growing with respect to their agricultural imports. We have put a 

 lot of emphasis in maintaining markets in a couple of key regions, 

 the former Soviet Union in particular. 



We need to match that with increased emphasis on the Pacific 

 Rim countries, on southern China, on Indonesia, on some of the 

 longer-term markets that are going to be developing in countries 

 like India, Egypt, and Nigeria where there is a growing middle 

 class that will be importing consumers for our commodities. We 

 need also to in this context reexamine our various export tools, and 

 I will come to that in a moment, 



I mentioned already the broader agricultural relationship in a 

 way, I think, that redounds not only to direct the benefit to Amer- 

 ican agriculture through exchanges and scientific joint research, 

 but also the impact that has on the trade environment. Increas- 

 ingly, as we meet with the agricultural ministers from various 

 countries around the world, especially the emerging democracies 

 which have not had the benefit of a free market agriculture, but 

 also as we meet with contacts like the Minister of A^culture from 

 China, we, I think, are understanding more and more that our abil- 

 ity to cooperate across a broad range of agricultural issues is going 

 to be extremely helpful to creating the environment in which our 

 market promotion and our export tools will have the biggest effect. 



Let me stop with that summary of the overall direction in which 

 our policy is developing, and let me mention very quickly some of 

 the points that I think would be helpful in responding to your spe- 

 cific questions. 



You asked initially about the merger of our two organizations 

 and whether this would overstrain our resources. I think clearly 

 not. I think between the missions of these two organizations, we 

 see a synergy that is going to be very useful to us. And, indeed, 

 there will be some modest administrative changes as a result of 

 this merger. 



You asked if FAS has the capability already to identify emerging 

 markets. The answer very clearly, I think, is yes. The challenge is 

 not in identifying the markets, but in knowing how best to gain 

 market share in them and gain the growth in agricultural exports 

 in those markets that we would like to see. 



You talked about some of the budget constraints that we are fac- 

 ing like all other parts of the Federal Grovemment. I would say 

 that this is a time when we need more than ever to emphasize ag- 

 ricultural exports, to emphasize the area that is indeed the future 

 of the growth of agricultural income for our producers. I would be 

 very hard-pressed to say that any of the specific pieces of our orga- 

 nization are not critical to the achievement of that mission. 



You asked specifically about the emerging markets that I have 

 already mentioned in passing. I will say that our intent is to use 

 every effort that we can to look at these markets, to ask ourselves 

 some very penetrating questions about whether the tools we have 

 today are the best tools for these markets and whether they are 

 used in the way to best exploit these markets. 



I think we need to take a top-to-bottom look at various areas of 

 our programs. And, indeed, with a new farm bill approaching, that 

 is again a timely exercise. We will begin by looking indepth first 

 on an in-house basis but increasingly with input from our various 



