561.333D3/3–1146: Circular telegram

The Secretary of State to Diplomatic Representatives in Certain American Republics 2

u.s. urgent

Baker, OPA deputy administrator, met March 11 with Inter-American Coffee Board. He stated no decision yet reached on coffee price matter but said he was authorized to suggest following proposal: continuation subsidy 3 cents a pound for 6 to 8 million bags to be imported here by June 30.

Coffee Board was asked for its reactions and will meet again March 14 to transmit opinions to OPA. No final decision will be made on coffee until after Coffee Board’s views are known.

Coffee delegates appeared ready to go along with proposal as stopgap measure but are most anxious for more permanent type solution coffee price problem to be worked out before June 30.

Baker made clear that there is no present thought of elimination of coffee ceiling prices.

This info not distributed to press here but Embassy should feel free to use it in any appropriate manner.

  1. Not sent to Argentina, Bolivia, Chile, Panama, Paraguay, and Uruguay.