Mr. DODD. You mean the production in this country?

Mr. STEFAN. Yes; where is it produced; that is, that part of it that is included in the program.

Mr. DODD. You mean in the ECA program?

Mr. STEFAN. Yes.

Mr. DODD. We have not had that question to answer as yet. Mr. MAHON. Could you just tell the kind of product involved? Mr. STEFAN. And break it down by where it is to come from. Mr. MAHON. Of course you could not necessarily break it down as to the source of the bales of cotton and tell from what State it comes. do not know whether that can be done as to tobacco.

I

Mr. STEFAN. Mr. Case was very much interested in knowing whether it will come from Ohio, Pennsylvania, and other States. Mr. DODD. I do not believe we could give you any exact figures as to the source of the tobacco.

Mr. STEFAN. I am referring to that part of the tobacco to be covered by this program.

Mr. DODD. From the States of Georgia, North Carolina, South Carolina, Virginia, Kentucky, Tennessee, and some little from West Virginia and other tobacco-growing States.

Mr. STEFAN. Just put a statement in the record covering that if you will.

Mr. DODD. Yes, we can indicate the areas of production in this country for the various kinds.

Mr. STEFAN. When you go over your testimony will you include a statement indicating where they are to come from?

Mr. DODD. We can give you the sources of production. But when a British buyer comes over here he would begin buying tobacco in the States where the auction markets open first.

Mr. STEFAN. Will he buy any in Pennsylvania or in Ohio or Wisconsin?

Mr. DODD. That tobacco is the cigar-leaf tobacco; we have never exported, so far as I know, very much of that tobacco.

Mr. STEFAN. Most of it is consumed in this country?

Mr. DODD. Yes; that is for cigars.

The CHAIRMAN. Some of it goes to Cuba for wrappers, does it not? Mr. DODD. We import it from Cuba.

The CHAIRMAN. We do not supply Cuba with wrappers for Cuban cigars?

Mr. DODD. No; they supply us with some wrappers.

The CHAIRMAN. I thought it was the other way around.

Mr. STEFAN. Can you supply for the record a statement showing where the tobacco comes from?

Mr. DODD. We can tell you the areas of production of all the types, and also indicate what exports have been.

(The following information was submitted later:)

Tobacco: Total exports and exports to participating countries from the United States, by kinds, 1935-39, prewar average, and 1946 and 1947

(Thousands of pounds, export weight, calendar-year basis)

Tobacco: United States production by kinds and by States, 1935-39 prewar average,

and 1946 and 1947

Tobacco: United States production by kinds and by States, 1935–39 prewar average, and 1946 and 1947-Continued

Mr. STEFAN. Mr. Case was anxious to know where the purchases are going to be made.

Mr. MAHON. It is clear that the exports are going to come from the Southern States if the northern product is not exported.

Mr. DODD. That is correct. The Burley source largely is Kentucky, some from Tennessee as well as other States; much of that is home consumed. But they also grow Dark Air-Cured and dark fired tobacco in Kentucky and Tennessee; a lot of that is exported. We make some of it into chewing tobacco in this country.

Mr. STEFAN. Brown Mule.

Mr. MAHON. The Ohio and Pennsylvania is the long leaf tobacco which is not exported?

Mr. DODD. The exported tobacco is principally the flue cured which is grown in North Carolina, Georgia, Virginia, South Carolina and Florida. It is used with Turkish tobaccos and mostly for cigarettes.

For instance, a British buyer may come over here when the auction markets first open at the end of July and he may buy some tobacco in Florida, may start in Florida and follow the markets on North but there would be no way by which we could say how much he buys in any market.

Mr. STEFAN. I see.

Mr. DODD. The tobacco, of course, will vary in quality from one market to the other.

Mr. STEFAN. For the first 12 months of the ECA program the purchases are going to be $110,200,000 of tobacco; and on a 15-month basis, $138,400,000 worth of tobacco to come from the States you have mentioned.

Mr. DODD. Those figures are in accordance with the illustrative example which has been presented to show ECA obligations for these two periods, and thus might include some ECA dollars to be spent in the Western Hemisphere but outside of the United States. The value of tobacco proposed for import from the United States during 1948-49 amounts to 219 million dollars, and for the fifteen months amounts to 274 million dollars.

Mr. STEFAN. Very well.

Mr. DODD. Does that answer the question you have in mind?
Mr. STEFAN. Yes.

PURCHASES OF AGRICULTURAL COMMODITIES BY THE ARMY

When the Army turns over money to you to buy either cotton or any other agricultural materials, and when the ERP turns over to you money to buy cotton and other materials would you give priority to those in the occupied areas, the Army, or would you give the ECA priority?

Mr. DODD. We have not had occasion to do either.

Mr. STEFAN. You have already gotten $63,000,000 of ERP money. Mr. DODD. But we have not had to consider priority, because we had the materials requested.

Mr. STEFAN. You now have money from the Army.

Mr. DODD. Yes.

Mr. STEFAN. To feed the occupied areas?

Mr. DODD. Yes, for the purchase of commodities.

Mr. STEFAN. And you will have money for the ERP; which will you give priority to?

Mr. DODD. The supplies have been such that we have not had to consider the question of priority; the supplies have been sufficient to take care of both.

QUESTION AS TO PERSONNEL TO HANDLE COMMODITY PROGRAM FOR ECA AND GARIOA

Mr. STEFAN. Do you have to put on any additional personnel to deal with the two agencies?

Mr. DODD. No.

Mr. STEFAN. Do you think the one agency can handle that?
Mr. DODD. Yes, CCC can handle both programs.

Mr. STEFAN. Without additional bookkeeping?

Mr. DODD. No; you would have to have another account.

Mr. STEFAN. You have to have another account on the books. Mr. DODD. Yes; but when wheat is bought for movement to the terminal warehouse for delivery aboard ship, it does not make any difference whether it is for ECA or for the Army's use in Germany. Mr. STEFAN. One is for ECA and the other for the Army? Mr. DODD. That is right.

Mr. STEFAN. And you are not going to have any additional bookkeepers to take care of that situation?

Mr. DODD. No; we believe we can handle it just as we are.
Mr. STEFAN. Without any additional bookkeepers.

Mr. DODD. We have not had any additional, thus far.

Mr. STEFAN. And you do not feel you will need any more personnel under this program where the materials go to the two agencies? Mr. DODD. No; I think the combined program could be handled in the same way.

Mr. STEFAN. What do you mean by the combined program?

Mr. DODD. We will have the ECA and the occupied-areas program. The situation probably will be little different than it has been since

in the past we have made purchases for several different programs: the Army program for one, and then we have made some purchases for certain cash-paying foreign governments.

Mr. STEFAN. That is what you mean by the combined program? Mr. DODD. Yes.

Mr. STEFAN. In the combined program you mean you will have one set of people working on both?

Mr. DODD. Yes; we have had that all the time, when we were buying wheat.

Mr. STEFAN. Here is what I want to know: We have made appropriations for feeding the occupied areas, and we have had information that the Army has set up a program, for instance, in Germany, and along comes the State Department and said it was going to take over the job in Germany; that they were going to take over the job from the Army and run this program. Is the Army going to turn over its employees to you, or what is the set-up in the program when the State Department told us that the State Department would run it?

There was considerable protest that it would break up the organization that was carrying out the program that had been set up. Then, they changed again and decided to leave it in status quo, and that the State Department would step out and the Army would ge ahead with it. Do you know whether or not under that program there is going to be one organization to buy commodities for the relief of the occupied areas and another for the ECA, or will there be two separate organizations?

Mr. DODD. As far as we are concerned in the Department of Agriculture, Mr. Stefan, we will do the buying on the basis of orders that come to us.

Mr. STEFAN. You will continue whether there are 15 agencies running it or 2?

Mr. DODD. Yes; we will buy for any of them provided they put up the cash required.

COORDINATION OF ECA AND GARIOA PROGRAMS

Mr. STEFAN. Now, in the matter of any future programs, or with any programs, are we going to get the program coordinated so it can be run in a businesslike manner; are you working to have each run as a separate program, one for relief and the other for rehabilitation of foreign countries? What do you know about that, Mr. Nitze; do you find they are coordinating this program so it can be run in a businesslike way?

Mr. NITZE. The ECA will run the economic cooperation part of the United States Government activities.

Mr. STEFAN. Will they take over the activities in the occupied areas?

Mr. NITZE. Well, the thought was there would be a different type of responsibility in the occupied areas from the ECA program in other areas.

The CHAIRMAN. Are you going to have two sets of employees or will there be one set-up for both?

Mr. NITZE. The thought has been that there will be one set-up for the occupied area of Germany, for instance, and the other would be for ECA.