561.311F1/134: Telegram
The Acting Secretary of State to the Chairman of the American Delegation to the Monetary and Economic Conference ( Hull )
107. For Morgenthau from Wallace. Your 103, July 5, 9 p.m. If acceptable to you I propose to release the following statement this afternoon. Please advise me by return wire if this is in accord with your views on the current situation.
“From the beginning of the wheat conference with the three other great exporting countries, the United States has emphasized the need of definite action to control acreages within exporting countries. We have recognized the difficulties that might stand in the way of securing concurrent action by European countries, and the time which might be required to work out satisfactory arrangements as to their action. Accordingly we have urged consistently that the four exporting countries agree to reduce their acreage for next year’s harvest, without regard to European cooperation. We have also urged, however, that any agreement of the exporting countries to continue the reduction after the first year be conditional upon meanwhile working out satisfactory arrangements with the other countries.
The agreement which was announced in London yesterday recognizes in principle the need of a temporary adjustment of wheat production and trade to world demand, so as to liquidate the surplus stocks. The other exporting countries have not, however, seen fit to agree to the unconditional agreement to reduce acreage for next year’s harvest which we suggested. It remains to be seen whether the negotiations with the European countries, which are being undertaken by a committee of the exporting countries, will find sufficient support to justify continuing the wheat discussions at London.
If the international wheat discussions are abandoned, we will plan action in our domestic wheat plan according to the policy which promises the maximum benefits to our domestic producers”.
- [Wallace]
- Phillips