Message to the Senate Transmitting the International Wheat Agreement, 1971.

To the Senate of the United States:

With a view to receiving the advice and consent of the Senate to ratification, I transmit herewith a copy of the International Wheat Agreement, 1971, which was open for signature in Washington from March 29 through May 3, 1971. The Agreement was formulated at the United Nations Wheat Conference, 1971, held in Geneva.

I transmit also, for the information of the Senate, the report of the Secretary of State and the memorandum enclosed therewith concerning this Agreement.

The Agreement is in two parts, the Wheat Trade Convention and the Food Aid Convention, covered by a common preamble. Both Conventions were signed in behalf of the Government of the United States of America. The Wheat Trade Convention was signed also for the European Economic Community and its six member States and for the governments of 26 other countries. The Food Aid Convention was signed also for the European Economic Community and its six member States and for the governments of six other countries.

The International Wheat Agreement, 1971, is intended to succeed the International Grains Arrangement, 1967, which will terminate by its own terms on June 30, 1971.

The new Wheat Trade Convention continues international cooperation in wheat trade, maintaining the International Wheat Council and most of its functions and establishing a new Advisory Sub-Committee on Market Conditions charged with the task of continuously reviewing current market conditions and making prompt reports to the Executive Committee of the Council concerning the existence or threat of market instability. On the basis of such reports, the Executive Committee is to meet, review the situation, and consider the possibility of mutually acceptable solutions. The Council may also be convened to review such situations.

In contrast to previous wheat agreements, the 1971 Convention does not contain price provisions and purchase and supply obligations, principally because the exporting countries were unable to agree on the reference wheat or wheats to be used for setting minimum and maximum prices. Major changes in the Canadian grading system made uncertain the trading relationships among the several top quality wheats that were being considered as reference wheats. The negotiating conference decided that progress on establishing minimum and maximum prices and the related supply and purchase provisions must await the establishment and the testing in trade of the new Canadian grading system.

The Food Aid Convention continues the commitment initiated under the 1967 Food Aid Convention whereby parties contribute specified amounts of wheat, coarse grains, or products derived therefrom, or the cash equivalent, to developing countries. The principal changes in the new Convention are a reduction in the number of donors from 12 to 9, a slight reduction in the total minimum annual contribution, and a broadening of the terms under which contributions can be made.

Both Conventions provide that instruments of ratification shall be deposited no later than June 17, 1971. The Wheat Council may, however, grant an extension of time to any signatory government that had not deposited an instrument of ratification by that date.

It is my hope that the Senate will give early and favorable consideration to the two Conventions of the 1971 Agreement so that ratification by the United States can be effected and an instrument of ratification can be deposited without undue delay.

RICHARD NIXON

The White House

June 2, 1971