Historical Documents - Office of the Historian

Washington, June 11, 1964.

Extra Long Staple Cotton—Meeting, Thursday, June 11, 1964—Situation Room, White House

It was agreed that:

1.: Agriculture will attempt to speed up the export of foreign produced ELS, taking care, however, not to drive down the world price appreciably below its present level. (We shall know more about the prospects, and Agriculture will consult with State, after next week’s bids are in.)
2.: Agriculture, State and B.O.B. will explore the possibility of disposing of ELS stock under PL 480.
3.: Messrs. Murphy and Feldman are at liberty to tell the U.S. parties at interest that (a) the foreign stock will be sold at an accelerated rate—subject to the proviso about price; (b) subject to the state of the market, an export program for domestic ELS will almost certainly be undertaken with, however, no bids to be accepted at less than the 49 cent domestic support price. About the possibility of exporting domestic at less than the support price, they are to be noncommittal and avoid raising people’s hopes.
4.: State is to warn its clients that we do expect to reduce our ELS stock at the fastest rate possible without breaking the market but that we do not, as of now, plan to sell domestic at less than the current U.S. support price. It should be made clear, however, that as regards the future, no one can be certain.

FMB

Source: Johnson Library, National Security File, Subject File, Trade—General, Vol. I [1 of 2], Box 47. No classification marking. Prepared by Francis M. Bator. An attached note from Bator to McGeorge Bundy, dated June 11, reads: “Mac: I have checked this with Murphy and Johnson’s man, Nehmer. They are content.” A further handwritten note by Buddy reads: “Good work. Told D. Walker, 6/12/64.” Bator’s typed notes, June 11, which he apparently drafted in preparation for this meeting, are ibid.↩

Foreign Relations of the United States, 1964–1968, Volume IX, International Development and Economic Defense Policy; Commodities