97. Minutes of a Cabinet Meeting, The White House, Washington, June 17, 1957, 9–10:20 a.m.1
THE FOLLOWING WERE PRESENT
- President Eisenhower
- Sec. Dulles
- Under Sec. Randolph Burgess (for Sec. Humphrey)
- Deputy Sec. Quarles (for Sec. Wilson)
- Deputy Attorney General Rogers (for Mr. Brownell)
- Mr. Summerfield
- Sec. Seaton
- Sec. Benson
- Under Sec. Walter Williams (for Sec. Weeks)
- Sec. Mitchell
- Sec. Folsom
- Director Brundage and
- Mr. Arnold Jones
- Mr. Gordon Gray
- Chrm. Ellsworth
- Dr. Saulnier
- Amb. Lodge
- Asst. Sec. of Agriculture Earl Butz (in part)
- Mr. Don Paarlberg (in part)
- Mr. Milan Smith (in part)
- Acting Adm. of FCDA Lewis E. Berry
- Mr. Allen Dulles, CIA
- Adm. Strauss, AEC
- Mr. Arthur Larson, USIA
- Lt. Gen. M. H. Silverthorn, ODM (in part)
- Mr. Robert West, ODM (in part)
- Gen. Oliver Picher, JCS (in part)
- Gov. Adams
- Gen. Persons
- Mr. Rabb
- Mr. Hagerty
- Mr. Shanley
- Gen. Cutler
- Mr. Morgan
- Dr. Hauge
- Gov. Pyle
- Mr. Martin
- Mr. Jack Anderson
- Capt. Aurand
- Mrs. Wheaton
- Mr. Patterson
- Mr. Minnich
[Here follows discussion of Operation Alert 1957 and the national debt.]
Current Agricultural Problems—Sec. Benson, prior to a detailed presentation on agricultural surpluses, noted that farm prices and income are slightly better than a year ago, that markets continue to expand, that much of the improvement resulted from costly new Federal programs, and that Agriculture is anxious to secure further legislation making price support formulas more flexible. He thought that Agriculture might next January urge a special message by the President on this matter.
[Page 251]Mr. Butz presented a series of charts concerning surpluses in particular crops, CCC disposal programs, exports generally and specifically under P.L. 480, and use of foreign currencies. He noted the favorable situation regarding upland cotton where the world price still exceeds the US price after a large volume of US sales—all of this contrary to the fears expressed, when the United States first went into the world market, that the world price would fall drastically.
Mr. Butz reported the definite impression he secured during a recent world trip that foreign officials have a growing tendency to regard P.L. 480 as a permanent source of food supplies. He urged that efforts be made to clarify the temporary nature of P.L. 480 programs.
Mr. Butz also made a detailed presentation on the rigidity of the law governing price supports for cotton and the requirement for taking action that will not be in the best interests of cotton producers.
Sec. Dulles reported the difficulty experienced by the State Department in judging whether the advantages of P.L. 480 outweighed the disadvantages. He reported also the concern of the Canadians who hope that P.L. 480 does not become permanent.
Mr. Gray took note of the Senate subcommittee hearings on P.L. 480 and the probability that Sen. Humphrey will attempt to charge negligence in fulfilling Title III concerning stockpiling. He stated the question as being one of whether the United States had to acquire stockpile items regardless of foreseeable needs or lack of needs. He saw hearings as an effort to drive wedges between ODM and Agriculture. The President commented that the supplementary stockpile was established primarily as a convenience for Agriculture.
Sec. Seaton commented on letters received by him and Sec. Weeks from President Hoover urging study of possible expansion of the barter program. The President commented on his long standing belief that it was desirable to trade surpluses subject to spoilage for materials, especially minerals, not subject to spoilage. He recognized the difficulty of carrying on such a program at a time when Treasury is having difficulty raising funds. Sec. Benson noted also that barter arrangements frequently served only to replace cash sales.
- Source: Eisenhower Library, Whitman File, Cabinet Meetings. Confidential. Prepared by Minnich.↩