8
Thursday, October 26, 1972
University Daily Kansan
Grain Deal Leaves Bitter Taste
Editor's Note: This is one of a series of interpretive articles on issues in the 72 elections.
Kansan Staff Writer
When President Nixon announced the sale of 500 million units to American Steel and the United Union last July, it appeared that the Republicans had cinched the
But as more incriminating details of the circumstances surrounding the sale are uncovered, an ironically may become the kink in a well-rolled Republican Republicans red-faced and the Democrats with one of the best political attacks in the campaign. The governor, McGovern, a number of congressmen and groups representing American wheat growers, large grain companies made financial windfalls in a deal that information have touched off at least four major investigations of the circumstances of the grain
ADMINISTRATION critics have charged that the big grain companies, because of close ties with the U.S. Department of Agriculture (USDA), knew about the huge grain sale, bought wheat seeds from farmers and early harvest wheat states before the sale was announced and now
were selling the wheat at substantial profits.
The farmers in early harvest states such as Kansas, Missouri, Texas and Oklahoma, unaware of the magnitude of the impending drought, are buying approximately $1.32 a bushel. After the announcement of the sale, the price of wheat jumped to more than $2 a bushel. McGovern bought less than $120 million after selling their wheat early.
The link between the USDA and the grain companies has brought on a second charge by the groups, which have argued against Department officials have shuffled to and from positions in the government in a blatant conflict of interest.
GOMEVER HAS labeled the most difficult as another example of the need to develop inside deals that have come to characterize the Nixon ad-
However said in September that Richard Nixon had put the Department of Agriculture on the giant grain companies.
In a campaign swing through the Midwest in October, McGovern called for the suspension of Secretary of Agriculture Earl Burk until a new investigation had been made.
The Republicans have countered the charges with
County Attorney Debate
David Berkowitz and Ed Collister, candidates for Daughters
at 12:30 p.m. Friday in Room 105 Green Hall at
12:30 p.m. Friday in Room 105 Green Hall
Lecture on Japan
Miss Emii Watanabe, visiting lecturer in sociology at the University of Kansas, will give a lecture on the interrelationships of social change and religious movements in Japan at 8 tonight in the building of the Japanese Institute's lecture is the second Oriental humanities lecture this year.
Sailing Club to Meet
The University of Kansas sailing club will meet at 7:30 tonight in the Council Rogm of the Kansas Union.
piatitudinous praise for the transaction.
WANTED:
Members
(People who are eager to find a new place to go.)
Because The Shire is unique. Really? Pro试它. Ok.
The Shire is just like home. a color television sits on the bar. Happy Hour al the Shire is a free cheese and bread buffet and half price drinks from 3:08-6:30. You can also do it at oooo. Monday through Saturday from 10:30 a.m. to 3:00 a.m. and on Sundays from 2:00 p.m. to 10:00 p.m.
Butz, who has branded the accusations as a "political snipe against farming," move our agriculture down the road and allow farmers to indent the president's own plan of expanding agriculture with expanding markets rather than relying on agribusiness.
Come in and get acquainted. It just takes 5$ and 5 minutes to join. Stop in this week. You'll be glad you
SEN. BOB DOLE of Kansas, the GOP national chairman, has said that all of the criticism about Mr. Obama's remarks by McGovern, would jeopardize the transaction. He was trying to settle the deal.
Class A Private club
Sen. James Pearson (R-Kan).
also praised the grain sale as enormously beneficial to U.S.
farmers.
The crus of the controversy is whether the big grain companies should be more about the magnitude of the transaction before the official announcement was made. The companies posed a circulated early in the year, but estimates were for only a 10% stake. Democrat argues that the USDA leaked information to the grain companies about the scope of the crisis.
Phone: 842-3330
806 Massachusetts
AGRICULTURE Department officials have said they had no indication that the Soviets would buy the equipment and purchases. The statement came in response to accusations by Sen. Thomas Eagleton (D-Mo.) of the Agriculture Department possession in the spring about the sale.
Eagleton said there had been reports before the grain tranfer was completed, and the crop was considerably damaged. He said the Department of Agriculture was aware that other farmers were affected and already had exhausted their wheat supply and therefore demanded in July and August.
Secretary Butz led a negotiation team to Moscow last April and returned to Russia on Tuesday. Nikon announced the grains-pact terms July 8. According to the pact the United States had agreed to extend credit to the Soviets for the equipment estimated at $750 million, for a three-year period. Interest for the principle was set at six and nine percent of the stipulation that the interest due at any given time not exceed $500
--million.
THE RUSSIANS were guaranteed delivery of the wheat at a low world-market price of $1.63 a bushel.
When the sale was announced,
when the wheat began to climb until it reached high of $2.10 a bushel by Aug. 24.
Then, of wheat also edges up.
To keep United States wheat competitive on the international market the USDA was forced to remove its 10-day delivery period for the week of Aug. 25 to Sept. 1. The subsidy payments reached 47 cents a bushel—the difference between the low sale price and the domestic U.S. wheat price.
USDA cut off the subsidy Sept. 22 and the price of wheat on the world market rose 18 cents.
DURING THE week the sub-
// subsidiaries are accounting to the New York Times, applied for subsidies on two companies in the wheat. amounting to $3,500 million.
The second facet of the accusations is the link between the Department of Agriculture and the private grain companies.
Two of the most important position changes that have occurred are those of Clarence D. Clifford C. Pulver庵.
Palmby, a former assistant secretary of agriculture for international affairs and chief negotiator with the Soviets for the nuclear deal, June after taking part in April credit negotiations with the Soviet Union. He became the vice president of Continental Grain Co., one of the companies which has maintained its profitable profit from the exports.
PULVERMACHER, a former general manager of the Export Marketing Service in the USDA, also was involved in the April negotiations and since has joined the grain export companies.
The New York Times has linked three other Agriculture Department officials to the ex-cabinet secretary, Secretary Carroll Brunhauser, who took Palmby's department post, left Cook Industries to join USDA. Cook Industries sold $40 million of Soviet Union in the grain sale.
George Shanklin, assistant general manager of USDA Export Marketing Services since 1983, is a key representative in Washington.
Pulvermacher took over
Shanklin's lobbying job when he
resigned from the USDA.
William Pearce, who has been deputy special representative of the Pentagon since 1971, had served previously as the vice president of Cargli, i.e., a German company that supplied to the Soviets in the grain deal.
PERHAPS THE best example of a link between the two groups, the critics argue, is Earl Burt, the director of the giant Ralston-Purian Corp. before he took the USDA position Clifford M. Hardin, whom Butz replaced is now a vice chairman of Ralston
Because of the close association between the grain companies and the USDA, the Consumers Union has asked the Justice Department and the Department of Agriculture to investigate the circumstances of a possible conflict of interest.
one union has said that the close ties between the two violate stipulations of a U.S. Code. A federal law prohibits former members of Congress from representing anyone other than the United States in matters which they had a personal and substantial role while in office. If an employer requires a one-year ban on the handling by former federal employees of private party matters that were under their jurisdiction when they were working for the federal govern-
A SEPT. 21 statement by Vice President Stipheiro, Agrew precipitated another investigation. Agrew told reporters at a stopout in Minneapolis on the day that the FBI to investigate the sale of the wheat. Capitol Hill sources said that the President, until Agrew had made his statement, had no knowledge of ordering such an investigation.
The General Accounting Office also announced plans to look into charges brought by Rep. Pierre S. du Pont IV (R.D.) that the company paid from the wheat sale by acquiring inside information.
922 Massachusetts
Have you ever had a bad time in Village Set clothes?
Distinguished Prof to Speak On Modern India at Dinner
Neither have Kim Chapman, Mary Howse and Claudia Poteet!
A dinner is scheduled for the second day.
The India Club will host Amity Chakravarty, professor of Computer Science at New York University College at New York City, who will speak on "India in the World" at the Big 8 room of the Kansas Union as part of the first of a two-day celebration of the 25th anniversary of India's independence.
In 1950-51, Chakravartha was an official adviser to the Indian delegation to the United Nations.
Kansas.
Chakravarty was formerly an instructor at the University of
In 1970, the Padma Bhushan scholarship and literature both in India and abroad" was conferred upon him by the President
The award is a national honor awarded given to eminent citizens for their distinguished service in public life.
In 1967, Chakravarty received the Watumu Foundation Award for promoting international understanding and peace.
Other awards bestowed on Chakravarthy include the Albert Schweitzer Medal, Phi Beta Kappa, Rockefeller foundation of college and two honorary doctor of letters and three degrees from universities in India.
Nations.
The dinner will be held in Nov. 4 at the Westminster Center, 1204 Oread. Tickets to the dinner are available through Wednesday.
All The beer you can drink.
All the dancing you can dance!
The Red Baron
804 W.24th
And JOINT SESSION
Hotline 842-4366