GENERAL FARM PROGRAM 1003 



Mr. SiKES. No, I have not. I realize this requires a multiform 

 approach, that we have a double-barreled problem before, but I 

 feel that what we are attempting to do at this time in establishing 

 parity for tung oil is something which I certainly think is proper. 



Mr. Pace. I am not in position to take the slightest exception to 

 the position you take with respect to protecting American producers 

 of tung oil; I am definitely committed to the position that American 

 agriculture is entitled to the same protection that American mdustry 

 is entitled to receive, but I think that under the Trade Agreements 

 Act, and with respect to the price of tung oil, with the present low 

 price, stands at a higher degree even than an act of Congress in the 

 trade agreements, and the problem as I see it would be how to support 

 a program that would cost annually about $4,000,000, at 25 cents. 



Mr. Andresen. Will the gentleman yield? 



Mr. Pace. Yes. 



Mr. Andresen. I understand that in all reciprocal trade agree- 

 ments there is an escape clause wherein any nation can withdraw, 

 after giving notice of any particular commodity, and after that has 

 been withdrawn that such action can be taken by Congress as it may 

 want to give to it. 



Mr. Sikes. I think that is perfectly true. I think the only question 

 before us at the moment is whether this measure and the thing that it 

 attempts to do is properly before this committee. Getting to the 

 matter of the reciprocal trade agreement, I have never been an 

 advocate of that policy and I have rather consistently voted against 

 it, because I believe in giving protection to our home people. 



Mr. Andresen. Will the -gentleman state what he thinJvs the price 

 of tung oil should be in order to protect it? 



Mr. Sikes. The last support price was 25 cents. There was a 

 low support price during last year, at the time it was in effect. 



At the moment we are not able to see literally any drop in the cost 

 of producing any agricultural products, as the gentleman well knows, 

 and I would not attempt to say what should be the minimum under 

 which tung producers can operate. But I certainly feel that it is very 

 necessary that the amount sljould^not be less than needed to prevent 

 an actual loss to the growers. I would not want to undertake to give 

 any definite figures, because these men who are growing tung oil can 

 tell you how much it cost them. 



Mr. Andresen. As I understand the present price is arond 19 

 cents? 



Mr. Sikes. The price on the market is now 18, 19, and 20; according 

 to the Department of Agriculture and the Department of State it 

 brings more than that, but the men who try to sell it tell me they 

 cannot get more than that. 



Mr. Andresen. Of couse the price of fats and oils has dropped. 

 For instance, take cottonseed oil, it has dropped from around 45 cents, 

 18 months ago, down to around 10 cents; lard has gone down to about 

 10 cents, and all other oils have dropped, at the same time there has 

 been a considerable drop for tung oil. 



The point I want to ask your comment on is this : Suppose we raise 

 the price to 25 or 30 cents, as the support price in this country, that 

 would have a tendency to raise the over-all price, which will encourage 

 increased imports from various other parts of the world, would it not? 



Mr. Sikes. If we are unable to secure a change in the reciprocal- 



