I am sure that they are very knowledgeable men, but would they be interested in selling anything over in these foreign countries?

Mr. KEARNS. No; that would be just the opposite, but that is one of the most useful fields we have, because the people abroad, if they are going to buy from us, have to have some exchange. The department store man tells them how they can sell their handicrafts, and the other things that they make in this country, and what the market situation is here, how you go about selling things, how people buy, and all those things.

This has actually been one of the most useful we have.

Now, regarding the one that you asked, Mr. Evins, about utility people, and so forth, the reason that those are taken is because many areas want people who have had experience in developing an industrial area. For example, we took one man from Arkansas who had been responsible for the Arkansas Power Co. program to encourage business to locate in Arkansas. He was knowledgeable about what it takes to get a business started. This was the thing that was asked for in India, that we have somebody who could come over there and help give them some suggestions and guidance.

Now, this has a good trade application, of course, because if we encourage those people to become productive, they buy our equipment and become good customers, so each one has his own particular contribution to make, and if you will recall, if you will let me get through this

Mr. EviNs. I think they are most helpful, you say knowledgeable, and can render service, but if I might make this observation.

The point was made that these people representing us in these affairs were not small businessmen. They are utilities and investment bankers.

Mr. KEARNS. Well, it is a mixture, really, but I would like to refer back to page 28 of my testimony. This is the observation of our commercial man abroad, what happened after the team came back, and I think that this points up the contribution the team was really making.

Mr. YATES. Well, I read a number of those reports. I don't know whether you were aware of the fact that I asked for the reports of all 63 teams, and after some weeks I was furnished with 10 of them.

I feel quite sure that the 10 reports I received were screened-I don't know.

Were there only 10 reports made by the 63 teams?

Mr. MACY. The number that wrote reports were sent to you.

Mr. YATES. The total number? Then each of the missions didn't write a report.

Mr. KEARNS. May I point out this is a fairly new program, and we are developing new means of getting the most out of it.

Mr. YATES. This goes back to 1954.

Mr. KEARNS. We haven't always had these detailed written reports similar to those that have been furnished.

Mr. YATES. Let me just say this. I wasn't going to go into this question at this meeting, because I had gone into it at the Appropriations Committee meeting, and Mr. Rooney went into it at the meeting on State Department appropriations. I agree with Mr. Brown and

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I agree with Mr. Evins that teams of this kind can provide a very useful service.

I happen to be of the opinion that the teams that have been going over there haven't been accomplishing the purposes that I for one would like to see accomplished, and I don't think they have been helping the cause of small business, particularly.

Mr. BROWN. I know of several businessmen who would like to pay their own expenses to go over there, if they felt they were really going to see something instead of just the tourist sights. They would like to go there for a purpose.

Do we encourage that?

Mr. KEARNS. Yes, we do, and there are many groups. Many chambers of commerce, for example, have groups that go abroad, and even some women's clubs do this.

There is one thing we always have to keep in mind whenever there is what you might call an official trade mission, that you have to have enough control of them, if they are going to represent the U.S. Government, that they don't get in trouble, and this is one reason why we pay their travel expenses and a per diem, to have that little bit of a hold on what they do. Otherwise a businessman might not give us the kind of representation we wanted.

Mr. BROWN. Couldn't a group of 5 or 10 businessmen, for instance, accomplish the same thing if they paid their own transportation to the foreign country and we furnished a per diem out of the counterpart funds? There would be some control then.

Mr. KEARNS. I think that is really worth looking into.

Mr. BROWN. We could probably take the same amount of money and multiply this effort severalfold in that way, and it would be, if I may suggest it, as good a way or better to use the counterpart funds than maybe some of these other missions that are going over there. Thank you, Mr. Chairman, for letting me participate.

Mr. YATES. I just would like to say this in conclusion, Mr. Kearns. I do want to thank you and express the gratitude of the committee for your coming here and giving us so thorough and comprehensive a statement as to the operations of your agency. I think it has been a very competent presentation and I think your agency does a very good job on the whole.

I can't escape the conclusion, however, that the Department of Commerce, the entire Department, doesn't do as good a job for small business as it might.

That is why, speaking personally, I wonder whether or not the activities of the Small Business Administration shouldn't be expanded to take care of all fields of small business activity.

I would welcome any further suggestions that your office may have which might offer hope for a further expansion the small business community into the field of foreign trade. As you pointed out earlier in your statement, and I am sure we feel the same way, this is a tremendous potential for small business. We still haven't tapped it. I would try to get you your appropriation, I think, if I believed that the activities that you pointed out were going to help to bring small business in, but I don't think that scurrying around this country in the manner you point out would be helpful for that cause.

If you want to furnish a supplementary statement as to what you would like to do, we would be glad to receive it.

Thank you very much, Mr. Kearns, and thank you, gentlemen, very much for your testimony.

Mr. KEARNS. Under the impetus of your offer, we will try to come up with something.

(Whereupon, at 12:20 p.m., the subcommittee recessed until 10 a.m. July 15, 1959.)

PARTICIPATION OF SMALL BUSINESS IN FOREIGN

TRADE AND FOREIGN AID

WEDNESDAY, JULY 15, 1959

HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE No. 3 ON FOREIGN TRADE,

FOREIGN AID, AND BASIC METALS OF THE

SELECT COMMITTEE TO CONDUCT A STUDY AND
INVESTIGATION OF THE PROBLEMS OF SMALL BUSINESS,

Washington, D.C. The subcommittee met, pursuant to adjournment, at 10 a.m., in room 1304, New House Office Building, Hon. Sidney R. Yates (chairman of the subcommittee) presiding.

Present: Representatives Yates, Evins, Multer, and Brown.

Also present: Irving Maness, counsel; Victor P. Dalmas, adviser to minority members; and Katherine C. Blackburn, research analyst. Mr. YATES. The committee will come to order.

Gentlemen, we are privileged this morning to have with us Mr. Samuel C. Waugh, who is president of the Export-Import Bank of Washington.

Mr. Waugh, we would be delighted to hear your comments and your views on the activities of the Export-Import Bank, and how it will be of assistance to small business in foreign trade.

TESTIMONY OF SAMUEL C. WAUGH, PRESIDENT, EXPORT-IMPORT

BANK

Mr. WAUGH. Mr. Chairman, I have a very brief report which I will be glad to read, if you would like to have me.

We at the Export-Import Bank appreciate your committee's invitation to testify on the relation of the Bank's operation to small busi

ness.

It may be useful to start with a brief explanation of the operations of the Bank, which on February 12 of this year completed 25 years of activity in the foreign lending field.

As of June 30, this year, the Bank had authorized loans totaling $10.2 billion. Of this sum, $1.7 billion was not used for various reasons, among them that private financing proved to be available. Loan authorizations taken over by others, without recourse to the Bank, totaled $400 million. The Bank has disbursed $6.9 billion, of which amount almost half, or $3.4 billion, has already been repaid. There remain loan authorizations not yet disbursed totaling slightly more than $1.3 billion.

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