Office of the Historian

275. Telegram From the Department of State to the Embassy in the United Kingdom1

Washington, June 16, 1965, 9:28 p.m.

7945. For Ambassador from Secretary. Please pass following message to Australian Prime Minister Menzies.

Begin verbatim text

I enjoyed very much the opportunity on June 7 to discuss with you once more a whole range of issues of interest to our two countries.2

I have now looked into the matter of the price issue in the grains negotiations which you raised during our talk. I am happy to assure you that the United States is fully sensitive to the Australian position that grain-trading prices should be remunerative for efficient producers. We certainly hope to see a grain-trading arrangement come out of the Kennedy Round negotiations that will be advantageous to both Australia and the United States.

For our part, we too are concerned to assure remunerative returns to efficient producers. But we also believe strengthened prices must of necessity depend on an improved supply/demand balance which we hope to see come out of the negotiations. We should want importers to improve access for imported grains rather than have to see the import share decline as it now threatens to do. We should expect exporters to take effective measures to restrain supply and marketings as appropriate to their own systems, since we believe higher prices that brought forth more production would only be a step in the wrong direction. A greater share of international surpluses should also be disposed of through agreed international food aid programs instead of weighing heavily on commercial markets. In summary, we consider it necessary to emphasize the need for expanded international markets and internationally agreed supply restraints by all participating grain producers. These arrangements could certainly make higher prices possible.

Despite some difference in the emphases of our countries’ approaches to this grain problem, I am pleased to note the record of continuing [Page 698] dialogue and coordination between our representatives. I am certain that the Australian and United States negotiators in Geneva will continue to work together to seek results in the best interests of both our countries.

End verbatim text.

Rusk
  1. Source: Department of State, Central Files, INCO–GRAINS GATT. Limited Official Use; Priority. Drafted by G. A. Friedman (E/OR/FD) on June 15; cleared by William N. Roth, John A. Schnittker (USDA), Jerome Jacobson (E), Jack B. Button (E/OR/FD), Robert W. Barnett (FE), Francis G. Jarvis (FE/SPA), and Don T. Christensen (S/S); and approved by Secretary Rusk. Repeated to Brussels for USEC, Buenos Aires, Canberra, Ottawa, Tokyo, and Geneva for GATT.↩
  2. Australian Prime Minister Menzies made an informal visit to Washington June 6–9, while on his way to the 14th Conference of Commonwealth Prime Ministers in London. Secretary Rusk met with Prime Minister Menzies and President Johnson at the White House on June 7 at 12:30 p.m., followed by a White House luncheon. He also met with Menzies later that afternoon from 3 to 3:40 p.m. (Johnson Library, Rusk Appointment Books) No record of these meetings has been found.↩