DEVELOPMENT INSTITUTION LENDING FOR PALM OIL PRODUCTION 94-2 HEARING BEFORE THE SUBCOMMITTEE ON INTERNATIONAL DEVELOPMENT INSTITUTIONS AND FINANCE OF THE COMMITTEE ON BANKING, CURRENCY AND HOUSING HOUSE OF REPRESENTATIVES NINETY-FOURTH CONGRESS SECOND SESSION ON HOUSE RESOLUTIONS 1399, 1419, AND 1445 EXPRESSING THE SENSE OF THE HOUSE RELATIVE TO FOREIGN PALM OIL DEVELOPMENT LOANS Text of: STATEMENTS de la Garza, Hon. E "Kika," a Representative in Congress from the State Johnson, Seymour, chairman of the board, American Soybean Association; accompanied by Dr. William Kling, Washington representative of the Poage, Hon. W. R., a Representative in Congress from the State of Texas-- American Soybean Association, statement presented by Seymour Johnson, Asian Development Bank, lending to the fisheries sector__ Inter-American Development Bank, lending in 1961-75 in the agricul- "USITC Recommends Adjustment Assistance for Shrimpers," news release from U.S. International Trade Commission, dated May 11, "IFI Lending for Palm Oil, 1965-75," information submitted by staff of subcommittee upon request of Congressman Charles E. Grassley--. International Trade Commission, U.S., news release dated May 11, 1976-- Letter from Hon. William E. Simon, Secretary of the Treasury, dated August 10, 1976, regarding recent action taken by the Na- tional Advisory Council (NAC) of IFI financing of palm oil "Palm Oil Projects Presently Being Prepared for Board Consid- "United States to Stop Funds for Palm Oil Development," news release from Department of Agriculture dated July 29, 1976__ Poage, Hon. W. R., prepared statement__. Texas Citrus Exchange and Texas Citrus Mutual, statement presented on de la Garza, Hon. "Kika", chairman, Subcommittee on Department Op- Erb, Richard D., Deputy Assistant Secretary for Developing Nations, Treasury Department, letter dated September 28, 1976 to Chairman Gon- zalez on behalf of Secretary Simon, with attached statement regarding the Department's position on financing palm oil projects by international "Ivory's Coast's Output of Palm Oil Gains; U.S. Gives Aid, Irking Soybean Lawson, W. D., III, president, National Cotton Council of America, state- McNamara, Hon. Robert S., President, World Bank, letter dated July 30, 1976, responding to Hon. de la Garza___ National Cotton Council of America, statement of W. D. Lawson III, pres- Treasury Department, letter dated September 28, 1976, from Richard D. "U.S. to Fight Aid Abroad for Palm-Oil Exports," article from the Wall Bank staff working paper No. 193 entitled: "Possible Effects of Trade Liberalization on Trade in Primary Commodities". Commodity paper No. 23 (July 1976) entitled: "Prospects for Palm National Advisory Council: Report prepared by the NAC Working Group U.S. International Trade Commission: "Shrimp Report to the President on Investigation No. TA-201-12 Under Section 201 of the Trade Act of DEVELOPMENT INSTITUTION LENDING FOR PALM OIL PRODUCTION WEDNESDAY, SEPTEMBER 15, 1976 HOUSE OF REPRESENTATIVES, OF THE COMMITTEE ON BANKING, CURRENCY, AND HOUSING, Washington, D.C. The subcommittee met, pursuant to notice, at 10 a.m., in room 2222, Rayburn House Office Building, Hon. Henry B. Gonzalez (chairman) of the subcommittee) presiding. Present: Representatives Gonzalez, Mrs. Boggs, Stephens, Johnson, Grassley, and Paul. Also present: Representative Mark W. Hannaford of California. Mr. GONZALEZ. The subcommittee will come to order. I will proceed by reading my statement. This is a hearing on four resolutions concerning loans by international development lending institutions for the development of palm oil production. Palm oil is an edible oil, and competes directly with edible oils produced here in the United States. The resolutions we are considering are House resolution 1399, 1419, 1445, and 1451. Two of these are identical, so Members will find only two of the resolutions before them. All of the resolutions state that loans made by the development banks for palm oil production are causing serious harm to American farmers and processors, especially in the soybean market. Our witnesses today will be sponsors of these resolutions. In addition to the six members we will hear, a number of statments that have been received from others of our colleagues who are concerned about this matter, and these statements will be entered into the record. The administration has been invited to appear at these hearings, but I am told that the invitation has been declined. Representatives of the Treasury have said that the administration has to work on palm oil loans, and that it is trying to work with various banks to persuade them that no more loans should be made for these projects. According to them, no useful purpose would be served as public discussion at this time. I find this attitude incredible and totally and wholly unacceptable. The President's campaigners have said that there won't be any more palm oil loans. If that can be said on the campaign trail and in other public announcements, it can be said here, and for the record. If our Government has a policy, it can, and it should be, discussed. I cannot understand how an administration can proclaim a policy one day, |