241. Memorandum From Miklos Szabo-Pelsoczi of the Foodstuffs Division, Office of International Resources to the Deputy Assistant Secretary of State for Economic Affairs (Jacobson)1

SUBJECT

  • Mr. Mann’s Meeting With Central American Ambassadors on Friday, October 23

The main issue discussed was the Ambassadors’ request to increase their countries’ announced 1965 quota out of the 233,000 ton reserve [Page 644] without regard to the formula on which the 90% quotas were based. They claimed their countries are in a very unusual political situation and they need this increase more than other suppliers.

Mr. Mann told them without mincing his words that the issue is a “phoney” one. Other countries have political and economic problems as well and he does not see any way to alter the formula which was designed to serve everyone with equal justice.

At the end the Ambassadors admitted that they are quite happy with the 1965 regulations and all that they really were trying to do is to improve on it. Mr. Mann called their attention to the major fight which might develop during the next Session of Congress concerning market sharing as between domestic and foreign producers. He told them that they should concentrate on this issue and try to forget about a disproportionate participation in the 233,000 ton reserve.

The Ambassadors also asked about the possibility of the reimposition of the import fee before the end of 1965. We told them the Administration does not contemplate such a move because we would not want to disturb the orderly flow of supplies in mid-year.

  1. Source: Department of State, EB/ICD/TRP Files: Lot 75 D 462, Inco-Sugar, 1964 Oct-Nov, United States. No classification marking. Cleared by Fred H. Sanderson, Chief of the Foodstuffs Division.