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foreign donations programs - PDF, 101 mb - usaid

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Countries buying commodities fff<br />

title IV dollar credits had repaid<br />

the U.S. $34.6 million through<br />

1965. The local currencies which<br />

countriesacquire when they sell<br />

title IVfood andfiber to their own<br />

citizens is usedfor economic development<br />

projects agreeableto the<br />

U.S.-such as this grainelevator in<br />

the Ryukyu Islands.<br />

1956 RECIPIENTS: Ten Years Later<br />

From the beginning of Public Law 480 through<br />

Dece<strong>mb</strong>er 31, 1965, 506 sales agreements have been<br />

signed with 60 countries. Under sales and donation<br />

<strong>programs</strong> co<strong>mb</strong>ined, 150 million tons of farm commodities,<br />

having a total export market value of $14.6<br />

billion, have been supplied to over six score countries,<br />

The first complete fiscal year cf Public Law 480<br />

operations was fiscal year 1956. By the end of that<br />

fiscal year, title I sales <strong>programs</strong> were underway with 27<br />

countries. In seeking ways to measure the effectiveness<br />

of Public Law 480, the Agriculture Trade Development<br />

and Assistance Act, one yardstick is the degree to which<br />

commercial marketing has replaced concessional imports.<br />

Even restricting consideration to imports from the<br />

United States, it is interesting to review the current<br />

picture of those countries who were recipients in 1956.<br />

Fourteen of the 27 countries were no longer receiving<br />

title I food aid in 1965 (see Table XXXVIII). All but<br />

two were receiving virtually 100 percent of their agricultural<br />

imports from the United States on full coinmercial<br />

terms. Together, these 14 had tripled their<br />

co<strong>mb</strong>ined commercial purchases of U.S. food and fiber,<br />

In 1956, seven of these countries purchased 50 percent<br />

or more of their U.S. agricultural imports on a coinmercial<br />

sales basis. In 1963, eleven of them did.<br />

Some among this group of 14 had become food aid donor<br />

nations.<br />

Even if one excludes France, Germany, and the United<br />

65-324 0-60-----8<br />

Kingdom, who in 1956 were at the end of U.S. supported<br />

postwar reconstruction, and whose current commercial<br />

purchases are very large, the remaining countries bought<br />

commercially almost $1.2 billion in U.S. agricultural<br />

products in 1965. This was over four times their<br />

commercial purchases in 1956.<br />

The remaining 13 of the original 27 recipients were still<br />

receiving title I food aid a decade later (see Table<br />

XXXIX). Nevertheless, their co<strong>mb</strong>ined commercial<br />

purchases from the Uiited States had more than doubled<br />

during the period, rising from $79 million in 1956 to<br />

$168 million in 1965. Of these 13, three countries had<br />

made the transition to title IV purchases for dollars by<br />

Dece<strong>mb</strong>er 31, 1965, and were still receiving title I shipments<br />

only as a result of agreements signed prior to 1965;<br />

an additional four countries will begin to buy under<br />

title IV during 1966.<br />

A wide range of problems confronts that group of<br />

countries still buying U.S. farm commodities under title<br />

I. Some are making encouraging, even surprising progress.<br />

Others have not yet mastered basic problems of<br />

capital formation, manpower training, and agricultural<br />

technology. Many still face difficulties in breaking away<br />

from antiquated systems of cultivation, land tenure, and<br />

marketing. Some are under relentless pressure from<br />

population increases.<br />

Despite these and other difficulties, most of the continuing<br />

title I recipients have succeeded in expanding<br />

food production fast enough to keep pace with population<br />

growth.<br />

113

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