332. Telegram From the Embassy in Australia to the Department of State1
2156. For Acting Secretary from Walt Rostow. Please inform Brom Smith immediately. Ref: Canberra 2153 and 2155.2
“Supplement to aide-memoire
We have learned this morning that the U.S. would be prepared to join other exporters in seeking, as an opening bid, a minimum price of $1.85.
[Page 803]We appreciate this indication of U.S. preparedness to try to meet us.
However, it would be little more than a gesture unless the U.S. is prepared to stick with other exporters in effectively negotiating with importers.
It should not be difficult to get the European Economic Community to accept a minimum price of $1.85. The major problem will be with Britain, whose desire for cheap wheat is determined by balance of payments considerations.
Balance of payments difficulties should not be accepted as justification for low-cost exporters, who have their own pressing needs for expanding export income, being expected to accept unremunerative prices and to draw on Treasury funds to support their efficient industries.
Our request, therefore, is that the U.S. not only join other exporters in an opening bid of $1.85, but persist, in concert with others, in doing its utmost to get a minimum price of this order.
Any revelation to Britain, or other importers, that the U.S. cohesion with other exporters may be capable of being split after the opening bid is on the table, and negotiations get underway, would be fatal to the prospects for a meaningful result. In that event, the consequences for Australia would be as stated in the aide-memoire. Canberra, October 21, 1966.”
- Source: Department of State, Central Files, INCO–WHEAT GATT. Confidential; Flash. Passed to the White House and USIA.↩
- Document 331 and footnote 3 thereto.↩