561.311F1/45: Telegram

The Secretary of State to the Consul at Geneva (Gilbert)

52. For Morgenthau. In the discussions with wheat representatives it might be useful if two technical phases of the situation are kept in mind.

1.
That any international agreement between exporting states that called for flat percentage reduction of acreage would mean more than proportionate withdrawal of the United States from the world wheat market. The preferable line is that agreement must leave unmodified relative positions of countries in the world market. Furthermore consideration should be given to the fact that our official activities in this field have meant a more than normal withdrawal of American wheat from world markets during the past few years.
2.
In talking with the Dominions and perhaps British representatives bear in mind that Great Britain’s interest is not merely that of a consumer of wheat but also that of a very large investor in the wheat raising Dominions.

The Farm Bill was approved today.9 Its provisions give full powers for acreage reduction or for control of export.

These are just some indications of policy that the Department of Agriculture wants to bring to the forefront of your attention. Further indications may be sent from time to time. You of course will make it completely clear that you are authorized only to explore the possibilities and can commit the Government in no way.

Hull
  1. Agricultural Adjustment Act, 48 Stat. 31.