55. Telegram From the Embassy in Germany to the Department of State1

2145. Pass to Governor Herter and Secretary Freeman. Grain price unification. In my meeting today with FonMin Schroeder on a variety of subjects I expressed appreciation for the fact that the Germans had, in presenting their grain price proposals in Brussels, linked them to the success of the Kennedy Round, particularly the agricultural negotiations. I said that I wished to make clear, however, that we considered the grain price suggested by the Germans, i.e., 440 DM per ton, too high—indeed, we considered 425 DM proposed by Mr. Mansholt as being too high. We [Page 133] hoped the Germans would be flexible in their negotiations on this point. There was a grave danger that even at the Mansholt levels there would be such an increase in grain production within the Common Market that the exports of the US and other outside suppliers would be jeopardized.

McGhee
  1. Source: Department of State, Central Files, INCO–GRAIN EEC. Secret. Passed to the White House.