several countries have shifted from imports under food aid programs
to commercial imports for dollars in the last few years. Japan is the
outstanding example. In fiscal year 1956 U. S. agricultural exports to
Japan totaled 372 million dollars, and of this amount 123 million
dollars moved under food aid programs. In 1963-64, U. S. agricul-
tural exports to Japan totaled 742 million dollars, nearly all of it
dollar sales.
Greece, Spain, Israel, Taiwan, and Poland are other countries
where exports under food aid programs have declined and com-
mercial dollar sales have gone up significantly in the last few years.
Dollar sales of farm products to Spain increased to 112 million
dollars in 1963 as compared with only 10 million dollars in 1955.
We had little or no dollar sales of farm products to Greece, Israel,
Taiwan, or Poland in 1955. But in 1963 we exported 32 million
dollars of farm products to Poland, 24 million dollars to Israel, 22
milion dollars to Taiwan, and 11 million dollars to Greece. In each
of these countries substantial economic growth has occurred in the
last few years and per capita incomes have increased. Food aid pro-
grams have been converted into commercial sales for dollars. Ob-
viously, quick results cannot be expected in all countries. Economic
development will require longer periods in countries that are be-
ginning from lower income levels.
It is a mistake to assume that expansion of agriculture in the
less developed countries means smaller markets for our products.
Consider what has happened in Japan during the last decade. Its
domestic agricultural production increased 3.7 percent a year, while
its population increased only about 1.4 percent annually. Yet,.during
that same decade, Japan became our largest customer for farm
products—with a volume over 750 million dollars during fiscal
1964-65.
The connection between aid and trade is thus abundantly clear.
Increased international trade will benefit all Americans and will be
of special benefit to American agriculture. We must. remember that
trade with the less developed countries can increase only as their
economies grow and their incomes rise. And this economic growth,
in turn, depends upon their ability to improve their agriculture and
achieve real rural development. Assistance in rural development
abroad is therefore clearly in the national interest of the United
States because our own continued economic growth demands rising
standards elsewhere, among people with whom we hope to develop
expanding trade relations.
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