30 



to do it, Senator, except to say to you that it is very important. It 

 is there on my desk, and at least at this moment it is going to fall 

 primarily on my shoulders as to whether we do or don't. 



Senator Conrad. May I ask Mr. Moos what the memo says, what 

 your recommendation is? 



Mr. Moos. The recommendation as forwarded on to the Secretary 

 would recommend that the President consider an emergency proc- 

 lamation establishing quotas on the import of Canadian wheat, 

 and, of course, that the ITC then conduct an investigation. 



Senator Conrad. And did you conclude that there is material in- 

 terference in the functioning of the agriculture program as a result 

 of Canadian action? 



Mr. Moos. Yes. Being concerned about the growing level of im- 

 ports coming into the United States, we set up a task force this 

 summer to review the issue. After many weeks of consideration, 

 they came forth with a judgment that the imports were materially 

 interfering with our income price support program by raising the 

 cost of the deficiency payment program, adding some $600 million 

 additional outlays to the operation of our deficiency payment pro- 

 gram. 



Senator Conrad. I appreciate that very much. Secretary Espy? 



Secretary Espy. This is as good a time for me to exit, I believe. 

 I had already notified the chairman that I had a speech obligation 

 at 4:30, and I am just about going to make it if I leave now. But 

 based on that question, it is a good time for me to go, and then I 

 can get back to my office and read these memos that I mentioned. 



Thank you. 



Senator Conrad. Thank you very much, Mr. Secretary. We ap- 

 preciate your testimony. 



The chairman is absent. Senator Feingold is next. 



Senator Feengold. I do not know whether the folks up here will 

 be able to answer or want to answer some of these questions with 

 the Secretary gone, but we will try. If that doesn't work, I will sub- 

 mit them in writing. 



My question relates to the Export Enhancement Program and 

 what impact the agreement might have on these types of programs, 

 and in particular with respect to the Dairy Export Incentive Pro- 

 gram. Will the United States be able to continue using the DEIP 

 for exports of cheese for nonfat dry milk to Mexico? 



Mr. O'Mara. Yes, sir. 



Senator Feingold. What about in the case with regard to 

 nonsubsidized, low-cost imports from New Zealand, for example? 



Mr. O'Mara. We will have a preference in that market, Senator. 



Senator Feingold. Sorry? 



Mr. O'Mara. We will have a preference in Mexico that will con- 

 siderably improve our relative competitive position compared with 

 all other suppliers. 



Senator Feingold. Do you need to draw any distinction between 

 the EC countries versus New Zealand in this regard? 



Mr. O'Mara. We will have a better position relative to all other 

 suppliers, whether they are subsidizers, such as the EC, or New 

 Zealand. 



