Mr. MARSHALL. Did you have anything you wanted to add, Mr. Secretary. Mr. MCLAIN. No.

REIMBURSEMENT TO COMMODITY CREDIT CORPORATION FOR SPECIAL ACTIVITIES

Mr. MARSHALL. We will now insert pages 507 through 521 in the record in connection with the estimate of $1,336,754,811 for reimbursements to CCC for the cost of various special activities financed through CCC, but not related to the price-support program.

(The pages are as follows:)

SPECIAL ACTIVITIES-REIMBURSEMENT TO COMMODITY CREDIT CORPORATION FOB COSTS OF SPECIAL ACTIVITIES

PURPOSE STATEMENT

The funds and facilities of the Commodity Credit Corporation have been utilized to carry out surplus-disposal programs and other special activities outside of its regular functions for which the Corporation is authorized to be reimbursed under the following specific legislation:

1. International Wheat Agreement.--This agreement operates through July 31, 1959, to provide an assured market for wheat to exporting countries and assured supplies of wheat to importing countries, at stable and equitable prices. Under authority contained in the International Wheat Agreement Act of 1949, as amended (7 U.S.C. 1641-1642), capital funds of Commodity Credit Corporation and CCC stocks of wheat are used to pay (a) the difference between the prevailing price under the agreement and the domestic market price of wheat, and (b) administrative and interest costs. The differential payment for wheat exported under the agreement is paid in CCC stocks of wheat, and a cash payment is made for flour. The act also authorizes appropriations to reimburse the Corporation for costs incurred.

2. Emergency famine relief to friendly peoples.-Title II of the Agricultural Trade Development and Assistance Act of 1954, Public Law 480, as amended (7 U.S.C. 1703, 1721-1724), directs the Commodity Credit Corporation to make its surplus stocks of agricultural commodities available to the President for famine relief and other assistance to friendly nations and populations and to pay ocean freight charges through December 31, 1959, and authorizes the appropriation of not more than $800 million to reimburse the Corporation.

3. Sale of surplus agricultural commodities for foreign currencies.—Title I of the Agricultural Trade Development and Assistance Act of 1954, Public Law 480, as amended (7 U.S.C. 1701-1709), authorizes the President, until December 31, 1959, to carry out a program for the sale of surplus agricultural commodities for foreign currencies. The act provides that Commodity Credit Corporation shall make available for sale to domestic exporters surplus agricultural commodities heretofore or hereafter acquired by the Corporation in the administration of its price-support operations, and shall make funds available to finance the sale and exportation of surplus agricultural commodities, whether from private stocks or from stocks of the Commodity Credit Corporation.

The act further provides various specified uses of the foreign currencies by any department or agency of the Government and requires reimbursement to Commodity Credit Corporation by the agency using such funds if appropriations have been made for any of the specified uses. To the extent the Corporation is not thus reimbursed by other agencies, the act authorizes appropriations to reimburse Commodity Credit Corporation for its investment in commodities used under the act including processing, packaging, transportation and handling costs, and for costs incurred in financing the exportation of commodities, and limits transactions requiring appropriations to $6.25 billion.

4. Transfer of bartered materials to supplemental stockpile.-Under title II of the Agricultural Act of 1956 (7 U.S.C. 1856) the Corporation is directed to transfer strategic and critical materials acquired as a result of barter and exchange of agricultural commodities, other than those acquired for the national stockpile or for other purposes, to the supplemental stockpile.

Appropriations to reimburse the Corporation for the value of materials transferred are authorized by the act.

5. Grain for migratory waterfowl.-The act of July 3, 1956 (7 U.S.C. 442-446) authorizes the Commodity Credit Corporation to make available to the Secretary of the Interior through July 3, 1959, grain from CCC stocks for use as feed for migratory waterfowl to prevent crop damage. This act also authorizes the appropriation of sums to reimburse the Corporation for its investment in the grain.

6. Animal disease eradication activities-(a) Eradication of vesicular exanthema.-The Department of Agriculture and Farm Credit Administration Appropriation Acts of 1958 and 1959 authorize the advance of funds from the Commodity Credit Corporation to the Agricultural Research Service to carry out this program through June 30, 1959. The Corporation is reimbursed for these adThe 1960 Department estimates propose a direct appropriation to ARS

vances.

for this program.

(b) Eradication of brucellosis.-Section 204 (e) of the Agricultural Act of 1954, as amended (7 U.S.C. 397) authorizes the transfer of not to exceed $20 million for fiscal year 1958 of Commodity Credit Corporation funds to the appropriation "Salaries and expenses, Agricultural Research Service, plant and animal disease and pest control" for the operation of the accelerated brucellosis program. An appropriation to reimburse the Corporation is authorized by the act. Beginning in the 1959 fiscal year, a direct appropriation was made to ARS for this program.

7. Grading and classing activities.—The Department of Agriculture Appropriation Act of 1952 (7 US.C. 414a) authorizes transfers of Commodity Credit Corporation nonadministrative funds to appropriations available for classing and grading agricultural commodities without charge to producers. Transfers are made to the Agricultural Marketing Service for classing cotton and grading tobacco not placed under price support loan. The act authorizes appropriation to reimburse the Corporation for such transfers, plus interest.

It is anticipated that a supplemental appropriation of $1,336,754,811 will be made in 1959 to reimburse the Corporation for the 1958 costs for these items, and an appropriation of $1,268,097.500 is requested in 1960 for 1959 costs as follows:

Reimbursement to Commodity Credit Corporation for costs of special activities

U. S. DEPART ENT OF AGRiculture-COMMODITY STABILIZATION SERVICE Wheat and wheat flour (bushel equivalent) exported from the United States pursuant to the terms of the International Wheat Agreement

Fiscal year 1959 anticipated supple- 1960 budget estimate (1959 estimated mental (1958 costs)

costs)

Interest expense.-The 1960 estimate of $475,000 reflects interest accruing to the estimated recovery in July 1960 at a rate of 12 percent per annum on 1959 program costs, a decrease of $1,597,580 below the $2,072,580 in the 1959 anticipated supplemental. The latter amount is composed of $1,174,190, interest accrued at a range between 3.535 percent and 3.373 percent per annum on 1958 costs, and $898,390, interest accruing at 12 percent per annum on unrecovered 1958 costs for 9 months in 1959 to the anticipated date of recovery.

(2) Emergency famine relief to friendly peoples

A decrease of $14,762,000 for 1959 costs compared with 1958 costs as follows:

Program costs.-The 1960 estimate reflects (a) the Corporation's investment of $83,399,500 in commodities delivered compared with $88,102,981 in 1959, a decrease of $24,703,481; (b) ocean freight charges to point of entry abroad on such commodities of $10,486,000 compared with $7,149,499 in 1959, an increase of $3,336,501; and (c) ocean freight charges authorized by the Agricultural Act of 1956 on commodities valued at $193,355,555 donated under section 416 of the Agricultural Act of 1949 of $29,844,500, compared with $20,748,531 on donations of $154,331,534 in 1959, an increase of $9,095,969. Following is a breakdown of costs by commodity:

Interest expense.-The 1960 estimate of $778,000 reflects interest accruing to the estimated recovery in July 1960 at a rate of 12 percent per annum on 1959 program costs, a decrease of $2,490,989 below the $3,268,989 in the 1959 anticipated supplemental. The latter amount is composed of $1,942,887, interest accrued at a range between 3.535 percent and 3.373 percent per annum on 1958 costs, and $1,326,102, interest accruing at 11⁄2 percent per annum on unrecovered 1958 costs for 9 months in 1959 to the anticipated date of recovery.