400 



economics strata in our societjr that they should buy a new car or should 

 try a new cereal or a new drink or new whisky. We do not have the 

 same insights into other societies. We hope to get insights which can be 

 used then in conducting the third phase, which is the standard market- 

 ing test to find out what foods you will put it into, and take it out, and 

 make your appeal to the people and see if you have a viable market 

 and how you can approach that market. 



This, very briefly, is what we hope to do, and it will take us a year 

 or so to do it. Again, the goal in this will be to determine if there is a 

 market and, if so, how do you reach it and how big is it, from which we 

 make our final decision about plans. 



I can say from our conversations with industry, if we come up with 

 good figures on the market, I have no doubt in my mind that American 

 industry will rise to the challenge and will make the investment with 

 the minimum problems on our side about funding. 



I will be glad to answer any questions you have. Thank you very 

 much. 



Mr. Lennon. Thank you very much. 



(Off the record.) 



Mr. Pelly. I have a number of questions, Mr. Chairman. Perhaps 

 Mr. Waters probably would be the one I should direct them to first. 



Although I am very sympathetic with the effort to wage war on 

 hunger, I also am mindful of the fact that 15 years ago the American 

 fishing industry used to produce 60 percent of the fish consumed in 

 this country. Gradually, however, because of foreign aid and other 

 processes, foreign countries now are taking over our market. We now 

 produce less than 20 percent. I therefore am concerned about the pos- 

 sibility that, while we may be helping malnourished peoples in foreign 

 countries, we also may be making our own fishing industry hungry. 

 Would you care to comment ? 



Mr. Waters. I would be happy to comment on that. Congressman. 

 I think you have raised a valid point of concern. I think there are both 

 short-run and long-run answers to it. 



In the long run, the greatest hope of the fishing industry in this 

 country or the agricultural industry in this country is really to raise 

 the living standards of the world and to raise the total consumption 

 of food worldwide. At the rate the population of the world is grow- 

 ing, I think we will have need for all the food of all types we can 

 make available over the next 25 years. 



That does not, however, answer the immediate problem of the 

 man faced with earning his income this year and having to compete 

 with outside sources. This is why I mentioned in my statement that 

 we have redirected the focus of our attention not only in the fish aspects 

 of our program but in our foreign aid program generally, toward the 

 encouragement of meeting their own food problems within the devel- 

 oping countries. We are doing the same thing in agriculture that we 

 are doing with the fish products. 



Mr. Pelly. For example, you have been trying to help Korea. The 

 first thing we know, Korea is using this technical know-how that we 

 are giving them to export fishing products. We find Korea coming 

 back into our own market almost to the point of dumping, and destroy- 

 ing the livelihood of our own American fishermen. 



