Memorandum of Conversation with Secretary of State Dean Acheson, Ambassador of Great Britain Oliver Franks, and Others

589 DECLASSIFIED DEPARTMENT OF STATE E. O. 11652, Sec. 3(E) and S(D) OF (B) 5 Dept. of State letter, 28-33-033 Memorandum of Conversation Bx NITH : NARS Date 4-20-76 DATE: February 25, 1949 SUBJECT: International Wheat Agreement PARTICIPANTS: Secretary Acheson ARCHIVES AND "INATIONAL RECORDS British Ambassador, Sir Oliver Franke SERVICE** E - lir. Nitze IR - Mr. Cale COPIES TO: E - Mr. Mitze EUR E - Mr. Thorp ARA ITP - Itr. Brown OIR CP U EE S 1-1493 The British Ambassador stated that he had received instructions from London regarding the British position on the International Wheat Agreement and had been requested to leave a nemorandum with the Department on the matter. (See attachment) In giving the Secretary this menorandum the Ambassador made the following points: 1. That he was certain that his Governnent vould not agree to a ceiling in excess of $1.75. 2. That he thought there was some hope of getting then to agree to raising the floor in the final year by 10 cents or to $1.20. 3. That he would be glad to urge his Government to agree to such a 10 cent increase in the floor if we felt this would make it possible to conclude the wheat agreement. 4. That the Head of the British Delegation to the Wheat Conference, Mr. Anderson, would probably not inform the Conference of the British position on this natter until the British had had some re- action from us on it. To Mr. Acheson's question as to what a ceiling of $1.75 would mean to the United States Government, Mr. Nitze replied that it would involve a subsidy of from 50 to 60 cents per bushel on the wheat thet the United States would export under the agreement. Mr. Nitze added, however, that it is difficult