Memorandum of Conversation with Secretary of State Dean Acheson, Tracy Voorhees, Harold Moseley, Henry Byroade, Ralph Trigg, and John W. Evans

CONFIDENTIAL 5/5 DEPARTMENT OF STATE CON 16 = Memorandum of Conversation DATE: January 12, 1950 SUBJECT: Negotiation Problems Involved in the Accession of Germany and Japan to the International Wheat Agreement PARTICIPANTS: The Secretary Tracy s. Voorhees, Under Secretary of the Army Harold W. Moseley, NA Henry A. Byroade, GER Ralph s. Trigg, PMA, Dept. of Agriculture John W. Evans, ER COPIES TO: S/S (2) E - Mr. Thorp Harold W. Moseley, NA ITP - Mr. Brown Henry A. Byroade, GER Mr. Leddy Mr. Labouisse, BNA E - Miss Brewster 1--1493 The Secretary first asked for clarification whether he had correctly understood Secretary Brannan's statement that the total quota requested by Canada as a result of accession of Germany and Japan represented an inerease of 27 million bu. and that all Agriculture had been willing to concede to Canada and Australia was 20 million bu. Mr. Trigg replied that Agriculture's offer had actually been 19 million bu. and that Secretary Brannan was speaking in round numbers. We had been willing to give Australia 4 million bu. leaving 15 million for Canada. The Secretary then outlined the dual problem as he understood it. We are now exporting to Germany and Japan all the wheat they import and are giving them the dollars with which to do so. Canada wants a substantial share of the increased quota resulting from their accession and that this was un- acceptable so long as the American taxpayer is paying for the wheat. The other problem arose out of the fear of the British that the accession of these countries to the Agreement would open up a larger area of competition among importing countries for non-dollar wheat, that Australian wheat now available to the UK under the Agreement would be purchased by DECLASSIFIED (B) E. O. 11652, Sec. 3(E) and 127213 5(D) or of State letter, By Dept. NLT-H NARS CONFIDENTIA