Message to the Senate Submitting for Advice and Consent the International Grains Arrangement of 1967.
To the Senate of the United States:
Today I submit to the Senate for its advice and consent the International Grains Arrangement of 1967.
This Arrangement is another step forward in our overall effort to strengthen and stabilize our farm economy, to improve our balance of payments, and to share our abundance with those in need.
The Arrangement is an outgrowth of the Kennedy Round of trade negotiations. It was agreed to last August at the International Wheat Conference in Rome. It has already been signed by most of the countries that are major exporters and importers of grain.
The Arrangement is in two parts:
--the Wheat Trade Convention, which will provide new insurance against falling prices in the wheat export trade,
--and the Food Aid Convention, which will bring wheat exporting and wheat importing nations into partnership in the War on Hunger.
THE WHEAT TRADE CONVENTION
The Wheat Trade Convention will help to stabilize prices in world commercial trade.
It sets minimum and maximum prices for wheat moving in international trade at levels substantially higher than those specified in the International Wheat Agreement of 1962. This will give our farmers additional protection against price cutting in world markets.
At the same time, the Arrangement includes provisions to insure that our wheat will be priced competitively in world markets; and that no exporting member country is placed at a disadvantage because of changes in market conditions.
Importing countries also receive protection and benefits under the Convention. In periods of shortage importing member countries will be able to purchase their normal commercial requirements at the established maximum price. After this requirement has been met, exporting member countries will be free to sell above the maximum price.
America's wheat farmers have supported the pricing provisions of previous wheat agreements. I am confident they will welcome the stronger price assurances of this Arrangement.
THE FOOD AID CONVENTION
The Food Aid Convention marks an important new international initiative in the assault on hunger throughout the world.
The countries participating in this Convention-both exporting and importing nations-undertake to establish a regular program of food aid over the next three years.
The program calls for 4.5 million tons of grain to be supplied each year; 4.2 million tons are already subscribed.
--The U.S. will supply 1.9 million tons in grains--under the authority of the Food for Freedom program.
--Other countries will supply 2.6 million tons---either in the form of grain or its cash equivalent.
This new program is a major joint effort to supply wheat and other food grains to needy nations on a continuing basis. It will help the developing nations of the world meet their food deficits while they work to expand their own food production. As these countries prosper and grow, many will become cash customers for agricultural products.
I enclose, for the information of the Senate, the report of the Secretary of State on the International Grains Arrangement.
I urge the Senate to give it early consideration.
LYNDON B. JOHNSON
The White House
January 25, 1968
Note: The International Grains Arrangement was favorably considered by the Senate on June 13, 1968, and after ratification entered into force on July 1, 1968. It was proclaimed by the President on August 3, 1968.
The text of the Arrangement is printed in Treaties and Other International Acts Series (TIAS 6537) and in a publication of the Foreign Agricultural Service, Department of Agriculture (46 pp.).
Lyndon B. Johnson, Message to the Senate Submitting for Advice and Consent the International Grains Arrangement of 1967. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/237201