[Congressional Record Volume 140, Number 100 (Wednesday, July 27, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 27, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
 SENATE CONCURRENT RESOLUTION 73--RELATIVE TO THE JAPANESE FOOD AGENCY

  Mrs. FEINSTEIN (for herself, Mr. Breaux, Mrs. Boxer, Mr. Pryor, Mr. 
Bumpers, and Mr. Johnston) submitted the following concurrent 
resolution, which was referred to the Committee on Finance:

                               S. Res. 73

       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;
       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 
     purchase 644,000 metric tons of United States rice as part of 
     the emergency program;
       Whereas the United States rice industry undertook 
     extraordinary 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, notwithstanding 
     that 75,000 metric tons of United States rice reserved for 
     export to Japan under the good faith agreement remained to be 
     shipped;
       Whereas the Japanese Food Agency refuses to honor its 
     commitment 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 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 exhaustively to 
     establish an open trade relationship with the Government of 
     Japan;
       Whereas the failure of the Japanese Food Agency to purchase 
     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 industry and 
     thereby places in jeopardy other such agreements 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) express 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 with United States Government officials 
     and representatives 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 purchase by the Japanese Food Agency.

  Mrs. FEINSTEIN. Mr. President, I rise to submit a resolution 
expressing congressional disapproval of the decision of the Japanese 
Food Agency to renege on its agreement to purchase 75,000 metric tons 
of rice from the United States. The measure is identical to the 
resolution Congressman Vic Fazio is submitting today in the House.
  For many years, the Japanese market has been closed to American rice 
as Japan has sought to protect its own rice industry. Japan's decades-
old ban of imported rice has been one of the most egregious examples of 
unfair trade.
  Last year, however, Japan had a disastrously short crop due to bad 
weather and was forced to establish an emergency program to import 
foreign rice. Japan's emergency program called for the importation of 
approximately 2,650,000 metric tons of rice in 1993 and 1994. Most 
importantly for the United States, the Japanese Food Agency reached an 
agreement with United States Government officials and representatives 
of the United States rice industry to purchase 644,000 metric tons of 
United States rice.
  Now the Japanese Food Agency has backed off on fulfilling that 
commitment. Last month the Japanese Food Agency announced that it was 
terminating its emergency program to purchase foreign rice immediately. 
This announcement means Japan is not purchasing 75,000 metric tons of 
United States rice that it had already agreed to buy. Moreover, the 
United States is the only country affected by the announcement.
  Mr. President, this is a very significant matter for the U.S. rice 
industry, with an economic impact of over $45 million. The United 
States rice industry undertook extraordinary measures, including buying 
back rice already sold to other customers, in order to ensure that 
644,000 metric tons of United States rice would be available for 
shipment to Japan. I am advised that if the 75,000 metric tons of rice 
remain unsold, the carryover of this quantity from the 1993 crop year 
to the 1994 crop year will cause the U.S. average farm price for rice 
to decline by 36 cents per hundredweight in 1994 and by 17 cents per 
hundredweight in 1995. This equates to a loss of $56.2 million in farm 
revenue in 1994 and $30.8 million in 1995--a total loss of $87 million 
in farm revenue.
  I believe our Government must take a strong stand and ensure that the 
Japanese follow through on the original agreement. The resolution I am 
submitting today calls for firm action. Specifically, the resolution:
  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;
  Expresses grave concern about the future of our trading relationship 
with Japan in light of the Japanese Food Agency's failure to honor the 
agreement;
  Strongly urges the Government of Japan to fulfill its commitment to 
purchase 75,000 metric tons of rice from the United States rice 
industry; and
  Strongly encourages the President to take all steps necessary to 
conclude the purchase of the remaining 75,000 metric tons of rice that 
have been reserved for purchase by the Japanese Food Agency.

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