Office of the Historian

269. Circular Airgram From the Department of State to the Embassy in the United Kingdom1

CA-12491
Washington, May 21, 1965, 6:58 p.m.

SUBJECT

  • UK Grain Imports

Unless Embassy sees objection, please deliver an Aide-Memoire along following lines to appropriate UK officials:

The United States Government on April 26 expressed its concern over the level of UK grain imports and the corrective measures taken by [Page 685] the United Kingdom Government.2 At that time we suggested further meetings between representatives of our two governments. The 1965 program provided for increased standard quantities for both wheat and barley. We now have information that the 1965 acreages of wheat and barley are expected to increase by 14 and 4 percent, respectively. These increases even with average yields could produce crops approaching last year’s level. There are strong indications therefore, that the UK grain imports may again fall far short of the levels provided in the exchange of letters.

The exchange of letters of April 1964, in paragraph 9, provides that “the Government of the United Kingdom shall review the minimum import price arrangement before the beginning of each crop year commencing on the first of July or on request during the crop year, in consultation with the Government of the United States and other cooperating Governments.” It will be recalled at the December 1964 review the United States indicated its concern about the price floors, but deferred discussion on the understanding that a meeting would be held at a later date. We now find problems have arisen that require attention. One area where adjustments are necessary is in the price floors of US hard winter and dark hard winter 14% protein. Also changes should be made in the flour arrangement so that US flour prices can be adjusted downward if internal UK prices fall below the minimum.

The United States Government would like an opportunity to discuss these problems with the United Kingdom Government at an early date.

FYI. We would suggest June 7 if this is agreeable to the United Kingdom.

Rusk
  1. Source: Department of State, Central Files, INCO–GRAINS 17 US–UK. Unclassified; Priority. Drafted by G. H. Lloyd (FAS); cleared by A. R. DeFelice, C. R. Donovan, and D. M. Rubel (USDA), Fred H. Sanderson, and Irwin R. Hedges; and approved by James P. Burke (OPR/RM). Repeated to Ottawa, Canberra, Buenos Aires, Brussels for USEC, and Geneva for GATT.↩
  2. Document 267.↩