511.4A0/342: Telegram

The Chairman of the American Delegation (Caldwell) to the Secretary of State

13. Nearly 2 weeks of the Conference have been spent in general discussion without reference to details of any plan. Plenary sessions have been abandoned temporarily to permit committees named in my telegram No. 9, June 3, 5 p.m.97 to consider the nearly 50 amendments to draft convention which have been referred to them. It is understood from confidential sources that an agreement regarding quotas was reached between certain countries but that it did not include Turkey and Yugoslavia; Yugoslavia announced in plenary session that a large factory for production of drugs for export was started in Yugoslavia in March of this year; efforts were made outside the Conference by the group which agreed on quotas to draw in Turkey and Yugoslavia but without success, Turkey demanding both a quota of 30 percent of the total world needs and a guaranteed sale of 30 percent of her raw material at a good price and Yugoslavia making some demands which were unacceptable. Consequently quota advocates avoided giving the Conference any details regarding quota agreement or negotiations probably in belief that they had a chance to discuss amendments out of existence and persuade Conference to accept principle of quota plan without quotas, realizing that if it were openly admitted that there was no chance to include Turkey and Yugoslavia there would be little hope of securing adoption of quota plan. Numerous references to this lack of information about quotas have been made by this and other delegations in hope of bringing about a degree of success in decision on quota plan.

A few days ago the Japanese delegation presented an amendment the basic principles of which correspond to the ideas of this delegation. When discussion of Japanese amendment began yesterday it became necessary to present our amendments which go further than the Japanese amendment but are not in conflict with it. Consequently this [Page 659] delegation submitted amendments to articles 8, 9 and 10 the essential points of which are submitted:

(1)
Omission of quotas thereby avoiding denying to any signatory of proposed convention the right to manufacture under its terms either for domestic consumption or export;
(2)
Limitation of quantities of raw materials allowed to manufacturers; thereby limiting quantities of all narcotic drugs that may be manufactured;
(3)
Limitation of stocks of all narcotic drugs both for domestic consumption and for export, latter not to exceed 50 percent of previous years exports and additional manufacture for export to be permitted only as export orders are received.

The French delegate also introduced a brief amendment along the same lines and it seems probable that Japanese, French and American amendments can be incorporated in a plan which will have the support of all three delegations and of several other delegations also.

We will submit additional amendments shortly to complete a working scheme which will include estimates of needs and a means of preventing exports from exceeding those estimates.

There has been no advocacy of the Crane98 plan thus far in the Conference.

Full text of our amendments being sent by open mail but will not be telegraphed unless requested.

Caldwell
  1. Not printed.
  2. C. K. Crane, of Pasadena, California.