Foreign Relations of the United States, 1947, The American Republics, Volume VIII

561.333D3/8–747

Minutes of a Meeting of the Inter-American Coffee Board by Mr. J. K. Havemeyer of the International Resources Division

Washington , August 7, 1947.

Meeting No. 103

The Inter-American Coffee Board met at its offices at 2400 Sixteenth Street, N.W., at 11:00 A.M., August 7, 1947 and considered the following matters:

1. New Delegates

The Chairman welcomed Mr. Carlos Alzamora, Delegate of Peru and Mr. Miguel A. Herrera, Delegate of the Dominican Republic.

2. Absentee Representation

For this meeting, the delegate of Venezuela presented his credentials to represent the Guatemalan delegate and the delegate of Colombia presented his credentials to represent the delegate of Costa Rica.

3. Approval of Minutes

Approval of the minutes for meeting No. 102 of July 1, 1947 was postponed until the next meeting of the Board.

4. Report of Special Committee of Review of the Coffee Study.

Dr. Casas-Briceño, Chairman of the Special Committee advised the Board that the Committee had met on August 7, 1947 immediately prior to this meeting of the Board. The Committee had received the text of the formal document addressed to the United States Delegate dated August 4, 1947 and signed by the Secretary of State.^* He stated that the Special Committee had not reviewed the document, and had agreed to recommend that the formal views of the United States Government on future possible inter-governmental coffee consultative arrangements should be read and discussed in the meeting of the Board.

The Chairman, Mr. E. G. Cale, the United States Delegate, said that pursuant to the Board’s resolution on July 1, 1947 the Secretary Manager had written him a letter dated July 2, 1947 requesting a formal statement from the United States Government which would indicate what decision would be acceptable to the United States Government with reference to possible inter-governmental arrangements on coffee, with particular consideration given to the continuation of the Inter-American Coffee Agreement and the Inter-American Coffee Board.

The Chairman read the communication sent him by the United States Secretary of State dated August 4, 1947. In brief, this communication outlines three types of international coffee arrangements in which the United States is prepared to participate:

1. Immediate formation of an international coffee study group with terms of reference in line with general principles of commodity policy embodied in Chapter VII of the draft charter for an International Trade Organization.

2. Immediate formation of an inter-American coffee consultative committee within the framework of the Pan American Union, The United States, moreover, would participate in both an international and an inter-American arrangement provided each accorded with ITO principles.

3. Finally, in view of short time between this date and expiration of Inter-American Coffee Agreement on October 1, 1947 this Government would be prepared to extend Coffee Agreement by protocol for one additional year provided quotas are completely inoperative and the Board determines during that year to follow some line of action indicated in proposals one and two, or to terminate the Agreement.

Mr. Cale stated that the United States had subscribed to the principles governing international commodity arrangements outlined in Chapter VII of the proposed International Trade Charter and that the policy with respect to commodity arrangements was being followed with respect to all commodities, with the possible exception of coffee.

The Mexican delegate said that the position taken by the United States led him to believe that it was not necessary to wait another year for the Board to recommend a course of action with respect to the future of the Coffee Agreement.

The alternate delegate of Colombia suggested that it would be better to wait a year to determine whether or not the ITO Charter would come into force. Perhaps in 1948 the Board could determine what arrangements could be made on coffee. Furthermore, he believed that the Board should follow the third proposed coffee arrangement as given in the United States document without discussion of the first two. In addition, he felt that some other alternative might develop during the next year.

The Chairman pointed out that international and inter-American coffee consultative arrangements could be adopted simultaneously. Since 85 percent of world coffee production is in this hemisphere, Western Hemisphere producers would have the dominant voice in an international coffee study group. With both arrangements in force it was most likely that the delegates from American coffee producing countries would be the same on both the inter-American and international groups.

The Brazilian delegate said that he was not in a position to vote one way or the other on any of the proposals because he must obtain instructions from his government. He moved that the Board should make its recommendations on the future of the Coffee Agreement at a meeting to be held in September. The Colombian delegate seconded this motion and it was unanimously approved. It was decided that delegates should confer with their respective governments regarding the United States proposals and be prepared to take action at a special meeting of the Board on September 11, 1947 at 10:30 A.M.

. . . . . . .

J. K. Havemeyer

1. Copies of this letter of Instructions from the Secretary to Mr. E. G. Gale were transmitted to all United States Embassies located in countries signatory to the Inter-American Coffee Agreement by transmittal slip bearing reference to the Department’s unnumbered circular airgram dated August 11, 1947, 9:05 A.M. [Footnote in the original; letter and airgram not printed.]