Foreign Relations of the United States, 1964–1968, Volume VIII, International Monetary and Trade Policy

292. Memorandum From the Special Representative for Trade Negotiations (Herter) to President Johnson¹

Washington, September 10, 1965, 2:15 p.m.

SUBJECT

• Agricultural Offers in the Kennedy Round

On August 19 with your approval I announced that the United States would table its agricultural offers on September 16,² the date agreed upon by the GATT members, regardless of the action taken by the EEC, and would expect other major participants in the current round of trade negotiations to do likewise. The conditions to be attached to the U.S. offers and the procedures to be followed in drawing up the list of offers were outlined in my memorandum to you of August 9.³

As indicated in that memorandum, we would withhold from our offers on September 16 (1) items already approved by you as exceptions to tariff cuts, (2) items imported principally from countries which have not indicated up to this time their intention to participate in the negotiations, (3) items for which negotiations will be conducted in commodity groups (major cereals and cereal by-products, and certain meats and dairy products), and (4) items imported principally from the European Economic Community.

On November 10, 1964, you authorized me to offer for tariff cuts all agricultural imports with the exception of a small list of products.⁴ For most products the authorization was to make offers of cuts in duties of 50 percent in accordance with section 201 of the Trade Expansion Act of 1962. You also authorized me to offer for reductions to zero rate of duty all items eligible for such treatment in accordance with the provisions of sections 202 and 213 of the Trade Expansion Act. Section 202 of the TEA authorizes the President to reduce to zero the duty on products for which the present duty is equivalent to 5 percent or less. Section 213 authorizes the President to reduce to zero the duty on tropical products, provided the European Economic Community takes comparable measures for trade liberalization in the same products.

In accordance with the authority granted on November 10, 1964, therefore, I propose to:

1. Table offers of tariff cuts listed in Tab A on September 16.⁵ Most of these offers would be for tariff cuts of 50 percent. On certain tropical products eligible for duty-free treatment under sections 202 and 213 of the TEA, the offer would be to cut duties to zero.

2. Table specific offers on products of primary interest to the European Economic Community as annotated in Tab B at such time as the EEC is ready to table its own concrete and specific offers in accordance with agreements already reached in Geneva.

3. Table offers on commodity group items (certain meats and dairy products, as annotated in Tab B)⁶ at such time as may be appropriate.

4. Table offers as may be appropriate in the course of the negotiations on items excluded from the September 16 list because imports are principally from countries which have not as yet indicated their intention to participate in the negotiations.

5. Table offers as may be appropriate in the course of the negotiations of duty reductions to zero on products other than tropical falling under sections 202 and 213.

I will of course consult with the Secretary of Agriculture and heads of other interested agencies before tabling any offers additional to those listed in Tab A.

Tab B is a master list of all U.S. agricultural imports with the negotiating status of each item indicated by an appropriate symbol.

These proposals are concurred in by all the interested agencies.

Your approval of this memorandum will constitute your authorization for me to proceed as indicated.

Christian A. Herter

1. Source: Johnson Library, White House Central Files, Confidential File, TA 1, Bator to President 8/4/66, Tab C. Secret. Another copy indicates that Irwin R. Hedges (STR) drafted the memorandum. (Kennedy Library, Herter Papers, White House Subject File, Box 4) A handwritten note at the top of the source text reads: “Mr. President: See page two for decision items.” On the “Approved” line at the end of the memorandum appears the following handwritten note: “by the President—Sept. 13. McG. Bundy.” An “Approved” line on a September 13 memorandum from Bundy to the President, summarizing Herter’s memorandum, is checked. (Kennedy Library, Herter Papers, Agriculture and EEC, Box 5)
2. The text of Herter’s August 19 statement is printed in American Foreign Policy: Current Documents, 1965, pp. 1091–1092.
3. Document 289.
4. See Documents 262 and 263.
5. Tab A, “List of U.S. offers to be tabled on September 16, 1965,” has not been found. The text may be the same as the list printed by GATT, “United States Offers on Agricultural Products,” September 16, 1965, GATT 6–US Doc. 3. (Johnson Library, National Security File, NSC History, Kennedy Round Crisis, April–June 1967, Book 1, Tabs 7–16, Box 52)
6. Tab B, “Master list of all U.S. agricultural imports with the negotiating status of each item indicated by an appropriate symbol,” has not been found.