407 



Mr. Waters. We are aiming to do both simultaneously. We don't 

 think the answer is going to be just publicly built plants. 



We are going to try to develop the incentive for a private develop- 

 ment both in the United States and overseas. By our being willing to 

 invest the money in buying domestic fish protem concentrate for our 

 food programs, we hope to ^ive a lift to the domestic industry. It may 

 well develop faster domestically than we can proceed overseas. We 

 think both sides have to be looked at at the same time. 



Mr. Pollock. I appreciate what ^ou are saying, but it would appear 

 to me that you could encourage private industry in this country. 



Helping small businesses is one of the broad things we are trying to 

 do in this Nation. If you would award contracts to them to furnish fish 

 protein concentrate to certain countries, the end product is not going 

 to make any difference anyway. You are going to have to come up 

 with a flour no matter where you produce it. 



Mr. Waters. The question is getting the initiative and drive of 

 American business to develop the marketing mechanisms overseas. 

 If we are going to develop the fish protein concentrate in this coun- 

 try to turn over to governments overseas or sell to governments over- 

 seas, we are only going to perpetuate another donation program. 



Our problem is to get a balance between them. We are willing to use 

 the subsidization of food in special programs, particularly for children 

 and mothers, as a way of developing acceptance of it so that there 

 will be an industrial potential. Our hope is to get it on the store shelves 

 rather than on the Nation's donation program. 



Mr. Pollock. Is your program overseas concerning the fish protein 

 concentrate under the auspices of the Food and Drug Administration ? 

 Are you subject to the same restrictions in South Korea in marketing 

 the product as we are here where it has to be 1-pound packages clearly 

 labeled ? 



Mr. Waters. The Food and Drug Administration is a regulatory 

 body controlling the sales in the United States. 



Mr. Pollock. Except that we are using American dollars? 



Mr. Waters. They do not control it overseas, except from this aspect : 

 It is very difficult to introduce commercially and gain acceptance of a 

 product overseas that is not accepted in the United States. In other 

 words, those who want to oppose the introduction of the product can 

 point to the fact that the United States is trying to make us develop 

 a new food that they are not willing to eat themselves. 



This is a difficulty in trying to introduce food not acceptable in the 

 United States. 



Mr. Parman. May I add to that ? 



Mr. Pollock. Yes ; sir. 



Mr. Parman. We plan to abide by the essentials of the fish protein 

 concentrate regulations but not with the requirements for marketing 

 in one-half and 1-pound packages. 



Mr. Pollock. The essence of their regulation was that we not sell it 

 in bulk and have it lose its identity. 



Mr. Parman. I could make a comment on that but I shall not. The 

 point which I think I would like to make is that with proper market- 

 ing development, there is a market for fish protein concentrate in this 

 country that will far exceed the overseas market. 



