USDA FOREIGN POSTS THREATENED BY TIGHT BUDGET
The U.S. Agriculture Department will
be forced to close 13 foreign posts and reduce personnel in
five others unless Congress approves two mln dlrs in
supplemental appropriations for fiscal 1987 to cover increased
overseas costs due to changes in the value of currencies, a
senior department official said.
    Thomas Kay, administrator of USDA's Foreign Agricultural
Service, FAS, told the Senate Appropriations Agriculture
Subcommittee that the devaluation of the U.S. dollar since 1985
has raised USDA's costs in many of its 75 offices overseas.
    Kay declined to say which posts were jeopardized by rising
foreign costs.
    In Europe and Japan, the dollar's decline is expected to
raise the costs of running offices staffed by agricultural
attaches and trade officers by 2.5 mln dlrs in the current
fiscal year compared with 1985 estimates, according to FAS
projections.
    Favorable exchange rate changes are expected to cut FAS
spending by about 510,000 dlrs elsewhere, FAS said.
    The House Appropriations Committee has approved one mln
dlrs in supplemental funds to cover FAS losses. The full House
may take up the measure, folded into a government-wide
supplemental appropriations bill, next week.
    Staff on the House panel said the committee balked at
appropriating two mln dlrs because the White House budget
office turned down FAS's request for the supplemental.
 Reuter
