6. Soil organisms as a source of nitrogen fertilizers.-More than 30 species of blue-green algae have been isolated from ricefield soils collected from several parts of India and grown under laboratory conditions. Research results to date have shown that at least a dozen of these algae are able to fix appreciable amounts of atmospheric nitrogen. This nitrogen would be available to growing plants (India $22,317).

7. Rough dwarf virus disease of corn.—This disease of corn does not at present occur in the United States but it is a potential hazard to corn production in the Southeastern States. A study in Israel has demonstrated that the disease is transmitted by a planthopper which is known to transmit other plant virus disease, such as the rice black-streaked stunt disease. An opportunity to study the expression of both diseases in an area where both rice and corn are grown, and where the population of the planthopper was high, clearly indicated that the disease of corn was different from that in rice (Israel $64,333). Utilization research

8. Oxidized starches.-Important basic information has been obtained on the chemical reactions involved in the production of mildly oxidizing starches, which are widely used commercial products in the United States. This information is providing a basis for the correlation of chemical structure with useful physical and chemical properties, so that products of uniform quality may be routinely made, and products of improved quality for specific end uses may be obtained by altering process conditions (Israel $129,008).

9. Flame resistance in cotton.-Cotton subjected to high temperatures is being studied to determine the nature and sequence of the reactions that take place when it is heated under various conditions. It has been found that the first products, such as tars and gases, are rich in oxygen to such a degree that little outside oxygen is required for further combustion. This indicates that flame-retardent finishes should be designed to alter the sequence of these reactions and thus prevent the formation of combustible products. Also, it has been shown that the char-to-tar ratio is a very useful yardstick for measuring the effectiveness of such finishes (United Kingdom $107,938).

10. Color, odor, and flavor retention in vegetables.-Research under a British grant has shown that the techniques using color retention are important not only from the standpoint of consumer eye appeal and vitamin preservation. In addition to preserving the color, they prevent the breakdown of the yellow carotenoid pigments, but these techniques do not prevent formation of other compounds with objectionable odors and flavors (United Kingdom $141,974).

11. Milk and fruit concentrates. In the development of a canned beverage from skim milk, sugar, and fruit juices, Italian food technologists have developed new methods for stabilizing the milk protein, casein, in the presence of the organic acids of fruits. New outlets here and abroad for nonfat dry milk and fruit products may be created as a result of these findings (Italy $52,965).

12. Vitnamin B1.-Important basic information has been obtained on the chemical and physical properties of the growth factor for poultry known as vitamin B13, which is found in byproducts from the fermentation of grain to alcohol. This information will be used in attempts to develop an efficient process for fermentative production of a feed supplement containing this growth factor, for use in formulating more economical poultry feeds (Italy $86,313). 13. Structure of wool proteins.-By use of a new principle of protein moleculeseparation, a simple, effective way has been found to isolate in pure form the low-sulfur-containing protein of wool, which is largely responsible for the unique mechanical behavior of wool and for quality differences among wools. This accomplishment will pave the way for more critical control of wool fibers during processing into products of high uniformity. It will also help researchers to decide how and where to alter the structure of wool, in order to achieve specific performance requirements (France $23,902).

14. Proteins of hides and skins.-Significant success has been achieved in the fractionation and characterization of collagen, one of the major proteins found in hides and skins. Knowledge of the chemical composition and physical behavior of the fractions could lead to new industrial and pharamaceutical uses for surplus hides and skins (Finland $63,619).

15. Structure of starches.-Electronic computer techniques have been developed for studying interactions between starch and the proteins associated with starch in cereal grains; and model starch molecules have been synthesized for use as control compounds in these studies. This research is expected to yield funda-

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mental information on starch structure that will be useful in improving the processing of grain starches and their products (United Kingdom $98,259).

16. Pure fatty acids.-Two processes are being investigated in studies directed toward the development of a continuous, commercially feasible process for producing pure fatty acids from soybean and linseed oils. The first method involves fractional crystallization of fatty acids from methanol solution at low temperature. The second approach involves "zone melting," a process orignally developed for the production of pure metals for use in transistors. If these techniques are successful, fatty acids could be made available for use as chemicals and for preparing polyunsaturates for food use. (Finland $70,640.)

17. Stress responses of cotton fiber.-Modern microtechniques have been developed to study the influence of stress on single cotton fibers. The results, which have demonstrated that the properties of fibers are affected by varietal differences in structure, will be useful in the breeding and selection of cotton for specific end uses, as well as in planning new chemical and physical modifications of cotton. (Netherlands $35,637.)

18. Interaction of rennet and milk proteins.-A basic step in commercial cheesemaking is the clotting of casein-the major protein in milk-by rennet, a natural enzyme, by a mechanism that is not well understood. Recent studies with rennin and various fractions of casein have provided fundamental information that may lead to significant improvements in the cheesemaking process. The same information may be significant also in improving the heat stability of milk and in preventing the gelation that occurs in condensed milk during prolonged storage. (France $59,536.)

19. Microorganisms in fruits and vegetables.-Research demonstrating that the tissues of sound, healthy fruits and vegetables may contain certain types of nonpathogenic bacteria will be useful in the improvement of processes involving fermentation-for example, cherry brining and pickle manufacturewhere the proper bacterial population is essential to achieving satisfactory results. (Israel $111,184.)

Marketing research

20. Development of objective methods for measuring market quality of raw and precooked rice.-Present findings support the view that molecular weight of amylopectin, the gel component of starch, has an influence on the behavior of rice being cooked. A high amylopectin molecular weight provides the starch granule with an elasticity of structure and resistance to breakage during swelling. Among aged samples, in general, long-grain rices require longer cooking times than short-grain rices; this tendency was also observed when studying the fresh rice samples.

Total protein does not constitute an index of quality of rice although it has some relationship to quality. The heterogeneity of rice grain endosperm was confirmed, particularly that the outer layers are richer in protein than the inner ones. A new rice quality test was based on this fact. (Spain, $19,233.)

21. Effect of ethylene dibromide fumigated foods and feeds on animals.Ethylene dibromide is a commonly used insecticide for stored-grain insects in this country. Studies thus far under this project in Israel have produced interesting and valuable information about the toxicological hazards of fumigant residues of this chemical. The permanent inorganic bromide residues from liquid sprays left in commodities by chemical reaction are not as injurious to animals as the levels that result from routine gas fumigation for insect control. It is the free EDB that is potentially hazardous to animals. Sizable amounts have been found to remain in grains, cereal products, and oilseeds, requiring 30 or 40 days of aeration for depletion of the residue. The EDB is less tenacious in whole grains than in ground products, the retention being greater as particle size decreases.

Laying hens are the most susceptible to EDB in the diet of any livestock tested thus far. Five to ten parts per million in the diet have an adverse affect on egg production, as shown by previous work in Israel. This emphasizes the need for thorough aeration of poultry feed.

Roosters and rats have tolerated 200 p.p.m. (parts per million) without evidence of impaired health. Histological studies remain to be conducted to determine whether there is damage to any organs.

Feeding 2 to 3 milligrams of EDB per kilogram of body weight daily to cows, calves, and pigs caused no gross detrimental results. Young calves were seriously affected by 10 milligrams per kilogram daily and died after a few weeks. A dose of 40 milligrams per kilogram was lethal after 2 days. Further details will be worked out as the project proceeds. (Israel, $79,430.)

Forestry research

22. Parasites of the gypsy moth.-The gypsy moth is a leaf-eating insect which feeds on many fruit, shade, forest, and ornamental trees. Defoliation caused by the gypsy moth has retarded growth and killed trees over extensive areas in this country. The presence of the gypsy moth and several other closely related species in India has provided an opportunity to investigate the natural control factors affecting the gypsy moth in that area. Collections of eggs, larvae, and pupae have been made and several species of parasites have been reared from them. In some larval collections, parasitization of 50-60 percent was recorded. At least two species of predaceous beetles were also observed feeding on late instar larvae. These beetles are closely related to an important species that was introduced into the United States from Europe several years ago. (India, $87,463.)

23. Induced mutations in forest trees.—An outstanding botanist in Finland is conducting basic research on methods of inducing useful mutations in forest trees through irradiation and through chemical treatments which affect the genetic makeup of plants. With chemicals he has produced birches containing twice the normal number of chromosomes which can be used by geneticists as breeding material for crossing with trees with the normal number of chromosomes. The resulting intermediate types are often superior in growth rate to normal trees. He has further determined that certain chemicals produce the same types of mutations as X-rays. He was also able to control the size of tree seedlings to a considerable degree by treatment with various combinations of growth-promoting and growth-inhibiting chemicals. (Finland, $32,781.)

24. Vegetative propagation of selected trees.-In the genetic improvement of forest trees, progress would be much faster if a mothod could be found to multiply large numbers of like trees from a single parent by the vegetative propagation of individual needle bundles. This problem is being studied in the laboratory by physiologists in Chile and Israel. To date they have found that rooting of the needle bundles can be achieved with a high degree of success through control of day length, bud pruning, and application of growth substances. They have had limited success in stimulating shoot growth. More refined experiments utilizing sterile tissue cultures are expected to reveal enough about the physiology of the tissues so that new trees can be produced consistently from needle bundles where this was once impossible. (Chile, $82,231; and Israel, $53,290.)

25. Mechanisms of combustion and transport of firebrands.-Combustion in free-burning fire is a two-way process involving interaction between flame and its fuel. Following ignition, flame heats the fuel to produce additional fuel. This interaction increases until a steady state in attained for any given situation. A theoretical model of this process for a simple fuel has been developed which gives burning rates and temperature profiles in terms of fuel properties, fire diameters and factors affecting heat exchange.

A firebrand orginating in a forest fire may start a new fire if it carries upward and falls to leeward of the fire before it burns out. Knowledge of the outer limits of firebrand danger under different conditions is therefore essential to effective fire control. Results from this study have provided equations which permit the calculation of the maximum flight path of firebrands under specific conditions. (Spain, $99,139.)

Economic research

26. Economics of alternative use of land for agriculture and forestry.-Two seasons of data are being collated in a study of the comparative advantage of forestry and agriculture under specific types of conditions with respect to such physical characteristics as soils, topography, and climate, and with varying costprice relationships for farm services and products. Measurement techniques developed have proved helpful with respect to crop yields and it is expected that similar techniques will be developed for forest yields and other alternatives on the farm. (Finland, $57,129.)

Human nutrition research

27. Higher biological value of protein mixtures formulated from vegetable sources.-Research workers in Israel have developed a high protein mixture from plant sources that in experiments with rats shows a higher biological value than any previous formulation in widespread use. A mixture of this nature will find use as an efficient and economical product for alleviating human undernutrition. (Israel, $28.360.)

NOTE.—All dollar equivalents are at the June 30, 1963, exchange rates.

Project proposals and status of agreements. From the inception of the special foreign currency program through June 30, 1963, the Department has received a total of 1,903 research proposals from interested oversea institutions. The status of these proposals is shown in the following tables:

Special foreign currency program—Research proposals and agreements by subject matter (through June 30, 1963)

1 Excludes two canceled agreements for which no funds were expended.

Special foreign currency program-Approved research proposals and agreements executed by country (as of June 30, 1963)

1 Excludes 1 agreement which was canceled June 10, 1963: no funds expended. * Excludes 1 agreement which was canceled May 29, 1963; no funds expended.

GENERAL STATEMENT

Dr. HILBERT. The increase for the special foreign currency program involves foreign currencies which are already available in the Department of the Treasury in excess of normal U.S. needs.

We are authorized to conduct research in this area under sections 104(a) and 104 (k) of Public Law 480.

Under section 104(a) we finance research on market development. Now, there are two types of market development research that we finance, one deals with applied problems, which will aid in exporting surplus commodities to those hard currency countries that have the dollars to pay for them. We get funds for such research through conversion. Whenever any Public Law 480 agreement is executed now between the U.S. Government and a foreign country, there is a clause in there which stipulates that a portion of the funds should be convertible from the soft currency country to the country or countries in which we wish to have the money; for example, Japan, West Germany, United Kingdom, France, and so on.

The other type of activity we carry out under section 104(a) is research on utilization and marketing. This research is of a basic type which we carry out not only in the soft currency countries but in the hard currency countries.

The way we get the hard currency for this research can be illustrated by our estimate for 1965. It includes an estimate for $500,000 equivalent of Yugoslavia dinars for market development, and $500,000 equivalent of Polish currency for market development. We do not intend to use these funds for market development in these two countries. These funds will be converted to those of the United Kingdom, Sweden, Finland, and countries where we can carry on the applied market development type of activity.

Under section 104 (k) we carry out research which is of direct interest to our farm research group and our forestry research group. Research which receives a high priority is that dealing with animal disseases, plant diseases, and destructive insects that we do not have in the United States but which are a constant threat to our agriculture. That kind of work is best done in a foreign country. If we were to attempt to do it in the United States, it would be at considerable risk because the organism might escape from the laboratory.

This program has been underway for 5 years now and from the results that are being obtained, it is apparent that we are getting more than our full dollar value for the foreign currency which we are spending on this research program.

AGREEMENTS FOR 1963

During the past year, we have executed 125 research agreements, in 19 different countries; 41 of these concern research on utilization and marketing of agricultural commodities, 9 deal with biological control of destructive insects and noxious weeds, 16 are on plant and animal diseases, 20 deal with new plant and animal germ plasm, and 39 are in a miscellaneous group which concern forestry research, soil and water research, human nutrition research, and so on. I have a list of the titles of these grants and their costs, the names of the insti