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- 2 - The President called on Secretary John Dunlop to discuss the movement in the grain situation. Secretary Dunlop stated Meany's chief concerns were the uncertain and erratic sales to foreign markets, and the American labor supply. Principally, the cause is price instability; therefore, when Meany came to the White House, he did not present a list of demands; he was not strong in any way, but wanted the President to develop an over- all plan. The President had suspended sales after 10.3 million tons had been sold. There has been a strong feel- ing that there was a need to talk with the Soviets, to better forecast the year ahead crop, and to negotiate freight rates for American ships. GERALD The first goal was to reach an interim agreement. The R. President made an announcement on September 9th, that FORD shipping would be continued under an agreement which was reached. The Assistant Secretary of State Charles Robin- LIBRARY son was sent to the Soviet Union to begin the negotiations with Foreign Minister Patolichev on a long term grain agreement. Robinson returned Tuesday night and will be reporting to Secretary Kissinger on Wednesday. The President then called on Secretary Butz for a response. Secretary Butz did not want the Cabinet or the Administration to be led into thinking that George Meany was solely concern- ed about protecting the American consumer. The Secretary mentioned that even if we shipped the maximum capacity out of U. S. ports, which would be 100 million tons annually, there would be record crops and a surplus. There is going to be 19% more corn, 17% more wheat, and all other crops are up substantially. Even though the maximum capacity could be moved out of U. S. ports, there will still be sur- plus this year. If the surplus gets too large however, the farmer will be very unhappy and upset over not selling more grain abroad. So there is a very fine line between the amount of surplus and that which is to be sold abroad. Sec- retary Butz did say that it is a highly emotional issue. Secretary Morton then said that Maritime has a handshake agreement on a 16 dollar rate for shipping. That is up from the $9.50 rate currently charged. The new rate will bring 30 ships out of layup and the agreement calls for 1/3 of all exports to be carried on U. S. ships. GERALD LIBRARY R. FORD

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Topics discussed at the meeting include consumer protection, Soviet Union grain sales, busing, New York City financial crisis, and Domestic Council forums.

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186659
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    "ocrText": "- 2 -\nThe President called on Secretary John Dunlop to discuss\nthe movement in the grain situation.\nSecretary Dunlop stated Meany's chief concerns were the\nuncertain and erratic sales to foreign markets, and the\nAmerican labor supply. Principally, the cause is price\ninstability; therefore, when Meany came to the White House,\nhe did not present a list of demands; he was not strong\nin any way, but wanted the President to develop an over-\nall plan. The President had suspended sales after 10.3\nmillion tons had been sold. There has been a strong feel-\ning that there was a need to talk with the Soviets, to\nbetter forecast the year ahead crop, and to negotiate\nfreight rates for American ships.\nGERALD\nThe first goal was to reach an interim agreement. The\nR.\nPresident made an announcement on September 9th, that\nFORD\nshipping would be continued under an agreement which was\nreached. The Assistant Secretary of State Charles Robin-\nLIBRARY\nson was sent to the Soviet Union to begin the negotiations\nwith Foreign Minister Patolichev on a long term grain\nagreement. Robinson returned Tuesday night and will be\nreporting to Secretary Kissinger on Wednesday.\nThe President then called on Secretary Butz for a response.\nSecretary Butz did not want the Cabinet or the Administration\nto be led into thinking that George Meany was solely concern-\ned about protecting the American consumer. The Secretary\nmentioned that even if we shipped the maximum capacity out\nof U. S. ports, which would be 100 million tons annually,\nthere would be record crops and a surplus. There is going\nto be 19% more corn, 17% more wheat, and all other crops\nare up substantially. Even though the maximum capacity\ncould be moved out of U. S. ports, there will still be sur-\nplus this year. If the surplus gets too large however, the\nfarmer will be very unhappy and upset over not selling more\ngrain abroad. So there is a very fine line between the\namount of surplus and that which is to be sold abroad. Sec-\nretary Butz did say that it is a highly emotional issue.\nSecretary Morton then said that Maritime has a handshake\nagreement on a 16 dollar rate for shipping. That is up\nfrom the $9.50 rate currently charged. The new rate will\nbring 30 ships out of layup and the agreement calls for\n1/3 of all exports to be carried on U. S. ships.\nGERALD LIBRARY R. FORD"
}