561.311F1/47: Telegram
The Secretary of State to the Consul at Geneva ( Gilbert )
54. For Morgenthau. Our No. 52, May 12, and your 109 [119], May 13. The Department of Agriculture is of the opinion that any reduction agreed upon should apply initially to the acreage planted for the 1934 crop and that the agreement should if possible cover the two seasons following.
In connection with what you say regarding the Argentine position, it is realized that other countries would find an identical reduction of acreage more favorable than a percentage reduction of exports. However they must also realize that this means a far more than proportionate withdrawal of the United States from the world market. Other countries should be prepared to go a certain distance to meet this view. It is possible that some compromise formula can be worked out and you are instructed to do your utmost to secure concession in that direction. Export reduction agreement would be more precise and more controllable in fact.
[Page 794]If you cannot secure any recognition of the American position do not utter an ultimatum. The development of our domestic plans will enter into our final decision. But it is very important that some concession be won in order to secure American consent to any agreement.