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11 



Tools for Today and the Future 



Adjusting to a changing market environment is necessary for FAS, just as it is for 

 USDA and the rest of our federal government. This ability to change is the essence of 

 what the Administration means when we say we are "reinventing government." We are 

 fortunate to have the Farm Bill process-particularly the 1995 Farm Bill debate-to afford 

 us the opportunity to thoroughly review each of our programs in light of such change. 

 Let me briefly summarize some of the options at which we are looking with respect to 

 each of our export tools. 



Food assistance 



Food assistance programs under Title I of Public Law 480, the Food for Progress 

 Act, and Section 416 (b) of the Agricultural Act of 1949 are all under review. In the 

 case of Title I of P.L. 480, we are finding that this program is increasingly unattractive to 

 participant countries because of its cumbersome procedures and the increasing 

 divergence between U.S. domestic and international price levels (Title I commodities 

 must be sold at domestic price levels and are subject to cargo preference requirements). 

 One option we are studying is whether we should develop a commercial program that 

 targets the same category of countries that currently participate in Title I. A 



multi-year, commercial interest rate program with a grace period might prove a better 

 use of resources, and a better way to lay the foundations for future markets. 



Credit 



We are looking at our existing credit programs, and assessing the need for new 

 efforts. For example, visits to Mexico and Russia revealed the need for a mechanism to 

 supply very short-term (3-6 months) credit to importers either directly, or through 



