98. Telegram From the Embassy in Canada to the Department of State1
20. For State and Agriculture.
today informed Embassy that attitude of present government toward US wheat disposal policies more bitter than that of previous government and that some form high-level representation to US is contemplated.
Under circumstances increased volume of official statements and press items critical of US disposal policies can be expected. Such statements and items undoubtedly will continue to give unfair and biased picture of US position.
I believe there is need for authoritative US statement designed put our wheat disposal policies in perspective and correct unfair and biased press presentations such as lead editorial in July 9 Montreal Gazette (Embtel 17)2 and editorial today’s Toronto Globe and Mail (Embtel 19).3 There is risk of course that such statement might harm our future relations with new Canadian Government. Certainly we cannot afford establish pattern of conducting Canadian-US relations by press release, particularly in absence passage sufficient time for establishment informal personal relationships between new cabinet members and their opposite US numbers.
Notwithstanding foregoing risk, occasion of signature bill extending PL 480 provides unique opportunity for President to make objective statement regarding surplus wheat disposal policies stressing humanitarian and long-term developmental aspects of PL 480. Such statement might invite other nations, including Canada, who are in position to do so to join US in this work. Such statement I believe should admit that some damage has been done to export markets of free countries, although possibly not to extent that some countries feel. It would need to be drafted with utmost care to avoid starting new barrage of Canadian criticism.
Wheat situation has, in my opinion, considerable potential for damage to overall US-Canadian relations. I would appreciate your reaction to this suggested countermeasure. Embassy recognizes it may not be practicable for reasons of timing final congressional [Page 253] action on bill. If approved, statement would I presume be drafted in Washington but Embassy would appreciate opportunity see and comment on draft prior its final form.