67 



the loss of sales due to restrictions or have you been able to acquire 

 alternative financing through the CCC or private sector? 



Mr. Krajeck. I think that we have to be careful about how many 

 sales under GSM have defaulted because I think in the history of 

 the program, it has been relatively few. There is a problem right 

 now, as I understand it, with Russia in — ^but I think that they have 

 been made current again and could, in fact, have some eligibility 

 under the program. 



Sales have been limited because of the creditworthiness stand- 

 ards that are a part of the program under GSM. And there is no 

 doubt, if you look at feed grains exports and specifically at corn, 

 that we have suffered greatly with Russia and the former Soviet 

 Union countries out of the market. 



Credit certainly isn't the whole answer to that, in other words, 

 to restoring that market, nor are give-away programs, but I think 

 we need to look, and I have commented on that in my paper, that 

 I think that we need to look at GSM programs to see where those 

 limitations are and if necessary, look at new credit programs to ad- 

 dress these new markets which have special needs, and in some in- 

 stances, it may be going back to programs that we previously had 

 in place. I think that the GSM- 103 program may be an example 

 of that. 



I am not real clear about all of those, but it is a program that 

 is no longer funded, but provided different sort of credit terms, 

 longer credit terms that enabled new economies to develop. 



Mrs. Thurman. And the last question I have is for all of you. 

 Have any of you received the new report by the Trade Promotion 

 Coordinating Committee, and if you have, I am interested in any 

 comments you may have on this document. 



Mr. Krajeck. We don't have it. 



Mr. Terhaar. Yes, we have received that. We have read it, and 

 I referred extensively to that report in my written statement. 

 Again, I think that FAS over time and USDA have proven to be 

 the one-stop shop that is mentioned frequently in that report. 



I think that that is why, perhaps, the USDA has not been as 

 forthcoming, if that is the case, I don't know, in the TPPC because 

 agriculture, U.S. agriculture and FAS have already been at that 

 level for 40 years. 



I think it is the rest of the U.S. industry trying to reach that 

 level and then maybe once they do reach that level, you can make 

 the next step. 



Mrs. Thurman. I just want to tell you all that I appreciate you 

 being here and I certainly applaud your efforts in what you are try- 

 ing to do. I can't think of anything that is more important in this 

 country than our agricultural production, so thank you. 



Mr. CONDIT. I would like to thank you for participating in the 

 hearing this morning. This has been a joint subcommittee hearing, 

 although it has sort of been one-sided. It is because there is a lot 

 of activity, as you all know, going on in the building and Mr. Penny 

 has a major issue before the Budget Committee right now, and that 

 is why he did not participate in the latter part of this today. 



But we do want to thank him for his interest in this. He has 

 been extremely interested in this, and has been a leader in this 

 area, and I want to thank him and his staff for all the work that 



