STORAGE ABROAD TO BE PAID FROM LOCAL CURRENCY

In this connection, Mr. Chairman, I suggest that the cost of storage abroad could be paid for from the local currency funds which the United States now holds.

Some of these storage facilities would consist of additional warehouses erected in India, Indonesia, Egypt, and other countries with short or uncertain food supplies. The same local currencies could also be used in the manufacture of bins.

Store the grain there in those banks. Make sure the banks are well constructed, so that they will protect the grain against spoilage as well as we protect it in this country. Then make arrangements with these governments to draw on this grain according to a set of standards that could be mutually developed. Actual failure of a harvest would certainly come first.

There could be no question about that.

Second, perhaps should come soaring food prices, due to shortages causing a critically inflationary situation in the price of food.

Third, might come the existence of certain degrees of malnutrition.' I would like to see a whole chain of these food banks established all over the world, with the building of them paid for by counterpart funds.

If we require taking more of our ships out of storage to do it, I think we should also welcome that opportunity.

PROVISION FOR STORAGE DEPOTS TO BE IN CORPORATED INTO S. 1711

My proposal, Mr. Chairman, would probably require a very slight addition to S. 1711, title 5, section 501. Language could be added to the first sentence of that section, such as: "and for providing appropriate depots or storage facilities for handling such food reserves."

New language would also probably have to be inserted in the bill specifically authorizing the President to negotiate and carry out agreements with friendly nations to provide for the use of local currencies in connection with the storage and management of commodities in the national food reserves.

I would hope that these storage depots would in effect become pipelines between the vast supplis in the United States and the hungry people who would receive this food. In other words, food would be kept flowing in and out of these storage facilities in addition to the privately owned warehouses to insure that the needy would be near a constant food supply.

AMERICAN PEOPLE FAVOR OBJECTIVES OF S. 1711

I think title V is particularly exciting in its possibilities, I also think, being only an amateur in politics, that the American people will be very largely with us on this.

I was in Maine last week for a few days. I ran into five different individuals who shook their fingers at me-I am sure they would not have voted for me-and said, "I want you to know that one of the greatest failures of this Government is the failure to use our food surpluses. What do you mean sitting on our food surpluses in a world

that is hungry?" This came spontaneously from simple people in the country stores and the crossroads of down east Maine.

When we get this program off the ground we are going to have not only the farmers with us but we are going to have all the people who are decent, religious, moral people in this country with us. What is more, we are going to have the world with us. We are going to be making progress towards the goals that we all have in common.

COOPERATION WITH OTHER EXPORTING NATIONS IN STEP TOWARD
MULTILATERALISM

Of course we would undertake such a program in consultation with our friends in Canada, Australia, and other grain-exporting nations and invite their participation in such an effort. Eventually we hope machinery might be developed under the United Nations to make this a basic international policy with all the extra advantages which multilateral auspices entail.

But we can begin right now, Mr. Chairman, to do something major to put food to work for peace. By utilizing the concept of title V of this bill, and expanding it as I have suggested, we would be providing real assurance to the people of the world that they would be freed to a measurable extent from the terrible specter of starvation, famine, and disease which has plagued men from the beginning of history.

I am confident that there are few things we can do which would serve more usefully than this to put a new face on American foreign policy.

Senator HUMPHREY. I thoroughly concur in your general suggestion, Congressman Bowles.

Under title V the concept of national food reserves is related to the United Nations resolution of the 11th General Assembly. Mr. BOWLES. Which you proposed and which you spoke on. Senator HUMPHREY. Which we handled for the Government. Mr. BOWLES. Which then died.

EXECUTIVE BRANCH ATTITUDES TOWARD S. 1711

Senator HUMPHREY. Which bothers me no end. I have brought this up repeatedly with several witnesses, because the State Department testified on his bill with a completely negative satement, without even constructive criticism, may I say.

I do not mind people being opposed to features of the bill. After all, we all have the right to choose up sides. But there was not an effort made to improve it. There were no suggestions of improvement, even on the existing program.

The Department of Agriculture, I thought, came in with a more constructive statement and attempted at least to point out the improvements that have been made under Public Law 480, and what thoughts it had in mind for the future.

We have asked them for their constructive suggestions, critical or affirmative. But neither Department of Government mentioned title V, despite the fact that this was our initiative in the United Nations. I often wonder what other nations think of us. After all, we are the ones who insisted on this type of approach, the national food

reserve. We were able to work the concept into the U.N. resolution, as you may recall, after consultation with the Food and Agriculture Organization-so that we would not be going off willy-nilly on our own with unilateral activity.

But the Department has given no thoughtful consideration to this, and if there is a representative of the State Department here, I hope he will take this back to the Department, and ask for at least a supplementary statement. I want the staff to be alerted to the fact that I should like to direct a letter to the Department asking for its suggestions as to the merits or demerits of title V of S. 1711 and what, if any, suggestions they have for its improvement along the line of Congressman Bowles' ideas.

I would like to have a copy of Congressman Bowles' testimony sent to both the Department of Agriculture and the Department of State with the request for their evaluation of it.

(The information was subsequently received from the Departments of State and Agriculture and is in Committee files.)

This makes good sense, and I agree with you that every place I have been, Chet, and mentioned the constructive use of our food surplusnot just in emotional terms but as part of worldwide economic development, as part of our basic morality, as part of our responsibility in the free world—the public is all for it. They could not care less about some of the other things about which we talk.

OFFICIAL OPPOSITION TO, AND PUBLIC SUPPORT OF, S. 1711

Mr. BOWLES. I have never heard a layman oppose this program.. I have never had a letter about Public Law 480 that was not enthusiastic.

Senator HUMPHREY. I will provide you with some.

Mr. BowLES. Are they in the storage business?

Senator HUMPHREY. I do not know whether they are entirely opposed to it-I am speaking now of some officials.

Mr. BOWLES. Who is against it around the country, forgetting the officials?

Senator HUMPHREY. Not many people. In fact, I have not found anybody yet; and even the people who would benefit from storage here in the United States are willing to support a national food bank reserve program overseas.

Mr. BowLES. There is no one in my district who has any agricultural stake in this program. All they have is a stake in it as individuals.

I have never had a letter or a comment that was critical of the position I have just stated or that you have stated.

I think that the political climate is ready for it. We are all going to feel a lot better if we do it.

ABSORPTIVE CAPACITY OF RECIPIENTS OF U.S. FOOD SURPLUSES

Senator HUMPHREY. Let me ask you this one final question, Congressman. In light of your experience, not only as an ambassador but also as a man who has traveled considerably and has a personal friendship with many leaders of foreign countries, particularly in the Asian

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and African areas, do you feel that the economies of these nations are capable of absorbing greater amounts of foodstuffs than presently are being made available?

Mr. BOWLES. Well, certainly most of them are. Of course, there are some countries where people are fairly well fed and which have good land and good soil. Thailand, is an example although the Thai could stand a more balanced diet there. Thailand, Burma, and a few other nations are relatively fortunate. But there are vast areas that are not. Also there are two standards we should consider. One question is, How much food is required for a man to go on living, just to go on existing, sitting under a tree, somehow getting by?

A second question is, How much is required if he is going to do a day's work, if he is going to try to build a road, a school, a health clinic, or an irrigation ditch? You will find that the daily caloric requirement jumps from about 1,600 calories immediately up to 2,400, 2,600, or 2,800 calories.

So as people in the underdeveloped areas go to work, which is what they are doing and must do, the caloric requirements for the same number of people, forgetting completely the increase in population, jump enormously.

Actually this has been one of India's miscalculations. Her calculations on what she required in the way of food were based on the old India, the old India that was sleepy and stagnant. But the new India that is alive and working requires more food per capita. This they misjudged somewhat.

Her needs now are such that India is trying to push her food production from 68 million tons to 110 million in the next 7 years. That is her own production goal. But S. 1711 would help remove the fear that this goal will not be reached. I do not believe we can underestimate the psychological importance of this action.

I remember the December rains in south Asia. Some years they come and some years they do not come. In any event they only last 2 or 3 days. They are called Christmas rains. They come around the mid

dle of December.

I rode through the Punjab area of India one time when those rains happened to come with great abundance. For 200 miles I went about among people who were singing, dancing, laughing, smiling, and clapping each other on the back because for the following year they had been saved from fear of whether their children were going to starve.

These food banks could give that kind of lift. If they were placed all over the world it would mean that people were not going to starve. They would be assured that they were not going to go hungry. For the first time in history people would have that kind of assurance.

ATTITUDE OF OTHER EXPORTING NATIONS TOWARD EXPANDED PROGRAMS FOR UTILIZATION OF U.S. SURPLUSES

Senator HUMPHREY. From your experience as a businessman and as a Government official, do you feel that we could carry on these programs on an expanded basis without seriously disrupting normal marketings and private export trade?

Mr. BOWLES. Well, I feel that we have some persuading to do. The Canadians have been critical; the Australians have been critical. But they have a basic potential in this world not unlike our own.

They share the same ideals, the same objectives. I think our persuasive abilities ought to be great enough to convince them that this is the only line that both we and they should take.

After all, they too are rich nations. They too have a tremendous capacity for helping people. They too have been very generous.

I might say the Canadians have probably put up more money in economic development programs than we have for tlie underdeveloped areas, on a per capita basis.

I am confident that we can persuade them that they should not only not object to our doing this, but should cooperate with us.

It is going to take some persauding, however, by people who believe in the program. They will not be persuaded by people who are not persuaded themselves who are dragging their feet, who do not like it, who do not understand, and who wish the future would go away.

Senator HUMPHREY. Thank you very, very much. That is excellent testimony. I only wish that more people could have heard it, and I am going to see that some people get a copy of it. Thank you very much.

We now have the representatives of the American Council of Voluntary Agencies for Foreign Service.

I should first like to call upon Msgr. Edward E. Swanstrom, chairman of the executive committee, and executive director of Catholic Relief Services.

STATEMENT OF MSGR. EDWARD E. SWANSTROM, CHAIRMAN, EXECUTIVE COMMITTEE, AMERICAN COUNCIL OF VOLUNTARY AGENCIES FOR FOREIGN SERVICE, INC.

Monsignor SWANSTROM. As you indicated, I am chairman of the executive committee of the American Council of Voluntary Agencies. I am also director of Catholic Relief Services, but I am speaking now for the agencies of the council.

I have another one of my colleagues with me, Mr. Edward M. Kinney, who handles a great deal of our planning and distribution of surplus foods. We also have prepared a special statement of our own, and with your indulgence, I would like him, before we finish, to make some little comment on it.

Senator HUMPHREY. Yes, indeed.

Monsignor SWANSTROM. With me are representatives of other agencies similar to my own, some of whom wish to present individual testimony in addition to the group statement, which I shall present, and all of whom, as I will myself, be happy to respond to any question you, as chairman of the committee, might have.

You mentioned, Dr. Wilson, but there are representatives of some of the other agencies here.

Senator HUMPHREY. Yes; I see there are.

Monsignor SwANSTROM. I will introduce them as we go along. We have prepared a statement which was carefully thought out by the representatives of the Voluntary Agencies, and since we are filing it, I am sure my colleagues here will agree with me that because of the lateness of the hour I will not attempt to read the whole statement into the record but just make a few comments.

It is true that for the past 9 years, while surplus foods have been available for distribution