Mr. STEFAN. The plan had been for the State to take over. Mr. STEFAN. And that plan was changed. Mr. NITZE. Yes. Mr. STEFAN. Why did they change and leave it to the Army? Mr. NITZE. I understand the foreign situation became somewhat serious and it was thought advisable that the Army continue. Mr. STEFAN. Why cannot the ECA run the whole thing? Mr. NITZE. It looks now as though the situation in Germany is one where it would be better for the Army to continue to control in the occupied areas than have a civilian agency. Mr. STEFAN. Are you going to have two agencies running the relief program? Mr. NITZE. I believe there will be only one agency actually conducting the operations within the bizone. Mr. STEFAN. Except for the zones where the Army operate? Mr. NITZE. The administration within Germany will be all in the Army's hands. There would be an allocation of funds and commodities to the Army to add to the funds which they have for GARIOA. Mr. STEFAN. Would it not be on a more business-like basis if you coordinated the program under one agency to handle the business. under one agency? Mr. NITZE. I think it is important that there be one operating agency in occupied Germany, and that is to be the Army; it is to be the operating agency in Germany. Mr. STEFAN. And another one some place else? Mr. NITZE. You mean by the Army? Mr. STEFAN (continuing). In spite of the fact that a certain percentage of the ECA was to go to Germany? Mr. NITZE. A certain percentage of ECA funds would add to the GARIOA funds for Germany in order to relieve them and aid in the rehabilitation program. Mr. STEFAN. For the Army to carry out The CHAIRMAN. Wait just a minute. The answer indicates that there is another set-up to run the rehabilitation, rather the relief program; is that correct? Mr. NITZE. No, Mr. Chairman. The thought is that the operation in Germany would be solely in the Army's hands; that in addition to having just a government and relief in the occupied area, a rehabilitation program should be available under the ECA program, which would eventually get Germany off of the United States taxpayers' necks. The CHAIRMAN. Is there any step being taken to get rid of those people in the antirecovery program of Germany? Mr. DODD. I think there is. The CHAIRMAN. That should be the first thing in the program, and we are not going to make any headway toward beginning the operations until there is. I have been trying to get action on that for quite awhile and I do not intend to let up. Mr. NITZE. I can state The CHAIRMAN (continuing). The set-up is loaded with antirecovery folks, with people who are against Germany getting back on her feet so she can take care of herself in the years to come. I want to see that cleaned up before we begin putting up any more money. Mr. NITZE. The State Department's policy is to clean it up. The Army's program was just a relief program in Germany. I think perhaps Colonel Blumenfeld might wish to talk to that point. The CHAIRMAN. We would like to hear what you have to say, Colonel. Colonel BLUMENFELD. I might add, Mr. Chairman, that in the preparation of the ECA program, which I have actually worked on with most of the committees, as the bizone representative, I have been in contact with Mr. Voorhees who handled the relief part of the GARIOA, and with the authorities in Germany who have worked on the recovery program. Actually, while there are two functions, in a sense they are actually a part of the ECA, with Mr. Hoffman, and he hopes with some of the money that is appropriated that a part of the money will find its way into the over-all program of the bizone Germany, as set forth in these tables, to be added to the relief items handled by the GARIOA; that will also be included in items that are set up in the recovery items. We have had a very practical illustration of how that works out under the original 30-day program which we are presently administering for bizone Germany. In fact tentatively they allotted $25,000,000 for the first 30-day allotment and the Food and Agricultural group, the Army, Mr. Voorhees' office, and my office, on the basis of the recovery items, have been working together with the idea of developing an integrated program whereby we will take into consideration the agricultural commodities in the allotment tentatively made, just what items of food and grain would be financed, and what item or items of food, if any, which Mr. Hoffman is to administer, will be financed, and what recovery items which GARIOA will not finance; so that we are all working together in bizone Germany, both in the preparation and formulating the actual purchases. And if I might speak for myself I think the whole program is being integrated, and while, as Mr. Nitze stated, the Army is to handle GARIOA appropriation to insure that proper measures are taken to prevent disease and unrest, I feel, and I think the Army feels, that the program is being integrated, and that we are working very closely with the Administrator, just as we have in the past with the IEFC Committee and with Mr. Dodd and the Department checking on stocks of foods, to assure that we had enough left to meet the needs of this country. The CHAIRMAN. You did not say anything about getting rid of these folks over there that I referred to. Colonel BLUMENFELD. Mr. Chairman, I certainly am in agreement with what you say about that. I spent 2 years over in Germany as deputy director under Mr. Draper, and I am sure some progress is being made in that direction. The CHAIRMAN. Why not get the job done? Colonel BLUMENFELD. I think that considerable progress has been made to get it done. The CHAIRMAN. I know, but we want it done. That is the thing I am interested in; I believe in action. Colonel BLUMENFELD. Yes. The CHAIRMAN. I do not believe in dawdling with such a program. Colonel BLUMENFELD. As I say, I am sure that considerable progress has been made in that direction. The CHAIRMAN. It is about time it was completed. Mr. NITZE. Would you not say, Colonel Blumenfeld, that the State Department has been extremely helpful in getting this recovery program for Germany under way, insofar as it has been possible. Colonel BLUMENFELD. Yes. Of course each of the participating countries feels it should have more; but I think there has been a very cooperative effort made for the Army; and I think on this committee each member, from each department worked toward an integrated program. In a sense we were representing the claims for the bizone area. ESTIMATED IMPORTS OF FOOD AND AGRICULTURAL ITEMS BY SUPPLYING AREAS FOR PARTICIPATING COUNTRIES, 1948-49 The CHAIRMAN. I have a few questions I want to get into the record. I have not checked the figures included on these large sheets, but do they add up for the different commodities, agricultural commodities, to the March 1948 estimates of table B, that you furnished the committee? Mr. NORTHRUP. Yes. The import requirements shown in the column labeled "March 1948" on table B agree with those shown in this brown book. The CHAIRMAN. I would like to have you submit for the record a table covering all of these commodities, with a break-down by sources, just like you broke down the information for cotton, and furnished to me a little while back. Mr. NORTHRUP. We will do that. The CHAIRMAN. I am not going to ask you to do that verbally, but I would like to see such a table, and will ask you to bring it up, if you can get it ready, by tomorrow afternoon; we will not have a meeting of this group tomorrow morning. Mr. NORTHRUP. Would it be satisfactory to you, Mr. Chairman, to introduce in the record the figures from the brown book, which is the source of the information on the other table? Mr. DODD. I understand the chairman wants a break-down by major supplying areas for each commodity, just as you had for cotton. Is that what you have in mind, Mr. Chairman? Mr. CHAIRMAN. Yes. Mr. DODD. Have it all included in one table rather than shown in separate tables as it is in the brown book? The CHAIRMAN. Yes; because the statements in the book are not in such form as to be included in the record. I would like a table of the kind you previously supply the committee, which we can include. in the record. Mr. NORTHRUP. Just the totals for all countries. The CHAIRMAN. Yes. Mr. NORTHRUP. We will prepare such a statement. (The information requested follows:) Estimated imports of food and agricultural items, by supplying areas, for participating countries, 1948-49 [In 1,000 metric tons, except timber, 1,000 cubic meters] The CHAIRMAN. I would like to take up the next item, "Oilcake and meal," and complete that this afternoon if we can. First, will you tell us for the record, what is included in "Oilcake and meal"? Mr. DODD. The major ones, Mr. Chairman, are soybean meal, linseed meal, cottonseed meal and cake, and peanut meal. There are some minor items grapeseed meal and other protein-carrying meals, such as sesame seed meal; but the four that I mentioned first are the major ones. Possibly there might be included some copra meal, one of the cheaper meals, but generally local consumption will absorb the copra meal, and the exports will consist of the others. Mr. MAHON. Mr. Chairman, I am quite familiar with oilcake and meal. It is used in vast quantities in the Southwest. At times it is manufactured in the form of cubes that are taken out and fed to the cattle on the prairies; particularly in the winter months a great deal of it is used. Mr. DODD. And of course they use meal in mixed feed for dairy cattle, for chickens and hogs. ADEQUACY OF SUPPLY OF OIL CAKE AND MEAL FOR PROGRAM Mr. MAHON. It is very extensively used; the price is usually high, and the farmers and ranchmen are always complaining they cannot get enough meal to meet their demands. Of course, what we export will mean a lot of these farmers and ranchers are going to say, "Why do you not let us have a sufficient supply here?" Mr. DODD. I think there is no question but what there will be a sufficient supply. We have a rather large quantity of oil cake and meal, more than the livestock people would require. Mr. MAHON. At this time. Mr. DODD. Yes, considering the production of oil cake and meal anticipated and the supply we now have. The CHAIRMAN. The present supply? Mr. MAHON. I have not checked on the supply recently, but I know for a number of years there were many complaints about not having a sufficient supply to meet the demands. Mr. DODD. I think there is no question about that now, but during a part of the war period that was correct. The CHAIRMAN. You do not show any carry-over for this year. The CHAIRMAN. No carry-over of oil cake and meal. Mr. DODD. We do not show a carry-over for meal or oil cake as such, but it is carried over as soybeans, or peanuts, or flaxseed. Mr. MAHON. We buy this oil cake and meal by the ton. Mr. DODD. That is right. Mr. MAHON. Approximately what is the price per ton now? Mr. DODD. It will run from about $60 plus up to perhaps $90 per ton. Mr. MAHON. Do you think the American economy can spare a considerable quantity of this oil cake and meal? Mr. DODD. Yes; I do not think there is any question about it. If we do not export some of it we are going to have more on hand than we can use. Mr. MAHON. Where will most of the oil cake and meal that is to be exported probably come from? Mr. DODD. I think with the picture as it is now it probably will come from soybeans, which will be right out of the Central States. Flaxseed will come out of the North; and I think we have underway one of the largest crops of flaxseed that we have had in years. If the crop materializes then a larger portion of the supply will come from that area. Mr. MAHON. In recent years they have told us from Texas they will not buy feeder calves to ship up to Iowa and Illinois and into the feeding areas, because of the scarcity of feed. Mr. DODD. There is a scarcity; that is correct. You have not had any trouble the last two winters with a shortage of meals in the corn-fed beef area. Of course, some of the cattle feeders use a good deal of mill offal, but generally the dairymen get there first. That is a big item in the manufacture of mixed feed in the dairy and poultry areas, which is pretty largely in the Northeast. Before the war, we exported about 8 percent of our total production of oil cake and meal. Last year we exported only 1.7 percent of the total production and we contemplate we will export only about 3 |