This article heavily emphasizes the private trade entity (PTE) program under title I' of the act. While the PTE program often has been related to development of agricultural facilities designed to increase exports from the United States, the program has represented a relatively small portion of the volume of commodities shipped under titles I and II. With regard to the comments on section 104(e) "Cooley" loans to private enterprise, the act provides that such loans can be made to U.S. firms on their affiliates "for general business development and trade expansion***" Loans to foreign firms are limited to "the establishment of facilities for aiding in the utilization, distribution, or otherwise increasing the consumption of, and markets for, U.S. agricultural products **** The Cooley loan program was administered in its early years by the Export-Import Bank, later by AID, and most recently by the Overseas Private Investment Corporation.

March 11, 1975, "High Rice Prices Probed-Record Crop Fails to Cut Cost Substantially."-Rice programing has always been an important part of Public Law 480 food assistance, with emphasis in recent years on exports to countries of major foreign policy significance, such as Vietnam, Cambodia, Korea, and Indonesia. Those recipients have not been among those countries commonly considered "relatively well-to-do,” as indicated by the article. For example Indonesia's oil prosperity is still quite recent, and not large on a per capita basis. In view of the amount of U.S. acreage devoted to rice production, together with the relatively low domestic requirements for rice, Public Law 480 exports have also been an important element in facilitating the marketing of U.S. rice. The Department has attempted to minimize the impact of Public Law 480 exports on the domestic and dollar export markets. We are concerned about the small number of rice exporters, as reported by the article, and have continued our efforts. over the years to increase that number.

March 12, 1957, "Impact of U.S. Food Heavy on South Korea.”— This article emphasizes possible disincentives to Korean agricultural production through Public Law 480 exports, possibly at the expense of the positive economic development and balance of payments assistance the program provided the Government of the Republic of Korea. It is primarily a presentation of the arguments against food aid, drawn from sources outside the Department.

March 13, 1975, "Free Food Effect Unclear."-This article concentrates on presenting difficulties experienced in the title II donations program, and highlights a GAO report emphasizing problems in commodity donations in fiscal year 1974. At the same time, it gives little attention to the supply problems which prevailed in the United States during 1973-74, which resulted in high domestic commodity prices. No mention is made of the priority accorded to title II nutrition programs during that period, when the major quantity reductions under the program were made in title I sales programs.

APPENDIXES

APPENDIX A*

U.S. WAREHOUSE ACT, AS AMENDED

REGULATIONS FOR GRAIN WAREHOUSES

May 1975 (As amended)

U.S. DEPARTMENT OF AGRICULTURE-AGRICULTURAL MARKETING SERVICE, TRANSPORTATION AND WAREHOUSE DIVISION

TITLE 7-AGRICULTURE

CHAPTER I-AGRICULTURAL MARKETING SERVICE (STANDARDS, INSPECTIONS, MARKETING PRACTICES), DEPARTMENT OF AGRICULTURE1

102.9

102.10

102.11

102.12

Grounds for not issuing license.

Warehouse license; suspension: revocation.

Return of suspended or revoked license.

Lost or destroyed warehouse license.

Unlicensed warehousemen must not represent themselves as licensed.

Sec.

102.106 Licenses to State and other employees.

102.107 102.108 102.109

License to chief sampler or deputy.

Additional bonding required.

Examination of warehouses; board of trade interest.

102.110 Registration of public warehouse receipts; protection. 102.111 Terminal markets.

AUTHORITY: The provisions of this Part 102 issued under sec. 28, 29 Stat. 490; 7 U.S.C. 268, except as otherwise noted.

CROSS REFERENCE: For official grain standards of the United States, see Part 26 of this chapter.

$102.1 Meaning of words.

DEFINITIONS

Words used in this part in the singular form shall be deemed to import the plural, and vice versa, as the case may demand.

$102.2 Terms defined.

For the purposes of this part, unless the context otherwise requires, the following terms shall be construed, respectively, to mean:

(a) The act. The United States Warehouse Act, approved August 11, 1916 (39 Stat. 486; 7 U.S.C. 241-273), as amended.

(b) Person. An individual, corporation, partnership, or two or more persons having a joint or common interest.

(c) Department. The United States Department of Agriculture.

(d) Secretary. The Secretary of Agriculture of the United States or any officer or employee of the Department to whom authority has heretofore been delegated, or to whom authority may hereafter be delegated, to act in his stead. (e) Designated representative. The Administrator.

(f) Administrator. The Administrator of the Service or any other officer or employee to whom authority has heretofore lawfully been delegated, or may hereafter lawfully be delegated, to act in his stead.

(g) Service. The Agricultural Marketing Service of the Department.1 (h) Regulations. Rules and regulations made under the act by the Secretary. (i) Dockage. Dockage in grain as defined by the official grain standards of the United States.

(j) Grain. All products commonly classed as grain, such as wheat, corn, oats, barley, rye, flaxseed, rough, brown, and milled rice, sunflower seeds, field peas, soybeans, emmer, grain sorghums, and such other products as are ordinarily stored in grain warehouses, subject to the disapproval of the Administrator. (k) Nonstorage grain. Grain received temporarily into a warehouse for conditioning, transferring, assembling for shipment, or lots of grain moving through a warehouse for current merchandising or milling use, against which no receipts are issued and no storage charges assessed: Provided, That merchandising or milling stocks held in storage as reserve stocks, or stored for use at an indefinite future date, may not be treated as nonstorage grain.

(1) Warehouse. Unless the context otherwise clearly indicates, any building. structure, or other protected inclosure licensed or to be licensed under the act, in which grain is or may be stored for interstate or foreign commerce, or, if located within any place under the exclusive jurisdiction of the United States, in which grain is or may be stored.

(m) Bin. A bin, tank, interstice, or other container in a warehouse in which bulk grain may be stored.

(n) Warehouseman. Any person lawfully engaged in the business of storing grain, who holds an effective warehouseman's license under the act, or who has applied for such a license.

(0) License. A license issued under the act by the Secretary, or his designated representative.

(p) Warehouseman's bond. The bond required by the act to be given by a warehouseman.

(q) Inspector. A person licensed under the act by the Secretary, or his designated representative, to inspect and grade and/or certificate the grade of grain stored or to be stored in a warehouse licensed under the act.

(r) Weigher. A person licensed under the act by the Secretary, or his designated representative, to weigh and/or certificate the weight of grain stored or to be stored in a warehouse licensed under the act.

1 Amended Apr. 25, 1972.

(s) Grain Standards Act. The United States Grain Standards Act, approved August 11, 1916 (39 Stat. 482; 7 U.S.C. 71-87) as amended.

(t) Official grain standards of the United States. The standards of quality or conditions for grain, fixed and established by the Secretary under the Grain Standards Act.

(u) Receipt. A licensed warehouse receipt issued under the act.

§ 102.3 Application form.

WAREHOUSE LICENSES

Applications for licenses and for amendments of licenses under the act shall be made to the Secretary upon prescribed forms furnished by the Service, shall be in English, shall truly state the information therein contained, and shall be signed by the applicant. The applicant shall at any time furnish such additional information as the Secretary, or his designated representative, shall find to be necessary to the consideration of his application.

§ 102.3a All facilities to be licensed or exempted.

All facilities within the same city or town used for the storage of grain by an applicant for a warehouse license must qualify for a license and be licensed under the act if the applicant is to be licensed to operate as a grain warehouseman in such city or town, unless the facilities which are not to be covered by a license are exempted by the Secretary or his designated representative upon a finding that, due to the exercise of adequate controls by some independent agency over the operation of the non-federally licensed facilities, there would be no likelihood of interchange, substitution, or commingling of grain stored in such facilities with grain stored in the federally licensed facilities. If all such facilities do not qualify for a license or for an exemption under this section the applicant shall not be licensed under the act as a grain warehouseman in the city or town in which the facilities in question are located. Each applicant for a grain warehouse license must apply for a license covering all facilities operated by him for the storage of grain within the same city or town or for exemption as provided in this section. If a licensed grain warehouseman acquires any additional grain storage facilities within the same city or town in which his licensed warehouse is located he shall file promptly an application for a license or an exemption of the additional facilities. No grain storage facility acquired by a licensed grain warehouseman, subsequent to the issuance of his license, in the same city or town as his licensed facilities, shall be used for the storage of grain until it qualifies for license and is licensed or is exempted as provided in this section. If any one of the licensed grain storage facilities operated by a warehouseman in the same city or town becomes ineligible for a license at any time for any reason, it shall not thereafter be used for the storage of grain until the condition making it ineligible is removed or an exemption is granted as provided in this section. The use for the storage of grain by a licensed warehouseman of a facility which is in the same city or town as his licensed facilities and is neither licensed nor exempted, or other violation of the provisions of this section, shall be cause for suspension or revocation of any license issued to the warehouseman for the storage of grain.

$ 102.4 Scales; bin numbers.

(a) Each warehouse must be equipped with suitable scales in good order, and so arranged that all grain, whether for storage or for nonstorage purposes, can be weighed in and out of the warehouse. The scales in any warehouse shall be subject to examination by representatives of the Department and to disapproval by the Administrator. If he disapproves any weighing apparatus, it shall not thereafter be used in ascertaining the weight of grain for the purposes of this act, until such disapproval be withdrawn.

(b) Both bulk grain bins and compartments for sacked grain of all warehouses licensed under the act shall be identified by means of clearly discernible numbers securely affixed thereto. The series of numbers to be used shall be approved by the Service. Bulk grain bins shall be numbered so as to be easily identified at the openings on top and also on or near the outlet valves underneath. Compartments shall be numbered in such a manner as to clearly show the space covered by each number.