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B-114824 1 (1971-05-28)

handle is hein.gao/gaobabklf0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 INTERNATIONAL DIVISION MAY 2 8 1971 B-114824 Major General William B, Campbell Army and Air Force Exchange Service Dallas, Texas 75222 Dear General Campbell: The General Accounting Office is making a survey in Europe to see whether economic advantages could be realized by using American agri- cultural commodities instead of European agricultural commodities, Our European Branch has informed us that the European Exchange System (EES), a large United States nonappropriated fund activity which is a part of the Army and Air Force Exchange Service (AAFES), has arranged to buy about $92,000 worth of peanuts this year from a German contractor. The EES decided to purchase these peanuts in Germany because they thought that American peanuts would cost 24-1/2 cents a pound, plus freight and handling, compared with a delivered cost of 23 cents a pound for the foreign peanuts. The Department of Agriculture (USDA), operating through the Commodity Credit Corporation (CCC)$ subsidizes the export of peanuts by selling them to processors at prices which make them available competitively in foreign markets. Under this program, unroasted peanuts in-the-shell (which are the type purchased by the EES) are selling for about 14-1/2 cents a pound, feo.b. origin, processors' plants. In view 'of the balance-of-payments benefits that might be realized, we suggest that the AAFES jointly explore with USDA the possibility of obtaining U.S. peanuts provided under the CCC export program to meet future world-wide requirements which otherwise would be purchased with dollars from foreign sources. USDA officials told us that they would be pleased to discuss the possibility of making American peanuts avail- able to AAFES at competitive prices. The appropriate division to contact at USDA is the Office of Oilseed and Special Crops Division of the Agricultural Stabilization and Conservation Service located in room 5768, South Agricultural Building, Washington, D, C. 50TH ANNIVERSARY 1921-19711411

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