itself." And it says that without looking at what the people who are sustaining the Bank have been doing to develop this market.

You have to nurture it and you have to work it in a very long

process.

Mr. GRASSLEY. It is what you call a progressive income tax at the international level.

Mr. DE LA GARZA. That is about it.

Mr. GRASSLEY. Did you say the administration refused to come up here and testify?

Mr. GONZALEZ. That is correct.

Mr. GRASSLEY. Is there much precedent for them getting away with thumbing their noses at a congressional committee like this, Mr. Chairman, except on highly sensitive matters?

Mr. GONZALEZ. I don't know. Maybe I am just a little VIP, a very unimportant peon, and I couldn't swing it. But we did everything we know how with reason, with politeness, with courtesy, with time.

Mr. GRASSLEY. I thought all you had to say was, "We want you up here."

Mr. GONZALEZ. And they flatly told us that they would not do it under any circumstances because the administration was conducting policy talks, and they thought anything they said here, Mr. Grassley, would jeopardize those.

Well, I can't understand that. It just doesn't seem logical. But hopefully, as we go along in this, we will be able to solve this problem and you may be able to help us in that respect.

Mr. STEPHENS. May I ask a question?

Which of the Departments did we ask to come? Was it just the Treasury?

Mr. GONZALEZ. Well, as you know, in these institutions it is really Treasury. So we thought they would be the ones to invite.

We will keep on trying. I think it is important enough for us to do it. And if the subcommittee is willing, of course it will be done. I don't believe in getting into any unharmonious dissertations if we can avoid it. Perhaps some of our leadership can help us and we can get some Representatives to come in. But I think it is absolutely imperative that we maintain this interest with respect to the World Bank.

Mr. DE LA GARZA. Yes, sir.

Mr. GONZALEZ. And like Mr. Stephens said awhile ago, we don't want-what did you say?

Mr. STEPHENS. I said we don't want the barn door to be shut after the soybeans have gone.

Mr. DE LA GARZA. Mr. Chairman, it seems to me that the administration is saying that they are in the process of shutting the barn door while we are sitting here.

Mr. GONZALEZ. Well, in my opening statement I referred to this because some of the candidates are saying that there will be no more loans, but in the meanwhile there is a different story in the policy sector being conducted. And so this is what is disturbing to us. There is a conflict somewhere.

Now I have noticed that Congressman Dawson Mathis is here and Chairman Poage is here.

Mr. DE LA GARZA. Thank you very much, Mr. Chairman, if you are done with me.

Mr. GONZALEZ. May I suggest something? Why don't you all come up and, Mr. de la Garza, perhaps you could stay.

Mr. DE LA GARZA. Well, I appreciate it, Mr. Chairman, but this is my presentation. I assume that my colleagues have other areas of concern-similar problems, but other crops.

Thank you very much.

Mr. GONZALEZ. Well, we want to thank you for your time and interest. I know you have been in contact for sometime. We will promise you the subcommittee will continue to maintain an interest and, providing the majority of the subcommittee is willing, we will continue the momentum of this and you will hear from us further.

I would like to ask the staff one thing before you leave. Can we ascertain whether or not the Inter-American Development Bank has made loans to any country, including Mexico, for the development of the shrimp industry?

Mr. CALDWELL. The number of loans is very minor.

Mr. GONZALEZ. But have they made them, as far as the shrimp. industry is concerned?

Mr. CALDWELL. Not in Mexico, I believe.

Mr. GONZALEZ. Well, I would like to check that and get that information for the record.

Mr. DE LA GARZA. I think they made some loans for building boats but not designated as to what they would fish for.

Mr. GONZALEZ. Well, we will assume it was connected.

Mr. DE LA GARZA. Thank you, Mr. Chairman.

[In response to the request of Chairman Gonzalez, the following information was provided by the staff for inclusion in the record:]

INTER-AMERICAN DEVELOPMENT BANK LENDING IN 1961-75 IN THE AGRICULTURAL SECTOR, LOANS FOR FISHING INDUSTRY

Inter-American Development Bank financing of fishery development began in 1973. Loans totalling $61.7 million had been authorized through the end of 1975 for projects in four countries, as follows:

Dominican Republic (1973). $1.6 million loan to help organize and equip six fishing cooperatives in coastal cities and to establish a Central Federation which will build and operate wholesale fish marketing terminals and conduct fisheries research. The objective is to reduce reliance on imports of fish products.

Panama (1974). $3.5 million loan to expand four small fishing cooperatives, organize five new ones, and establish cooperative marketing facilities in Panama City. The objective of the program is to raise production and increase the catch for direct consumption.

Costa Rica (1975). $13.6 million loan to improve and develop fisheries in its northwest Pacific region in order to increase domestic consumption of fish and expand exports. $10 million of the funds will be used for fishing boats for coastal water fishing to catch fish for local consumption. The remaining $3.6 million, provided by the Venezuelan Trust Fund, will provide for the purchase of langostino trawlers, shrimp boats, coastal fishery vessels, processing plant equipment and freezer equipment for supermarkets and wholesalers.

Mexico (1974). $43 million loan. The lack of an integrated fishery industry has been a major factor in Mexico's inability to exploit adequately the fish resources along its 6,000 coastline. This loan will help to improve the use of those resources by supporting the Government of Mexico in its efforts to renovate and expand the country's fishing fleet, strengthen port infrastructure facilities and establish a training center for fisheries personnel. The loan will be used as part of projects totalling $84 million. The Bank's share of these projects is 51%.

As a result of the execution of these projects, Mexico's fish catch is expected to rise from 301,000 tons in 1972 to an estimated 471,000 tons in the sixth year of the life of the project, thus raising domestic consumption of fish from 196,115 tons per annum to an estimated 279,045 tons and increasing the annual value of Mexico's fish exports by $14.6 million.

Other goals of the program are to increase annual per capita fish consumption in Mexico from 8.1 pounds to 11.7 pounds, thus raising nutritional levels, particularly among low-income groups and to create 5,424 additional jobs in the fishing industry.

(SOURCE.-Inter-American Development Bank Annual Reports.)

WORLD BANK LOANS TO FISHING INDUSTRY IN LATIN AMERICA

Ecuador. (1968). $5.3 million loan to acquire modern boats and train crews to exploit coastal waters. The project will permit the industry to more than double the tuna catch and increase export income by $3 million per year. The loan is financing the design and construction of twelve 90-foot trawlers.

Panama. (1971). $3.4 million loan for a project to modernize Panama's shrimp industry by replacing old wooden vessels with modern steel shrimp trawlers and training shrimp fishermen in modern techniques.

WORLD BANK LOANS TO FISHING INDUSTRY WORLDWIDE IN FISCAL YEARS 1974 AND 1975

Indonesia. (1974). $6.5 million loan for a project designed to increase the output of shrimp and fish for both domestic consumption and export and to provide more jobs and additional incomes for fishermen and their families.

Iran. (1975). $12.5 million loan for credit facilities for both commercial and traditional fishermen for the purchase of equipment. The project is expected to generate the production of 19,000 tons of fish and shrimp a year. A training program which will benefit about 900 fishermen is also included.

ASIAN DEVELOPMENT BANK LENDING TO THE FISHERIES SECTOR

Asian Development Bank lending to the fisheries sector through its soft loan Special Funds and Asian Development Fund consists of the eight loans listed in the following table.1

1 The Irian Jaya Fisheries Development loan to Indonesia and the Fisheries Port in the Philippines also involve $7.25 million in financing from the Bank's ordinary capital resources. In addition the ADB has made five ordinary capital fisheries loans totaling $63.2 million.

Total funds committed in the eight ADF fisheries loans amount to $33.25 million or 5 percent of total ADF lending of $658.8 million.

The Philippine loan is designed to finance improvements in a fishing port. Of the seven loans designed to increase fish output, two-the 1970 Vietnamese and the Sri Lanka loans-are strictly for domestic consumption. Of the five loans involving the export of a portion of the catch, three-the 1975 Vietnamese loan, the Riau project in Indonesia, and the Bangladesh loan-include shrimp among the products exported. The remaining two loans do not finance any exports of shrimp.

In the case of the Bangladesh loan, 1,500 metric tons of the 15,300 m.t. catch will consist of exports of herring and shrimp-mainly to Japan, but also the U.S. and Europe. The 1975 Vietnamese loan contemplated development of thirty small shrimp farms to produce a total of 1,500 m.t. of shrimp per year for the Japanese, Singapore and Hong Kong markets. However, at the time of the change in government last April no contracts had been let and no disbursements made. This situation remains true today.

The Riau project will provide for 6,400 m.t. of exports of fish and shrimp annually to Singapore. Thus of the eight projects financed by ADB resources, only one-the Bangladesh loan-provides for any export of shrimp to the U.S., and even here the U.S. is a small part of the export market compared with Japan.

Finally it is worth noting that the U.S. International Trade Commission, in its publication #773 on "Shrimp" identified Mexico, Panama, Ecuador, and India as major exporters of shrimp to the U.S. Of these, only India is an Asian nation. As a matter of policy India does not borrow from the Asian Development Bank or Fund.

Mr. GONZALEZ. Gentlemen, we have a little less than 1 hour to go. We have exactly 50 minutes or so, which ought to give us enough time to have your presentations. If there is no objection, we will follow this order: I know Congressman Moore came in first and then Congressmen Mathis and Poage. I guess we will proceed on that basis and we will hear first from Mr. Moore.

You may proceed as you wish, Mr. Moore. You may submit your statement or, if you don't have a statement, you may continue with your oral remarks.

STATEMENT OF HON. W. HENSON MOORE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF LOUISIANA

Mr. MOORE. Mr. Chairman, I appreciate the opportunity to appear here today. I think with the two gentlemen who are here-the vice chairman of the Agriculture Committee and, of course, the chairman of the Oilseeds and Rice Subcommittee-well, with them here I think you probably have all that the Committee on Agriculture could be able to offer on this subject.

I serve as a member of the Oilseeds and Rice Subcommittee with the distinguished chairman from Georgia, Mr. Mathis, who has done

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an outstanding job in this area. It is because of his interest in getting us into it, that I became interested in it and have become a proponent of something needing to be done.

I also serve on the Interstate and Foreign Commerce Committee. In that committee we are very concerned about our balance of trade and our foreign commerce, and since I have been on that committee, we have not looked into this area; but it is something that concerns me at least and other members of that committee.

I thought what I would do is bring to you some research I have run across in my work and results of hearings which Chairman Mathis held-and I am sure he will elaborate on those hearings that we had with USDA and others on this question and the soybean market. I also have some suggestions perhaps, Mr. Chairman, that we would like to work on.

Mr. Poage, who is the vice chairman of the committee, has also been very active in this area.

I would simply like to start off by saying that I think we are all aware of the fact of how important the balance of trade is to us. And I wonder if the people are really aware of the fact that we have been in the black in the balance of trade solely because of agricultural exports. It has only been as they have increased, has our balance of trade improved. As our agricultural exports decrease, it is only logical that so will our balance of trade and we will go back into the red, which is something none of us want to do.

Agricultural exports currently are about $22 billion to $23 billion. Soybeans in particular account for almost 20 percent of that. It is the second biggest crop we export, Mr. Chairman, soybeans and soybean products.

Last year the palm oil situation increased, the imports to this country increased by 118 percent. I think it was not merely consequential but a direct result, Mr. Chairman, that our soybean farmers lost about $1.5 billion last year at the time these imports were going up.

The USDA gave a report at the hearings that Chairman Mathis had, which we studied in detail and corresponded with them on, to the effect that they expect these imports to the United States to triple in the next 10 years. This means, as they project, about 15 million bushels of soybeans will no longer be needed to be produced in this country, which accounts for about one-half million acres of production going out of production in soybeans.

And the first 7 months of 1974, to give you an example, about 10 percent of West Malaysia's exported palm oil was imported to this country. During the same period of 1975 that jumped to 28 percent of their production.

I am told that at the beginning when the international banks-such as the World Bank, the Asian Development Bank, the Inter-American Development Bank-made these loans, it was done with the idea of helping countries to develop and there was never any intention that their products would wind up being dumped on our markets. In fact, that is now the case.

As a matter of fact, 26 percent of the total world palm oil production is directly attributable to loans from these three banks. Since 1965, Mr. Chairman, 32 loans have now been made, according to the