cut flowers and buds, fresh; lard and other rendered edible pig fat; and prepared or preserved foal flesh.

Denmark: The Danish Government resumed unlimited feed grain imports on November 17, 1961. Feed grain imports were embargoed on September 13, 1961. In addition, fresh cranberries have been removed from control and citrus juices are now being licensed freely to the United States with no fixed quotas.

France: The Government of France announced on December 8, 1961, the extension of liberalization to the United States and Canada of potato and other starches and canned vegetables and vegetables in other containers. These products were previously liberalized only to OEEC countries.

Japan: On December 21, 1961, Japan liberalized 172 import items thereby effecting the 70-percent liberalization which was originally scheduled for December 1, 1961. Oatmeal, the only agricultural commodity listed in the preliminary list was moved from the fund allocation list to the automatic approval list. In addition, canned asparagus has since been added to the automatic approval list.

Spain: The Government of Spain published its sixth list of liberalized goods on February 9, 1962. Important agricultural commodities included were: Vegetables; canary seeds; sorghum, flours of starch goods; and flax and illipe.

Sweden: Effective January 1, 1962, and until further notice, no import license will be required for imports of dried albumen.

Trade Agreement Countries Take
Three-Fourths of U. S. Farm Exports

2. Participation in International Organization programs.-The Foreign Agricultural Service continued to carry out its responsibility for planning, organizing and administering the participation of the Department of Agriculture in programs and affairs of intergovernmental and nongovernmental international and regional organizations and in international congresses and meetings. In this work it has cooperated closely with pertinent subject-matter agencies of the Department and with other departments to insure effective U.S. participation in international organizations and in international forums where agricultural problems are discussed.

During the past fiscal year arrangements were made for the Department's participation in 177 international conferences and meetings. In addition to arranging for participation in international meetings, staff members took an active part in the preparations for meetings such as the FAO Council, the FAO Conference and the FAO/UNICEF Policy Committee.

FAS continued to represent the Department in meetings of the United Nations Economic Committee (UNEC), the interdepartmental group established to clear

position papers for the U.N. General Assembly, Economic and Social Council. its four Commissions and other bodies of the United Nations. During the past fiscal year FAS reviewed and acted on 263 position papers for 18 UNEC meetings. 3. Investigations conducted.-During fiscal 1962, four cases were before the Tariff Commission under section 22 of the Agricultural Adjustment Act, as amended. This act is designed to protect agricultural programs from material interference of imports. Preliminary investigations were made and cases were prepared for imports of rye, rye flour and meal, Blue-mold cheese and Cheddar cheese, tung nuts and tung oil and articles or materials wholly or in part of cotton. Changed conditions not requiring the continuation of the quota were decided in the matter of rye, rye flour, and rye meal. Similar changing conditions in tung nuts and tung oil resulted in the President's upholding the Department's recommendation of discontinuance of the quota. In November 1961. the Department requested an import fee on the cotton content of specified cotton textiles equal to the export subsidy on raw cotton and cotton equivalent of cotton textiles. The Tariff Commission hearing was conducted over a period of 10 days, and no recommendation has yet been made by the Commission. The Bluemold and Cheddar cheese investigation was initiated by Presidential request under section 22 (d) of the Agricultural Adjustment Act, as amended. The Tarif Commission's report, recommending no quota increase, was sent to the President on September 1, 1961. No immediate action was taken, and a continuing surveillance of the conditions surrounding the possible importation of these items was maintained. On March 30, 1962, the President announced an increase of 850,000 pounds in the annual quota for Blue-mold cheese.

4. Import licenses issued.-Licenses issued for dairy product imports under the authority of Presidential Proclamations 3019 and 3025 totaled 2,994, of which 2,778 were regular authorizations and 216 were supplemental licenses. Authorized 120 transfers of country of origin, 226 changes in ports of entry, and acted upon over 60 petitions for relief from hardship. Under Presidential Proclamation 2550 issued 7 import licenses for wheat, 48 import licenses for wheat flour for experimentation and research, and 6 import licenses for certified seed wheat. Under Presidential Proclamation 3195, 26 licenses for imports of dry milk products were issued.

AGRICULTURAL ATTACHÉS

1. Trade liberalization.-The efforts of agricultural attachés to obtain greater trade liberalization for U.S. agricultural products is a continuing task. These endeavors, carried on in cooperation with Embassy and other U.S. Government officials, cover a variety of activities concerned with the removal or reductions in import restrictions, quotas, duties and other limitations that adversely influence the movement of U.S. agricultural products in the foreign market. Representation by attachés to prevent the issuance of proposed new or more restrictive regulations is also important, such as measures that may be applied against certain food additives and artificial coloring materials. Following are a few specific examples:

France: Over a period of years, representatives of U.S. firms have been trying unsuccessfully to obtain import licenses for rice which the French have been buying elsewhere. Through the efforts of the attaché import licenses were issued so that during June 1962, initial sales amounted to 2,500 tons. This was the first U.S. rice sold in France since World War II. West Germany: Succeeded in getting Macintosh, York, and Golden Delicious varieties of apples placed on the approved import list.

Western Samoa : Succeeded in getting quarantine restrictions on American poultry lifted.

2. Market development.-High on the priority list of agricultural attachés is the continuing work with the commodity and trade promotion division of FAS and with the representatives of U.S. agriculture industrial groups to find and to further develop opportunities for increasing the commercial sales of U.S. agricultural products. These efforts have been noticeably effective in the high level of agricultural exports maintained during the past year.

Listed below are some accomplishments during the past year:

Japan: Discussions between the Japanese Ministry of Food and the Agricultural Attaché's office in Tokyo and between the Japanese Embassy, Department representatives and the grain trade in Washington resulted in an increase of U.S. wheat shipments to Japan from 200,000 metric tons in 1961-62 to 600,000 metric tons in 1962-63.

Nigeria and Ghana: Much work is being done by the agricultural attaché at Lagos in assisting trade representatives in the development of greater

demand for their exports to these countries. For example he assisted Great Plains Wheat Inc., in arranging for a team of four Ghana wheat flour importers to visit the United States. Also, he spent much time during the year making arrangements for, and participating in, the U.S. agricultural trade fair at Accra, and now has a similar assignment for a fair at Lagos.

Liberia: The Agricultural Attaché at Monrovia successfully assisted the Ambassador in negotiating and signing a title IV, Public Law 480 agreement with Liberia having a market value of $8.6 million. Liberia is a dollar country, and its market potential for the United States is promising.

3. Public relations.-Attachés in Europe are called upon to render special service to an increasing number of visiting delegations of U.S. farmers and businessmen traveling abroad in the interests of promoting better understanding between the United States and people of other countries.

The Agricultural Attachés in Belgium, Poland, and U.S.S.R. arranged for briefings and visits for numerous delegations during 1962.

Attachés in Paris, Rome, The Hague, Bonn, and London also briefed numerous groups of visitors.

Four U.S. study teams each composed of 4 to 6 State Agricultural Extension leaders were materially assisted by attachés stationed in 20 countries. The study team traveled in the Far East, Africa, Europe, and Latin America to assess foreign market potentials and obtain firsthand knowledge that could be passed on through their extension activities to U.S. farmers as to how markets for U.S. agricultural products abroad might be increased.

Agricultural attachés gave assistance to a congressional delegation (members of the Agricultural Subcommittee of the House Appropriation Committee) which visited all attaché posts in Africa in the fall of 1961. Objectives of the visit were to study agricultural trade and conditions in each country, to get acquainted with the work of the agricultural attaché, and through him to meet trade and government representatives. In each case, the visit was highly successful, contributing to the strengthening of U.S. trade and other relations with these countries.

4. Reporting. Supplying an increasing volume of reports, market and price information covering the current and potential development of foreign agriculture continued to be a major function of agricultural attachés during the past year. More than 5,000 required and voluntary reports, in addition to several thousand other communications, were received from agricultural attaché offices overseas. These reports were analyzed, duplicated by FAS/W and the ininformation widely distributed. This information provides background and guidelines for foreign agricultural policy decisions, production plans, market development programs, legislative background and other agricultural activities. New economic and political developments such as the Common Market have caused greater demands for more pertinent and timely information.

Spot market news over the past year has been received on a daily and weekly basis on such commodities as feed grains, wheat, cotton, dairy products, and rice from such selected markets as Liverpool, The Hague, Hamburg, Milan, Tokyo, and Bangkok. During the past year efforts were intensified to give even more emphasis to this phase of the work and to make the gathering and distribution of the more basic information, as well as current on-the-spot data, as effective as possible.

Spot market news is essential to the operations of the Department's export program in setting export subsidy rates and determining the level of minimum bids so that U.S. surplus agricultural products will be competitive on foreign markets.

Preliminary discussions have been held and consideration given to possibilities of adoption of more modern techniques in handling information, looking forward to a faster communications system, including eventually the use of Telex and data processing equipment, with the objective of making the reporting work immediately available and more highly effective. Reproduction of the agricultural attaché reports from the field is already being done by the Department and procedures are in process for wider distribution to make them immediately available to business interests.

5. Representation in international affairs.-The agricultural attaché residing in the country where international conferences and forums take place normally represent the interests of the USDA and U.S. agriculture in general. Summary reports of such meetings are prepared by attachés for the information and benefit of the USDA and others.

6. Distribution of attaché posts.-The location of the attaché posts is shown on the following map.

COMMODITY PROGRAMS

1. FAS and other agencies cooperate in solving marketing problems.-Canada imports 75 to 95 percent of her raw cotton from the United States. This year, one of the larger Canadian textile mills found among some of its incoming U.S. shipments a few bales of contaminated cotton. The problem was called to the attention of the agricultural attaché in Ottawa. The attaché immediately contacted the FAS Cotton Division. Samples and identification, including bale numbers, area of production, and the cotton gins involved, were asked for and received from the agricultural attaché. This information, in turn, was passed on to Federal Extension Service cotton ginning specialists, who, in cooperation with State extension specialists, conduct educational programs throughout the cotton producing States. These ginning specialists were directed to the area from which the contaminated cotton was originating. Educational programs with ginners were brought to bear on the problem. The Canadian textile mill buyer was happy about the prompt action taken.

2. Inquiries answered regarding newly developing textile manufacturing countries.-Textile industries are being developed in many new and sometimes remote countries of the world, particularly Asia and Africa. Marketing channels between U.S. cotton exporters and these newly developing textile manufacturing countries need much information to assess the sales possibilities of these new markets. This past season numerous inquiries were made by U.S. exporters and information was supplied to them by FAS.

3. Requests for technical services and information by users of U.S. cotton increase.-Demand by foreign customers is growing for technical service and information on manufacturing processes, the use of mechanical and chemical testing to evaluate quality, and for the improved utilization of cotton in making new and better products. As the USDA, State universities, and private groups develop processing and utilization research, the task shifts to that of disseminating this information to the users of U.S. cotton. Since 40 to 45 percent of the U.S. crop is sold abroad, the magnitude of the task is no small one for FAS. This past year, marketing specialists visited and consulted with users of U.S. cotton in all of the major world cotton markets. In addition, this year, for the first time, periodic U.S. cotton processing and test results were provided throughout the harvest season to 300 foreign users of U.S. cotton in 22 consuming countries. Distribution was made by agricultural attachés to their foreign contacts. This timely information was an excellent supplement to personal contacts made by marketing specialists. It provided information regarding the various test results and spinning performance of U.S. cotton.

Foreign purchasers of U.S. cotton could compare these results with those for U.S. cotton of previous seasons, as well as with competing growths.

4. Cotton textile imports studied.—One of the most dynamic aspects of the cotton situation during the past year has been that of cotton textile imports into the United States. The Department of Agriculture is directly concerned with the use of U.S. cotton, both at home and abroad, and consequently has an immediate interest in U.S. cotton textile imports and decisions affecting this trade. Many individuals and groups were involved for the first time with the cotton textile import problem. The need for background information on this problem led to the preparation of a report entitled "U.S. Cotton Textile Imports-Perspective on a Complex Problem" which was very successful.

5. Cotton production and marketing research reported.-The International Cotton Advisory Committee, of which the United States and 34 other nations are members, issued a report on cotton production research for its 1962 plenary meeting. The U.S. section summarized cotton production and marketing research classified by agency, by general lines of investigation, and by location.

6. Foreign competition in fruits and tree nuts investigated.-The impact of expanding foreign production and increasing export competition has been of growing interest to U.S. fruit industries. The publication_of_comprehensive competition reports, largely based on field surveys, continued. This past year, 6 additional reports on competitive developments in foreign countries were published, making a total of 30 reports in 7 years. Reports covered the following: (a) Citrus industry of Italy which has the world's second largest lemon industry and the largest orange production of the Common Market members. The survey reveals an "explosion" in orange plantings and revolutionary changes in the processing industry.

(b) Comparisons of the quality and condition in the London market of certain U.S. fresh canned and dried fruits with those from competing countries. U.S.