[Enclosure]
The Secretary of the American Delegation
(Cox)
to the Ambassador in Great Britain
(Dawes)
Sir: I have the honor to submit the
following report on the Conference of Wheat Exporting Countries held
at Canada House, Trafalgar Square, London, May 18–23, 1931.
The Conference of Wheat Exporting Countries was convened in London at
the invitation of the Canadian Government. The following [Page 640] countries sent
delegations: United States, Argentina, Australia, Bulgaria, Canada,
Hungary, India, Poland, Roumania, Soviet Russia and Jugoslavia.
The Canadian High Commissioner in London, the Honorable G. Howard
Ferguson, was elected Chairman of the Conference. The meetings were
private.
The purpose of the Conference, as expressed by Mr. Ferguson at the
first Plenary Session on May 18, was to discuss (1) the disposition
of present accumulated wheat stocks in various countries; (2)
improving the methods for handling and distributing the wheat
surplus of the future.
Early in the proceedings clarification was given to the views on
these two items held by the American delegation, the Russian
delegation, and the delegations from Poland, Bulgaria, Hungary,
Roumania and Jugoslavia, the latter five acting together as a group.
The delegations from Poland and the four Danubian countries desired
the formation of an International Wheat Board with headquarters in
London to determine wheat export quotas for each wheat exporting
country. Practically identical proposals to this effect were
presented by the Polish, Roumanian and Hungarian delegations.
In the opinion of the American delegation, economic adjustment of
production in keeping with the changed economic outlook was the best
method of solving the problem of present wheat surpluses, without
resort to quotas or anything to disturb the freedom of trade on
international wheat markets. The American delegation made it clear
that the United States would not participate in any International
Wheat Board to fix export quotas. It gave to the Conference the
reassuring statement that the supplies accumulated by the Federal
Farm Board would not be dumped on European markets and thus
demoralize them. It also stressed the desirability of capitalizing
on present low wheat prices to extend wheat consumption in Oriental
and tropical countries.
The Soviet delegation refused to accept acreage reduction as a
solution of the problem as Russia aimed at increasing her present
production rather than diminishing it. The Soviet delegation,
however, was prepared to discuss the limitation of wheat exports on
a quota basis subject to the following provisos: (1) The quota for
Soviet Russia to be based on the quantity of wheat exported by
Russia before the war; (2) the largest wheat exporting countries to
participate in the scheme; (3) States adhering to the quota scheme
should not conclude any separate agreements between themselves or
with a wheat importing country or group of wheat importing
countries.
[Page 641]
At the outset, the Canadian, Australian and Indian delegations
appeared to favor some quota plan, but the Canadian delegation held
itself in reserve, never fully declaring its position. At the same
time the Canadian delegation, together with the Argentine and
Australian delegations, showed a receptive frame of mind to the
attitude on the questions at issue adopted by the American
delegation.
The points of view enumerated above proving to be irreconcilable, the
delegates, in order to produce something tangible from the
Conference proceedings, agreed to establish a Conference Committee
consisting of one representative from each State participating in
the Conference to—
- “(a) Submit to the Governments
of the countries participating in this Conference a
definite proposal for establishing, under the
supervision of the Committee of the Conference, a
Clearing House of information to serve the wheat
exporting countries. For this purpose, the Committee
shall be empowered to secure from the States represented
on the Committee full information as to the unloadings
and stocks of wheat at all importing points, the areas
sown to wheat, and the crop prospects, thereby assisting
the orderly distribution of wheat in world markets. This
information should be provided as far as possible in the
form prescribed and at the times fixed by the
Committee.
- (b) To explore carefully all
possible avenues for the greater utilisation of this
important cereal.”
This Committee would also prepare and recommend a draft agenda for a
further meeting of the Conference at such time as is considered
desirable. Mr. N. A. Olsen of the Department of Agriculture, one of
the American delegates, was named the American representative on
this Committee. The text of the resolution providing for the
Committee, adopted at the final session of the Conference on May 23,
was sent to the Department of State in the American Embassy’s
telegram No. 163 of May 23, 1 p.m.
There are transmitted under separate cover one copy each, in English
and in French, of the documents distributed by the Secretary General
of the Conference67
(the yellow and white colored documents being the Minutes of the
meetings, the gray folder and pink colored documents being general
documentation. Of the latter pink group, possibly the most
interesting are document No. 9, the statement of Honorable S. R.
McKelvie, of the American delegation; documents Nos. 17, 18 and 19,
the Polish, Roumanian and Hungarian proposals, respectively; and
document No. 26, the statement of Mr. I. E. Lubimoff of the Soviet
delegation.)
Documents Nos. 13 and 16, entitled “The Chadbourne Agreement” and
“Effects of Protective Measures adopted by European Wheat [Page 642] Importing Countries”, are,
at the request of the Chairman, to be considered strictly
confidential.
There are also transmitted under separate cover a copy of the “Final
Act of the Conference” (white paper), giving the text of the
agreement finally reached by the delegates on May 23 as outlined
above, and the Directory of the Conference, containing the names and
titles of the various delegates and advisers. A copy of the “Final
Act” is attached to this report, together with single copies of
editorials from the London press commenting on the results of the
Conference.68
Respectfully yours,