561.333D3/7–444

Memorandum of Conversation, by the Chairman of the Inter-American Coffee Board (Cale)

I stated that if Mr. Camargo had no objection I felt it would be desirable for us to compare notes as to what our positions would be in the meeting of the Inter-American Coffee Board on July 5 concerning the question of a possible increase in the coffee quotas.

Mr. Camargo said that he would be glad to discuss the matter with me. He pointed out that the Colombian delegate had vigorously pressed for a larger increase in the quotas than was authorized by the Inter-American Coffee Board in its meeting of April 20 and that he had likewise attempted to obtain an increase in Colombia’s basic quota prior to acceptance by the Colombian Government on May 31 of the Board’s recommendation that the Inter-American Coffee Agreement be continued for a further year beyond October 1, 1944.

He called attention to the fact that in agreeing on May 31 to continuation of the Agreement he had stated that the Colombian Government had decided that it would prefer to find a means for solving its surplus problem domestically rather than to take action which would [Page 156] mean the termination of the Inter-American Coffee Agreement. (After the meeting of May 31 Mr. Camargo had stated to me that he was of the opinion that the Government would soon embark upon a program calling for governmental purchase of a substantial quantity of coffee).

Mr. Camargo stated that the decision reached by his government in May was taken after careful deliberation and that it was not likely to be changed quickly. He expressed the view that members of the United States coffee trade, who had stated in April that they would be satisfied with an increase in the quotas of only twenty percent, had made a mistake since this action had left the Colombian delegate without effective support in his attempts to obtain a larger increase in the quotas. He pointed out that United States importers at present appear to be concerned over the possibility that the Colombian Coffee Federation will purchase substantial quantities of coffee but stated that members of the trade would have no one to blame other than themselves should such a development occur.

With respect to the meeting on July 5 he stated that under instructions he had received up until the time of our conversation he would take the position that the Colombian Government had no interest in the question of a quota increase. He said that it was possible that he might receive different instructions prior to meeting but that he did not expect them.

I expressed relief at this information in view of the fact that I was not in a position to recommend or support a resolution calling for an increase in the coffee quotas. I stated that I felt that the spirit of the Inter-American Coffee Agreement demanded that all other practicable efforts in supplying United States coffee requirements should be explored before resort was made to the emergency powers for increasing the quotas provided for in Article VIII of the Inter-American Coffee Agreement. I added that this did not mean that the question of a readjustment in the basic quotas could not be considered on its merit nor that the United States delegate might not recommend an emergency increase in the quotas provided no alternative method of satisfying the United States coffee requirements was found.

I pointed out, however, that the Brazilian delegate to the Board and officials of the Brazilian Government had requested that the United States Government attempt to find a solution for the present coffee problem by providing additional tonnage for Brazilian coffee. I said that the problem had not been one so much of tonnage as of having cargoes of coffee available in Brazil when the shipping arrived. I stated that this matter had recently been brought to the attention of officials of the Brazilian Government who had given us assurances that normal trading in Brazilian coffee would be resumed and that [Page 157] for this reason my Government was not disposed to press for a quota increase at the present time.

I inquired concerning the quantity of Colombian coffee which Mr. Camargo felt would be sold for shipment from Colombia during the present quota year if the coffee quotas were increased. He avoided giving a direct answer to this question, saying that it depended upon a number of factors including the willingness of Colombian exporters to sell at current prices. He subsequently expressed the view that the quantity of coffee available would perhaps amount to as much as a million bags.