Office of the Historian

331. Telegram From the Embassy in Australia to the Department of State1

Canberra, October 21, 1966, 0705Z.

2153. Reference: State 69437.2 For Acting Secretary from Walt Rostow. Please inform Brom Smith immediately. In bilateral discussion between President and Holt minimum wheat price issue strongly raised with McEwen taking lead.

Although State 69437 was available, U.S. position and considerations bearing on it were not sufficiently clear for President to make reply which he would like to be able to do tomorrow before leaving Canberra. [Page 802] Discussion confused because 40-cent increase did not match Australian statement they wished to raise minimum from $1.53 to $1.85; that is, 32 cents.

Therefore please send answers immediately to following questions:

1.
How would $1.85 minimum affect U.S. agricultural interests, size of U.S. subsidy, etc.?
2.
Australians say U.K. insistence on treating low wheat price as balance of payments respite no longer acceptable. They want our support for higher price. What are U.S. policy considerations bearing on this choice?
3.
What precisely are special factors bearing on the Canadian as opposed to Australian position?
4.
How far does flexibility in present U.S. position now go? What is upper limit we now think we can accept and still get an agreement?
5.
What do you recommend by way of a Presidential response to Holt tomorrow?

Text of aide-memoire follows.3

Clark
  1. Source: Department of State, Central Files, INCO–WHEAT GATT. Confidential; Flash. Passed to the White House and USIA.↩
  2. Document 330.↩
  3. Sent in telegram 2155 from Canberra, October 21. (Department of State, Central Files, INCO–WHEAT GATT) For a supplement to this aide-memoire, see Document 332.↩