Evening star., 1954-01-14
Dairy Surplus Hits
A|I-Time High asU. 5.
Gropes for Solution
BY james E. Roper

~ SUHtcS s. NOPeI
Federal stocks of dairy prod
ucts equalled an all-time high
today as the Governme n
searched ..frantically for places
to unload It's farm Surpluses.
A surprise squirt in dairy pro-
duction has put the output
per cent over q year ago, and
forced the Government to buy
butter under price-support oper-
ationS at the rate Of nearly
1000 tons a day.
Federal holdings of dairy prod
ucts now are worth more than
$342 million-equal to the all
time high of last summer-and
are moving upward even though
this is the time of year the Gov
ernment normally would be SELL
ing these products on the do
meStic market.
Uncle Sam now owns 131 ,00C
tons of butter.
Fear to Sell It.
Government officials fear they
can't sell it--or even give it
away-without causing diplo-
matte troubles abroad or politi-
cal troubles in the United States.
A chance to sell butter to Rus
sia caused fervent consultations
among officials of the State.
Commerce and Agriculture De-
partmentS. An American busi-
nessman wanted to buy Govern
ment-owned butter and cotton
Sed oil-presumably at cut rates
and sen them to the Soviet.
An attorney for the business
man. pwayne Andreas of Man
Mkto. Mimi. said the Soviets had
inquired about the possibility
Of buying up to 100000 tons Of
butter and 100000 tons of cot
tonseed oil
Some Agriculture Department
oficials showed enthusiasm for
any chance to get rid of some
OF the farm surplus. But other
Federal agencies hesitated, and
President Eisenhower will have
to clear the final decision. In
dications were that the United
States would refuse to sell to
the Soviet.
Report by Weeks.
This was so despite a report
from Secretary of Commerce
Weeks last night that "it has
been. and still is, United States
policy generally to approve the
export of non-strategic goods to
the U. S. S. R. and its European
satellites, except where a par
ticular transaction is viewed as
having adverse impact upon the
security interests Of the free
world"
Secretary Weeks made the
statement in a report to Con-
gress on export controls. It
showed that American exports
to Sovet bloc nations in Europe
during the second quarters of
this year dropped to a new low
of $4,000. Nearly three-fourths
Of the exports were. tobacco and
cigaretS.
Mr.. Weeks stressed that trade
with Red China and North Korea
Is totally banned.
Some Agriculture Department
officials were reported to have
favored at one time selling Gov
ernment-owned butter on world
markets, but got skittiSh over
the idea when the Soviet showed
up as the first potential Gus
toner.
Many officials now feel that
1t would be far safer to pursue
the administrations idea. dis
closed yesterday, to use farm
surpluses to finance the con-
struction of American bases and
the maintenance Of American
forces overseas.
Some Washington officials
feared selling butter to Russians
at less than the retail price in
the United States would arouse
American housewives. It also
probably would annoy friendly
foreign nations who want to sell
their own butter to Russia.
McCarran Opposed.
Senator McCarran, Democrat,
Of Nevada, said of the proposed
sale: Until there is some over
riding reason to the contrary
I'm against it,"
Senator Mundt, Republican, of
South Dakota, said: I'm not
inclined to favor an increase in
their (Russia's) capacity to wage
war, and believe it would do
just that"
But Chairman Wiley of the
Senate Foreign Relations Com
mittee. who comes from the dairy
State Of Wisconsin, said: IF the
State Department approves. I'm
in favor Of it,"
Support at 80 Per Cent.
Present law requires the Gov
ernment to support the price Of
dairy products at between rs
and 80 per cent of parity. Sec