Foreign Relations of the United States Diplomatic Papers, 1940, The American Republics, Volume V

561.333D3/111

Memorandum by Mr. Paul C. Daniels of the Division of the American Republics to the Under Secretary of State ( Welles )

[ Washington ,] September 18, 1940.

Mr. Welles: On my memorandum of September 16 you indicated your willingness to consider the possibility of presenting to the Inter-American Committee a coffee quota plan which in the opinion of this Government would be fair and equitable.

At the meeting of the Subcommittee on Coffee held at the Pan American Union on September 16 the members of the Subcommittee expressed their desire to hear this Government’s views on the allocation of coffee quotas for the United States market. This desire was confirmed by the unanimous vote of all the delegates from the producing countries represented on the Subcommittee.

There is accordingly attached a table on which are indicated (in the second column of figures) proposed basic quotas for the United States market. For purposes of comparison the New York quotas are indicated in the first column. It will be observed that the total figure of 15,900,000 bags reached at New York has been retained in the basic quotas for the United States now proposed. Certain changes, however, are suggested in the allocation of this total among the producing countries.

The figures in the third column, representing coffee export quotas to markets other than the United States, have been arrived at by subtracting the quotas for the United States market from the figures given in the last column. The figures in the last column represent total exports to the world from each producing country in the year of greatest exports during the six-year period 1934–1939. This procedure, i. e., subtracting quotas for the United States from the total figures given in column 4, was adopted at an earlier meeting of the Coffee Subcommittee and therefore followed in this case. However, the only proposals invited from this Government are those contained in column 2, indicating proposed basic quotas for the United States; the figures for quotas to other markets have merely been included to facilitate appraisal of the whole situation.

The new proposed allocation of the quotas for the United States contained in column 2 has been carefully considered and unanimously approved by the officials who have been studying this problem most closely, namely, Messrs. Mueller and Wheeler of the Department of Agriculture; Mr. Domeratzky of the Department of Commerce; and Messrs. Collado and Daniels of the Department of State.

Proposed Basic Quotas in Bags of 60 Kilograms

Exporting Countries	New York Quotas	To United States	To Other Markets	Total *
Brazil	9,322,000	9,300,000	7,813,000	17,113,000	(1938)
Colombia	3,200,000	3,150,000	1,079,000	4,229,000	(1938)
El Salvador	600,000	600,000	527,000	1,127,000	(1937)
Costa Rica	210,000	200,000	242,000	442,000	(1937)
Cuba	80,000	80,000	62,000	142,000	(1939)
Nicaragua	195,000	195,000	114,000	309,000	(1935)
Venezuela	400,000	420,000	606,000	1,026,000	(1936)
Santo Domingo	120,000	120,000	138,000	258,000	(1939)
Ecuador	180,000	150,000	89,000	239,000	(1934)
Guatemala	500,000	535,000	312,000	847,000	(1936)
Haiti	275,000	275,000	327,000	602,000	(1936)
Honduras	15,000	20,000	21,000	41,000	(1937)
Mexico	450,000	475,000	239,000	714,000	(1936)
Peru		25,000	43,000	68,000	(1934)
Total American Countries	15,547,000	15,545,000	11,612,000	27,157,000
Other Countries	353,000	355,000
Total	15,900,000	15,900,000

Note: The following factors have been considered in arriving at the proposed basic quotas:

1. Average total exports from each country during recent years.

2. Average exports to United States during recent years.

3. Requirements of United States market for special types of coffee.

4. Normal markets for each country’s coffee.

5. Abnormal conditions due to war.

1. The figures in this column represent the total exports from each country in the year of greatest exports during the six-year period 1934–1939.