821.61333/274
The Secretary of State to the Chargé in Colombia (Daniels)
Sir: There is enclosed a translation of a copy of a memorandum of April 1815 from the Colombian Embassy in Washington, pointing out the desirability, from the viewpoint of Colombia, of altering the coffee quotas to permit the importation into the United States of a larger quantity of Colombian coffee.
The immediate problem has been alleviated to some extent by the increase in the quotas for the current quota year authorized by the Inter-American Coffee Board in its meeting of April 20. As the Embassy is aware, the increase in the case of Colombia amounted to 687,393 bags. It is probable, of course, that the question of increasing the quotas for the present year in order to permit the importation of a larger quantity of Colombian coffee may again be raised. In this event, very strenuous opposition by some of the other countries participating in the Inter-American Coffee Agreement, particularly Brazil and Cuba, is anticipated.
With reference to the question of increasing Colombia’s share in the basic quotas, it is felt that this matter, since it involves all countries participating in the Inter-American Coffee Agreement, is also one which should be worked out through the medium of the Inter-American [Page 144] Coffee Board. The Department’s intention is to advise the Colombian Embassy to this effect. It is felt that the United States Government for the time being, at least, should adopt a neutral attitude concerning the proposal itself.
Colombia is the only country which has as yet not agreed to continuation of the Inter-American Coffee Agreement beyond October 1, 1944. This matter will very probably become involved in the discussion of an alteration in the quotas, since it is believed that Colombia may be unwilling to agree to further continuation of the Agreement until the question of Colombia’s future participation in the basic quotas is decided. It is also believed that there is little likelihood of general agreement being reached between now and October 1, with respect to the question of increasing Colombia’s share in the quotas. In view of the foregoing, it is doubted that there will be general agreement to continue the Inter-American Coffee Agreement beyond October 1, 1944. Because conditions have changed greatly since the Agreement was negotiated and because it appears that control of international trade in coffee after the war may not be necessary to relieve conditions of surplus production, the Department is of the view that the signatory countries should not be urged to continue the Agreement. Should the Agreement be allowed to lapse, however, it is believed that the Inter-American Coffee Board should explore the desirability and feasibility of replacing it with another agreement which, although probably not establishing quotas, would provide for consultation on coffee problems between representatives of coffee producing and coffee consuming countries, and possibly for participation by countries that are not signatories of the present Agreement.
It is requested that the Embassy supply the Department with its views regarding the note from the Colombian Embassy and the views of the Department expressed above and that it transmit to the Department as promptly as possible any suggestions that it may have as to further procedure.
Very truly yours,
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