IV
103D CONGRESS
2D SESSION
H. CON. RES. 274
Expressing the sense of the Congress with respect to the announcement
of the Japanese Food Agency that it does not intend to fulfill its
commitment to purchase 75,000 metric tons of United States rice.
IN THE HOUSE OF REPRESENTATIVES
JULY 27, 1994
Mr. FAZIO (for himself, Mr. ARCHER, Mr. CALVERT, Mr. CHAPMAN, Mr.
CONDIT, Mr. DIXON, Mr. DOOLEY, Mr. DOOLITTLE, Mr. DORNAN, Mr.
EDWARDS of California, Mr. GENE GREEN of Texas, Mr. HAYES, Mr.
HERGER, Mr. HORN, Mr. HUTCHINSON, Mr. LANTOS, Mr. LEWIS of Cali-
fornia, Mr. MOORHEAD, Mr. POMBO, Mr. TAUZIN, Mr. THOMAS of Cali-
fornia, Mr. THORNTON, Mr. WASHINGTON, Mr. WILSON, and Ms. WOOL-
SEY) submitted the following concurrent resolution; which was referred to
the Committee on Ways and Means
CONCURRENT RESOLUTION
Expressing the sense of the Congress with respect to the
announcement of the Japanese Food Agency that it does
not intend to fulfill its commitment to purchase 75,000
metric tons of United States rice.
Whereas due to severe weather conditions during the summer
of 1993, Japan found its rice supply to be disastrously
short, and thus was forced to announce the establishment
of an emergency program to import rice during 1993 and
1994;
•HCON 274 IH
Whereas the Japanese Food Agency initiated an emergency
program to import approximately 2,650,000 metric tons
of rice during 1993 and 1994;
Whereas the Japanese Food Agency reached a good faith
agreement with United States Government officials and
representatives of the United States rice industry to pur-
chase 644,000 metric tons of United States rice as part
of the emergency program;
Whereas the United States rice industry undertook extraor-
dinary measures, including buying back inventory already
sold to other customers, to ensure that 644,000 metric
tons of United States rice was available for shipment to
Japan;
Whereas the Japanese Food Agency announced in June 1994
that it had terminated the emergency program, notwith-
standing that 75,000 metric tons of United States rice
reserved for export to Japan under the good faith agree-
ment remained to be shipped;
Whereas the Japanese Food Agency refuses to honor its com-
mitment to purchase the remaining 75,000 metric tons
of United States rice despite repeated overtures from
United States Government officials and representatives of
the rice industry;
Whereas the remaining 75,000 metric tons of rice represent
a relatively small quantity of rice to Japan, but a highly
significant one to the United States rice industry, with
an economic impact of over $45,000,000;
Whereas if the 75,000 metric tons of rice remain unsold to
the Japanese Food Agency, the carryover of this quantity
from the 1993 crop year to the 1994 crop year will cause
the United States season average farm price for rice to
•HCON 274 IH
decline by $.36 per hundredweight in 1994, and by $.17
per hundredweight in 1995;
Whereas these declines in price would equate to a loss in
farm revenue of $56,200,000 in 1994 and $30,800,000
in 1995, for a combined loss of $87,000,000;
Whereas the United States Government and the United
States rice industry have worked diligently and exhaus-
tively to establish an open trade relationship with the
Government of Japan;
Whereas the failure of the Japanese Food Agency to pur-
chase the remaining 75,000 metric tons of United States
rice directly contravenes a good faith agreement between
the Japanese Food Agency and the United States rice in-
dustry and thereby places in jeopardy other such agree-
ments reached between the United States and Japan; and
Whereas this action by the Japanese Food Agency damages
the prospect for future trade relations between the
United States and Japan: Now, therefore, be it
Resolved by the House of Representatives (the Senate
concurring), That the Congress of the United States—
(1) strongly disapproves of the decision of the
Japanese Food Agency to renege on its good faith
agreement to purchase 75,000 metric tons of rice
from the United States rice industry;
(2) expresses its grave concern about the future
of trade relations between the United States and
Japan in light of the failure of the Japanese Food
Agency to honor an agreement made in good faith
•HCON 274 IH
with United States Government officials and rep-
resentatives of the rice industry;
(3) strongly urges the Government of Japan to
fulfill expeditiously its commitment to purchase the
remaining 75,000 metric tons of United States rice;
and
(4) strongly encourages the President of the
United States to take all steps necessary to conclude
the purchase of the remaining 75,000 metric tons of
United States rice that has been reserved for pur-
chase by the Japanese Food Agency.
Æ