Foreign Relations of the United States, 1964–1968, Volume IX, International Development and Economic Defense Policy; Commodities

256. Letter From the British Minister of Agriculture (Peart) to the Special Representative for Trade Negotiations (Herter)¹

London, March 3, 1965.

Dear Governor Herter,²

Thank you for your letter, delivered to me on 26th February,³ referring to the arrangements for consultation under the exchange of letters of 15th April, 1964, relating to United Kingdom production and trade policies for cereals. I entirely agree with you about the importance of this agreement as a precedent for international co-operation and a means of facilitating progress in the Kennedy Round negotiations. I recognise that it is particularly important in this connection to be able to show that the arrangements are working satisfactorily.

I am anxious therefore that the consultations provided for in the agreement should be as full and meaningful as is possible in the circumstances. You will appreciate however that I must at the same time have regard to the requirements of our domestic agricultural legislation. As you know, under the Agriculture Acts of 1947 and 1957, decisions relating to the guarantee arrangements and the level of guaranteed prices must be taken by Ministers in the light of the Annual Review of the economic condition and prospects of the agricultural industry. It is essential that the Review should be held under conditions of strict confidence. There can be no disclosure of the Government’s specific intentions until Ministers have taken decisions in the light of the Review and I am in a position to announce those decisions in Parliament.

This necessarily affects the form of the consultations under the agreement. At the consultations which began in December 1964, however, we supplied the representatives of the principal supplying countries with full information about developments in the current crop year, and they were able to make very clear to us their views on the need for remedial action in the light of the present and prospective import situation. At the same time, we undertook to inform the principal exporting countries as early as possible in the Annual Review of our preliminary thinking particularly in regard to the level of the standard quantities and estimated total consumption of cereals in 1965/66. This we have done in the note delivered to your Government on 17th February.⁴

For the reasons I have explained, we shall not be able to give definite indications of the action to be taken in regard to the adjustment of the standard quantities or the level of guaranteed prices until the Annual Review has been completed. If, however, as I understand from your letter, you wish to have a further opportunity of representing your arguments, I shall be pleased to arrange for my officials to have a meeting later this week or next week with officials from your Embassy here.

I am sure you will appreciate the delicate nature of these consultations and I hope that this arrangement will be agreeable to you. I can assure you that the U.K. Government are most anxious to see the objectives of the agreements fulfilled and intend to give full weight to their obligations under them.

Yours sincerely

Fred Peart

1. Source: Department of State, Central Files, INCO–GRAINS 4 UK-US. No classification marking. The source text is an attachment to airgram A–2211 from London, March 6. The text of the letter was also transmitted in telegram 4219 from London, March 3. (Ibid.)
2. The salutation and complimentary close are handwritten.
3. See Document 254.
4. See footnote 2, Document 252.