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B-114824 1 (1971-06-16)

handle is hein.gao/gaobaafji0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE 'C'M WASHINGTON, D.C. 20548 INTERNATIONAL DIVISION L052 LM095625 1r1 6 971 B- 114824 Dear Mr. Secretary: In our continuing review of ways to increase the export of United States agricultural commodities, we learned recently of a program where the Department of Agriculture (USDA) could in our opinion beneficially increase its export sales of surplus nonfat dry milk. .... 7 The Export Marketing Service (EMS)-, in cooperation with the Agri- cultural Stabilization and Conservation Service (ASCS), conducts a program under which nonfat dry milk of the Commodity Credit Corporation (CCC) is sold for dollars to American plants overseas. The basic procedures for the program are set forth in ASCS Announce- ment MP-23 (hereafter referred to as the MP-23 program) which provides that CCC dairy products be offered for sale on the basis of competitive bids or announced prices. In addition to the basic procedures and conditions of sale contained in this announcement, EMS has administratively determined that sales of nonfat dry milk under MP-23 be restricted to the highest bidder for each offering regardless of the size of the bid. EMS officials informed us that sales under this program are being limited because nonfat dry milk is needed to meet the commitments of title I sales programs (20.7 million pounds in fiscal year 1971) and title II donations programs (314.4 million pounds in fiscal year 1971) under Public Law 480. As a result, the bid invitation quantities under the MP-23 program are made available only after Public Law 480 commitments are satisfied. There is some question as to whether this should be so. From a purely economic standpoint, there is no doubt that amounts sold under the MP-23 program are more beneficial than equivalent amounts donated free to foreign recipients under Title II of Public Law 480. Further, every pound donated abroad incurs transportation costs which must be borne by the U.S. taxpayer. Public Law 480 legislation provides that dollar sales have priority over title I sales and title II donations. Some may debate whether MP-23 could be considered dollar sales in the strictest sense since these 50 TH ANNIVERSARY 1921 - 19711,

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