821.61333/7–2744: Telegram
The Secretary of State to the Ambassador in Colombia ( Lane )
921. More than sufficient coffee has already arrived in this country to fill the current Colombian quotas. Furthermore, although it is believed that no further increase in the quota will be authorized during the present quota year, the War Shipping Administration is anxious to continue moving Colombian coffee to the United States and has shipping available for this purpose. In consideration of the foregoing, the Inter-American Coffee Board at its meeting July 25 authorized producing countries filling their quotas to ship an additional quantity of coffee to this market, up to 25 percent of their basic [Page 159] quotas, for warehousing under customs supervision and entry after the beginning of the quota year on October 1. This resolution was opposed by the Colombian delegate on the ground that it was too early to consider such action; that difficulties and expenses would be involved in warehousing such coffee; and that the agenda of the Coffee Board meeting did not contain a specific reference to this matter.
Most of the members of the Board were in favor of handling the matter at once, however, in view of the need for an immediate decision with respect to disposition of coffee already in the United States and of their opinion that such action would be entirely appropriate under the agenda of the meeting. Since the Colombian delegate has recently stated that his Government is no longer interested in the question of a quota increase and since the resolution would constitute approval by the Boafcd of action by the Colombian Government in shipping coffee to this market in a quantity which is contrary to the first paragraph of Article 4 of the Inter-American Coffee Agreement, the position of the Colombian delegate is difficult to understand. An instruction containing additional background information concerning this matter will be forwarded to you as soon as possible.
The Board’s action is, of course, only permissive so far as future shipments from the producing countries are concerned. It is urgently necessary to ascertain whether the Colombian Government will permit the exportation of further coffee in accordance with the resolution. The War Shipping Administration, just prior to the meeting of July 25, had informed the Department that it had two vessels in position to call at the port of Buenaventura for coffee within the very near future but that it understood the Colombian Government was not permitting the shipment of further coffee and that it wished information as to whether the Colombian Government would release coffee for export on the vessels provided they were routed into the port of Buenaventura. From a shipping viewpoint it is desirable to schedule a regular flow of coffee from Colombia to the United States regardless of the status of the quota.
This matter has been brought to the attention of the Colombian delegate, and it is presumed that he will take it up with his Government. It is requested, nevertheless, that the Embassy also bring it to the attention of the Colombian authorities and that it report to the Department urgently its recommendation as to whether or not the two vessels in question should be routed into the port of Buenaventura and whether coffee will be released for additional vessels which may be available in the future.