United States total exports to Europe. This is a reorientation. We deal now not with theory, not with imagination. We deal with facts. There has been a reorientation. Europe is depending on the dollar area. Note the top figure, $747 million in exports prewar. Note the bottom; this is 1950 $2,876,000,000 in exports from the United States to Europe of agricultural products. There is a dependence on their part not for something they might want but for something they have to have. These are necessities.

These things are going to be either purchased in the dollar area or they are going to be purchased behind the iron curtain. Europe has no choice. To live she must have them.

Let us look at the other available sources. We have already discussed Australia and Argentina. If there are questions on this we wood be happy to discuss it further. You know the situation in the Far East.

Here is a situation, merely a statement of fact. You will find in what we have presented to you, on page 7, some particular instances of deals which various European countries have made with countries back of the iron curtain, and which are illustrative of the absolutely essential nature of trade in food for Europe. They cover the United Kingdom, Western Germany, Sweden, Denmark.

The CHAIRMAN. You have already exceeded your time by a couple of minutes, but I want to be generous with you. We will give you another minute now, and then you may file the rest of your statement. I thought you would like to have a minute to sort of summarize. Mr. KLINE. Thank you, sir.

What we are saying here, what we are pointing out, is that unless we make possible this sort of orientation, the orientation with the food supply and the raw materials supply back of the iron curtain is inevitable; that it will be paid for by virtue of the fact with war potential back of the iron curtain, and that they would then come back to us and insist on our making further commitments of strictly military equipment. We shall be far safer in the long run if we try to develop that sort of situation on the basis of which they can develop production and then with that production develop trade with us so that we do not try to make them dependents of ours, but we make them jointly strong nations, working with us for their own defense, with the will to defend, the economic basis for defense, and with the maximum part of the development of their own equipment for their own defense.

AMENDMENTS PROPOSED

There is appended hereto a set of amendments which would save approximately $1.8 billion, which we are confident would not only accomplish the amount of defense which the proposals before you would accomplish, but will actually give us a far greater and sounder and more enduring basis for defense. On these proposals we shall be happy to work with you from time to time as this act comes forward, with the intent and purpose of creating a sounder and a more enduring basis for the defense of freedom itself.

The CHAIRMAN. Are you for the bill as it stands?
Mr. KLINE. No, sir.

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The CHAIRMAN. You are for it subject to your amendments?
Mr. KLINE. Yes, sir.

The CHAIRMAN. Very well. Thank you very much.
Are there any questions?

IMPORTANCE OF FOREIGN TRADE

Senator FULBRIGHT. Mr. Chairman, I just want to take this opportunity to thank Mr. Kline for his farseeing policies in this foreiga trade. Particularly I have reference to his support of the recent action on section 104 of the Defense Production Act. I think the Farm Bureau has studied this matter and is certainly on the right track, and I want to thank you, Mr. Kline, for what you have done in the past in helping on some of these matters before the Congress. Mr. KLINE. Thank you. Could I comment on this answer, Mr. Chairman?

The CHAIRMAN. Let me say a word, and then you may comment. I think the Farm Bureau is a great organization, and I am glad to have you here as its representative to express your views and the views of your organization.

Now you may respond.

Mr. KLINE. Thank you.

The reason for this viewpoint, Senator Fulbright, is involved in the total balances of trade. We are either going to trade with these people or we are going to give them things on a continuing basis, which does not make very good sense from either their standpoint or ours, or we are going to drop them and admit we can't do it. When you take the total figures on agricultural exports, the question of whether or not we are going to get imports in is very important to farmers as well as to everybody else. We simply understand what the situation is.

Senator FULBRIGHT. That is exactly my view of it, and I think you have a big educational job in enlightening the people in the farm States as to what their own interest is. In this case I think it coincides with the Nation's interests very definitely, but I was very disappointed that some of the people representing the great farm States, great exporting States, were not able to see the light of the position which the Farm Bureau took; I mean, States which produce wheat particularly, which is a great export commodity, and yet they do not seem to understand that if they are to continue to prosper they cannot if they shut off all legitimate imports.

I know of no better people to educate them than yourselves.
Mr. KLINE. We can work on it.

Senator FULBRIGHT. I do think you have shown a very enlightened attitude toward this whole matter ever since I have followed it, but I particularly became aware of your work there and appreciated it very much.

Mr. KLINE. Mr. Chairman, a final comment. I do sincerely regret the inability, for lack of time, to make more clear some of the propositions which we have put forward. It is, it seems to me, regrettable that it takes so much time for the Government itself to present its own case that we as citizens come in with a basic viewpoint and a different one and are required, in 10 or 12 minutes, to try to present the case.

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