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093830 1 (1973-03-31)

handle is hein.gao/gaobacxgt0001 and id is 1 raw text is: S, 3 F3 UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D C 20548 INTERNATIONAL DIVISION May 31, 1973 Dear Mr. Ioanes On November 29, 1972 you-forwarded comments of the Foreign Agri- culture Service on our draft report to the Congress on Alternatives to Present Market Development Activities. On March 30, 1973, the Assistant Administrator for Market Development reported on develop- ments concerning recommendations made in our draft report. -The0principal concern expressed in our draft report was the need for improved criteria and procedures for evaluating cooperator programs. We also suggested that products and areas susceptible to market development activities be identified for more effective use of funds. The Assistant Administrator's response of March 30, 1973 advised that steps 'have been taken to formalize program evaluation procedures including reevaluation of existing programs and developing a systematic approach to identify new programs to fill promotional gaps. Actions aimed at reducing poultry programs in the European Community and shifting of program emphasis in rice, feed grains, soy bean and citrus products in Europe were also reported. In view of your agencyts actions in line with our draf-jt report recommendations, and recent changes in the world agricultural supply situation, we have decided not to issue a report to the Congress on this subject at this time. While we believe that implementation of the revised procedures can lead to a more effective allocation of promotional resources, we offer the following comments for your further consideration. 1. The Fiscal Year 1974 Cooperator Marketing Plan Approval Procddures indicate a move in the right direction in light of budget constraints created by decreased purchasing power of our devalued dollar. The new criteria and procedures for evaluating cooperator program improves prospects for applying FAS promotional dollars where they can do the most good. As these improvements are further developed and used consistently, they should improve program effectiveness over the long run.

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