recognition that the paradox of US surplus food production alongside hunger
and malnutrition in the world could no longer be considered to be isolated and
temporary occurrences. It established a relationship between US domestic agricul-
tural and foreign policy interests and external assistance that shaped the country's
food aid policies and programmes. And, critically, it sparked a rapid growth in US
food aid in addition to its export enhancement programmes.
food aid on concessional credit terms, which was sold in recipient countries
for local (inconvertible) currency. With the agreement of recipient governments,
the proceeds could be used for a number of purposes: the development of new
markets for US agricultural commodities on a mutually benefiting basis; purchase
of strategic and critical materials; procurement of military equipment; financing
the purchase of goods and services from other friendly countries; promotion of
balanced economic development and trade among nations; payment of US oblig-
ations abroad; loans to promote multilateral trade and economic development;
and financing international educational exchange. In negotiating agreements
under this title, `reasonable precautions' were to be taken to safeguard the usual
markets of the United States and to ensure that world agricultural commodity
prices would not be `unduly disrupted'. Private trade channels were to be used
to the maximum extent practicable. Special consideration was to be given to
developing and expanding sustained market demand for US agricultural products.
Resale or trans-shipment of commodities to other countries or use for other than
domestic purposes was prohibited. And maximum opportunity to purchase US
surplus agricultural commodities was to be afforded. Title II authorized grants
of food commodities to provide emergency assistance to meet famine and other
urgent relief requirements through voluntary relief agencies and intergovern-
mental organizations. Title III provided for barter agreements and for donations
through private voluntary agencies. And Title IV authorized the sale of surplus
commodities under long-term dollar credits to foreign governments, which was
amended in 1962 to extend credits to private commercial trade. Between 1954
and 1963, total food aid assistance under PL 480 increased to reach $10.7 million,
28 per cent of all US agricultural exports.
cultural products that had accumulated under its price support policy. Initially,
a considerable part of total PL 480 shipments went to the more economically
developed countries, such as Italy and Japan, but as time went on the main
emphasis was placed on local currency sales and grants to meet food needs as
assist economic development in the less developed countries, such as Brazil, India
and Pakistan. At the same time, more emphasis was placed on the use of surpluses
for the alleviation of hunger in the less well-nourished nations of the world. PL
480 operations were conducted through bilateral agreements between the US and
the recipient countries. At the beginning, these agreements were of one year dura-
tion. In 1956, a three-year agreement was concluded with Brazil. Subsequently,