3 sions of this Act.

4

SEC. 3. The terms of credit for commodities sold under 5 this Act shall be as favorable to the United States as the econ

6 omy of each recipient country will permit except that—

15

16

17

18

19

(1) payments shall be in dollars with interest at a rate which will be, as nearly as practicable, equivalent to the average cost of funds borrowed by the Commodity Credit Corporation from the United States Treasury, plus one-half of 1 per centum;

five

and

(2) the repayment period shall be not less than

years or more than ten years from the date of sale;

(3) the Secretary may, if he deems such action appropriate to protect the interest of the United States, require an initial payment from the purchaser at the time

of sale or shipment of the commodity.

SEC. 4. (a) In carrying out the provisions of this Act, 20 the Secretary shall take reasonable precautions to safeguard 21 usual marketings of the United States and to avoid displacing 22 any sale of United States agricultural commodities which 23 the Secretary finds and determines would otherwise be made 24 for cash dollars.

25

(b) The Secretary shall obtain commitments from pur

1 chasers that will prevent resale or transshipment to other

2 countries, or use for other domestic purposes, of agricultural 3 commodities purchased under this Act.

4 SEC. 5. (a) No sale may be made under this Act

5 in the case of any foreign country unless the Secretary deter6 mines that such sale will

17

18

(1) develop, expand, or maintain such country as

a long-term foreign market for the commercial sale of agricultural commodities;

(2) increase the sale and export of agricultural commodities produced in the United States, including the sale and export of breeding cattle and swine, on a long-term basis;

(3) improve the marketing, storage, handling, or distribution in such country of agricultural commodities;

or

(4) otherwise improve the capability of such coun

try to purchase and utilize, on a long-term basis, agri19 cultural commodities produced in the United States.

20

20

(b) Agreements entered into by the Secretary under

21 this Act for the sale of agricultural commodities to foreign 22 countries shall be subject to such other terms and conditions 23 as the Secretary may deem necessary or appropriate and 24 shall be subject only to the approval of the National Ad25 visory Council on International Monetary Financial Policies.

1 SEC. 6. The Commodity Credit Corporation shall finance 2 ocean freight charges incurred pursuant to agreements for 3 sales of agricultural commodities entered into under this Act 4 only to the extent that such charges are higher (than would 5 otherwise be the case) by reason of a requirement that the 6 commodities be transported in United States-flag vessels. 7 Such agreements shall require the balance of such charges 8 for transportation in United States vessels to be paid in dol9 lars by the countries with which such agreements are entered 10 into.

11 SEC. 7. The authority provided under this Act shall 12 be in addition to and not in place of any authority granted 13 the Secretary or the Commodity Credit Corporation under any other Act.

14

IN THE SENATE OF THE UNITED STATES

FEBRUARY 6 (legislative day, JANUARY 30), 1978

Mr. DOLE introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To amend the Commodity Credit Corporation Act to direct the Secretary of Agriculture to establish a program for expanding exports of farm commodities by making available Commodity Credit Corporation financing to exporters who extend deferred payment terms to foreign buyers.

1

Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That the Commodity Credit Corporation Charter Act (15 4 U.S.C. 714 et seq) is amended by adding at the end thereof 5 the following new section:

6

7

"SEC. 20. (a) To increase the United States share of

8 agricultural commodities in world trade, and to develop,

II

4 ity Credit Corporation financing to exporters of such com5 modities who wish to extend deferred payment terms to

6 foreign buyers in order to meet foreign competition and to 7 make additional export sales.

8

"(b) Exporters who are willing to sell United States 9 agricultural commodities to foreign buyers on deferred pay10 ment terms not to exceed three years may apply to the 11 Commodity Credit Corporation for financing of such com12 modities. Upon Commodity Credit Corporation approval of 13 the export sales plan and upon proof of export in accordance 14 with the approved plan, the Commodity Credit Corporation 15 shall provide the necessary financing.

16

"(c) Repayment to Commodity Credit Corporation shall 17 be made in dollars by the exporter in accordance with the 18 terms and at interest rates approved by Commodity Credit 19 Corporation in the exporter's plan. Interest rates on such 20 financing shall be no higher than those charged for similar 21 terms under Commodity Credit Corporation country lines of 22 credit.

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(d) The Secretary may, if he deems such action appro24 priate to protect the interest of the United States, require a 25 performance bond from the exporter at the time of the sale.