561.333D3/4–445: Circular telegram

The Acting Secretary of State to the Diplomatic Representatives in Certain American Republics

The Department has informed the Inter-American Coffee Board that this Government is agreeable, in principle, to continuation Inter-American Coffee Agreement. However, in view of changed conditions since the Agreement was first negotiated and because maintenance quotas is apparently not required by the present international coffee situation, we have suggested that the Agreement be continued for 1 or 2 years subject to the following conditions: (1) that the quota provisions of the Agreement be inoperative except under emergency conditions when they might be placed in operation by unanimous vote of the Board, and (2) that the Board undertake during the renewal period to prepare a thorough analysis of the world coffee situation and formulate recommendations, for the consideration of the governments now participating in the Agreement and of others that might be interested in participating in a revised agreement, regarding the type of international cooperation that appears most likely to contribute to the development of sound, prosperous conditions in international trade in coffee.

With the exception of Haiti and Ecuador, all governments participating in the Agreement have now communicated their views to the [Page 358] Board regarding continuation. There is no unanimity opinion among the producing countries as to form of renewal, although all so far agree on the principle of renewal. Some of the countries propose Agreement be continued with modifications in their own quotas and others are willing to continue Agreement unchanged.

At the meeting of the Board on April 3, it was agreed (1) to extend for 15 days the period during which the remaining governments might notify the Board of their decisions regarding continuation; (2) that the delegates to the Board would communicate to their governments the replies received by the Board, calling especial attention to the proposal suggested by the United States with a view to ascertaining whether the governments are agreeable to continuation on this basis; and (3) that the Board will meet again on April 18 to ascertain whether it is possible to reach agreement within the Board as to continuation on the basis suggested by the United States, and, if not, to consider future procedure.

Additional details will be forwarded airmail.

This message is being sent as a telegram to AmEmbassy, Rio de Janeiro, Bogotá, Quito, San José, San Salvador, Tegucigalpa, Managua, Lima and Caracas; and as an airgram to AmEmbassy, Ciudad Trujillo, Guatemala, Port-au-Prince, Mexico, D.F., and Habana.