Mr. VOORHEES. The transportation is entirely separate. When I say "transportation," I mean solely ocean transportation.

CONTRIBUTION OF UNITED KINGDOM

Mr. CASE. The reason I was asking is because I was bothered by the small proportion of the United Kingdom contribution.

Mr. DRAPER. The reason for that is they are contributing, in other ragards, a total of $70,000,000.

Mr. CASE. I believe you say out of the GARIOA program of $516,000,000, they are contributing only $36,000,000.

Mr. DRAPER. Out of the total ĞARIOA program of $700,000,000, they are contributing $70,000,000 on the basis of the presentation before this committee.

Mr. CASE. That is one-tenth.

Mr. DRAPER. It is 10 percent.

Mr. CASE. But probably a great deal of that is pay of their own personnel, is it not?

Mr. DRAPER. No, sir; that is entirely commodities and shipping. It is something they pay for.

Mr. CASE. That is why I asked about transportation. It would seem to me they could probably contribute more than this if the transportation was in this cost item that they may contribute more in the way of shipping, because that is entirely paid for in their own

currency.

Mr. DRAPER. We made a special arrangement on shipping which provides that they do carry part of the various things that come from this country in British ships without charge in dollars. That makes up part of the total of 70 million dollars. That is primarily the reason or, one of the reasons, why this figure for food is 36 million dollars instead of a higher figure.

Mr. CASE. When we started originally on the bizonal arrangement, we were contributing 50-50?

Mr. DRAPER. Exactly 50-50.

Mr. CASE. And now it is 10 to 90.

Mr. DRAPER. It is 90 to 10. That is part of the over-all British sterling dollar position. When the negotiations were held last fall or early winter, we approached the National Advisory Council, before the Army was willing to accept a proposition of that difference, and the National Advisory Council, which has, by legislation, the principal responsibility in matters of foreign finance and finance affecting our Government, advised, after going into the British" treasury position carefully and after they had all of the figures presented, that it was appropriate for this Government to accept this arrangement.

Mr. CASE. Has there been any improvement in the voice we have in determining policies affecting the economy of the bizonal area? Mr. DRAPER. Yes, sir; very definitely. Under the Joint ExportImport Agency and the Joint Foreign Exchange Agency and generally in economic matters, the American voice is predominant.

Mr. CASE. Has it changed any from that agreement formulated along about the latter part of November or early December?

Mr. DRAPER. In December. It is working under that agreement.

Mr. CASE. As I read that, I did not think that amounted to very much. It was all in generalities.

Mr. DRAPER. What it said and the way it has operated has been that on matters involving expending any money, either money provided from German exports or by appropriation, either one, anything that involves what becomes of the imports or the policy with regard to exports, the American majority vote means that they make the decision, or in the handling of any foreign funds that are available in any way.

POPULATION, RATION LEVELS AND IMPORT COSTS

Mr. CASE. Going back for a moment to that question I originally asked, in which I was seeking to get an idea of the per capita cost, let me ask, without going into the figures, your own judgment of whether the per capita cost of the GARIOA program is going up.

Mr. DRAPER. Yes; certainly this year, in this request we are talking about now. You are speaking primarily of food, I think?

Mr. CASE. Yes.

Mr. DRAPER. If you include the GARIOA and the part that will be paid for by ERP to raise the quality of the rations

Mr. CASE. I mean leaving out ECA, GARIOA will run higher per capita?

Mr. DRAPER. As against 1947, it would be higher on account of two factors. One, the per capita ration is higher, the projected ration, and, second, the price of the food has gone up in the period of 18 months or 2 years.

Mr. CASE. Right at that point is where I would like to have you put in the precise figures showing the population for the years 1946, 1947, 1948, and estimated for 1949, the population served, and the per capita cost of food.

Mr. DRAPER. Yes, sir.

Mr. CASE. The total, and then the per capita would be the extension.

Mr. DRAPER. Yes, sir.

Mr. CASE. And that should take into consideration such changes as come about by the shifting of the DP's to IRO or anything of that sort; that is, your figure in each year should be the precise figure.

Mr. DRAPER. The average for the year, after taking into account the non-British zone.

Mr. CASE. I think the best thing to do is to give the population in each instance and then the dollar cost of the food.

Mr. DRAPER. With the adjustments because of the DP's or taking over the British responsibility.

Mr. CASE. The population figures will show that, and the third column will show the result of the fusion.

Mr. DRAPER. I think that would be a very illustrative table. I am surprised that we have not thought of that in presenting it to this committee.

(The following was submitted later:)

Population, ration levels, and import costs, South Korea

Non-self-suppliers for cereals (staple food) ration.

Staple foods ration including supplements. Normal consumer staple food ration as follows: Fiscal year 1947, 1,246 calories per day; fiscal year 1948, 1,255 calories per day; fiscal year 1949, 1,331 calories per day. ? Including estimated cost of ocean transportation.

4 Fiscal year 1947 funds applicable to fiscal year 1948 (11.1 million dollars) deducted from fiscal year 1947 and added to fiscal year 1948.

Population, ration levels, and import costs, Japan-Ryukyus

1 Japan: Average rationed population for staple foods includes non-self-suppliers and part self-suppliers as follows: 1947, non-self-suppliers and part self-suppliers, 45.13 million; 1948, non-self-suppliers, 44.3, part selfsuppliers, 12.96 million for 125 days, 1949, non-self-suppliers. 45.35, part, self-suppliers, 12.21 million for 125 days. Ryukyus: population 1947, 0.81 million; 1948, 0.84 million.

2 For Japan, average includes supplements and is higher than normal consumer ration. Normal consumer staple food ration as follows: Fiscal year 1947, 1,246 calories per day; fiscal year 1948, 1,246 calories, staple foods, plus 50 other; fiscal year 1919, 1.425 calories, staple foods plus 130 calories, other rationed foods. For Ryukyus, feeding level 1,800 calories per capita per day of which about 50 percent from domestic sources. 2 Cost of foods includes estimated cost of ocean transportation.

4 Fiscal year 1947 funds applicable to fiscal year 1948 program (52.6 million dollars) deducted from fiscal year 1947 and added to fiscal year 1948.

Population, ration levels and import costs, bizonal Germany

Non-self-suppliers in bread grains. Population of United States sector of Berlin included in figures for fiscal year 1947 and of United States and United Kingdom sectors in subsequent years. Displaced persons included in fiscal year 1947 figures, but not included in figures for subsequent years.

2 Average includes supplements and is higher than normal consumer ration. Difference between normal consumer and average ration has varied from 200 calories per day (first half of fiscal year 1947) to 425 calories per day in some months during fiscal year 1948.

In all cases, estimates include allowance for ocean transportation charges.

4 Converted to per annum basis for comparability with estimates for later years.

5 Fiscal year 1947 funds applicable to fiscal year 1948 program (21.5 million dollars) deducted from fiscal year 1947 and added to fiscal year 1948.

Cost of 35,000 tons of fats for soap making deducted from this figure. Estimated 5 percent transportation cost added to balance of ECA additional procurement program.

1 GARIOA plus United Kingdom plus additional procurement planned under ECA program.

PURCHASE OF FRESH FRUIT FROM ITALY FOR GERMANY

Mr. STEFAN. In order that the record be kept straight, I want to ask Colonel Andrews just how much of that British fresh fruit was bought in Italy.

Mr. ANDREWS. The authorization was for $10,000,000. JIEA and the Italian Government signed an agreement whereby Italy would sell and JIEA, in behalf of Germany, would buy $10,000,000 worth of fruits and vegetables over a period April 1 to December 31 of this year. We actually bought, of that mission, 20,000 tons of lemons, 10,000 tons of fruit puree, and 3,000 tons of tomato puree, at a cost of $2,750,000.

Mr. STEFAN. And you paid dollars?

Mr. ANDREWS. We did not pay dollars in the sense that we took a Government check and handed it to Italy. JIEA paid dollars through the offset account.

Mr. STEFAN. I understand that. General Draper's explanation was all right, but I wanted the record to show we paid dollars for that fruit.

Mr. ANDREWs. That is right.

Mr. STEFAN. And Italy used those dollars to buy something in Germany.

Mr. ANDREWS. That is right.

Mr. STEFAN. But we did pay dollars for the fruit.

Mr. ANDREWS. That is right. We paid trade dollars rather than a Government check, but it was dollars.

PURCHASE OF AGRICULTURAL SUPPLIES AND FERTILIZER

The CHAIRMAN. If there are no other questions on the German food picture, the next project is the purchase of agricultural supplies and fertilizer, project 126 on page 1185.

Will somebody tell us about that?

SUPPLIES AND MATERIAL REQUIREMENTS FOR GERMANY

You might put into the record at that point the table on page 1188 and continuing over onto page 1189.

(The matter above referred to is as follows:)

PROJECT 120.-Purchase of agricultural supplies and fertilizer-Continued

PRODUCTION OF FERTILIZER IN GERMANY

The CHAIRMAN. This marks an increase in the fertilizer and seed picture of approximately 23.5 million dollars for Germany and an increase over the 1947 figure of 12 times. On top of that, we were told that the German production of fertilizer was up to the prewar figure. Is that not right?

Mr. DRAPER. No, sir; it is hoped to come up during the year.

The CHAIRMAN. Well, the nitrogen program is stepped up there now to 100 percent. Potash does not seem to be, but nitrogen is supposed to be, according to the table we were given.

Mr. DRAPER. That was the production prewar but not necessarily the prewar requirements or use. That was a production chart. Of course, in phosphate there is no production in Germany.

The CHAIRMAN. There is no production there?

Mr. DRAPER. No; not of phosphate.

The CHAIRMAN. There used to be, did there not?

Mr. DRAPER. There used to be from the steel Thomas slag, which provided a fair percentage of production, but with the drop in steel production

The CHAIRMAN. Well, these tables Mr. Nitze has given us indicate a production. I do not know.

Mr. DRAPER. We produce superphosphate from imported phosphate rock, but that is not indigenous, and there was a very small amount of Thomas slag.

Mr. NITZE. That is correct. Those figures reflect the soluble phosphate; the figures we gave you before are the finished product from the rock.

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