1 Volume estimated by BAE in Dairy Statistics, June 1951--value arrived at by using USDA costs of purchases. 3 Data computed from USDA periodic reports on purchases and sales of dairy products. 4 Estimated. The CHAIRMAN. Are there any questions? Mr. TALLE. Mr. Chairman. The CHAIRMAN. Dr. Talle. Mr. TALLE. Mr. Holman, you have cleared up a matter of controversy in yesterday's testimony. I refer to that part of your statement on page 25. A witness, Mr. Fromer, said that our export was only 2 percent. I challenged his statement and asked him if it was not rather, 32 percent. I read on page 25 of your statement: Export to other countries has been based on a high degree of subsidization. How much has this subsidization been percentagewise? That depends on where you start the measurement. Then you go on to say: Relief fund expenditures on all dairy products from 1948 through 1951 were 32 percent of Commerce's reported export values (table 2, column 13). But Commerce's values do not include Commodity Credit losses on negotiated sales for export. When these losses are included in export values then the total subsidization for the 1948-51 period becomes 38 percent of all products (column 14). And if to this is added the 43.3 million dollars worth of dairy products donated by CCC for export (column 15) the total value of exports would be 696.4 million dollars and the amount of subsidization would be 290 million dollars, or 41.6 percent for the 4 years. That Now it seems to me that that should clinch the matter. covers the ground. And to speak of 2 percent in the face of these facts is clearly not reliable testimony. Mr. HOLMAN. That is correct, sir. We believe these figures that you have just quoted are verifiable. We did our best to check it, and we think they are correct. Mr. TALLE. I am sure they are. On page 26 of your statement, dealing with the alternative proposals that have been suggested in lieu of section 104, I believe you have answered that argument very effectively. And I am very glad to see that on page 31 of your statement, at the bottom of the page, you quoted from the exception from article 21 of the general agreement. Mr. HOLMAN. Yes, sir. Mr. TALLE. In other words, section 104 came into being because of an agreement already made, that made allowance for that kind of provision in the law if it were found to be necessary. Mr. HOLMAN. That is correct. It was drawn so as to fit within the provisions of article 21 of the agreement. Mr. TALLE. It was also testified yesterday that there were practically no obstacles in foreign countries against our exports to them. Well I know for a certainty that that is not true, and I mentioned some of them like quotas, licenses, price arrangements, barter agreements, the devaluation of currency, differences in rates of exchange, and, many other devices that obstruct the freedom of trade. Mr. HOLMAN. Yes, sir. Mr. TALLE. And much as we might like to have free trade in a world at peace, where the lion and the lamb would lie down together, we have to face the world as it is and not as we would like to have it be. Mr. HOLMAN. That is correct, sir. And I have attached to my statement a table, in appendix A, which classified the type of restrictions which are in effect now in these other countries. And I mentioned earlier that eight of the nine countries which have protested have put in restrictions against the United States. Mr. TALLE. On page 32 of your statement, you deal with a fundamental matter, the health of our people. Now may I ask, when the inspections are made on foods coming into this country, are the inspections made at the point of departure, or are they made at the point of arrival? Mr. HOLMAN. They are made at the port of entry. Mr. TALLE. Port of entry? Mr. HOLMAN. Yes, sir. I understand that the samples that are taken are sent to the laboratory, and the product from which a sample is taken is held awaiting the report of the laboratory. Mr. TALLE. I am very happy to note that you suggest we set up import standards, because certainly, in the case of dairy products, products, that all of our people need and want, if ever health were to be taken into account it would be in the matter of products of that sort, and surely that is something that should be done immediately, and it amazes me that not more has been done in that direction. Mr. HOLMAN. Mr. Talle, so far as the port of import is concerned, we have certain standards, but I do not believe that we have any mechanism whereby these products can be inspected in foreign countries, nor do we have any arrangements with those foreign countries to require them to make the same kind of high-class standards of inspection which we make in this country. We have an arrangement with Canada for their inspection of their plants, on milk and cream that may be imported into this country. Their inspections have to be satisfactory to the agency that is administering the Lenroot Act. But on manufactured products, we do not have that machinery and we need it very badly. Mr. TALLE. I recognize that it is very difficult and could be done as I see it, only through international treaty arrangements-and even after those arrangements were made, it would require a great deal of education and reworking of methods abroad possibly to put them into effect on a satisfactory basis. Mr. HOLMAN. Yes. I am further advised that the enforcement which the Food and Drug Administration is able to do is limited to the sample inspected. Mr. TALLE. Yes; which in my opinion is most unsatisfactory. Mr. HOLMAN. That is right. We think that every shipment should be inspected, or better that the exporting country should be required to keep their product at home until it meets our standards. Mr. TALLE. I agree, Mr. Holman. The hour is late so I will not take up any more time. Thank you, Mr. Holman. Thank you, Mr. Chairman. The CHAIRMAN. Are there any further questions? Mr. RAINS. Does the House meet at 11, Mr. Chairman? The CHAIRMAN. The House meets at 11, and the first thing will be a roll call, I understand, on the rule for consideration of the Puerto Rican Constitution, and there are two conference reports coming up immediately afterward. I thought perhaps we might recess to meet at 3 o'clock, and the witnesses can check with the office to see whether or not we will be able to meet at that time. Are there any further questions of Mr. Holman? Mr. RAINS. Not at this time. The CHAIRMAN. You may stand aside, Mr. Holman. We are very glad to have your views. Mr. HOLMAN. I desire to thank the chairman and the committee for a courteous hearing. The CHAIRMAN. The committee will recess to reconvene at 3 o'clock. (Whereupon, at 10:57 a. m., the committee recessed to reconvene at 3 p. m. the same day.) AFTERNOON SESSION (The committee reconvened, pursuant to its recess, at 3 p. m.) Present: Chairman Spence (presiding), Messrs. Brown, Deane, Burton, Hays, Gamble, Talle, Kilburn, Nicholson, Widnall, and Betts. The CHAIRMAN. The committee will be in order. We are proceeding under difficulties, and can only sit while the House is in general debate. I understand it will be in general debate for about an hour and a half, so we will try to make use of that time. I understand, Mrs. Rogers, that you have a statement you would like to make. Mrs. ROGERS. Mr. Chairman, I would be very glad if I could file a brief statement with the committee. The CHAIRMAN. We will be very happy to have it. Mrs. ROGERS. It seems to me that the canners do need relief. There is a tremendous excess of supplies at the present time, more than there has been in a great many years, and prices of canned goods are very low anyway. So perhaps, if the Secretary of Agriculture. could lower or remove controls on canned goods, and reimpose them if necessary, that would be helpful. The CHAIRMAN. Thank you very much, Mrs. Rogers. Your statement will be inserted in the record. STATEMENT OF HON. EDITH NOURSE ROGERS, REPRESENTATIVE IN CONGRESS, STATE OF MASSACHUSETTS Mrs. ROGERS. Why canned food price controls are unwarranted. Canned food prices are not, have not been, and will not exercise any inflationary pressure. Here are the facts: 1. Production of canned fruits, juices, and vegetables last year was the greatest in history-over 300,000,000 cases. 2. Supplies on hand April 1 of this year were the largest in history101,000,000 cases. 3. Supplies are so great the Department of Agriculture has recommended a 15 percent decrease in processing vegetable tonnage for this year. 4. The BLS retail price index of canned fruits and vegetables has been, since 1947, consistently under the index of the cost of living and under the all food index. Canned fruits and vegetables today are 24 points under the cost of living index and 64 points under the all foods index. 5. Only 12 percent of the pack of canned fruits and vegetables is now selling at ceiling prices. 6. Canned foods meet the suspension standards of OPS. The CHAIRMAN. Call the next witness, Mr. Clerk. |