wheat industry organization, the Institute of American Poultry Industries, and they do the actual work.

Now where we want to do a type of promotion which cuts across commodity lines, such as trade fairs, then we go ahead and take the leadership ourselves, but always with the trade associations actively participating.

Now as I say, we have signed up this amount of money. Of that amount, these trade associations in turn have committed themselves to put in some $23 million. You will see it is about 50 percent of the amount we have committed.

Senator CANNON. Is that over and above?

Mr. HOWARD. Yes, sir.

Now in the Pacific area we have committed $13 million out of the $47 million or about 28 percent of the total. And the trade associations have committed themselves again to about 50 percent of it.

Now taking Japan, which is our perhaps best market anywhere in the world, we have committed $6,684,000 and our cooperating trade groups have committed some $42 million.

Now these funds are not all spent, because we sign multiyear contracts with them, so they can go ahead and work with the trade associations in the country in making commitments. Actually the expenditures this year will be, worldwide, a little more than $10 million. Now how do we operate? First off, these trade associations start by researching the market, to find out who are the groups you need to influence, where you should concentrate. These are various types of research publications.

Here is one on the flour milling industry of the Philippines. Here is southeast Asia as a market for U.S. soybeans.

Now after you have researched the market, you should know who your target groups are, what sort of promotion will pay in that particular market.

For example, you start asking how do you influence the decision makers whom you want to influence. Personal visits are still a key one, the trade groups from this country going over there, bringing the foreigners here. Many of the cooperating trade groups have found it advantageous to establish foreign offices. For example, there are some 50-odd foreign offices now operated by these associations throughout the world and quite a large number of them are in the Pacific.

Another important technique is bringing teams to the United States. For example, when you are starting to push feed grains in a new country, if you will bring over to this country a leader in the government which is making policy, someone from the importers asssociations, the feed processors, and so forth, and show them where we grow what kinds of corn, or grain sorghum, how to buy what they need, and they go back and write a report such as this one on feed grains in Japan or wheat in the Philippines.

Another way these groups operate is through technical information. When soybean oil is going into a new country, the industry in that country may not know how to use it and our soybean industry has found it very effective to send technicians along with these early shipments of soybean oil to work with the importers, processors, to see how to use it. This is Ed James working with a group in India, when we had a 480 shipment in there a few years ago. He has served as

president of the American Oil Chemists Association, has a fine international reputation, and his advice is well received. Here is Mr. Bailey, one of our own technicians on cotton, working with a group in India. We use publications as a means of spreading technical information. Within the foreign countries these trade groups are more and more putting out technical publications. Here is one on U.S. wheat, published in the Japanese language and circulated to the trade over there.

Here is one on feed in Japan, put out by our Feed Council in cooperation with the Japanese Feed Council. You see they have been going for a couple of years, and contain technical information which is highly regarded over there.

Senator CANNON. Mr. Chairman, if I may make an observation, it would seem to me you wouldn't be very smart to use a display like that in some of these undernourished countries-in making such an attractive display of food, the type of things they don't get over there. I have been in a number of those countries, and I don't know that I ever saw anything that appeared that attractive to eat. It looks like that is more to convince us than to convince the country that is liable to use the food products.

Mr. HOWARD. This one is used particularly in Europe. It is printed in Austria in four languages, and has pictures in it of various types of U.S. fruit offered for sale.

This is a pamphlet on how to build a factory to produce cookies, crackers, and pastries.

Mr. IOANES. The Senator is right; these are different samples of the kind of thing that is done and you have to tailor the product to the market you are trying to penetrate. So you wouldn't send that attractive fruit brochure to India for example. You are right.

Mr. HOWARD. This term "education" covers a lot of things that our trade groups are doing.

For example, this is what we call a kitchen bus in Japan. Mr. Ioanes indicated a great interest in Japan in improved nutrition. Our wheat cooperatives and our soybean people got together and they put about 11 of these buses over there, that go around the countryside telling their story. The buses open up and form a kitchen. Their operators put on demonstrations for the community housewives and anyone else who wants to see it. This technique has been extraordinarily successful. Now various groups in Japan are buying buses of their own and there are some 77 of them now in operation in Japan, and we have pulled out now except for 2 or 3 in the soybean area.

I found out just yesterday the Japanese Railroad Association has bought one and is sending it around through the districts in which the employees work to carry a nutritional story. And, from our standpoint, it is carrying the story of wheat and soybeans.

This is in Hamburg with a German chef explaining how to carve a turkey. Turkey sales there are doing quite well as you have heard. This pamphlet is a coloring book in the Thai language for children in Thailand to carry the milk story. We have had an interesting experiment there in milk recombining.

The U.S. trade groups cooperating with us, before they have been participating very long, find one of the best ways to make their dollars go a long way is not by buying advertising, but by making news.

This is illustrated here by our cotton program. You may be acquainted with the Maid of Cotton who is elected each year in this country and she has now become international. They send her to the various countries of Europe. She has with her the finest cotton wardrobe our designers can design. A few years ago she was going to Thailand for the first time and the Cotton Council International found the Queen of Thailand had never appeared in public in cotton. If you will recall, Thailand is a silk-producing country. They obtained her measurements and had a designer in New York design a lovely cotton dress for her. They presented it to her and she was gracious enough to wear the dress when she received the Maid of Cotton. So here is the Queen of Thailand receiving the Maid of Cotton. You can imagine the radio and TV as well as neswpaper and magazine publicity this received.

And this is the old press handout technique we have used a long time in this country.

I recall that the Japanese leaders told us that they didn't think it would work in Japan. But they finally decided to try it and now it is working exceedingly well.

While I am speaking of the cotton program, let me accent one thing in Mr. Ioanes' prepared statement. We have had a program_going with the Japanese textile industry for about 6 years now.

hard to get it started. They weren't interested in promotion when we started. But it has gone so well that this year the Japanese textile industry is putting up money of its own to expand that program fourfold. This gets the multiplier principle into it.

This leaflet is a program for what is called the Leather Mode Show in Japan. Many of the people in the Japanese leather industry came, historically, from the medium to low castes in the old Japanese system. When this program was started 2 years ago they began to take a little, how shall I say it, it gave them a lift, because one aspect of the program was a big show they were putting on each year. I happened to be there 2 years ago and they had a movie actress, supported by a good cast. The show introduced the new year's leather styles and was televised over Osaka and Tokyo. And the program has gone exceedingly well. When it started, our hide prices on the west coast were about 2 cents per pound below the prices here in the eastern seaboard where most of the tanners are. This program has increased our exports so well that now we have west coast hides priced as well if not a little better than those in the East.

Point of sale promotion is one of the very successful techniques, including items to display, to give away, to sample in the stores. This is Darigold Brand milk, instant nonfat, which goes very well. California raisins. United States tobacco in Japan.

Let me say that tobacco is a unique product because, in several countries, it is handled as a Government monopoly and, therefore, we are able to work directly with that monopoly in brand-name advertising, because the rest of this I have been talking about is primarily institutional promotion.

When we started about 6 years ago, the Japanese hadn't been doing much promotion, and now they have taken to it quite well. Since this program started, our exports of tobacco to Japan have tripled, or, I should say, their consumption of our tobacco has tripled.

We know some of this would have happened anyway. But we do have a rather interesting control or near control here, because there have been some brands that did not contain our leaf which were not promoted, and the promoted brands have increased more than twice as fast as the nonpromoted brands. This is one of the best-selling promoted brands Peace cigarettes. I call attention to the fact that the name is in English, though it is a Japanese-made cigarette. It is a vacuum pack can, and I will let you sample them, if you wish. Senator CANNON. Thank you. I will pass them around. Is Japan Monopoly Corp. the true name of this corporation?

Mr. HOWARD. Yes.

So to give you a recapitulation here, these are the various producer and agricultural trade associations we are working with in the Pacific. There are some 23 of them. They are doing, we think, an extraordinarily able job. The accent has been primarily on the dollar markets, but we are also doing what we can to service the Public Law 480 shipments into countries such as India and Pakistan. And we have out there, our wheat people have offices, manned by Americans, and they are working hard to give the technical information, to help the Indians with their buying problems, with their storage problems, to see how to utilize our wheat and to maintain its good name.

Thank you, Mr. Chairman.

Mr. LEVIN. I have three questions covering most of the field we have had here today.

You mentioned you have 11 attachés overseas in the Pacific region. Now the agricultural attaché, unlike the commercial attaché, actually is a Department of Agriculture employee who works under the direction of the ambassador in the embassy; is that correct?

Mr. IOANES. Yes; he is an employee of the Department of Agriculture who works under the ambassador; that is correct.

Mr. LEVIN. In the visual displays, we were told there is a lot of market promotion work. Does the attaché enter into this market promotion work?

Mr. IOANES. Yes, he does; even though, in many cases, the work is carried on cooperatively with trade associations, both in this country and in the importing country. The attaché and we, ourselves, certainly have a lot to say about what is promoted and how it is promoted. Mr. LEVIN. Going a step further, does he sell? Does he go with American producers, manufacturers, trade associations, and sell American products?

Mr. IOANES. No; he doesn't carry a salesbook, but he comes close to it.

Mr. LEVIN. Does he go with them when they sell?

Mr. IOANES. He would not ordinarily go with a private firm to sell a given product, let's say, for company A. But he would certainly participate right up to the process of sale and particularly the basis of the sale.

For example, we talked about Japan, and the basis on which we sell wheat in Japan. The attaché would have a leading role in the conversations that we would hold with the Japanese Government.

Senator ENGLE. This is the agricultural attaché?

Mr. IOANES. Yes, sir.

Senator ENGLE. What do those fellows in Commerce do? Do they do anything?

Mr. IOANES. I am sure they do. I am not competent to speak for the Department of Commerce. But they have a good group of knowledgeable people, and I am sure they-well, they do a number of things that I have seen that are very good. They have a trade center program. Senator ENGLE. I am all for that. But we tried to get those commercial attachés moved out of the State Department and over into the Department of Commerce, and we didn't succeed.

What I am afraid of is we will have too many cooks in the soup.
Go ahead, Mr. Levin.

Mr. LEVIN. Do you know whether the American agricultural attaché goes as far in promoting sales of American goods as does his Canadian counterpart?

Mr. IOANES. Not quite as far. I am thinking particularly of wheat. Mr. LEVIN. I am also.

Mr. IOANES. I would say they probably go one step further, even though the Canadians do export their grain through private houses. I would venture the opinion-I can't prove it-that both the Canadian Government at home and the Canadian representatives abroad come mighty close to fixing the position on individual sales, not signing contracts, but fixing positions for individual sales.

Mr. LEVIN. Is it your view that Public Law 480 sales develop future commercial direct dollar sales?

Mr. IOANES. Yes. I tried to point, in my testimony, to the distinction we should make in our minds of near-term and long-term prospects. I can point to two or three examples.

Japan is the leading one in the Pacific area. There, I think, the relationship has been direct. I would point to Spain and Italy for wheat, as other good examples.

I would hasten to add that in the case of a country like India, the demand has been built up for the products they are not yet effective demands in terms of having dollars available to purchase them internationally. I tried to say before that the translation of this demand into commercial demand will depend upon the success of the country in its total economic development effort.

I would go one step further and say that if the shipments of these products were stopped suddenly, it would leave them in a most difficult position.

Mr. LEVIN. Getting back to that point, raised earlier, concerning poultry, you mentioned the lowering, or the possible lowering of the tariff by 2 cents a pound. Could you give us any idea of the difference in tariff and other restrictive arrangements between Germany and France on one hand and Japan on the other, as to American poultry-broilers being the best example, I imagine? Mr. IOANES. I will ask Dave Hume to answer that. I am not familiar with the Japanese tariffs.

Mr. HUME. If I understand your question, I will give you the arrangements with the three countries. Japan has a 10-percent tariff, which she charges against our poultry, and it can go in under any volume the buyers need or want.

In Germany, at the present time, the aggregate levy would be in the range of 40 to 45 percent. In the case of France, the poultry is presently excluded by a regulation which has been put into effect prohibiting the importation of poultry products from countries which