Restrictions on U.S. Aid to Bolivia for Crop Development Competing With U.S. Agricultural Exports and their Relationship to U.S. Anti-Drug Efforts

GAO discussed the restrictions on U.S. aid to developing countries for crop development that competes with U.S. agricultural exports, and their relationship to U.S. anti-drug efforts in Bolivia. GAO noted that: (1) drug legislation places certain restrictions on the use of some local currencies generated by the sale of food aid commodities in recipient countries; (2) the provisions prohibit the use of certain funds to promote the production of commodities that would compete in world markets with similar U.S. commodities; (3) the legislation gives the President discretion to determine what would represent competition in world markets with U.S. commodities; (4) the Department of Agriculture (USDA) interpeted the legislation's restrictions as meaning no funds could be used, either directly or indirectly, to support soybean exports; (5) there is disagreement between the Department of State and USDA over the desirability of supporting soybean production in Bolivia as an alternative to coca production; (6) State has urged the Development Coordination Committee (DCC) to reconsider its interpretation of the legislation's restrictions; (7) the Agency for International Development has advised DCC that the total amount of funds it has spent on soybean activities since 1985 is about $353,000; and (8) in fiscal years 1986 and 1987, $40 million was allocated to the Bolivia program, but DCC has not changed its position on the restrictions.