368. Memorandum From the Special Representative for Trade Negotiations (Roth) to President Johnson1
SUBJECT
- Three Bilateral Agreements Concluded in Kennedy Round
This memorandum requests that you authorize signature, on behalf of the United States, of three significant bilateral trade agreements which have been negotiated in the Sixth (or Kennedy) Round of Trade Negotiations.
Bilateral ASP Agreement with Japan
We have negotiated a bilateral agreement with Japan under which the United States undertakes to seek from the Congress the elimination of the American selling price (ASP) system of customs valuation concerning certain canned clams and wool-knit gloves. In return, Japan will give us a tariff concession on abrasive paper.
In particular, if the ASP system is eliminated, the new rates based upon normal methods of valuation would be for canned clams 8.5. cents per net pound if not over 40 cents per pound, and 14 per cent ad valorem if over 40 cents per pound, and for wool-knit gloves 30 cents per pound plus 26 per cent ad valorem.
The text of the proposed agreement is attached at Tab A.2
Bilateral Cereals Agreement with United Kingdom
There is presently in force a bilateral agreement between the United States and the United Kingdom concerning U.S. exports of cereals to the United Kingdom. Among other things, this agreement establishes a system of minimum import prices to be applied by the United Kingdom to such exports under certain conditions.
In mid-July, the United States and most of the other parties to the International Wheat Agreement will begin the negotiation of a new World Grains Arrangement, which will deal not only with minimum and maximum world prices for grains but also a food aid program. The proposed agreement would ensure that, in implementing the world grains arrangement, the United Kingdom will abide by its present minimum import price system, which is quite tolerable from our point of view, and not substitute a more protectionist system.
The text of the proposed agreement is attached at Tab B.
[Page 957]Bilateral Agreement with EEC on “Standstill Rights”
At the conclusion of the Dillon Round early in 1962, we concluded two bilateral agreements with the EEC whereby we maintained our rights under the General Agreement on Tariffs and Trade to try to negotiate terms of adequate access to the EEC for quality wheat and other grains and, failing that, to obtain compensatory tariff concessions from the EEC on other products or to make retaliatory withdrawals of concessions granted to the EEC.
The EEC has requested that, during the three-year duration of the new World Grains Arrangement, we agree to refrain from exercising our rights under these agreements. In return, we have asked that the EEC affirm that its system of variable levies for imports of grains continue to be applied on a most-favored-nation basis.
The text of the proposed agreement is attached at Tab C.
Authority for Bilateral Agreements
These three bilateral agreements for which your approval is now sought have been negotiated, and may be concluded, pursuant to the President’s Constitutional authority concerning international agreements. Of these agreements only one will require Congressional action—legislation to implement the bilateral agreement to eliminate ASP.
Request
I request your approval to have the United States, under the authority of your Constitutional powers, enter into the three bilateral trade agreements negotiated within the framework of the Kennedy Round. If you approve, either Ambassador W. Michael Blumenthal, Ambassador Roger W. Tubby, or I will sign in Geneva the bilateral ASP Agreement with Japan and the bilateral Agreement on Standstill Rights with the EEC, and Ambassador Bruce or his designee will sign in London the bilateral grains agreement with the United Kingdom.3
- Source: Johnson Library, Bator Papers, Kennedy Round Windup, Box 13. Confidential.↩
- None of tabs is printed.↩
- The President approved on June 28; see Document 369.↩
- Printed from a copy that bears this typed signature.↩