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CED-82-93 1 (1982-05-28)

handle is hein.gao/gaobabdic0001 and id is 1 raw text is: 



                     UNITED STATES GENERAL ACCOUNTING OFFICE
                             WASHINGTON, D.C. 20548

                                        May 28, 1982
CMMUNITY AND I!CONOMIC
D ELOP MIrT DIVisION

      B- 207434                                                       U    B
                                                                      118516
      The Honorable Ron de Lugo
      House of Representatives

      Dear Mr. de Lugo:

           Subject: Reasons for High Food Prices in the U.S.
                     Virgin Islands (GAO/CED-82-93)

           Your October 13, 1981, letter requested that we determine:

           --Actual food price differences between the Virgin Islands
             and other specified locations, and whether any such
             differences have increased or decreased in recent years.

           --Reasons for substantially higher food prices in the
             Virgin Islands than elsewhere if, in fact, that is what
             is found.

           On December 16, 1981, we responded to the first part of your
      request in a report to you on high food prices in the Virgin
      Islands (CED-82-23). In that report we concluded that (1) Virgin
      Islands food prices were higher than in other specified locations,
      (2) the amount by which they were higher depended on the data and
      analytical approaches used to measure prices, and (3) food price
      differences between the Virgin Islands and Washington, D.C., had
      generally been increasing in recent years.

      OBJECTIVES, SCOPE, AND METHODOLOGY

           On December 17, 1981, we briefed you on the results of our
      initial efforts and on our report. During that meeting, you
      asked us to proceed further in determining why Virgin Islands
      food prices are so high. Since then we have held discusgions with
      and obtained documentary information from officials of a number of
      different sources, including the (1) Virgin Islands Government's
      Bureau of Labor Statistics, Departments of Commerce and Consumer
      Services, and Cooperative Extension Service, (2) Federal Maritime
      Commission, (3) Special Trade Group-Caribbean Section, Office of
      the President, (4) Virgin Islands Federal Programs Office, and
      (5) World Bank. We also discussed high Virgin Islands food prices
      with an expert at the University of Notre Dame to whom we were
      referred. We met with and discussed grocery store operations,


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