34 



exports, not just exporting, but expanding exports and trade as far 

 as agricultural products are concerned. 



Mr. Bovee, would you like to start? 



Mr. Bovee. I guess in the case of CoBank we have been very ac- 

 tive for the past 12 years in financing exports, primarily under the 

 GSM- 102 program, although we have done a considerable amount 

 of GSM-103 as well as Public Law 480 during that period. And 

 those programs have, we believe, been very necessary to the expan- 

 sion of exports in the market during that period of time. 



Mr. Allard. So if you had to rank those you would go, first, 

 GSM-102, then GSM-103, and then the Public Law 480? 



Mr. Bovee. That is correct. 



Mr. Allard. Thank you. Ms. Brookins. 



Ms. Brookins. I think what Mr. Bovee has said is absolutely cor- 

 rect, in the sense that without credits, and credits are going to be 

 the new battleground or they are already the battleground of com- 

 petition, that without export credits many countries in the world 

 would not be able to finance the products at a reasonable rate in 

 commercial markets. This helps them to purchase commercially. It 

 helps them to maximize their own financial capabilities to buy 

 products. 



Mr. Allard. So you would rate them the same as Mr. Bovee? 



Ms. Brookins. And I also think the whole bundle of foreign mar- 

 ket development policies and the information provided by the For- 

 eign Agricultural Service is critically important in defining market 

 opportunities to the general public, whereas large corporations 

 have their own ability to track and seek intelligence on market op- 

 portunities. 



I think the role of the Foreign Agricultural Service and the role 

 of our agricultural attaches and counselors around the world has 

 been extremely important to permit everyone in agriculture to have 

 access to real intelligence of what is happening in the marketplace 

 and be responsive to both development involving production and 

 developments involving demand. 



Mr. Allard. Where would you place them, fourth? 



Ms. Brookins. I would place them probably No. 1 in terms of 

 providing a general basis for people in agribusiness and agriculture 

 in this country to have equal share, access to information. 



Mr. Allard. So you think that would be more important than 

 GSM 



Ms. Brookins. GSM is where you go to finance the exports, but 

 you have to know what is out there. 



Mr. Allard. Then you think GSM-103 would be third? 



Ms. Brookins. Yes. GSM-103, Congressman, I think we have 

 never used in the way that I think some people like myself have 

 proposed it, have hoped it would be used. When it was originally 

 proposed, it was supposed to be the link or the bridge between Pub- 

 lic Law 480 and GSM-102. It was conceived of in the early 1980's, 

 at the time of the major debt crisis in Mexico and Latin America, 

 and throughout much of Asia, including Indonesia, and it was 

 viewed at that time as being a program for countries that were 

 going through restructurings. To lend money on a 3-year basis 

 didn't really make sense because they were on a multiyear resched- 

 uling and restructuring, and yet they didn't need aid. 



