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

CONFIDENTIA December 29, 1952 384 404 s/s Following the Cabinet meeting on December 23, the Secretary discussed with Secretary of Agriculture Brannan the proposed new dairy import restrictions which were the subject of a memorandum dated December 19 to the Secretary from Mr. Linder. The substance of the conversation was that Secretary Brannan was not inclined to go along with our recommendation that Agriculture delay indefinitely its action in announcing additional dairy import restrictions under Section 104 of the Defense Production Act. However, Secre- tary Brannan did agree to put off the proposed action until after Christmas. He would see what effect the holiday pur- chasing had on the domestic butter market before taking action. Secretary Brannan explained that the law required support of milk, but that in order to carry it out, it is necessary for the Agriculture Department to purchase products into which milk goes, such as butter, cheese, dried milk, etc. He stated that, for example, butter and dried milk may both be used in the manufacture of icecream in varying proportions, depending upon the formula of a particular manufacturer. Therefore, the importation of one item in the dairyfield has an effect similar to the importation of another item in the same group. The Secretary suggested that it might be desirable to let the succeeding Administration announce the restrictions and be prepared to face the criticism which may result as the im- pact of the restrictions reaches into various economic fields. Secretary Brannan said, in his view, that delaying the action would produce the opposite effect. He said that Section 104 might become mandatory and a permanent part of the import and tariff picture. He thought that the repercussions which would occur domestically and the retaliations which might be put into effect by other countries almost immediately might militate for the greatest good in the long run since it would show all segments of agriculture that in toto they would suffer from DECLASSIFIED supporting E. O. 11652, Sec. 3(E) and S(D) or (E) Dept. of State letter, 10.26.26 NLT- HV. NARS Date 11-30-76 COHIDDENTIAL