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Your Committee currently has under consideration a bill, H.R. 2172, which would be cited as the International Sugar Stabilization Act of 1979. Section 403 of the bill would require the Secretary of Agriculture to conduct cost of production and other studies he deems necessary to enable him to administer the provisions of the act. Subpart (e) of Section 403 states:

"CONFIDENTIALITY--All information that is required
to be furnished to the Secretary under this section
and that relates to the separate operations of the
person providing the information shall be kept
confidential by all officers and employees of the
Department of Agriculture."

We believe that this provision should not affect the General Accounting Office's right of access to any data collected by the Department. Our Office has had problems in the past, however, in obtaining access to such types of data. To insure that our Office would have ready access to such data, we request that appropriate qualifying language be placed in Section 403(e). This could be accomplished by adding the following proviso to the confidentiality provision.

Provided that all information obtained by the
Secretary pursuant to this section shall be
made available, upon request, to the Comptroller
General or his delegates or employees, who shall
keep such information confidential.

A similar letter is being sent to the Chairman, Subcommittee on Trade, House Committee on Ways and Means.

Sincerely yours,

Deputy Comptroller General

of the United States

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Re:

Exemption of chartered, loading or afloat ships from fee

changes within the supply year quarter.

I request the Committee to allow staff to include report language instructing the Administration to exempt ships chartered, loading or afloat from fee changes within the supply year quarter as described in Section 203 (a) and (b).

Rationale: The fee-adjustment mechanism outlined in Sec. 203 (a) is basically fair. However, this section does pose a problem for importers, shippers and refiners because of the amount of lead time involved in chartering and loading a ship. Locating a vessel, giving the mandatory 15-day load notice and the actual loading itself can take anywhere from 25 to 40 days before the vessel leaves the docks. If vessels chartered, loading or afloat were exempt from such fee changes business could continue in its normal course without undue risk to importers. Most importers are headquartered in New York, where this facet of the sugar trade provides some 300 jobs.

I want to make it very clear at this juncture that the relief I am seeking cannot be compared in any way, shape or form with the loophole created by the presidential proclamation 4538 of November 11, 1977, which triggered massive imports in the fourth quarter of 1977. What I am advocating is language in the committee report that would instruct the Administration to deal equitably with this problem to keep the market orderly and prevent needless surges and drop-offs in imports. Frequent fee changes could put undue strain and pressure on the variable fee mechanism.

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Witnesses:

1.

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Mr. James M. Davis, Deputy Director, Production Adjustment
Division, ASCS, U.S. Department of Agriculture.

Acc. by:

Mr. Dallas Smith, Producer Association Division,
ASCS, U.S. Department of Agriculture.

Mr. Thomas A. VonGarlem, Deputy Director,
Price Support Loan Division, ASCS, U.S. Depart-
ment of Agriculture.

Statements Filed:

1.

Mr. H. Emmett Reynolds, Chairman, National Peanut Growers
Group.

2.

Mr. Carlton Butler of Virginia for the National Association of Farmer Elected Committeemen.

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Thursday, April 26, 1979

Oilseeds and Rice Subcommittee
Public Hearing and Business Meeting
Reduction of penalties assessed on
marketings of peanuts
H.R. 3575

Action Taken:

-

Without objection Jones (N.C.) amendment on effective date
agreed to.

By a unanimous voice vote and in the presence of a quorum
H.R. 3575, as amended, ordered reported to the full Committee
with a favorable recommendation.

Chairman Mathis called the meeting to order and recognized the Departmental witnesses for their testimony on H.R. 3575, a bill to provide the Secretary of Agriculture with flexibility in the imposition of marketing penalties for peanuts.

Discussion occurred on the legislation. Mr. Jones of North Carolina moved to amend the bill by adding on page 2, line 2, the words "beginning with the 1978 crop". Mr. Mathis suggested that an amendment would more properly go on page 1, line 5, and Mr. Jones (N.C.) reformed his amendment accordingly, as follows:

Page 1, line 5, strike the word "The" and
insert in lieu thereof "Effective beginning
with the 1978 crop, the".

Discussion occurred and without objection the Jones (N.C.) amendment was agreed to. The Departmental representatives responded to questions of the Subcommittee on the legislation.

Mr. Jones (N.C.) moved that H.R. 3575, as amended, be ordered favorably reported to the full Committee. By a unanimous voice vote and in the presence of a quorum H.R. 3575, as amended, was ordered reported to the full Committee with the recommendation that it do pass.

At 2:25 p.m. the meeting was adjourned, subject to the call of the Chair.

Glenda Temple

Glenda Temple

47-987 0 - 79

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