This Act marked the beginning of a systematic attempt to utilize US agricultural surpluses along lines tentatively laid down in section 550 of the Mutual Security Act of 1951. The act institutionalized and provided the legal framework for the US food aid programme basically in a form that has largely endured almost to the present day. PL 480 finally marked 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 agricultural 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.
At the beginning, PL 480 contained three, what were called, ‘titles’. A fourth title was added in 1959. Title I (the largest of the four outlets) provided programme 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 obligations 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 intergovernmental 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.
World Basic Food Supplies in 1950s: Technological Advances and New Ways for Protection of Food Resources
