments of some commodities with Government assistance in the form of (1) credits for relatively short periods, (2) sales of Government-owned commodities at less than domestic prices, and (3) export payments in cash or in kind. The principal gain in dollar sales occurred in feed grains which increased by one-fourth in value. The other dollar gainers included wheat, tobacco, soybeans, fruits, and animal products. During this period, however, there was a substantial decline in dollar exports of cotton which decreased by one-third. The remaining 30 percent of exports moved under Public Law 480 (the Agricultural Trade Development and Assistance Act of 1954, as amended) and Public Law 665 (the Mutual Security Act of 1954, as amended). Shipments under these programs totaled $1.6 billion compared with $1.5 billion in the previous year. 95910-63-pt. 3- -60 tionships. We will be using for the first time the new negotiating tools supplied by the Trade Expansion Act of 1962. We have had numerous discussions with Mr. Christian H. Herter. who has been appointed special representative for trade negotiations under the Trade Expansion Act. American farm groups may be sure that in Mr. Herter, and in his deputy special representative, Mr. William T. Gossett, we have officials who keenly appreciate the vital place of agriculture in the overall trade picture. Mr. Herter's office has only a small staff and will call on other agencies for necessary assistance. The Department of Agriculture must devote a great deal of time and effort to the task of analyzing the trade situation for literally hundreds of items which will figure in the forthcoming sixth round of negotiations under the General Agreement on Tariffs and Trade. This is expected to begin sometime in the spring of 1964. We will be negotiating with the European Common Market over serious problems of access to its agricultural markets. We will be prepared to work effectively with other countries including the United Kingdom and its European Free Trade Association partners, Commonwealth nations, and Japan-on trade problems of mutual concern. We will be participating actively in studies leading toward possible international commodity arrangements which would represent a new approach toward meeting trade problems of temperate zone agricultural products. Working within the framework of the General Agreement on Tariffs and Trade, we will need to present American agriculture's case strongly and effectively at the bargaining table, and will need to give vigorous support to our country's efforts to expand agricultural trade among all Western nations. In these and related areas, it will be essential that the Foreign Agricultural Service intensify its reporting, analytical, advisory, and general supporting services to U.S. Government, agricultural, and trade interests. FOREIGN MARKET DEVELOPMENT Our foreign market development work is being carried out on a wide front, with the active cooperation and participation of important U.S. agricultural commodity groups. This is a jointly financed program; that is, both the Department and cooperators are sharing in the cost. The program is being carried out in over 50 countries in cooperation with more than 40 trade and agricultural groups. Various techniques have been used successfully in promoting U.S. agricultural exports. These have included distribution of samples for display and testing; translation, printing, and distribution of promotional and educational leaflets; direct advertising; motion pictures. film clips, and slides; cooking demonstrations; direct contacts with the trade; technical services on commodity utilization; and tradesponsored visits of foreign buyers to the United States. We have had good success in exhibiting the high quality and wide variety of American farm products at international trade fairs. Since 1955, American farm products have been promoted at 109 international shows in 28 countries, with total attendance of about 46 million visitors. We are preparing now to sponsor a large trade exhibit in Western Europe this fall. We expect to use the opportunity to dramatize to Western Europe's consumers the benefits they will gain from liberal trade policies that would give them ready access to our great variety of food and agricultural products. AGRICULTURAL ATTACHÉS The Foreign Agricultural Service depends heavily upon its worldwide agricultural attaché service in gaining access to foreign markets. We also rely upon the attachés for collecting a big volume of foreign agricultural information-on marketing opportunities, competition, production, prices, and other factors-which can be made available to U.S. agriculture and trade groups. The attachés have an important part in carrying out export programs, both in the areas of dollar sales and Government export operations. They are the representatives of U.S. agriculture in the countries to which they are assigned. Currently, 61 agricultural attaché posts are maintained in U.S. Embassies and consulates. In 42 of these posts only 1 man is assigned, and he must carry on this work with limited secretarial and local assistance. Ten posts have one assistant attaché, 7 have 2 assistants, and 2, where U.S. trade centers have been established, have 3 U.S. assistant attachés. In carrying out their duties these men often must cover widespread geographic areas, in many cases consisting of several countries. We are requesting funds to establish three new posts to provide more adequate coverage in important areas and to assign additional American assistants or professional local employees in other locations of greatest need. THE 1964 BUDGET ESTIMATES The "Salaries and expenses" appropriation request for 1964 represents an increase of $1,891,000 over the 1963 appropriation. Of this amount, $994,000 for market development projects is only an apparent increase, since obligations under the "Special foreign currency" appropriation are being decreased by a like amount. In both 1963 and 1964 the market development project expenses in foreign countries will be financed from Public Law 480 foreign currencies purchased either in the country where accrued or by conversion to dollar market areas of currencies from other areas. No "Special foreign currency" appropriation is being requested for 1964, since the anticipated $2 million obligations under the program can be financed from funds carried over from prior years. The 1964 request provides for a market development program at the same level as for 1963. The major actual increase is $412,000 for three additional attaché posts, one additional marketing specialist, and for assignment of junior assistants and local employees at existing posts. $108,000 in the "International agricultural affairs" activity is for implementing the new Trade Expansion Act with respect to U.S. agricultural exports, especially with reference to maintaining access to the European Common Market, and to meeting demands of increasing activities with international organizations. $81,500 is requested to meet increased demands on the commodity divisions in connection with the Common Market and international commodity agreements. $295,500 will provide for full-year costs in 1964 of the first step of the pay increase authorized by Public Law 87-793 in 1963, and for the 1964 cost of the additional pay increase which is to become effective January 5, 1964. An increase of $53,000 to strengthen commodity price and quality review and $50,000 to provide for increased pay costs is requested for the general sales manager. Both of these amounts are within the special limitation authorized in the Commodity Credit Corporation administrative expense limitation. There is also a requested increase of $49.000 for barter and stockpiling to provide for increased pay costs. The language for 1964 provides that the total of $1,417,000 to be transferred from the Commodity Credit Corporation be merged with the "Salaries and expenses" appropriation, as is now done for the $3,117,000 transferred from section 32. The job of marketing U.S. farm products abroad is complex. But it is tremendously important-to U.S. agriculture and to the overall national economy. We are very glad that we can have a part in it. Mr. Chairman, in further support of the program I have discussed. I would like to submit for the record material from the explanatory notes. (The material referred to follows:) STATUS OF PROGRAM Current activities.-Current information on foreign agricultural production. markets, policies, and competition are gathered, analyzed, interpreted, and disseminated to U.S. farmers, business, and Government. This information is made available, in person and through publications, wherever decisions are made on important foreign economic and other problems so that the interests and problems of the U.S. farmers may be taken into account in making those decisions. The expansion and stabilization of world trade, particularly in agricultural products, is actively encouraged through the removal of barriers to trade, the study of foreign competition with American products, the analysis of market situations affecting the sale of agricultural commodities throughout the world, and making the information obtained available to the U.S. farmers, processors, exporters, and other interested groups. U.S. agricultural interests are represented and their position presented in the development of international agreements. Agricultural attachés are stationed in 61 posts throughout the world to represent U.S. agriculture at those posts. The attachés' work includes a comprehensive system of reporting to meet the needs of U.S. agriculture, to act as the voice of American agriculture at the posts, and to take necessary action in the development of foreign markets for U.S. agricultural products.. A broad program is carried out for the development of markets abroad for U.S. agricultural products in surplus or potential surplus supply. Export programs, including those under the Agricultural Trade Development and Assistance Act, Public Law 480, and related authorizations, as well as import programs and controls are administered by the Service. The State Department is reimbursed by the Foreign Agricultural Service (FAS) for administrative and other support costs furnished overseas at the attaché posts. It is estimated that such costs will amount to $1,175,000 in 1964. Selected examples of recent progress: SUMMARY OF EXPORTS 1. U.S. Agricultural exports set value record in fiscal year 1962.-As shown in the following table, U.S. agricultural exports totaled $5,141 million in 1962 (chart No. 1). Export volume equaled the all-time high in 1961. The export picture in 1961-62 was dominated by major shifts in feed grains, wheat, and cotton. Feed grains increased by $163 million and wheat by $133 million while cotton shipments declined by $274 million. Soybeans, fruits, cottonseed and soybean oils, poultry meat, tobacco, and vegetables increased moderately. Rice, variety meats, animal fats, hides and skins, and dairy products showed little or no change. $BIL. 6 U. S. Farm Exports Set Value Record; 1 Includes private relief, mostly CCC donations to private welfare agencies for oversea distribution. 2. Dollar sales increase.—About 69 percent of U.S. exports in 1962 were sales for dollars; these totaled $3.5 billion, compared with $3.4 billion in the previous year (chart No. 2). Dollar sales included, in addition to unassisted commercial sales, shipments of some commodities with Government assistance in the form of (1) credits for relatively short periods, (2) sales of Government-owned commodities at less than domestic prices, and (3) export payments in cash or in kind. The principal gain in dollar sales occurred in feed grains which increased by one-fourth in value. The other dollar gainers included wheat, tobacco, soybeans, fruits, and animal products. During this period, however, there was a substantial decline in dollar exports of cotton which decreased by one-third. The remaining 30 percent of exports moved under Public Law 480 (the Agricultural Trade Development and Assistance Act of 1954, as amended) and Public Law 665 (the Mutual Security Act of 1954, as amended). Shipments under these programs totaled $1.6 billion compared with $1.5 billion in the previous year. 95910-63-pt. 3-60 |