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time, a public sector entity called Conasupo, that it did not have 

 nonfat or would not have nonfat to sell in the coming year. 



The message that Conasupo heard was that the United States 

 was out of nonfat. Since 1982, we have been involved in Mexico, 

 lending under the Government credit programs, and we introduced 

 the idea to them of utilizing these United States programs to pur- 

 chase nonfat on a commercial basis. We also introduced them to 

 FAS employees involved to get a line item in their allocation under 

 GSM for nonfat. That particular year, 1989, GSM registrations 

 were over $100 million for nonfat and CoBank financed a signifi- 

 cant portion of that amount. 



Mr. Horn. So you are happy? 



Ms. Colon. We are happy. 



Mr. Horn. Anything else they could do to improve their oper- 

 ations? 



Ms. Colon. The way we use FAS, or the way we partner with 

 FAS both overseas and in DC, we have eleven officers at the bank 

 who travel overseas, and as part of their regular calling program, 

 they meet with the attaches in their respective markets as well as 

 discuss with their Washington counterparts what types of products 

 are of need in those respective areas. 



Mr. Horn. So there is a desk officer you deal with in Washington 

 as well as joined missions overseas. 



Ms. Colon. Yes. 



Mr. Horn. Would you say there is also weekly communication or 

 even more than that between your CoBank and officers of FAS? 



Ms. Colon. In certain areas, it could be weekly. 



Mr. Horn. And let me ask you, Mr. Seng, you do not seem to like 

 the way the system is working if I catch your drift. What could be 

 done to improve it and what type of contacts or communications do 

 you have with FAS on a weekly, monthly, yearly basis. 



Mr. Seng. I would say, I think that FAS has been a very good 

 example of the private/Government partnership thus far, I would 

 also like to submit that you know it has been a very good example. 

 It is a classic example, and many other industries and groups here, 

 I think, in the United States look at it with a lot of envy. 



I think our opinion is if something is not broke we still can work 

 to improve it, and I feel with FAS, there is still room for improve- 

 ment and that is the vein in which I am approaching this morning. 

 The MEF is maybe a Httle different. We have eight officers inter- 

 nationally. We have expertise in these offices with language and 

 cultural expertise. 



Our people, internationally, work with FAS almost on a daily 

 basis. Domestically, I think we are concerned because the function 

 of FAS, economically, has been much more administratively ori- 

 ented than marketing oriented and, of course, the people we rep- 

 resent: The major packers and producers that are interested in 

 what our marketing skills are and objectives are and how we ob- 

 tain our goals. 



So domestically we deal with FAS at two levels: One is with 

 dairy, livestock, and poultry. That primarily is dealing with the 

 compliance and admin, et cetera. That has changed. On the other 

 hand, we deal with the International Policy Trade Division of FAS. 



