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refuse to testify on that policy a few days later, and then literally the next day talk about what a great thing government-in-the-sunshine is. The public statements we have heard say that there will be no more palm oil loans. But the policy adopted by the administration is, in fact, different. That policy says that there won't be any more loans for palm oil export production after the loans now in the pipeline have been acted on. This policy is stated in a memorandum for the National Advisory Council, with an attached report dated August 11, 1976 and which was the official basis for the public statements that have been made. A copy of that memorandum will be inserted in the record.

[The memorandum referred to may be found in the appendix on p. 93.]

Mr. GONZALEZ. I believe that the administration is declining to appear, not because it would upset some delicate negotiations, but because their real policy is very different from what they want the American public to believe.

The fact is that we do have a problem here. We are going to have other problems, whenever the lending institutions help establish industries that compete directly with American products. We are concerned here with edible oils; we may in the future be concerned with citrus production, as one of my colleagues will point out later on today. It is a serious problem, one that goes beyond the single product we are concerned about here; it will require our serious consideration.

[A statement submitted by the Treasury Department after the hearing was completed may be found in the appendix on p. 69.]

Mr. GONZALEZ. Before going on I should also place the resolutions in the record. So ordered.

[The text of House Resolutions 1399, 1419, 1445, and 1451 follow:]

94TH CONGRESS 2D SESSION

H. RES. 1399

IN THE HOUSE OF REPRESENTATIVES

JULY 1, 1976

Mr. JENRETTE (for himself and Mr. MATHIS) submitted the following resolution; which was referred jointly to the Committees on Agriculture and Banking, Currency and Housing

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RESOLUTION

Resolved, That it is the sense of the House that

(1) The Secretary of Agriculture should study the impact of the development of the foreign palm oil industry on the domestic vegetable oil industry and submit his recommendations to the National Advisory Council on International Monetary and Financial Policies that further loans by the international financial institutionsthe International Bank for Reconstruction and Development, the Inter-American Development Bank, and the Asian Development Bank-for the development of palm oil be discouraged by the United States.

(2) The Secretary of the Treasury, with the cooperation of the member agencies of the National Ad

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visory Council and the Secretary of Agriculture, instruct

the United States Executive Director in each of the international financial institutions to oppose new proposals

for palm oil development loans unless the palm oil is needed domestically and does not have the effect of

increasing palm oil exports.

94TH CONGRESS 2D SESSION

H. RES. 1419

IN THE HOUSE OF REPRESENTATIVES

JULY 22, 1976

Mr. FINDLEY Submitted the following resolution; which was referred jointly to the Committees on Banking, Currency and Housing and International Relations

RESOLUTION

Whereas imports of palm oil into the United States have increased sharply over recent years; and

Whereas palm oil imports compete with American oilseeds for domestic vegetable oil markets; and

Whereas the continuation of this trend of increasing palm oil imports could displace a major share of United States vegetable oil markets, adversely affecting the income of American producers; and

Whereas the United States represents the only entirely open major import market for palm oil; and

Whereas the International Bank for Reconstruction and Develop

ment and other multilateral organizations have encouraged the production of palm oil by loans to support its production and processing; and

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Whereas the primary policy of the United States in its assistance

to agricultural development in the developing world should be to encourage the production of basic food crops for the benefit of the indigenous population of such nations; and Whereas if palm oil projects for export are economically viable, they should be commercially financed; and

Whereas a strong and viable American farm economy is essential to assuring world food security in light of the growing deficit in the developing world; and

Whereas effective action should be taken by the United States Government to provide relief to American producers: Now, therefore, be it

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Resolved, That it is the sense of the House that

(1) the President initiate discussions leading to negotiations with other nations to restrain the growth of palm oil imports into the United States;

(2) the International Bank for Reconstruction and Development and other development agencies make a

careful analysis of the impact of support of the production in developing countries of specific agricultural commodities for export on agricultural adjustments in other nations; and

(3) the United States and multilateral development agencies take steps to insure development in the developing nations of the world are directed primarily at the

relief of hunger and malnutrition in those countries

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