Memorandum of Conversation with Secretary of State Dean Acheson and Secretary of Agriculture Charles Brannan

DECLASSIFIED E. O. 11652, Sec. 3(E) and S(D) or (E) Dept. of State letter, SECRE# 284 By NLT- HC NARS Date 6-1-76 14 50 January 11, 1949 your ARCHIVES **NATIONT SERVICE" RECORD$ AND MEMORANDUM OF CONVERSATION WITH SECRETARY BRANNAM Secretery Brannan called me about e serious problem which he has in connection with negotiations in London over introduction or admission of Germany and Japan into the operations of the Int rnationel Wheat Agreement. He said he was in complete accord with the State Department and the Department of the Army that these countries should be admitted to the Wheat Agreement as members and signa- tories, and their representative*in London has been in- structed to vote for admission. The department of aquentlures Representations He said the Canadians hold enough votes with Australia among the exporting countries to block admission. The Canadians have said that unles3 we concede to them what Secretary Brannan says he considers is a large and un- reasonable proportion of the total amount of wheat pur- chases which these countries (Germany and Japan) vill bring into the agreement, Canada and Australia will vote against admission of Germany and Japan. The amount of purchases which would go to Canada are now being made directly from the United States. Secretary Brannan said he understood there vere about 100,000,000 bushels in- volved. We have said ve would give Canada 10,000,000; but they are insisting upon 30,000,000. Our representa- tive has had instructions that he could go as high as 20,000,000, but the Canadians are not willing to come down more than 2,000,000 bushels. According to Secretary Brannan the Canadians could not have furnished this amount this year, even though it has been S good production year. (Probably means 1949) Whereas the United could supply it. In addition the United States is reducing wheat acreage to meet falling demond, while the Canadians are planning to increase it. Secretary Brannan said that so far as the Department of Agriculture vas concerned they did not eare very much one way or the other as to whether or not Germany and Japan vere admitted, except that it was beneficial to the operations of the Wheat Agreement to have as many countries sign as possible. But the decision to vote for the admis- sion was made purely on political grounds, which he under- stood were considered very important ones. SECRET