Effect of cargo preference on agricultural programs : hearing before the Subcommittee on Foreign Agriculture and Hunger of the Committee on Agriculture, House of Representatives, One Hundred Third Congress, first session, June 17, 1993
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Effect of cargo preference on agricultural programs : hearing before the Subcommittee on Foreign Agriculture and Hunger of the Committee on Agriculture, House of Representatives, One Hundred Third Congress, first session, June 17, 1993

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EFFECT OFCARGO PREFERENCE ON AGRICULTURAL PROGRAMS Y 4. AG 8/1:103-23 Effect of Preference on . .Cargo Agric. HEARING BEFORE THE SUBCOMMITTEE ON FOREIGN AGRICULTURE AND HUNGER OF THE COMMITTEE ON AGRICULTURE HOUSE OF REPRESENTATIVES THIRD CONGRESSONE HUNDRED FIRST SESSION JUNE 199317, Serial No. 103-23 ' "SQ:-^. May ^4 pQi, Printed for the use of the Committee on Agriculture U.S. GOVERNMENT PRINTING OFFICE 73-343 WASHINGTON : 1994 For sale the U.S. Governmentby OfficePrinting ofSuperintendent Documents, SalesCongressional Office, DC 20402Washington, ISBN 0-16-043938-8 7 EFFECT OFCARGO PREFERENCE ON\f AGRICULTURAL PROGRAMS Y4,AG 8/1:103-23 Effect of Preference onCargo Agric... HEARING BEFORE THE SUBCOMMITTEE ON FOREIGN AGRICULTURE AND HUNGER THEOF COMMITTEE ON AGRICULTURE HOUSE OF REPRESENTATIVES ONE HUNDRED THIRD CONGRESS FIRST SESSION JUNE 199317, Serial No. 103-23 rxr- 2 4 no^, Printed for the use of the Committee on Agricultxire U.S. GOVERNMENT PRINTING OFFICE 7»-343 WASHINGTON : 1994 For sale the U.S.by Government OfficePrinting ofSuperintendent Documents, Sales Office, DCCongressional 20402Washington, ISBN 0-16-043938-8 COMMITTEE ON AGRICULTURE E (KIKA) DE LA ChairmanGARZA, Texas, E. PATGEORGE BROWN, Jr., California, ROBERTS, Kansas, Chairman MemberVice Ranking Minority CHARLIE North Carolina BILL MissouriROSE, EMERSON, Oklahoma STEVE WisconsinGLENN ENGLISH, GUNDERSON, DAN Kansas TOM FloridaGLICKMAN, LEWIS, CHARLES W. Texas ROBERT F.

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EFFECT OFCARGO PREFERENCE ON
AGRICULTURAL PROGRAMS
Y 4. AG 8/1:103-23
Effect of Preference on
. .Cargo Agric.
HEARING
BEFORE THE
SUBCOMMITTEE ON FOREIGN
AGRICULTURE AND HUNGER
OF THE
COMMITTEE ON AGRICULTURE
HOUSE OF REPRESENTATIVES
THIRD CONGRESSONE HUNDRED
FIRST SESSION
JUNE 199317,
Serial No. 103-23
'
"SQ:-^.
May ^4 pQi,
Printed for the use of the Committee on Agriculture
U.S. GOVERNMENT PRINTING OFFICE
73-343 WASHINGTON : 1994
For sale the U.S. Governmentby OfficePrinting
ofSuperintendent Documents, SalesCongressional Office, DC 20402Washington,
ISBN 0-16-043938-87
EFFECT OFCARGO PREFERENCE ON\f
AGRICULTURAL PROGRAMS
Y4,AG 8/1:103-23
Effect of Preference onCargo Agric...
HEARING
BEFORE THE
SUBCOMMITTEE ON FOREIGN
AGRICULTURE AND HUNGER
THEOF
COMMITTEE ON AGRICULTURE
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRD CONGRESS
FIRST SESSION
JUNE 199317,
Serial No. 103-23
rxr-
2 4 no^,
Printed for the use of the Committee on Agricultxire
U.S. GOVERNMENT PRINTING OFFICE
7»-343 WASHINGTON : 1994
For sale the U.S.by Government OfficePrinting
ofSuperintendent Documents, Sales Office, DCCongressional 20402Washington,
ISBN 0-16-043938-8COMMITTEE ON AGRICULTURE
E (KIKA) DE LA ChairmanGARZA, Texas,
E. PATGEORGE BROWN, Jr., California, ROBERTS, Kansas,
Chairman MemberVice Ranking Minority
CHARLIE North Carolina BILL MissouriROSE, EMERSON,
Oklahoma STEVE WisconsinGLENN ENGLISH, GUNDERSON,
DAN Kansas TOM FloridaGLICKMAN, LEWIS,
CHARLES W. Texas ROBERT F.STENHOLM, (BOB) SMITH, Oregon
HAROLD L. Missouri LARRY TexasVOLKMER, COMBEST,
MinnesotaTIMOTHY J. WAYNE ColoradoPENNY, ALLARD,
TIM South Dakota BILL NebraskaJOHNSON, BARRETT,
Texas JIMBILL IowaSARPALIUS, NUSSLE,
Indiana JOHN A.JILL L. LONG, OhioBOEHNER,
A. California THOMAS W.GARY CONDIT, IllinoisEWING,
C. Minnesota JOHN T.COLLIN PETERSON, DOOLITTLE, California
CALVIN M. California JACKDOOLEY, KINGSTON, Georgia
EVA M. North CaroUna BOBCLAYTON, GOODLATTE, Virginia
DAVID Minnesota JAY ArkansasMINGE, DICKEY,
EARL F. Alabama RICHARD W. CaliforniaHILLIARD, POMBO,
JAY CHARLES T. FloridaINSLEE, Washington CANADY,
THOMAS J. BARLOW NICKIII, Kentucky SMITH, Michigan
EARL North Dakota TERRYPOMEROY, EVERETT, Alabama
TIM HOLDEN, Pennsylvania
CYNTHIA A. McKINNEY, Georgia
SCOTTY BAESLER, Kentucky
KAREN L. FloridaTHURMAN,
SANFORD D. BISHOP, Jr., Georgia
BENNIE G. THOMPSON. Mississippi
PAT WILLL^MS, Montana
BLANCHE M. ArkansasLAMBERT,
Professional Staff
DiANNE DirectorPowell, Staff
Vernie Counsel and DirectorHubert, Chief Legislative
Gary R. DirectorMitchell, Minority Staff
James A. PressDavis, Secretary
Subcommittee and Hungeron Foreign Agriculture
TIMOTHY J. ChairmanPENNY, Minnesota,
CHARLIE North WAYNE ColoradoROSE, CaroUna, ALLARD,
Vice Chairman TOM FloridaLEWIS,
THOMAS J. BARLOW JOHN T. CaUfomiaIII, Kentucky DOOLITTLE,
CYNTHL^. A. CHARLES T. FloridaMcKINNEY, Georgia CANADY,
SCOTTY BAESLER, Kentucky
KAREN L. FloridaTHURMAN,
EARL POMEROY, North Dakota
CHARLES W. TexasSTENHOLM,
(II)CONTENTS
Page
a in from the State ofHon. Colorado,Allard, Wayne, Representative Congress
3statementprepared
a in from the State ofHon. J.,Penny, Timothy Representative Congress
statement 1Minnesota, opening
Witnesses
.. 7a in from the State ofNebraskaHon. BUI, CongressBarrett, Representative
statement 117Prepared
Hon. Helen a in from the StateDelich, CongressBentley, Representative
5ofMaryland
112statementPrepared
92on behalfofOMIBlank, Jonathan, Corp
218
AssistantGeneral Sales andGoldthwait, E., Acting ManagerChristopher
U.S.Administrator; Export Credits, Foreign Agrioiltural Service, Depart-
35ment of Agricultvire
130statementPrepared
State ofIowa 9Hon. Charles a U.S. Senator from theE.,Grassley,
120
Grain Association 76Steven North AmericanA., president. ExportMcCoy,
192statementPrepared
andAllan International Trade, Finance, Competi-Mendelowitz, I., Director,
U.S. General Office 61General Governmenttiveness, Division, Accounting
164statementPrepared
1993 68Letter ofAugust 17,
of Maritime 91Thomas on behalfMills, L., Liberty Corp
statement 197Prepared
in from the State ofIowa 16Hon. aNussle, Jim, Representative Congress 128
U.S. Inc 94Consortium,Quartel, Rob, president, Shipbuilding
statement 226Prepared
Vice Sealift U.S.Wallace Commander, Conunand,Sansone, T., Military
39Navy
154statementPrepared
Maritime U.S.Joan Administration,Yim, B., Acting Administrator, Depart-
37ment ofTransportation
135statementPrepared
MaterialSuBMnTED
232American Farm Bureau statementFederation,
from the StateHon. Herbert a inBateman, H., Representative Congress
233of statementVirginia,
(III)OF CARGO PREFERENCE ONEFFECT
PROGRAMSAGRICULTURAL
JUNE 1993THURSDAY, 17,
House of Representatives,
on Foreign Agriculture andSubcommittee Hunger,
Committee on Agriculture,
DC.Washington,
The subcommittee to at 9:30 in roommet, call, a.m.,pursuant
House Office Hon. J.1302, Building, Timothy PennyLongworth
of the(chairman subcommittee) presiding.
Present: Rose, Barlow, McKinney, Baesler,Representatives
and Doolittle.Stenholm, Allard,Pomeroy,
member of theAlso Smith of Oregon,present: Representative
committee.
staff John E.Staff R.Gary Mitchell, minority director;present:
Dale coordina-minority counsel; Moore, legislativeHogan,
Jane Anita R. JoeGlenda L.tor; Temple, clerk; Shey, Brown,
Xavier andDugan, Equihua, Lynn Gallagher.
OPENING STATEMENT OF HON. TIMOTHY J. A REP-PENNY,
RESENTATIVE IN CONGRESS FROM THE STATE OF MIN-
NESOTA
Mr. Penny. The subcommittee will come to order.
I called this on to examine the broadhearing cargo preference
this issue and to as-policy questions surrounding identify specific
of the and its on ofpects cargo preference policy impacts exports
commodities. This is an issue that has facedagricultural many
and a divisive battle between the ex-hearings sparked agricultural
interests and the U.S. maritimeport industry.
It is not the of this to debate what U.S. mari-purpose hearing
time should since the House of does havepolicy be, Representatives
has thatanother committee that serves that andpurpose jurisdic-
tion.
does have an on theHowever, Depart-cargo preference impact
ment of and how and food assistanceAgriculture export programs
are administered. As as affects the agricul-long cargo preference
intural this subcommittee will maintain interestbudget, vigorous
the issue and of the matter.oversight
Because of the in and the current budgetchanges agriculture
has faced reduced for its farmers.deficit, agriculture expenditures
Between 1981 and farm have and will be cut1995, price supports
a total of billion. cost becomes$37.4 Absorbing cargo preference
even more controversial as other farm are reduced.programs
(1)States needs aI believe the United maritime Ipolicy. have per-
as to whetherUSDA needs tosonal concern subsidize that industry
could otherwise be used towith dollars that theexpand volume our
it should be no based onSo record onsurprise my theseexports.
in the that I do have theseissues past questions.
we have witnesses on both sides of the issueBut this morning,
we to with a fair and reviewso of thehope proceed very objective
And to that weinvolved. have abegin process ofquestions panel
ofwhom is and I knowthree one thatMembers, already here, my
first have views on thison this panel differing particularcolleagues
And so we will those who are herebegin by welcomingquestion.
and allow them to be the others asat arrive.joined by theypresent
statements submitted the members of theAlso, any prepared by
subcommittee will at this in the record.appear point
statement ofMr. Allard[The follows:]preparedWAYNEALLARDSTATEMENT OF CONGRESSMAN
AGRICULTURE AND HUNGER SUBCOMMITTEEFOREIGN
JUNE 199317,
ON CARGOTHANK YOU MR. CHAIRMAN. I HOPE TODAY'S HEARING
THE EFFECT THAT CARGO PREFERENCEPREFERENCE CLARIFIES
AGRICULTURE AND ALSO ON OUR NATION'S MERCHANTHAS ON
ASWE ALL KNOW THE INTENT OF THE 1954LAW THATMARINE.
HELP THECREATED CARGO PREFERENCE WAS TO SUPPORT
FOR NATIONAL DEFENSE PURPOSES.AMERICAN SHIPPING INDUSTRY
THE FOR THIS COMMITTEEIN LIGHT OF THAT GOAL QUESTION
"HAS CARGO PREFERENCE ON AGRICULTURALNEEDS TO BE,
PRODUCTS HELPED MAINTAIN THE VIABILITY OF AMERICAN
THE ANSWER TO THIS HAS TO BE NO.SHIPPING?" QUESTION
SHOULD ALSO ANSWER THE LARGERCONGRESS QUESTION OF,
"HAVE OUR POLICIES OVER THE YEARS BEEN EFFECTIVE IN
THEMAINTAINING A VIABLE MERCHANT MARINE?" I ALSO BELIEVE
ANSWER TO THIS IS NO.QUESTION
WHILE CARGO PREFERENCE HAS NOT HELPEDFURTHERMORE,
AMERICAN SHIPPING IT HAS HURT AGRICULTURE IN A SIGNIFICANT
MANNER. THE AID PACKAGE THAT WE'RE TRYING TO GET OFF TO
RUSSIA IS BEING DIMINISHED BECAUSE OF CARGO PREFERENCE.
WITHOUT THIS WE COULDMOVE MORE FOODREQUIREMENTA CONTINUED AMERICANFASTER TO ENSURE AGRICULTURAL
MARKET.IN THE RUSSIANPRESENCE
TIIE WITNESS LIST FORLOOKING AT TODAY I'M SUREAFTER THAT
SIDES OF THE CARGOWE'LL HEAR BOTH PREFERENCE STORY. OUR
SHOULD BE AND IN THE ENDDISCUSSION LIVELY, ENERGETIC, I
EDUCATIONAL.HOPE
THANK YOU MR. CHAIRMAN.

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