foreign donations programs - PDF, 101 mb - usaid

ecipient governments can apply to economic development.
The improvement of inland transportation in
Iran, the expansion of swine production in the Ryukyus,
and a cattle improvement project in Peru were among
the projects which demonstrated that these revenues not
only raise the standard of living in developing countries,
but also stimulate economic activity and lead to a
pattern of production that will help developing countries
become customers for other U.S. products.
Safeguards
A program of the magnitude of Food for Peace requires
effective safeguards. Public Law 480 requires that shipments
of commodities made under its authority are not
transshipped or diverted, that they are used within the
of the American embassy, is responsible to report on
arrivals and proper disposition of shipments using a newly
developed automatic data processing system. The attache
or designated officer also reports compliance with
usual marketing provisions of the agreements and checks
exports to determine the level of shipment of like or
similar commodities from the country. He determines
the status of local currency deposits and conducts
independent verification of the disposition of Food for
Peace commodities.
Relation of Public Law 480 Exports to
Total Exports
Unite ate agriu tural ort an16 totaled
recipient country, that normal U.S. commercial arket-$6.23 billion at export market value compared to $6.35
ings and world patterns of trade arc not upset, that
suitable deposits of local currency are made to the credit
of the United States when called for in the agreement,
and that proceeds of the sale of food and fiber are applied
as specified in the agreements.
During the development of sales agreements, quantities
of commodities are determined only after careful analysis
of the effect of proposed p,'ogramns on normal conmercial
marketings of the United States and friendly
countries. Factors considered include historical cornmercial
trade, stocks, production, consumption, and
import requirements.
When circumstance,' dictate, sales agreements specify
quantities of certain commodities to be purchased from
U.S. sources in the regular commercial market during a
given time period. In most instances, global marketing
provisions are included which require the purchase of
specified po quantities as of commodities from all free world
sources (including the United States).
Sales agreements provide that recipient countries are
to submit formal assurances to the United States periodically
that commodities are not being transshipped or
otherwise diverted from intended use and that the
import of such commodities is not resulting in an increase
of exports of like or similar commodities from the recipient
country.
The U.S. Department of Agriculture maintains a
worldwide reporting system to insure compliance with
the above provisions. In each recipient country, the
resident agricultural attache, or other designated officer
05-324-0------- 2
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2,000
LUX
Relationship to Commercial
Agricultural Exports
h
-0
0
-4
1
FY'48 '52
MILLIONS OF DOLLARS
-
P.L. 480
Began
1955 in .0
15
Agricultural
Commercial
Trade
00
0 r.
0
- Government
Programs
41
'56 '60 '64
-
17