64 



Mr. CONDIT. Mr. Notar, do you have any examples? 



Mr. NOTAR. No, sir; I don't. 



I can't give you an example right now. I think the main emphasis 

 I would like to leave with the subcommittees, sir, is that U.S. co- 

 operatives are looking over the horizon and overseas, and as those 

 difficulties are encountered and unfair competition may arise, we 

 would certainly communicate that. 



Mr. CONDIT. Thank you. 



Mr. Terhaar. 



Mr. Terhaar. Mr. Chairman, within the cotton sector, there are 

 a number of instances of unfair competition. We submit those in- 

 stances with our marketing plans to USDA every year. We also go 

 through the exercise that Mr. Krajeck mentioned about identifying 

 unfair trade practices. I believe the requirement from Congress to 

 prepare such a report by USDA on a trial basis was dropped in 

 1990. That seemed like a good way to bring these unfair trade 

 practices to the attention of the Congress. 



In cotton, our main problems with unfair competition lie in the 

 Central European countries, for instance Uzbekistan, with a cen- 

 trally planned economy that can export cotton for whatever hard 

 currency makes it more valuable than worthless rubles which they 

 would receive by exporting to Russia. 



Same thing with China, there is no real structure for costs, for 

 input costs and export costs. Therefore, China can afford to export 

 either product or raw cotton more cheaply than what a market 

 economy can. Similarly, the EC is directly subsidizing its cotton 

 production which is well above what it would be if it were at world 

 levels and that runs into export competition. 



You see EC cotton showing up in Brazil which makes no sense 

 at all in terms of marketing. 



Thank you. 



Mr. CONDIT. Thank you very much. 



Mr. Johnson, does your coalition feel there is adequate coordina- 

 tion between the various export programs available at FAS to 

 launch an all-out push to export high-value products? 



Mr. Johnson. At this time, I would really want to talk to the 

 rest of the members of the coalition, but I would say that I think 

 there needs to be far more coordination from my standpoint of 

 what is going on, and I think that we need to emphasize that and 

 develop some working groups to enhance that coordination. 



Mr. CONDIT. A question for all of you. 



The GAO witness who testified earlier was critical of the useful- 

 ness of the FAS's reports. Do you agree with this assessment? 



How can these reports be made more useful? 



Mr. Johnson. Mr. Chairman, I wouldn't have any comment on 

 that because I really haven't seen those reports. 



Mr. Condit. Mr. Krajeck. 



Mr. Krajeck. We value the reports generally. I mean, on par- 

 ticularly those that obviously relate to supply and demand for feed 

 grains. Not all reports produced by FAS are of value to us. But 

 they couldn't possibly meet everybody's individual needs. We are 

 very satisfied with the reports that we are seeing and do not have 

 recommendations at this time. 



Mr. Condit. Mr. Notar. 



