that our processors have been working diligently to find a market abroad for the Virginia farmer.

Chart III shows that Virginia exported an amount equal to 16 percent of its production, while the United States as a whole exported approximately 3 percent of her production. Gentlemen, this again points out the importance of our export market to the poultry industry in Virginia and also illustrates that we do have a sizable market abroad for the poultry that has been produced within the Nation.

Chart IV illustrates the changes in the total Common Market tariff on U.S. poultry based on a 30-cents-per-pound c.i.f. cost to the West German dealer. Prior to August 1, the total tariff was approximately 5.97 cents per pound. After August 1 to November 18, these tariff levies increased to 14.32 cents per pound. Exports from the period August 1 to October 31, decreased 66 percent because of these additional tariffs. After November 18, it was anticipated that an additional 2.84 cents per pound would be added bringing the total tariff levy to 17.16 cents per pound. The actual charges, however, after November 18, was approximately 14.24 cents per pound. The total impact from these trade barriers has reduced Virginia sales to the Common Market countries to approximately zero.

And finally, our last chart illustrates that an estimated $30 million loss in economic activity will be created in the Virginia economy if something is not done to save our sales to the Common Market countries, which was valued at $7 million last year. This loss in economic activity will affect feed manufacturers, hatcherymen, fuel and electric companies. Drug manufacturers will feel this loss and these losses will extend to retailers, farm communities, bank deposits, loss of jobs, and even tax revenues.

Gentlemen and members of the committee, this concludes the presentation of the data that has been assembled in our department showing the effect of these Common Market barriers upon the poultry industry and our total economy. We hope the Members of Congress will endeavor in every way possible to get these levies that are now barriers to the sale of poultry into these markets reduced. We aso hope that we can secure sufficient reductions that will enable our poultry industry in the future to again become competitive.

(The charts referred to follow:)

The CHAIRMAN. Thank you, Mr. Chumney.

Mr. PARKER. Our next witness will be Representative John O. Marsh, Jr., of Virginia.

STATEMENT OF HON. JOHN O. MARSH, JR., A REPRESENTATIVE IN CONGRESS FROM THE STATE OF VIRGINIA

Representative MARSH. Senator Byrd, Mr. Secretary, Members of the House and Senate, ladies and gentlemen, first I would like to thank you for your attendance at this meeting to discuss a problem that vitally affects one of America's most important agricultural exports. For the next few moments, I would like to point out, under what might be termed as a subject, the "Commonwealth and the Common Market," what has occurred to the poultry exports of Virginia directed to the European Common Market. However, the implications and effect are not limited to the Commonwealth of Virginia, but it is only illustrative of what has occurred and what is occurring to the poultry exports to the European Common Market from the other poultry producing areas of this country.

Above all, Mr. Secretary, I would like to bring to your attention what has occurred in Virginia in support of the poultry industry in their efforts to have reversed and modified what increasingly appears to be the restrictive and protectionist measures implemented by the

European Common Market on importation of broilers and other fowl from nonmember countries. I think it will give you some idea of the support that you and the Department of Agriculture, and indeed those in the executive branch dealing with this problem, can expect from the Commonwealth of Virginia.

After the implementation of the common agricultural policy on the first day of August and the resulting drying up of poultry exports, assisted by the Virginia State Poultry Federation, Governor Harrison held a breakfast conference in Richmond in the early part of January to which were invited not just leaders in agriculture, including poultry, but business leaders representing a broad cross section of the Virginia economy. At this meeting, officials of the Retail Merchants Association, officials of the Virginia Bankers Association, the Virginia State Chamber of Commerce, the Virginia Jaycees, of public utilities, of the State's industrial development program, Virginia State Ports Authority, the Richmond Export-Import Club, the Virginia Manufacturers Association, and many others were in attendance.

Before this meeting had been held, the Virginia Department of Agriculture, under the direction of the Governor of Virginia, and in cooperation with the poultry industry of our State, had prepared a background study of the nature of the implications and the effect of the common agricultural policy on poultry and on the Virginia economy as a whole.

The purposes of this meeting were as follows:

First, to inform the leaders of our State what had occurred to a Virginia industry-and we consider poultry to be an industry-as a result of the common agricultural policy and what had happened to our exports to the Common Market countries as a result of this new agricultural policy. We also sougnt to inform them of what we considered to be a very serious trend toward a protectionist policy as relates to imports by the European Common Market, and that their product might well be the next product affected if the Common Market did seek to follow a broad protectionist policy.

Secondly, the purpose of the meeting was to explain to these men the nature and operation of these restrictions. For example, to explain to them the gate price, the variable levies and how they were applied, the ad valorem duties external, and the ad valorem duties internal, and to show them the increased cost of poultry to the European housewife as a result of this action.

Third, the purpose of the meeting was to broaden the base and to bring in those who were indirectly affected and associated with agriculture, and even more to broaden the base outside of our agricultural economy by pointing out that our credit agencies were affected, our public utilities would be affected, our ports would be affected, and the entire well-being of the economy of our State would be affected.

The fourth purpose of the meeting was to develop a plan of action whereby we could more effectively present our case on the unfair treatment our poultry was receiving both to the executive offices of our National Government and to inform generally the various civic, economic, and trade groups and their memberships in our State so that they, in turn, could support the poultry industry in its efforts. Before the Governor's conference had concluded, there had been formed a coordinating committee selected from those represented at

the conference. I might point out to you that the chairman of the coordinating committee is not an agriculturist, is not associated with poultry, but rather is the president of the Virginia Manufacturers Association. Working with him on this coordinating committee of about 12 to direct the Commonwealth effort, were representatives of the Virginia State Chamber of Commerce, the Virginia Poultry Federation, the Virginia State Ports Authority, the Virginia Department of Agriculture, the Virginia Jaycees, educational leaders from the Virginia Polytechnic Institute, representatives of the Richmond Export-Import Club, the Virginia Farm Bureau, as well as processers of poultry, and other governmental leaders.

Shortly after this conference, under their leadership, support began to roll in from organizations in our State. For example, resolutions were adopted by the World Trade Committee of the Virginia State Chamber of Commerce. In the days and weeks after the conference, there began the broadest circulation of the poultry story throughout the State by wide dissemination of information through the organizations represented at the Governor's conference.

For example, the Virginia Farm Bureau, an organization with some 20,000 members, through its board of directors, also adopted a resolution stating their position and urging that our Government take strong immediate action to effect relief for Virginia poultry exports. In the Virginia Jaycees, a local chapter adopted a resolution which was moved on to the regional area, adopted by the region, and will be referred to the State membership of the February work conference for statewide consideration. I might add that the Jaycees have indicated they would like to undertake a broad plan to circulate petitions throughout its chapters and other organizations as well to form a speakers' team that could go to other civic clubs and organizations and present programs on the Common Market problem we are discussing today.

Additionally, background material has been published, summaries have been written, studies have been made, articles have appeared in trade and organizational papers in trade organs, in newsletters. As another example, a public utility circulated to all of its branch offices a newsletter explaining the Governor's conference, why the conference was called, and what is occurring to a very important segment of our economy.

Aside from this selective coverage, there was a broad coverage through the regular news media, in State newspapers, through local radio and television stations, explaining and informing the citizens of the Commonwealth as to what is happening to a Virginia product because of this action by the European Common Market.

I believe that we can see what we have endeavored to do is to launch a broadly based educational program to bring to the attention of the citizens of our State the effect of the Common Market action on the economy of Virginia and on the economy of the United States and to advise them that the common agricultural policy, as it applies to poultry, can be expected to be similarly applied to other American agricultural exports.

We would like you to know, sir [to Secretary Freeman], that these people, these organizations stand ready, willing, and able to support you in your efforts that you take in this matter. In the hope that you shall be able to achieve reversal and relief from these policies of