Senator MORGAN. Thank you, Mr. Chairman. I do appreciate the opportunity of being here because, as you know, I do represent a State that produces many export crops. North Carolina is in the top 10 of several farm commodities. And if some people, particularly Mr. Califano, in the executive branch of the Government should have his way, we might have to produce other farm commodities than we anticipate. So I do appreciate the chance of coming and making some remarks on some of the bills which are before your subcommittee. You know, Mr. Chairman, in recent months, Congress has devoted a great amount of time and energy toward improving the domestic farm program. To me, it seems inconsistent to improve our domestic agricultural policies without examining our export policies. After all, the economic welfare of the Nation's farmers has been increasingly tied to our success in export markets. America made significant strides in our food and fiber exports in recent years. In this decade alone, our agricultural exports have tripled to where we now earn over $24 billion annually. Our food exports are an extremely important segment in our balance-of-payments picture. Without strong food and fiber exports, I think this country of ours would have a totally disastrous balanceof-payments deficit. Agricultural exports are important to my State, as I mentioned. Tobacco is exported to many countries. We sell tobacco to over 100 countries in virtually every corner of the globe. And in many of those countries, Mr. Chairman, tobacco was the first American farm product, to be exported. North Carolina exports a good number of other commodities as well. We export, in large volumes, soybeans, and corn as well. Our farms are becoming increasingly tied to export markets. I think it is my obligation to do my best, while in the Congress, to improve this Nation's agricultural import policies, export policies, as much as I do represent North Carolina, as well as the Nation. Before I begin comments on the work being done here today, I would like to say that food trade cannot be viewed in isolation of other events. Our Nation is currently involved in negotiations for multilateral trade agreements and for a new international wheat agreement. We must improve our trade policies here in the Congress. If we do so, I believe we can increase our chances for success in these vital negotiations. There are two elements in our food and fiber export policy. One is the food for peace and expansion of agricultural markets programs which has been on the books since 1954. Title I of Public Law 480 has been used to develop many of today's overseas markets. The mem 2 ranging up to 3 years. Commodity Credit Corporation has welcome complement to the Public Law 480 program in our N market development efforts. I think a charge before this subcommittee and before the A ture Committee is to work to try to expand our export markets subcommittee's efforts are vital to the well-being of the Natio must examine every opportunity that we have to expand markets. And I do not think we can become too complacent recent successes. In my comments before the subcommittee, I want to discuss v agricultural trade issues and the bills pending before the su mittee, and actions that I believe should be taken by this Co with regard to the Commodity Credit Corporation financing fo market economies. Certainly, the most controversial legislation pending befor committee is Senator Humphrey's S. 2385, the agricultural expansion, introduced shortly before his death. The bill enjoys the support of 29 cosponsors, including mysel a majority of the committee. The section of this bill that has stirred most controversy is particular portion which authorizes nonmarket economy cou the opportunity to participate in programs of the Commodity ( Corporation. Modifying the terms of the Trade Reform Act of 1974, enhance our farm trade opportunities. Doing so would improve income, which has been very depressed, and would help revers serious balance of payments. Modifying that part of the Reform Act, and only that part, which relates to the Comm Credit Corporation, would not change the thrust of the law. Re tions would still remain on Export-Import Bank credits. In examining this issue, I think we have to keep in mind the that the CCC is a creature of the U.S. Government and that decisions will likely remain very political in nature. The CCC line is decided by the Office of Management and Budget whic reality, is the office of the President. It is clear to me tha President is not about to extend credit to countries which have relations with us, or that we are not satisfied in dealing with. In we have used CCC in the past to improve our relations with nations. I think we also have to keep in mind that Commodity Credit poration has been very well managed and that it has been conservative in its financial management of credit. Commodity C does not automatically grant credit to every country that app It uses some rather strict tests to determine a country's eligib And further, I think it ought to be noted that it actually has retu a profit, funds that accrued to the Treasury. our two centuries of existence. Human rights ought to be at the top of our list of priorities. History has demonstrated that America must be diligent in the cause of human rights. America must address this issue, because too often no other nation has. While human rights, including the right to emigrate, are of most concern to us, I think we do have to examine if the restrictions established in the name of human rights are effective. The restrictions we are discussing link our willingness to extend commodity credit to the emigration policies of the various nonmarket economy countries. These restrictions were brought about to address the question of the right of the Jewish people to emigrate from various Warsaw Pact countries; in particular, the Soviet Union. Of course, there are many arguments that can be made against providing this credit to nonmarket economies. One argument has been that we should not give the Warsaw Pact nations something for nothing. On this point, it is clear to me that the Soviets are particularly interested in CCC credit. In fact, extension of commodity credit would be most beneficial, I think, to us. In this country, our gain would be increased trade, primarily through increased consumption. Senator DOLE. I think the big problem there is emigration. If we could-relax their emigration policies, I think Senator MORGAN. I think you are right, Mr. Chairman. But I think there are a good many in the Senate who question whether these restrictions are working. Senator DOLE. It has not worked so far it has been counterproductive. Senator MORGAN. That is my view. I sat in Moscow in a room with Senators Javits, Ribicoff, and Humphrey, and others, and we talked to a number of Russian Jews who wanted to emigrate to this country. We discussed this very issue, as to whether or not these restrictions have been counterproductive. There was disagreement, but I think the record, of course, shows that they may have been counterproductive. But maybe it may very well be that by opening up farm trade, we might have an opportunity to see whether or not the Russians would be willing to open the doors, again, certainly more than what they have. I think this is the most troublesome part of trade policy. I think we have to remember, too, Mr. Chairman, that we are dealing with some countries other than the Soviet Union. We are dealing with East Germany, Czechoslovakia, and Hungary, all three of which are very attractive markets for the United States, particularly for our feed grains and oilseeds, such as soybeans. And it is a disappoint Senator DOLE. China is another big market. It has grea In fact, for the first time in a number of years, it has U.S. wheat, which is significant. I am certain it is sign just for wheat-producing areas, but for areas like North They have been very reluctant to buy anything from th There is great market potential there. Senator MORGAN. Well, China is a promising market, man. And I think it is time that we stop being a residu for these nonmarket countries. Senator DOLE. As a last resort. Senator MORGAN. A last resort. And I think to the detri only detriment to our farmers, but also a detriment t sumers in America, because we have not been able to ant various demands that might exist. And I say again, learning to trade effectively with thes will improve our relations or at least put us in a better believe the time has come that we should consider trying our farm exports. And I think this is the reasonable way to do it, and I think we can do it without any detriment. Mr. Chairman, I have some other comments with rega ticular bills, but I suppose for the sake of time that I sh my entire statement part of the record. Senator DOLE. The entire statement will be made a p record, and we appreciate very much your testimony.* With reference to the recent China purchase, I am remi they only bought from us after buying from the Cana Australians on deferred payments arrangements. So as you we are the residual market. Are there any questions of Senator Morgan? Senator MORGAN. I might add one other thought, Mr. and that is that these countries have not been credit risks in There is some question in the minds of my people back h 'whether or not we want to extend credit to them. I not last credit extended to the Soviets, back in 1972 or so, wa long in advance before it. Now, credit arrangements with Yugoslavia, Poland, and F have been very satisfactory. I know that these restrictions are not an easy subject. But no one could accuse my friend, Hubert Humphrey, of be on human rights. And yet, this is a bill that was very dea and one that I was pleased to join with him in support o his death, and pleased to try to make a few remarks in sup since he is not here. Let me just read one further part of my statement. *See p. 118 for the prepared statement of Senator Morgan. Pཅསཔ་ཆ ལམཅན་ total consumption. Third, no readily available alternative sources can exist or be quickly developed. And, fourth, no satisfactory substitutable commodity can be available or quickly developed elsewhere. While a special study has not been done, to see if these poor conditions have existed at any time in the countries, I believe that answer is probably known. We will file the remainder of the statement. Senator DOLE. Are there any questions of Senator Morgan? [Whereupon, Senator Stone assumed the chair.] Senator STONE. I want to thank Senator Dole for starting the hearing. I was detained in another meeting with some of our Foreign Relations Committee members. I am going to put my statement in the record in order to expedite the hearing. * Let me call on Senator Clark for his statement. Senator DOLE. I have a brief statement that I will submit for the record.** Senator STONE. Senator Clark? STATEMENT OF HON. DICK CLARK, A U.S. SENATOR FROM IOWA Senator CLARK. Thank you, Mr. Chairman and members of the committee. I do represent a State that depends very heavily upon foreign exports. I guess about 1 out of every 3 acres perhaps a bit more than that in our State-is exported. We usually are first or second in total corn production, and have been very, very high in the rankof the States in terms of soybean production. ing I appreciate the chance to appear here and talk about what is perhaps the most important single area in terms of trying to increase farm prices, the ability to increase our exports. And as you know, I have introduced legislation-as other members of this committee and others not on this committee have done-the particular bill that I introduced was S. 2968. As I say, I think you have four or five bills before you. All of them have great similarities. I think-I would certainly hope that the committee would get the ideas here today, and move relatively quickly in terms of passing legislation. Now, the two main components of our agricultural policy, our foreign trade policy, of our agricultural policy-it seems that our foreign trade policy has always been kind of a stepchild, that we had *See p. 117 for the prepared statement of Senator Stone. |