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By Mr. MCCLELLAN, from the Committee State and in the summary enclosed there- of surplus marketing by international agreeon the Judiciary: with.

ment is sound" and that "it wishes to enCharles W. Atkinson, of Arkansas, to be Attention is invited particularly to the courage this objective” (S. Ex. Rept. No. 12, United States attorney for the western dis- final paragraph of the report of the Acting 80th Cong., 2d sess.). strict of Arkansas.

Secretary of State. It is my hope that the The 1949 agreement, by its own terms, exBy Mr. HENNINGS, from the Committee Senate will find it possible to give early con- pires at the end of July 1953. There are at on the Judiciary:

sideration to the agreement so that, if the present 46 countries parties to that agreeHarry Richards, of Missouri, to be United agreement be approved, final action by this ment, including 4 exporting countries (the States attorney for the eastern district of Government with respect thereto may be United States, Australia, Canada, and Missouri, vice George L. Robertson, resigned. taken by July 15.

France) and 42 importing countries. By Mr. DIRKSEN, from the Committee on

DWIGHT D. EISENHOWER. The 1949 agreement set up an Internathe Judiciary:

With his message, President Eisen- limited functions, to administer the terms

tional Wheat Council, with carefully deWilliam W. Kipp, Sr., of Illinois, to be

hower enclosed, first, a report of the of the agreement. Among the functions of United States marshal for the northern district of Illinois, vice Thomas P. O'Donovan,

Acting Secretary of State, with enclosed the Council is that of communicating to the deceased. summary of principal provisions; and, member

governments “recommendations By Mr. BUTLER of Maryland, from the second, an agreement revising and re- regarding the renewal of this agreement." Committee on the Judiciary: newing the International Wheat Agree

In April and May 1952, at the Council's Byron H. Carpenter, of Maryland, as ex

eighth session in London, the Council enment. The report from the Acting Sec

gaged in discussions for the purpose of drawaminer in chief of the Patent Office; and retary of State is as follows:

ing up recommendations regarding renewal. Arthur Wilbur Crocker, of Maryland, for

DEPARTMENT OF STATE,

The Council could not then agree on specific the position of Assistant Commissioner of

Washington, May 29, 1953. recommendations for modifications to be Patents. The PRESIDENT,

made in the agreement and resolved that the The White House:

eighth session should be resumed at a later REVISION AND RENEWAL OF THE The undersigned, the Acting Secretary of date to develop final recommendations to

State, has the honor to lay before the Presi- member governments. INTERNATIONAL WHEAT AGREE

dent, with a view to its transmission to the The resumed eighth session convened in MENT

Senate to receive the advice and consent of Washington on February 2, 1953. After proMr. FERGUSON. Mr. President, I

that body to ratification, if the President longed negotiations, representatives of im

approve thereof, a certified copy of the agree- porting countries and of exporting countries move that the Senate proceed to the

ment revising and renewing the International reached acceptable compromises. A draft consideration of Executive Treaty H, of

Wheat Agreement, in the English, French, agreement was drawn up revising and renewthe 83d Congress, 1st session, for the

and Spanish languages, open for signature ing the International Wheat Agreement. By ravision and renewal of the International in Washington April 13 to 27, inclusive, 1953, a resolution adopted at the final meeting on Wheat Agreement.

and signed during that period by plenipo- April 13, 1953, the Council recommended that The motion was agreed to; and the tentiaries of the Government of the United member governments become signatories. Senate, as in Committee of the Whole,

States of America and plenipotentiaries of During the period allowed for signature,

the governments of 3 other exporting coun- April. 13 through April 27, the revised agreeproceeded to consider the agreement,

tries, namely, Australia, Canada, and France, ment was signed on behalf of all the governExecutive H (83d Cong., 1st sess.), an and of 41 importing countries.

ments represented in the Council except the agreement revising and renewing the In

The agreement submitted herewith is in- United Kingdom, which did not concur in ternational Wheat Agreement, in the tended to continue for a period of 3 years, to the revised maximum price written into the English, French, and Spanish languages, the end of July 1956, with certain modifica- new agreement. which was open for signature in Wash- tions, the arrangements with respect to in- The agreement submitted herewith was ington April 13 to 27, inclusive, 1953,

ternational purchases and sales of wheat signed on behalf of the United States by and was signed during that period on

established by the International Wheat Secretary of Agriculture Ezra Taft Benson

Agreement which was open for signature in and Under Secretary of Agriculture True D. behalf of the Government of the United Washington March 23 to April 15, inclusive, Morse under plenipotentiary authority issued States of America and the governments

1949. The Senate gave its advice and consent to them by the President. Under Secretary of 44 other countries, which was read the

to ratification of the 1949 agreement on Morse was chairman of the United States second time.

June 13, 1949, the President ratified it and delegation which participated in the nego(For full text of wheat agreement see the United States instrument of ratification tiations. The Secretary of Agriculture has pp. 8596–8604 of Senate proceedings of was deposited on June 17, 1949. That agree- informed the Acting Secretary of State that this date.)

ment entered into force on July 1, 1949, ex- the Department of Agriculture concurs in The PRESIDING OFFICER (Mr. CASE part 2 (S. Ex. M, 81st Cong., 1st sess.; Treaties cept as to part 2 and on August 1, 1949, as to the recommendation that the agreement be

transmitted to the Senate for advice and in the chair). The agreement is open to and other International Acts, series 1937; consent to ratification. amendment. 63 Stat., pt. 2, 2173).

As in the case of the 1949 agreement, the Mr. LANGER. Mr. President, on June The 1949 agreement was designed to purpose of this agreement is to provide an 2, 1953, President Eisenhower sent to the "overcome the serious hardship caused to assured market to wheat-exporting countries Senate a message dealing with respect to producers and consumers by burdensome at the specified minimum price and assured the International Wheat Agreement, and to "assure supplies of wheat to import- specified maximum price, while maintaining

surpluses and critical shortages of wheat" supplies for wheat-importing countries at a which was open for signature in Wash- ing countries and markets for wheat to ex- the largest possible degree of flexibility beington April 13 to 27, inclusive, 1953, and porting countries at equitable and stable tween these prices and avoiding interference which was signed during that period on prices."

with private trąde and with the internal behalf of the Government of the United That agreement was the result of explora- policies and programs of member countries. States of America and the governments tion by governments since the early 1930's A number of importing countries are signaof 44 other countries. The President's of the possibility of creating more stable tories to the new agreement which were not message was as follows:

conditions in world wheat markets, and since included among the original signatories to

the early 1940's of more active considera- the 1949 agreement. These became parties THE WHITE HOUSE,

tion of a multilateral wheat agreement. to that agreement by accession after it went

June 2, 1953. Public hearings with respect to the 1949 into force. The most important potential To the Senate of the United States:

agreement were held in May 1949 before a change in the scope of the agreement arises With a view to receiving the advice and subcommittee of the Senate Committee on from the failure of the United Kingdom to consent of the Senate to ratification, if the Foreign Relations. The committee, in re- become a signatory to the new agreement. Senate approve thereof, I transmit herewith porting favorably on that agreement (S. Ex. As further explained below, the terms of the a certified copy of the agreement revising Rept. No. 7, 81st Cong., 1st sess.), stated as agreement make it possible for the United and renewing the International Wheat Agreefollows:

Kingdom to participate through accession ment, in the English, French, and Spanish "The Committee on Foreign Relations is of after the agreement enters into force. If it languages, which was open for signature in the view that the International Wheat Agree. should fail to do so, however, the agreement Washington April 13 to 27, inclusive, 1953, ment meets the wishes of the farmers and is provides for an adjustment in quotas so that and was signed during that period on behalf in the national interest."

the quantitative obligations of the exporters of the Government of the United States of It is pertinent to mention also that on will be equal to those of the importers. America and the governments of 44 other August 6, 1948, the Senate Committee on As in the 1949 agreement, the basic oblicountries.

Foreign Relations, in reporting on a similar gation incurred by each exporting country The purposes and provisions of the agree. International Wheat Agreement which had is to deliver a specified quantity of wheat ment are set forth in greater detail in the been signed in 1948, stated that it was "the at the maximum price in the agreement, and enclosed report of the Acting Secretary of committee's earnest belief that the principle that of each importing country is to pur

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chase a specified quantity of wheat at the those countries may be required by the the redistribution by the Council of guaranminimum price. In both cases these obli- Council to buy at the minimum price from teed quantities to balance the total of the gations come into effect only after action by the exporting countries as a group and with guaranteed quantities of exporters with those the Council and are subject to certain safe in the guaranteed quantity of each. The of importers. This redistribution would be guards specified in the agreement.

guaranteed quantities of the exporting coun- made by a pro rata reduction of the guaranWhile the basic nature of the obligations tries represent the quantities which those teed quantities of exporters or importers unand rights acquired by the United States countries may be required by the Council to less the Council should decide. otherwise in this agreement is thus essentially the sell at the maximum price to the importing by a vote of two-thirds of the exporters and same as in the 1949 agreement, the new countries as a group within the guaranteed two-thirds of the importers. agreement involves a larger quantity of quantity of each. The obligation of exportwheat for the United States and a substan- ers to sell at the maximum price is thus

Mr. President, I mention this because tial improvement in the maximum and

matched by a right to sell the same quantity Great Britain did not sign the agreeminimum prices it may receive. at the minimum.

ment. Since the 1949 agreement expires July 31, Action of the Council to prescribe sales and

The agreement was signed for Australia 1953, and since it is necessary that the purchases is reserved for the case of an im

with a reservation which, in effect, declared Council begin to function under the new porting country having difficulty in buying its intention to take advantage of the withagreement before that date in order to pre- its guaranteed quantity at the maximum vent a serious lapse in the program, it is

drawal provisions (art. XXII) under certain and of an exporting country having difficulty important that at least the major signatories in selling its guaranteed quantity at the

circumstances unless a satisfactory adjust

ment in Australia's guaranteed quantity is accept the agreement before July 15.

minimum price. Otherwise the function of There is attached herewith a summary of

made under article IX. The agreement was the Council is that of recording transactions the more important provisions of the agree- against the guaranteed quantities.

signed for Peru with an understanding that ment, with particular emphasis on those

Peru's quota should be increased to a speci

In the new agreement the guaranteed provisions that differ from the provisions in

fied amount as originally requested to cover quantity of the United States is 270 million the 1949 agreement. In order to facilitate

bare necessities. bushels as compared with 168 million when reference to particular provisions, however,

Article XX provides that the agreement the 1949 agreement entered into force and the following brief summary of the struc

shall be subject to acceptance by the signa253 million at the present time in the 1949 ture of the agreement is included. agreement. The increase in the United

tory governments in accordance with their Apart from the preamble, the agreement is States quota under the present agreement provided further that parts 1, 3, 4, and 5

respective constitutional procedures. It is divided into 5 parts with 23 articles.

has taken place as a result of voluntary acPart 1 (general) includes the brief state

shall enter into force on July 15, 1953, protion to meet requests by importing countries, ment of objectives and an article giving including those which have acceded to the

vided that, by that date, the governments definitions of numerous terms found in the

of importing countries responsible for not agreement. agreement.

less than 50 percent of the guaranteed pur

As applied to the current crop year, the Part 2 (rights and obligations) specifies prices specified in the 1949 agreement are:

chases and the governments of exporting the guaranteed purchases and guaranteed

countries responsible for not less than 50 maximum $1.80 per bushel, minimum $1.20 sales and rules regarding the recording of

percent of the guaranteed sales have acper bushel. For the duration of the new transactions against guaranteed quantities, agreement, the prices specified are: maxi

cepted the agreement. Part 2 of the agreeth'e enforcement of rights, the basic maxi

ment, which applies to rights and obligations, mum $2.05, minimum $1.55. mum and minimum prices, the maintenance

is to come into force on August 1 (upon ex

The renegotiation of the agreement has of stocks, and reporting requirements.

piration of the 1949 agreement) for governPart 3 (adjustment of guaranteed quantiresulted in a redistribution of quotas which

ments which have ratified the agreement. is believed to accord more closely with the ties) stipulates various procedures for adjusto requirements and the ability to perform of

On the side of the exporting countries, the ments under varying conditions. the respective signatories. A number of im

acceptances of the United States and either Part 4 (administration) contains proporting countries voluntarily reduced their

Australia or Canada or acceptance ły Ausvisions relating to the composition and funcguaranteed quantities, while many others

tralia and Canada would suffice to bring the tions of the International Wheat Council, the Executive Committee, the Advisory Com

secured larger quotas more nearly covering agreement into force. The total guaranteed the quantities they wish to import under the

quantity, both as to exporting and importmittee on Price Equivalents, and the Secreagreement.

ing countries, is specified (annexes to art, tariat, and also provisions relating to the Council's finances, and budget, cooperation

Apart from these changes in quantities III) as 595,542,052 bushels per crop year. The and prices certain changes in the text of the

guaranteed sales indicated for the United with other intergovernmental organizations, and procedures for settlement of disputes acter, merit specific mention. These changes agreement, while not altering its basic char

States and Canada represent the greater

part of the total, namely, the United States arising under the agreement. include a limitation of the carrying charges

270,174,615, Canada 250 million. On the side Part 5 (final provisions) contains the prowhich a buyer must sustain (art. VI); pro

of the importing countries, without the visions regarding signature, acceptance, entry vision in certain circumstances for consulta

United Kingdom, with its quantity of 177 into force, accession, duration, amendment, tion by the Council with an advisory panel

million bushels among the signatories, acwithdrawal, and territorial application.

before deciding disputes (art. XIX); quali- ceptances by the 12 signatories having the The following paragraphs summarize in fied recognition of the principle that im

largest guaranteed quantities (purchases) greater detail certain aspects of the agree

porting countries should not resell wheat apart from the United Kingdom (10 million ment which merit special attention.

secured at the maximum price through ac- or more bushels each) would suffice to bring As in the 1949 agreement, paragraph 8 of tion of the Council (art. V); and an addi.

the agreement into force. article III provides that exporting and im- tional provision to discourage possible abuses porting countries shall be free to fulfill their

I invite particular attention to the of the short-crop and balance-of-payments guaranteed quantities through private trade safeguards (art. X).

message of the President, calling attenchannels and that nothing in the agreement While the agreement was not signed on

tion to the last paragraph of the letter shall be construed to exempt any private behalf of the United Kingdom within the

from the Acting Secretary of State, trader from any laws or regulations to which period provided by its terms, that country which I now read: he is subject. The agreement does not pre- can nevertheless accede to the agreement scribe means or methods to be adopted to subsequent to its entry into force on July 15

The long period of negotiation and the ensure fulfillment of agreement obligations, by a two-thirds vote of exporting countries

need to bring the new agreement into force nor does it require any interference with and a two-thirds vote of importing countries.

in time to succeed immediately to the prestrade in wheat outside the agreement so long The agreement also provides in article XXII ent agreement have limited the time availas agreement obligations are met. No level that if any exporting country considers its able for obtaining the advice and consent of of production is prescribed for an exporting interests to be seriously prejudiced by non- the Senate. Certified copies of the agreecountry and the agreement goes no further participation or withdrawal of an importing ment could not be prepared until after the in the matter of stocks than to provide that country responsible for a quota of more than

closing date for signature. It is hoped that "each exporting country shall endeavor to 5 percent of the total in the agreement, such

the Senate may find it possible to give exmaintain” carryover stocks to fulfill its guar- country may withdraw before August 1 by anteed sales. With regard to the determina- notification to the United States Govern

peditious consideration to the new agreetion and administration of internal agricul- ment. An importing country is accorded this

ment herewith submitted, in order that an tural and price policies, the member coun- same privilege upon nonparticipation or

instrument of acceptance may be executed tries (art. VI, par. 8) expressly reserve to withdrawal of an exporting country. The

and deposited on behalf of the United States themselves complete liberty of action but quota established for the United Kingdom

before July 15. "shall endeavor not to operate those policies represented about 30 percent of the aggre- Respectfully submitted. in such a way as to impede the free move- gate quantity of the importers.

WALTER B. SMITH, ment of prices" between the maximum and If the United Kingdom fails to take ad

Acting Secretary. minimum prices in the agreement.

vantage of the privilege of acceding to the The guaranteed quantities of importing agreement or if any of the signatories fails

Mr. President, at this time I ask unan. countries represent the quantities which to ratify, article IX provides a mechanism for imous consent that there may be printed in full at this point as a part of my re

Article V-Enforcement of rights all exporting and importing countries diffmarks a copy of the International Wheat Article V, relating to enforcement of cult. Agreement.

rights, establishes the procedure to be fol- Article VIIIInformation to be supplied to There being no objection, the agreelowed when any contracting country finds

the Council

Article VIII makes it obligatory for counment was ordered to be printed in the difficulty in purchasing or selling its unful

filled guaranteed quantity for any crop year tries party to the Agreement to report to the RECORD, as follows:

at the maximum or minimum price, respec- Council information which it may request in INTERNATIONAL WHEAT AGREEMENT-SUM- tively. Enforcement is through the Coun- connection with the administration of the MARY OF PRINCIPAL PROVISIONS

cil which decides the quantities (and, if re- Agreement. [Portions of text italicized indicate most quested, also the quality and grade or the

PART 3. ADJUSTMENT OF GUARANTEED important changes from or additions to proportion to be in the form of flour), which

QUANTITIES 1949 agreement]

individual exporting countries shall sell to

an importing country or the importing Article IX-Adjustments in case of nonparPART 1. GENERAL countries shall buy from an exporting

ticipation or withdrawal of countries Article 1-Objectives country.

Article IX provides, in the cases of failure The objectives of the Agreement are to The Council shall make such decision in of some country or countries to sign the assure supplies of wheat to importing coun- the case of application by an importing Agreement, failure to deposit an instrument tries and markets for wheat to exporting country "after receiving assurance, if re- accepting the Agreement, withdrawal, excountries at equitable and stable prices.

quested, that the wheat-grain or wheat- pulsion, or default, for adjustment of the re

flour is to be used for consumption in the maining guaranteed quantities in order that Article 11-Definitions

importing country or for normal or tradi- the total of guaranteed exports and the total Various terms used in the text of the tional trade.

of the guaranteed imports (as given in AnAgreement are here defined.

Article VI- Prices

nexes A and B of Article III) may be equal. PART 2. RIGHTS AND OBLIGATIONS Basic minimum and maximum prices are

Article X-Adjustment in case of short crop Article 111-Guaranteed purchases and fixed at $1.55 and $2.05 on No. 1 Manitoba

or necessity to safeguard balance of payguaranteed sales Northern wheat in store at Fort Wil

ments or monetary reserves Article III relates to guaranteed purchases liam/Port Arthur. As in the 1949 Agree- Article X provides for the procedure to be at the minimum price and guaranteed sales ment, these specified prices are made ex- followed in effecting adjustments in guaranat the maximum price and includes in An- clusive of such carrying charges and mar- teed quantities if a short crop in an exportnexes A and B listings of the guaranteed keting costs as may be agreed between the ing country or necessity to safeguard balance quantities of importing and exporting coun. buyer and seller. However, there was added of payments or monetary reserves in an imtries, respectively. ,

to the new Agreement the following im- porting country threatens to prevent the This Article brings out that specific obli- portant provision limiting the scope of the fulfillment of obligations under the Agreegations of importing countries to buy or of carrying charge:

ment in a particular crop-year. The Article exporting countries to sell exist only when "Carrying charges as agreed between the provides that, in the case of relief from oblisuch countries are required by the Council buyer and seller may accrue for the buyer's

buyer and seller may accrue for the buyer's gations sought by importing countries beupon application of a member country to account only after an agreed date specified cause of balance of payments difficulties, the do so at prices consistent with the mini- in the contract under which the wheat is

opinion of the International Monetary Fund

be sought. mum and maximum prices, respectively, sold.”

The Council is also instructed in dealing which are specified in the Agreement.

Formulae are indicated in Article VI for The amount of wheat-flour to be supplied determining, with reference to the basic

with requests for relief to adhere to the prinand accepted against the guaranteed quan- grade and the basing point mentioned above,

ciple that member countries to the maxitities is to be determined by agreement be- equivalent maximum prices for wheat at

mum extent feasible meet their obligations tween the buyer and seller in each trans- Vancouver and at Port Churchill, Canada, at

to buy or sell under the Agreement.

Provision is made for exploring the posstaction, subject to referral of the matter Australian and French ports, and at Gulf, to the Council for decision in case of dis- Atlantic and Pacific ports in the United

bility of adjustment by increase in the guar

anteed quantities of other countries before agreement between an exporting country and States. In the case of United States wheat, an importing country. such allowances are to be made for differ

the Council has recourse to the expedient Exporting and importing countries are to ences in quality as may be agreed between

of reducing any guaranteed quantities in

order to restore a balance between guaranbe free to fulfill their guaranteed quantities the exporting country and the importing through private trade channels or otherwise country concerned. Where transportation

teed exports and guaranteed imports. Purchases by importing countries are lim- costs are a factor in the calculation of equiv- Article XI-Adjustments of guaranteed ited to 90 percent of their guaranteed quanalents the Agreement provides that the price

quantities by consent tities up until February 28 of any crop year be "computed by using currently prevailing Provision is here made for simultaneous except by permission of the Council (this transportation costs”. Likewise, in all price increases by exporting and importing coun. provision is intended to enable the Council equivalent determinations, currently pre- tries for the remaining period of the Agreeunder Article X to make adjustments in case vailing exchange rates are to be used.

ment. of reduced availability to the Agreement re- It is further provided in Article VI that Transfers may also be made of parts of sulting from a short crop in an exporting the determination of price equivalents for their guaranteed quantities between exportcountry).

other descriptions of wheat than those men- ing or between importing countries for one Article IV-Recording of transactions against tioned above, determination of minimum and or more crop years subject to approval by a guaranteed quantities

maximum price equivalents for wheat at majority of the votes cast by the importing

other points than those specified above, adArticle IV provides for the procedure to

and a majority of votes cast by the exportbe followed for entering as to each crop year

justments in already established price equiv- ing countries. in the records of the Council information

alents, and settlement of disputes concern- Accessions of new member countries may about transactions in wheat and wheat-flour

ing appropriate premiums or discounts may be accommodated by reductions in the quanwhich come within the price limits specified

be effected by the Executive Committee in tities of importing countries or increases in in the Agreement and are intended to count

consultation with the Advisory Committee the quantities of exporting countries. against guaranteed quantities.

on Price Equivalents. Transactions are eligible for recording

Both the exporting and importing coun

Article XII--Additional purchases in case of which have been entered into before the de

critical need tries also agree, while reserving complete

Article XII enables the Council by twoposit of its instrument of acceptance by liberty of action in the determination and either or both of the countries concerned. administration of their internal agricultural

thirds of the votes cast by the exporting

countries and two-thirds of the votes cast by The Council may authorize recording of and price policies, to endeavor not to operate transactions specifying a loading period of

the importing countries to come to the asup to one month before the beginning or the free movement of prices between the

sistance of an importing country in critical

need of supplies of wheat in addition to its after the end of the crop year if the im- maximum and minimum.

guaranteed purchases by reducing pro rata porting and exporting countries concerned

Article VII-Stocks

the guaranteed quantities of the other imagree.

Article VII provides that each exporting porting countries. Recordings under the Agreement may be country shall endeavor to maintain stocks challenged by the importing or exporting of old crop wheat at the end of its crop-year

PART 4. ADMINISTRATION countries concerned and the matter re- adequate to ensure fulfillment of its guaran

Article XIIIThe Council viewed by the Council. Recorded quantities teed sales in the subsequent crop-year and The Wheat Council established by the 1949 may also be reduced if the full quantity that importing countries shall endeavor to Agreement shall continue in being for the cannot be delivered within the crop year. maintain adequate stocks at all times to purpose of administering the new AgreeA recording against the guaranteed quan-' avoid disproportionate purchases at the be- ment. tity of an importing country may be shifted ginning and end of a crop-year which might Provision is made for non-voting repreto apply to that of a second importing coun- prejudice the stabilization of wheat prices sentation by such intergovernmental organtry to which the wheat is resold.

and make the fulfillment of obligations of izations as the Council may decide to invite. This Article also outlines the powers and chases at the beginning of that crop-year. accession to the Agreement on the part of functions of the Council and indicates the The initial contribution of a country ac- any Government not already a party and circumstances under which the exercise of ceding to the Agreement shall be assessed on prescribe conditions for accession. such powers and functions may be dele- the basis of the guaranteed quantity and the

Article XXIIDuration, amendment, withgated and revoked. period remaining in the current crop-year

drawal and termination Decisions are reached by weighted vot- but assessments of other member countries ing in the Council, exporting countries as shall not be altered for that crop-year. De

Article XXII fixes the terminus of the a group and importing countries as a group fault in paying contributions assessed shall

Agreement at July 31, 1956 and stipulates having each 1,000 votes and the number of result in forfeiture by the defaulting country

that the Council at such time as it considers votes of each country being proportionate of its voting rights until the contribution is appropriate shall communicate to the conto its guaranteed quantity. Voting by proxy paid, although not in loss of its other rights tracting governments its recommendations is possible. or in release from obligations under the

regarding the renewal of the Agreement. The votes may also be adjusted at any Agreement.

The Council may by a majority of the votes session of the Council, when all member

held by the exporting countries and a majorArticle XVIII-Cooperation with other intercountries are not officially represented or

ity of the votes held by the importing coun

governmental organizations have not arranged for a proxy, to place the

tries recommend to the participating counimporting countries and the exporting coun

Article XVIII, wording of which is only tries an amendment to the Agreement. Such tries on an equal footing.

slightly changed from that of the old Agree- an amendment shall become effective if Voluntary reductions accepted by import

ment, enables the Council to make arrange- accepted by countries holding two-thirds of

ments for consultation and cooperation with ing or exporting countries to restore the

the votes held by the exporting countries

and two-thirds held by the importing counbalance between exporter and importer appropriate organs of the United Nations

tries. quantities in the case of release from part

and its specialized agencies and with other of its obligations of a member country under

intergovernmental organizations. It also Any exporting or importing country which Article X 6 (6) shall not result in reduction

directs the Council, in case any terms of the considers its interests to be prejudiced by of the voting power of such countries. A

Agreement are materially inconsistent with nonparticipation in or withdrawal from the like exemption is given to any country re

requirements which may be laid down by Agreement of any country listed in either

the United Nations or appropriate organs Annex A or Annex B of Article III responlinquishing part of its quota to another country for only one crop-year under Arti

and agencies thereof regarding commodity sible for more than five percent of the guar. cle XI, paragraph 2.

agreements, to consider amendment of the anteed quantities in the Annex may with.

Agreement. Other matters such as the number and

draw from the Agreement by giving written

notice of withdrawal to the Government of time of sessions, quorum, and legal capacity

Article XIX-Disputes and complaints

the United States before August 1, 1953. of the Council are covered in Article XIII. Article XIX provides, as in the old Agree

Any country which considers its national Each exporting and importing country ment, for decision by the Council. However, there have been added provisions enabling hostilities may withdraw from the Agreement

security to be endangered by the outbreak of undertakes to accept as binding all decisions of the Council under the provisions of the a majority of countries or countries holding

by giving thirty days' written notice. Agreement.

not less than one-third of the total 2,000 Article XIV-Executive Committee votes to require the Council, after full dis

Article XXIII-Territorial application cussion, to seek the opinion of an advisory Article XXIII deals with territorial appliArticle XIV requires the Council to elect

panel composed, unless unanimously agreed cation of the Agreement and provides that annually an Executive Committee to be re

otherwise by the Council, of five qualified any government may declare that its rights sponsible to and to work under the general persons acting in their personal capacities and obligations under the Agreement do not direction of the Council. Members thereof

and without instructions from any Govern- apply in respect of all or any of the overseas shall be three exporting countries elected by

ment. The Council is to decide the dispute territories for the foreign relations of which the exporting countries as in the old Agree

after receiving the opinion of the panel and it is responsible. In the absence of such a ment, and not more than eight importing considering all relevant information.

declaration its rights and obligations under countries (as compared to seven in the old

Article XIX follows the old Agreement in the Agreement apply in respect of all its Agreement) elected by the importing coun

its provisions concerning decision by the territories. tries. The Executive Committee is responsi

Council on a complaint that a country has ble to and works under the direction of the

failed to fulfill its obligations. A finding AGREEMENT REVISING AND RENEWING THE Council, its powers and functions being for breach of agreement requires a major

INTERNATIONAL WHEAT AGREEMENT either directly assigned under the Agreement ity of the votes held by importing and a ma. or delegated to it by the Council.

The Governmen's signatory to this Agreejority held by exporting countries. The prescribed that exporting countries repre

ment, Council may, by a like vote, deprive a counsented on the Executive Committee have

Considering that the International Wheat try found to be in breach of the Agreement together the same total number of votes as

Agreement which was opened for signature of its voting rights until it fulfills its oblido importing countries and that in each of

at Washington on March 23, 1949 was engations or expels it from the Agreement. these groups no one country shall have more

tered into in order to overcome the serious

PART 5. FINAL PROVISIONS than forty percent of the votes.

hardship caused to producers and consumers Article XX-Signature, acceptance, and by burdensome surpluses and critical shortArticle XV-Advisory Committee on Price

entry into force

ages of wheat, and Equivalents

Considering that it is desirable that the Article XV requires that the Council estab

Article XX prescribes a period for signing lish an Advisory Committee on Price Equiva- of instruments of acceptance with the Govup to April 27 and thereafter for the deposit

International Wheat Agreement be renewed,

with certain modifications, for a further lents consisting of representatives of three ernment of the United States by signatory

period, and exporting and three importing countries to Governments up to July 15. Notification to

Having decided to conclude for that puradvise the Council and the Executive Comthe United States Government by July 15

pose this Agreement revising and renewing mittee regarding the establishment or reof intention to accept the Agreement fol

the International Wheat Agreement, vision of price equivalents and other matlowed by deposit of an instrument by August

Have agreed as follows: ters pertaining to factors involved in the 1 shall be deemed to constitute acceptance

PART 1-GENERAL
calculation of prices under the Agreement.
on July 15, 1953.

Article 1-Objectives
Article XVIThe Secretariat
If Governments of signatory exporting

The objectives of this Agreement are to Article XVI provides that the Council shall countries responsible for not less than 50

assure supplies of wheat to importing counhave a Secretariat with a Secretary appointed percent of the total quantity in the Agree

tries and markets for wheat to exporting by the Council and a staff to be appointed ment and Governments im importing coun

countries at equitable and stable prices. in accordance with regulations established tries responsible for not less than 50 percent by the Council. of the quantity have accepted by July 15,

Article 11-Definitions
Article XVIIFinance

Parts 1, 3, 4, and 5 of the Agreement enter 1. For the purposes of this Agreement:

into force on that date and Part 2 on Au- “Advisory Committee on Price Equiva. Article XVII specifies that the expense of

gust 1 for Governments who have accepted lents” means the Committee established un. delegations to the Council, of representatives the Agreement.

der Article XV. on the Executive Committee, and of repre

Signatory Governments which have not ac

"Bushel" means sixty pounds avoirdupois. sentatives on the Advisory Committee on

cepted the Agreement by July 15 may be "Carrying charges” means the costs inPrice Equivalents shall be met by their re

granted an extension of time thereafter by curred for storage, interest and insurance spective Governments, but that other exthe Council for depositing an instrument

in holding wheat. penses necessary for the administration of of acceptance.

“C. & f." means cost and freight. the Agreements shall be met by annual con

Council" means the International Wheat tributions from the exporting and importing

Article XXI-Accession

Council established by Article XIII. countries. The contribution of each such Article XXI provides that the Council may “Crop-year" means the period from August country for each crop-year shall be in the by two-thirds of the votes cast by the ex- 1 to July 31, except that in Article VII it proportion which its guaranteed quantity porting countries and two-thirds of the votes means in respect of Australia the period bears to the total guaranteed sales or pur- cast by the importing countries approve from December 1 to November 30 and in

26

25

75

230

respect of the United States of America live country represent, subject to any increase or

ANNEX A TO ARTICLE III period from July 1 to June 30. reduction made in accordance with the pro

Guaranteed purchases "Executive Committee" means the Com- visions of Part 3 of this Agreement, the guarmittee established under Article XIV. anteed purchases of that country for each of

Equiva

lent in "Exporting country” means, as the con- the three crop-years covered by this Agree

Crop-year August 1 text requires, either (i) the Government of ment.

to July 31
1953/54 1954/55 1955/56 bushels

for each a country listed in Annex B to Article III 2. The quantities of wheat set out in An

crop-year which has accepted or acceded to this Agree- nex B to this Article for each exporting counment and has not withdrawn therefrom, or try represent, subject to any increase or

Thousands of metric (ii) that country itself and the territories reduction made in accordance with the pro

tons in respect of which the rights and obliga- visions of Part 3 of this Agreement, the tions of its Government under this Agree- guaranteed sales of that country for each of Austria

2501 250 250 9,185, 927 ment apply. the three crop-years covered by this Agree- Belgium.

615 615 615 22, 597, 382 "F. a. q.” means fair average quality. ment.

Bolivia..

95 95 95 3, 490, 652 Brazil.

360 360 360 13, 227, 736 "F. o. b." means free on board ocean vessel.

3. The guaranteed purchases of an import

Ceylon.

255 255 255 9, 369, 646 "Guaranteed quality" means in relation to ing country represent the maximum quan

Costa Rica

35 35 35 1,286, 030 an importing country its guaranteed purtity of wheat which, subject to deduction of Cuba.

202

202 202 7,422, 229 chases for a crop-year and in relation to an the amount of the transactions entered in Denmark.

50 50 50 1, 837, 185 Dominican Republic.

26 26 955, 336 exporting country its guaranteed sales for the Council's records in accordance with

Ecuador.

35 35 35l 1, 286, 030 a crop-year. Article IV against those guaranteed pur- Egypt.

400 400 400 14, 697, 484 "Importing country" means, as the context chases.

El Salvador.

201 201 20 734, 874 requires, either (i) the Government of a

(a) that importing country may be re

Federal Republic of

Germany. country listed in Annex A to Article III

1,500 1,500 1,500 55, 115, 565 quired by the Council, as provided in Ar

Greece..

350 350 350 12, 860, 299 which has accepted or acceded to this Agreeticle V, to purchase from the exporting coun- Guatemala

25 25

918, 593 ment and has not withdrawn therefrom, or tries at prices consistent with the minimum Haiti..

45 45 45/ 1, 653, 467 (ii) that country itself and the territories

Honduras.

15 15 151 prices specified in or determined under Ar

551, 156 Iceland...

11 11 11 in respect of which the rights and obliga

404, 181 ticle VI, or

India.-tions of its Government under this Agree

1,500 1,500 1,500 55, 115, 565 (b) the exporting countries may be re- Indonesia.

142 142 1425, 217, 607 ment apply.

Ireland..

275 275

275 10, 104, 520 “Marketing costs“ means all usual charges quired by the Council

, as provided in Ar

Israel.

215 215 ticle V, to sell to that importing country at

2157,899, 898 incurred in procurement, marketing, char- prices consistent with the maximum prices

Italy.

850 850 850 31, 232, 154 Japan..

1,000 1,000 1,000 36, 743, 710 tering, and forwarding. specified in or determined under Article VI. Lebanon.

75

75 2,755, 778 "Metric ton" means 36.74371 bushels.

4. The guaranteed sales of an exporting

Liberia.

2 2 2 73, 487 "Old crop wheat” means wheat harvested

Mexico.

415 415

415 15, 248, 640 country represent the maximum quantity of

Netherlands

675) more than two months prior to the begin

675 675 24, 802, 004 wheat which, subject to deduction of the New Zealand.

160 160 ning of the current crop-year of the ex

160 5,878, 994 amount of the transactions entered in the Nicaragua..

10 10

101 367, 437 porting country concerned. Council's records in accordance with Article

Norway.

2301

230 8,451, 053 “Territory” in relation to an exporting or

Panama.

201 201 20

734, 874 Peru...

185 185 1851 6,797, 586 importing country includes any territory in IV against those guaranteed sales, (a) that exporting country may be re- Philippines.

236 236 236 8,671, 515 respect of which the rights and obligations

Portugal.

175 175 quired by the Council, as provided in Article under this Agreement of the Government of

175 6, 430, 149 Saudi Arabia.

601 60 60 2, 204, 623 that country apply under Article XXIII. V, to sell to the importing countries at prices

Spain..

145 145 145 5, 327, 838 Sweden.

25 25 25 “Transaction" means a sale for import consistent with the maximum prices speci

918, 593 into an importing country of wheat ex- fied in or determined under Article VI, or Switzerland.

2151

125 215 7,899, 898

Union of South Afriported or to be exported from an exporting

(b) the importing countries may be re

ca.

320 320 320 11, 757, 987 country, or the quantity of such wheat so quired by the Council, as provided in Article United Kingdom.. 4, 819 4,819 4, 819 177,067, 939 sold, as the context requires. Where refer- V, to purchase from that exporting country Venezuela....

170 170) 1701 6, 246, 431 ence is made in this Agreement to a trans- at prices consistent with the minimum prices

Total (42 counaction between an exporting country and an specified in or determined under Article VI.

tries)... 16, 208 16, 208 16, 208 595, 542, 052 importing country, it shall be understood to 5. If an importing country finds difficulty refer not only to transactions between the in exercising its right to purchase its unfulGovernment of an exporting country and filled guaranteed quantity at prices consist

ANNEX B TO ARTICLE III the Government of an importing country ent with the maximum prices specified in or

Guaranteed sales but also to transactions between the private determined under Article VI or an exporting traders and to transactions between a priv- country finds difficulty in exercising its right ate trader and the Government of an export to sell its unfulfilled guaranteed quantity at

Equiva

lent in ing or an importing country. In this defini- prices consistent with the minimum prices so

Crop-year August 1

1953/54 1954/55 1955/56 bushels tion “Government” shall be deemed to in- specified or determined, it may have resort to

to July 31

for each clude the Government of any territory in the procedure in Article V.

crop-year respect of which the rights and obligations 6. Exporting countries are under no obligaof any Government accepting or acceding to tion to sell any wheat under this Agreement

Thousands of metric this Agreement apply under Article XXIII. unless required to do so as provided in Article

tons “Unfulfilled guaranteed quantity" means,

V at prices consistent with the maximum in the case of an exporting country, the dif- prices specified in or determined under

Australia* ference between the quantities entered in

2, 041

2,041 2,041 75,000,000 Article VI. Importing countries are under no Canada...

6,804 6, 804 6,804 250, 000, 000 the Council's records in accordance with obligation to purchase any wheat under this France

10)

10 101 367, 437 Article IV in respect of that country for a Agreement unless required to do so as pro

United States of crop-year and its guaranteed sales for that

America.

7,353 7,353 7,353 270, 174, 615 vided in Article, V at prices consistent with crop-year and, in the case of an importing the minimum prices specified in or deter

Total.. 16, 208 16, 208 16, 208 595, 542,052 country, the difference between the quan

mined under Article VI. tities entered in the Council's records in accordance with Article IV in respect of that

7. The quantity, if any, of wheat-flour to *In the event of the provisions of Article X being incountry for a crop-year and that portion of be supplied by the exporting country and

voked by Australia by reason of a short crop, it will be

recognized that certain markets, by virtue of their geoits guaranteed purchases for that crop-year accepted by the importing country against

graphical position, are traditionally dependent upon which it is, at the relevent time, entitled to their respective guaranteed quantities shall, Australia for the supply of their requirements of wheat purchase having regard to paragraph 9 of subject to the provisions of Article V, be de

grain and wheat-flour. The necessity of meeting these Article III. termined by agreement between the buyer

requirements will be one of the factors to be taken into

account by the Council in determining the ability of "Wheat” includes wheat grain and, except and seller in each transaction.

Australia to deliver its guaranteed sales under this Agreein Article VI, wheat-flour.

8. Exporting and importing countries shall

ment in any crop-year. 2. Seventy-two units by weight of wheat- be free to fulfill their guaranteed quantities Article IV-Recording of transactions against flour shall be deemed to be equivalent to through private trade channels or otherwise.

guaranteed quantities one hundred units by weight of wheat grain Nothing in this Agreement shall be conin all calculations relating to guaranteed

1. The Council shall keep records for each strued to exempt any private trader from any purchases or guaranteed sales, unless the

crop-year of those transactions and parts Council decides otherwise.

laws or regulations to which he is otherwise of transactions in wheat which are part of

subject. PART 2—RIGHTS AND OBLIGATIONS

the guaranteed quantities in Annexes A and

9. No importing country shall, without the B to Article III. ARTICLE III—GUARANTEED PURCHASES AND permission of the Council, purchase under 2. A transaction or part of a transaction GUARANTEED SALES

this Agreement more than ninety per cent of in wheat grain between an exporting coun1. The quantities of wheat set out in An- its guaranteed quantity for any crop-year try and an importing country shall be ennex A to this Article for each importing before February 28 of that crop-year.

tered in the Council's records against the

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