THE US GRAIN ARSENAL:FOOD AS A WEAPON

Roger Burbach and Patricia Flynn

FOOD AS A WEAPON?

“Food is a tool. It is a weapon in the US negotiating kit.”

-Earl Butz, 1974

FOOD AS A WEAPON

Reagan announces grain boycott after Russian involvement in Afghanistan.

Billions of dollars lost on export earnings.

VS.

PL 480 (1954) (OR “FOOD FOR PEACE”) Title I provides for government-to-government sales

of agricultural commodities to developing countries under long-term credit arrangements. Repayments for agricultural commodities sold under this title may be made either in U.S. dollars or in local currencies on credit terms up to 30 years, with a grace period of up to seven years. Local currencies received under Title I sales agreements may be used in carrying out activities under section 104 of the Agricultural Trade Development and Assistance Act of 1954, as amended. Activities in the recipient country for which these local currencies may be used include developing new markets for U.S. agricultural commodities on a mutually beneficial basis, paying U.S. obligations, and supporting agricultural development or research.

Profits from food used to fund militaries In 1960s 85% of food aid credits used to aid

military.

“Repayments for agricultural commodities sold under this title may be made either in U.S. dollars or in local currencies…”

Billions of dollars in “local currencies” turned back over to governments for defense.

By 1971 $1.7 billion went to Vietnam

COOLEY PROGRAM Local currencies from sale of food turned

over to American companies.

UNDER TITLE I… Grants and aid conditional on agreements to

start additional commercial imports.

WAY TO GO, S. KOREA! After receiving food under PL 480 for many

years, Korea now is one of the United States top five importers of

Livestock infrastructure developed with Cooley Loans, now dependent on American grain.

½ of domestic food needs are met by imports Over $1 Billion spent on American commodities

annually.

“I have heard… that people may become dependent on us for food. I know that was not supposed to be good news… but before people can do anything they have to ear. And if you are looking for a way to get people to lean on you and to be dependent on you, in terms of their cooperation with you, it seems to me that food dependence would be terrific.”

-Hubert Humphrey

“an increase in U.S. power and influence, especially vis-à-vis the food-deficit, poor countries.”

-leaked C.I.A report, 1970s

1970S National Security Council and Henry Kissinger

become directly involved in deciding who does and does not receive food credits.

Elects socialist government under Salvador Allende.

Food credits are cut off. When cash is offered, U.S. refuses.

After U.S. backed coup in 1973, aid returns at all-time high levels to support Pinochet.

Congress objects after revelations of U.S. role in coup. PL 480 used by State Department to further it’s

foreign policy goals.Money made by selling food underwrites Pinochet’s dictatorship.

Infant mortality rises by 18% in first year.

FOOD FOR WAR Title III of PL 480- the “barter” title.

Profits of food sold by “private” exporters turned over to U.S. government or used to buy supplies for operations in Vietnam.

Commercial sales reach a high of 1.1 billion in 1973.

As congress cuts funds for war, Nixon allocates many millions more for food aid in south Asia.

REFORM? Revelations about uses of food aid causes

pressure on congress to amend PL 480, stating that…

“70% of food aid must go to countries most seriously affected by food shortages.”

White House circumvents congress by increasing PL 480 budget, therefore not decreasing overall “aid” to Vietnam and Cambodia

Under Carter, aid channeled to Lebanon.

1975 law also includes provision that food may not be sent to human rights violators…

unless they promise to use it nicely.

Government refused to send aid to new communist government in Vietnam

But oil-rich Indonesia, with over 5,000 political prisoners, saw a doubling of food credits.

1978 REPORT Carter administration admits to eight

countries receiving food aid for “purely political reasons”, half of which are in the Middle East.

Aid to these countries continue.

Egypt receives aid unless they show support for Palestine.

DISCUSSION It is okay that we leverage food for national

interests?

What would successful food aid look like?

Should we provide it at all?