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Testimony of Eugene L. Bovee -1 1- 



June 23, 1994 



utilization of the programs to successfully move agricultural commodity exports. It is, 

 therefore, necessary to look at ways in which the programs may be amended or 

 complemented in order to assure significant exports facilitated by these programs in the 

 future. 



The CCC's export credit guarantee programs have been effective vehicles for moving U.S. 

 agricultural commodities into the export market. Despite some distorted and unwarranted 

 criticism that has been directed toward the programs, they have generally been effective and 

 positive in furthering trade. Rather than consider significantly different approaches, CoBank 

 believes the GSM programs need some improvements, refinements, and expanded uses. 

 They facilitate commercial transactions on a competitive basis, are well understood and 

 received by foreign banks and buyers and can be handled with minimal expense and 

 acceptable risk to the U.S. government and the exporting and banking communities. 



There is, however, a growing concern about a shift in focus from an emphasis on promoting 

 U.S. agricultural exports toward greater emphasis on avoiding risk in the world market place 

 and promoting private sector development in foreign countries as a philosophical objective. 

 Reduced usage of the programs available under the CCC's GSM program is an example as 

 indicated in the charts above. More specific requirements have been imposed on the CCC 

 relative to creditworthiness, and in recent years management seems to have been directed 

 toward a conservative position with little inclination to make adjustments or modifications to 

 improve usage and the movement of commodities. 



