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By Mr. MCCLELLAN, from the Committee on the Judiciary:

Charles W. Atkinson, of Arkansas, to be United States attorney for the western disstrict of Arkansas.

By Mr. HENNINGS, from the Committee on the Judiciary:

Harry Richards, of Missouri, to be United States attorney for the eastern district of Missouri, vice George L. Robertson, resigned.

By Mr. DIRKSEN, from the Committee on the Judiciary:

William W. Kipp, Sr., of Illinois, to be United States marshal for the northern district of Illinois, vice Thomas P. O'Donovan, deceased.

By Mr. BUTLER of Maryland, from the Committee on the Judiciary:

Byron H. Carpenter, of Maryland, as examiner in chief of the Patent Office; and

Arthur Wilbur Crocker, of Maryland, for the position of Assistant Commissioner of Patents.

REVISION AND RENEWAL OF THE INTERNATIONAL WHEAT AGREE

MENT

Mr. FERGUSON. Mr. President, I move that the Senate proceed to the consideration of Executive Treaty H, of the 83d Congress, 1st session, for the revision and renewal of the International Wheat Agreement.

The motion was agreed to; and the Senate, as in Committee of the Whole, proceeded to consider the agreement, Executive H (83d Cong., 1st sess.), an agreement revising and renewing the International Wheat Agreement, in the English, French, and Spanish languages, which was open for signature in Washington April 13 to 27, inclusive, 1953, and was signed during that period on behalf of the Government of the United States of America and the governments of 44 other countries, which was read the second time.

(For full text of wheat agreement see pp. 8596-8604 of Senate proceedings of this date.)

The PRESIDING OFFICER (Mr. CASE in the chair). The agreement is open to amendment.

Mr. LANGER. Mr. President, on June 2, 1953, President Eisenhower sent to the Senate a message dealing with respect to the International Wheat Agreement, which was open for signature in Washington April 13 to 27, inclusive, 1953, and which was signed during that period on behalf of the Government of the United States of America and the governments of 44 other countries. The President's The President's message was as follows:

THE WHITE HOUSE, June 2, 1953. To the Senate of the United States: With a view to receiving the advice and consent of the Senate to ratification, if the Senate approve thereof, I transmit herewith a certified copy of the agreement revising and renewing the International Wheat Agreement, in the English, French, and Spanish languages, which was open for signature in Washington April 13 to 27, inclusive, 1953, and was signed during that period on behalf of the Government of the United States of America and the governments of 44 other countries.

The purposes and provisions of the agreement are set forth in greater detail in the enclosed report of the Acting Secretary of

State and in the summary enclosed there- of surplus marketing by international agreewith. ment is sound" and that "it wishes to encourage this objective" (S. Ex. Rept. No. 12, 80th Cong., 2d sess.).

Attention is invited particularly to the final paragraph of the report of the Acting Secretary of State. It is my hope that the Senate will find it possible to give early consideration to the agreement so that, if the agreement be approved, final action by this Government with respect thereto may be taken by July 15.

`DWIGHT D. EISENHOWER.

With his message, President Eisenhower enclosed, first, a report of the Acting Secretary of State, with enclosed summary of principal provisions; and, second, an agreement revising and renewing the International Wheat Agreement. The report from the Acting Secretary of State is as follows:

The PRESIDENT,

DEPARTMENT OF STATE, Washington, May 29, 1953.

The White House:

The undersigned, the Acting Secretary of State, has the honor to lay before the President, with a view to its transmission to the Senate to receive the advice and consent of that body to ratification, if the President approve thereof, a certified copy of the agreement revising and renewing the International Wheat Agreement, in the English, French, and Spanish languages, open for signature in Washington April 13 to 27, inclusive, 1953, and signed during that period by plenipotentiaries of the Government of the United

States of America and plenipotentiaries of the governments of 3 other exporting countries, namely, Australia, Canada, and France, and of 41 importing countries.

The agreement submitted herewith is intended to continue for a period of 3 years, to the end of July 1956, with certain modifications, the arrangements with respect to international purchases and sales of wheat established by the International Wheat Washington March 23 to April 15, inclusive, Agreement which was open for signature in 1949. The Senate gave its advice and consent to ratification of the 1949 agreement on June 13, 1949, the President ratified it and the United States instrument of ratification was deposited on June 17, 1949. That agreement entered into force on July 1, 1949, ex

cept as to part 2 and on August 1, 1949, as to part 2 (S. Ex. M, 81st Cong., 1st sess.; Treaties and Other International Acts, series 1937; 63 Stat., pt. 2, 2173).

The 1949 agreement was designed to "overcome the serious hardship caused to producers and consumers by burdensome and to "assure supplies of wheat to importsurpluses and critical shortages of wheat" and to "assure supplies of wheat to importing countries and markets for wheat to exporting countries at equitable and stable prices."

That agreement was the result of exploration by governments since the early 1930's of the possibility of creating more stable

conditions in world wheat markets, and since the early 1940's of more active consideration of a multilateral wheat agreement.

Public hearings with respect to the 1949 agreement were held in May 1949 before a subcommittee of the Senate Committee on Foreign Relations. The committee, in reporting favorably on that agreement (S. Ex. Rept. No. 7, 81st Cong., 1st sess.), stated as follows:

"The Committee on Foreign Relations is of the view that the International Wheat Agreement meets the wishes of the farmers and is in the national interest."

It is pertinent to mention also that on August 6, 1948, the Senate Committee on Foreign Relations, in reporting on a similar International Wheat Agreement which had been signed in 1948, stated that it was "the committee's earnest belief that the principle

The 1949 agreement, by its own terms, expires at the end of July 1953. There are at present 46 countries parties to that agreement, including 4 exporting countries (the United States, Australia, Canada, and France) and 42 importing countries.

The 1949 agreement set up an International Wheat Council, with carefully delimited functions, to administer the terms of the agreement. Among the functions of the Council is that of communicating to the

member

governments

"recommendations

regarding the renewal of this agreement.” In April and May 1952, at the Council's eighth session in London, the Council engaged in discussions for the purpose of drawing up recommendations regarding renewal. The Council could not then agree on specific recommendations for modifications to be made in the agreement and resolved that the eighth session should be resumed at a later date to develop final recommendations to member governments.

The resumed eighth session convened in Washington on February 2, 1953. After prolonged negotiations, representatives of importing countries and of exporting countries reached acceptable compromises. A draft agreement was drawn up revising and renewing the International Wheat Agreement. By a resolution adopted at the final meeting on April 13, 1953, the Council recommended that member governments become signatories.

During the period allowed for signature, April. 13 through April 27, the revised agreement was signed on behalf of all the governments represented in the Council except the United Kingdom, which did not concur in the revised maximum price written into the new agreement.

The agreement submitted herewith was signed on behalf of the United States by Secretary of Agriculture Ezra Taft Benson and Under Secretary of Agriculture True D. Morse under plenipotentiary authority issued to them by the President. Under Secretary Morse was chairman of the United States delegation which participated in the negotiations. The Secretary of Agriculture has informed the Acting Secretary of State that the Department of Agriculture concurs in the recommendation that the agreement be transmitted to the Senate for advice and consent to ratification.

As in the case of the 1949 agreement, the purpose of this agreement is to provide an assured market to wheat-exporting countries at the specified minimum price and assured supplies for wheat-importing countries at a specified maximum price, while maintaining the largest possible degree of flexibility between these prices and avoiding interference with private trade and with the internal policies and programs of member countries. A number of importing countries are signatories to the new agreement which were not included among the original signatories to the 1949 agreement. These became parties to that agreement by accession after it went into force. The most important potential change in the scope of the agreement arises from the failure of the United Kingdom to become a signatory to the new agreement. As further explained below, the terms of the agreement make it possible for the United Kingdom to participate through accession after the agreement enters into force. If it should fail to do so, however, the agreement provides for an adjustment in quotas so that the quantitative obligations of the exporters will be equal to those of the importers.

As in the 1949 agreement, the basic obligation incurred by each exporting country is to deliver a specified quantity of wheat at the maximum price in the agreement, and that of each importing country is to pur

chase a specified quantity of wheat at the minimum price. In both cases these obligations come into effect only after action by the Council and are subject to certain safeguards specified in the agreement.

While the basic nature of the obligations and rights acquired by the United States in this agreement is thus essentially the same as in the 1949 agreement, the new agreement involves a larger quantity of wheat for the United States and a substantial improvement in the maximum and minimum prices it may receive.

Since the 1949 agreement expires July 31, 1953, and since it is necessary that the Council begin to function under the new agreement before that date in order to prevent a serious lapse in the program, it is important that at least the major signatories accept the agreement before July 15.

There is attached herewith a summary of the more important provisions of the agreement, with particular emphasis on those provisions that differ from the provisions in the 1949 agreement. In order to facilitate reference to particular provisions, however, the following brief summary of the structure of the agreement is included.

Apart from the preamble, the agreement is divided into 5 parts with 23 articles.

Part 1 (general) includes the brief statement of objectives and an article giving definitions of numerous terms found in the agreement.

Part 2 (rights and obligations) specifies the guaranteed purchases and guaranteed sales and rules regarding the recording of transactions against guaranteed quantities, the enforcement of rights, the basic maximum and minimum prices, the maintenance of stocks, and reporting requirements.

Part 3 (adjustment of guaranteed quantities) stipulates various procedures for adjust ments under varying conditions.

Part 4 (administration) contains provisions relating to the composition and functions of the International Wheat Council, the Executive Committee, the Advisory Committee on Price Equivalents, and the Secretariat, and also provisions relating to the Council's finances, and budget, cooperation with other intergovernmental organizations, and procedures for settlement of disputes arising under the agreement.

Part 5 (final provisions) contains the provisions regarding signature, acceptance, entry into force, accession, duration, amendment, withdrawal, and territorial application.

The following paragraphs summarize in greater detail certain aspects of the agreement which merit special attention.

As in the 1949 agreement, paragraph 8 of article III provides that exporting and importing countries shall be free to fulfill their guaranteed quantities through private trade channels and that nothing in the agreement shall be construed to exempt any private trader from any laws or regulations to which he is subject. The agreement does not prescribe means or methods to be adopted to ensure fulfillment of agreement obligations, nor does it require any interference with trade in wheat outside the agreement so long as agreement obligations are met. No level of production is prescribed for an exporting country and the agreement goes no further in the matter of stocks than to provide that "each exporting country shall endeavor to maintain" carryover stocks to fulfill its guaranteed sales. With regard to the determination and administration of internal agricultural and price policies, the member countries (art. VI, par. 8) expressly reserve to themselves complete liberty of action but “shall endeavor not to operate those policies in such a way as to impede the free movement of prices" between the maximum and minimum prices in the agreement.

The guaranteed quantities of importing countries represent the quantities which

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Action of the Council to prescribe sales and purchases is reserved for the case of an importing country having difficulty in buying its guaranteed quantity at the maximum and of an exporting country having difficulty in selling its guaranteed quantity at the minimum price. Otherwise the function of the Council is that of recording transactions against the guaranteed quantities.

In the new agreement the guaranteed
quantity of the United States is 270 million
bushels as compared with 168 million when
the 1949 agreement entered into force and
253 million at the present time in the 1949
agreement. The increase in the United

States quota under the present agreement
has taken place as a result of voluntary ac-
tion to meet requests by importing countries,
including those which have acceded to the
agreement.

As applied to the current crop year, the
prices specified in the 1949 agreement are:
maximum $1.80 per bushel, minimum $1.20
per bushel. For the duration of the new
agreement, the prices specified are: maxi-
mum $2.05, minimum $1.55.

The renegotiation of the agreement has resulted in a redistribution of quotas which is believed to accord more closely with the requirements and the ability to perform of the respective signatories. A number of importing countries voluntarily reduced their guaranteed quantities, while many others secured larger quotas more nearly covering the quantities they wish to import under the agreement.

Apart from these changes in quantities and prices certain changes in the text of the agreement, while not altering its basic character, merit specific mention. These changes include a limitation of the carrying charges which a buyer must sustain (art. VI); provision in certain circumstances for consultation by the Council with an advisory panel before deciding disputes (art. XIX); qualified recognition of the principle that importing countries should not resell wheat secured at the maximum price through action of the Council (art. V); and an additional provision to discourage possible abuses of the short-crop and balance-of-payments safeguards (art. X).

While the agreement was not signed on behalf of the United Kingdom within the period provided by its terms, that country can nevertheless accede to the agreement subsequent to its entry into force on July 15 by a two-thirds vote of exporting countries and a two-thirds vote of importing countries. The agreement also provides in article XXII that if any exporting country considers its interests to be seriously prejudiced by nonparticipation or withdrawal of an importing country responsible for a quota of more than 5 percent of the total in the agreement, such country may withdraw before August 1 by notification to the United States Government. An importing country is accorded this same privilege upon nonparticipation or withdrawal of an exporting country. The quota established for the United Kingdom represented about 30 percent of the aggregate quantity of the importers.

If the United Kingdom fails to take advantage of the privilege of acceding to the agreement or if any of the signatories fails to ratify, article IX provides a mechanism for

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The agreement was signed for Australia with a reservation which, in effect, declared its intention to take advantage of the withdrawal provisions (art. XXII) under certain circumstances unless a satisfactory adjustment in Australia's guaranteed quantity is made under article IX. The agreement was signed for Peru with an understanding that Peru's quota should be increased to a specified amount as originally requested to cover bare necessities.

Article XX provides that the agreement shall be subject to acceptance by the signatory governments in accordance with their respective constitutional procedures. It is

provided further that parts 1, 3, 4, and 5 shall enter into force on July 15, 1953, provided that, by that date, the governments of importing countries responsible for not less than 50 percent of the guaranteed purchases and the governments of exporting countries responsible for not less than 50 percent of the guaranteed sales have accepted the agreement. Part 2 of the agreement, which applies to rights and obligations, is to come into force on August 1 (upon expiration of the 1949 agreement) for governments which have ratified the agreement.

On the side of the exporting countries, the acceptances of the United States and either Australia or Canada or acceptance by Australia and Canada would suffice to bring the agreement into force. The total guaranteed quantity, both as to exporting and importing countries, is specified (annexes to art. III) as 595,542,052 bushels per crop year. The guaranteed sales indicated for the United States and Canada represent the greater part of the total, namely, the United States 270,174,615, Canada 250 million. On the side of the importing countries, without the United Kingdom, with its quantity of 177 million bushels among the signatories, acceptances by the 12 signatories having the largest guaranteed quantities (purchases) apart from the United Kingdom (10 million or more bushels each) would suffice to bring the agreement into force.

message of the President, calling attenI invite particular attention to the tion to the last paragraph of the letter from the Acting Secretary of State, which I now read:

The long period of negotiation and the need to bring the new agreement into force in time to succeed immediately to the present agreement have limited the time available for obtaining the advice and consent of the Senate. Certified copies of the agreement could not be prepared until after the closing date for signature. It is hoped that the Senate may find it possible to give expeditious consideration to the new agreement herewith submitted, in order that an instrument of acceptance may be executed and deposited on behalf of the United States before July 15.

Respectfully submitted.

WALTER B. SMITH,
Acting Secretary.

Mr. President, at this time I ask unanimous consent that there may be printed

in full at this point as a part of my remarks a copy of the International Wheat Agreement.

There being no objection, the agreement was ordered to be printed in the RECORD, as follows:

INTERNATIONAL WHEAT AGREEMENT SUMMARY OF PRINCIPAL PROVISIONS [Portions of text italicized indicate most important changes from or additions to 1949 agreement]

PART 1. GENERAL

Article I-Objectives

The objectives of the Agreement are to assure supplies of wheat to importing countries and markets for wheat to exporting countries at equitable and stable prices.

Article II-Definitions

Various terms used in the text of the Agreement are here defined.

PART 2. RIGHTS AND OBLIGATIONS Article III-Guaranteed purchases and guaranteed sales

Article III relates to guaranteed purchases at the minimum price and guaranteed sales at the maximum price and includes in Annexes A and B listings of the guaranteed quantities of importing and exporting countries, respectively.

This Article brings out that specific obligations of importing countries to buy or of exporting countries to sell exist only when such countries are required by the Council upon application of a member country to do so at prices consistent with the minimum and maximum prices, respectively, which are specified in the Agreement.

The amount of wheat-flour to be supplied and accepted against the guaranteed quantities is to be determined by agreement between the buyer and seller in each transaction, subject to referral of the matter to the Council for decision in case of disagreement between an exporting country and an importing country.

Exporting and importing countries are to be free to fulfill their guaranteed quantities through private trade channels or otherwise.

Purchases by importing countries are limited to 90 percent of their guaranteed quantities up until February 28 of any crop year except by permission of the Council (this provision is intended to enable the Council under Article X to make adjustments in case of reduced availability to the Agreement resulting from a short crop in an exporting country).

Article V-Enforcement of rights Article V, relating to enforcement of rights, establishes the procedure to be followed when any contracting country finds difficulty in purchasing or selling its unfulfilled guaranteed quantity for any crop year at the maximum or minimum price, respectively. Enforcement is through the Council which decides the quantities (and, if requested, also the quality and grade or the proportion to be in the form of flour), which individual exporting countries shall sell to an importing country or the importing countries shall buy from an exporting country.

The Council shall make such decision in the case of application by an importing country "after receiving assurance, if requested, that the wheat-grain or wheatflour is to be used for consumption in the importing country or for normal or traditional trade".

Article VI-Prices

Basic minimum and maximum prices are fixed at $1.55 and $2.05 on No. 1 Manitoba Northern wheat in store at Fort William/Port Arthur. As in the 1949 Agreement, these specified prices are made exclusive of such carrying charges and marketing costs as may be agreed between the buyer and seller. However, there was added to the new Agreement the following important provision limiting the scope of the carrying charge:

"Carrying charges as agreed between the buyer and seller may accrue for the buyer's account only after an agreed date specified in the contract under which the wheat is sold."

Formulae are indicated in Article VI for determining, with reference to the basic grade and the basing point mentioned above, equivalent maximum prices for wheat at Vancouver and at Port Churchill, Canada, at Australian and French ports, and at Gulf, Atlantic and Pacific ports in the United States. In the case of United States wheat, such allowances are to be made for differences in quality as may be agreed between the exporting country and the importing country concerned. Where transportation costs are a factor in the calculation of equivalents the Agreement provides that the price be "computed by using currently prevailing transportation costs". Likewise, in all price equivalent determinations, currently vailing exchange rates are to be used.

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It is further provided in Article VI that the determination of price equivalents for other descriptions of wheat than those men

Article IV-Recording of transactions against tioned above, determination of minimum and

guaranteed quantities

Article IV provides for the procedure to be followed for entering as to each crop year in the records of the Council information about transactions in wheat and wheat-flour which come within the price limits specified in the Agreement and are intended to count against guaranteed quantities.

Transactions are eligible for recording which have been entered into before the deposit of its instrument of acceptance by either or both of the countries concerned. The Council may authorize recording of transactions specifying a loading period of up to one month before the beginning or after the end of the crop year if the importing and exporting countries concerned agree.

Recordings under the Agreement may be challenged by the importing or exporting countries concerned and the matter reviewed by the Council. Recorded quantities may also be reduced if the full quantity cannot be delivered within the crop year. A recording against the guaranteed quantity of an importing country may be shifted to apply to that of a second importing country to which the wheat is resold.

maximum price equivalents for wheat at other points than those specified above, adjustments in already established price equivalents, and settlement of disputes concerning appropriate premiums or discounts may be effected by the Executive Committee in consultation with the Advisory Committee on Price Equivalents.

Both the exporting and importing countries also agree, while reserving complete liberty of action in the determination and administration of their internal agricultural

and price policies, to endeavor not to operate those policies in such a way as to impede the free movement of prices between the maximum and minimum.

Article VII-Stocks

Article VII provides that each exporting country shall endeavor to maintain stocks of old crop wheat at the end of its crop-year adequate to ensure fulfillment of its guaranteed sales in the subsequent crop-year and that importing countries shall endeavor to maintain adequate stocks at all times to avoid disproportionate purchases at the beginning and end of a crop-year which might prejudice the stabilization of wheat prices and make the fulfillment of obligations of

all exporting and importing countries difficult. Article VIII-Information to be supplied to the Council

Article VIII makes it obligatory for countries party to the Agreement to report to the Council information which it may request in connection with the administration of the Agreement.

PART 3. ADJUSTMENT OF GUARANTEED

QUANTITIES

Article IX-Adjustments in case of nonparticipation or withdrawal of countries Article IX provides, in the cases of failure of some country or countries to sign the Agreement, failure to deposit an instrument accepting the Agreement, withdrawal, expulsion, or default, for adjustment of the remaining guaranteed quantities in order that the total of guaranteed exports and the total of the guaranteed imports (as given in Annexes A and B of Article III) may be equal. Article X-Adjustment in case of short crop or necessity to safeguard balance of payments or monetary reserves

Article X provides for the procedure to be followed in effecting adjustments in guaranteed quantities if a short crop in an exporting country or necessity to safeguard balance of payments or monetary reserves in an importing country threatens to prevent the fulfillment of obligations under the Agreement in a particular crop-year. The Article provides that, in the case of relief from obligations sought by importing countries because of balance of payments difficulties, the opinion of the International Monetary Fund be sought.

The Council is also instructed in dealing with requests for relief to adhere to the principle that member countries to the maximum extent feasible meet their obligations to buy or sell under the Agreement.

Provision is made for exploring the possibility of adjustment by increase in the guaranteed quantities of other countries before the Council has recourse to the expedient of reducing any guaranteed quantities in order to restore a balance between guaranteed exports and guaranteed imports.

Article XI-Adjustments of guaranteed quantities by consent

Provision is here made for simultaneous increases by exporting and importing countries for the remaining period of the Agreement.

Transfers may also be made of parts of their guaranteed quantities between exporting or between importing countries for one or more crop years subject to approval by a majority of the votes cast by the importing and a majority of votes cast by the exporting countries.

Accessions of new member countries may be accommodated by reductions in the quantities of importing countries or increases in the quantities of exporting countries. Article XII-Additional purchases in case of critical need

Article XII enables the Council by twothirds of the votes cast by the exporting countries and two-thirds of the votes cast by the importing countries to come to the assistance of an importing country in critical need of supplies of wheat in addition to its guaranteed purchases by reducing pro rata the guaranteed quantities of the other importing countries.

PART 4. ADMINISTRATION

Article XIII-The Council

The Wheat Council established by the 1949 Agreement shall continue in being for the purpose of administering the new Agreement.

Provision is made for non-voting representation by such intergovernmental organizations as the Council may decide to invite.

This Article also outlines the powers and functions of the Council and indicates the circumstances under which the exercise of such powers and functions may be delegated and revoked.

Decisions are reached by weighted voting in the Council, exporting countries as a group and importing countries as a group having each 1,000 votes and the number of votes of each country being proportionate to its guaranteed quantity. Voting by proxy is possible.

The votes may also be adjusted at any session of the Council, when all member countries are not officially represented or have not arranged for a proxy, to place the importing countries and the exporting countries on an equal footing.

Voluntary reductions accepted by importing or exporting countries to restore the balance between exporter and importer quantities in the case of release from part of its obligations of a member country under Article X 6 (b) shall not result in reduction of the voting power of such countries. like exemption is given to any country relinquishing part of its quota to another country for only one crop-year under Article XI, paragraph 2.

A

Other matters such as the number and time of sessions, quorum, and legal capacity of the Council are covered in Article XIII.

Each exporting and importing country undertakes to accept as binding all decisions of the Council under the provisions of the Agreement.

Article XIV-Executive Committee Article XIV requires the Council to elect annually an Executive Committee to be responsible to and to work under the general direction of the Council. Members thereof shall be three exporting countries elected by the exporting countries as in the old Agreement, and not more than eight importing countries (as compared to seven in the old Agreement) elected by the importing countries. The Executive Committee is responsible to and works under the direction of the Council, its powers and functions being either directly assigned under the Agreement or delegated to it by the Council. prescribed that exporting countries represented on the Executive Committee have together the same total number of votes as do importing countries and that in each of these groups no one country shall have more than forty percent of the votes.

It is

Article XV-Advisory Committee on Price

Equivalents

Article XV requires that the Council establish an Advisory Committee on Price Equivalents consisting of representatives of three exporting and three importing countries to advise the Council and the Executive Committee regarding the establishment or revision of price equivalents and other matters pertaining to factors involved in the calculation of prices under the Agreement.

Article XVI-The Secretariat Article XVI provides that the Council shall have a Secretariat with a Secretary appointed by the Council and a staff to be appointed in accordance with regulations established by the Council.

Article XVII-Finance

Article XVII specifies that the expense of delegations to the Council, of representatives on the Executive Committee, and of representatives on the Advisory Committee on Price Equivalents shall be met by their respective Governments, but that other expenses necessary for the administration of the Agreements shall be met by annual contributions from the exporting and importing countries. The contribution of each such country for each crop-year shall be in the proportion which its guaranteed quantity bears to the total guaranteed sales or pur

chases at the beginning of that crop-year. The initial contribution of a country acceding to the Agreement shall be assessed on the basis of the guaranteed quantity and the period remaining in the current crop-year but assessments of other member countries shall not be altered for that crop-year. Default in paying contributions assessed shall result in forfeiture by the defaulting country of its voting rights until the contribution is paid, although not in loss of its other rights or in release from obligations under the Agreement.

Article XVIII-Cooperation with other intergovernmental organizations

Article XVIII, wording of which is only slightly changed from that of the old Agreement, enables the Council to make arrangements for consultation and cooperation with appropriate organs of the United Nations and its specialized agencies and with other intergovernmental organizations. It also directs the Council, in case any terms of the Agreement are materially inconsistent with requirements which may be laid down by the United Nations or appropriate organs and agencies thereof regarding commodity agreements, to consider amendment of the Agreement.

Article XIX-Disputes and complaints

Article XIX provides, as in the old Agreement, for decision by the Council. However, there have been added provisions enabling a majority of countries or countries holding not less than one-third of the total 2,000 votes to require the Council, after full discussion, to seek the opinion of an advisory panel composed, unless unanimously agreed otherwise by the Council, of five qualified persons acting in their personal capacities and without instructions from any Government. The Council is to decide the dispute after receiving the opinion of the panel and considering all relevant information.

Article XIX follows the old Agreement in its provisions concerning decision by the Council on a complaint that a country has failed to fulfill its obligations. A finding for breach of agreement requires a majority of the votes held by importing and a majority held by exporting countries. The Council may, by a like vote, deprive a country found to be in breach of the Agreement of its voting rights until it fulfills its obligations or expels it from the Agreement.

PART 5. FINAL PROVISIONS

Article XX-Signature, acceptance, and entry into force

Article XX prescribes a period for signing up to April 27 and thereafter for the deposit of instruments of acceptance with the Government of the United States by signatory Governments up to July 15. Notification to the United States Government by July 15 of intention to accept the Agreement followed by deposit of an instrument by August 1 shall be deemed to constitute acceptance on July 15, 1953.

If Governments of signatory exporting countries responsible for not less than 50 percent of the total quantity in the Agreement and Governments im importing countries responsible for not less than 50 percent of the quantity have accepted by July 15, Parts 1, 3, 4, and 5 of the Agreement enter into force on that date and Part 2 on August 1 for Governments who have accepted the Agreement.

Signatory Governments which have not accepted the Agreement by July 15 may be granted an extension of time thereafter by the Council for depositing an instrument of acceptance.

Article XXI-Accession

Article XXI provides that the Council may by two-thirds of the votes cast by the exporting countries and two-thirds of the votes cast by the importing countries approve

accession to the Agreement on the part of any Government not already a party and prescribe conditions for accession. Article XXII-Duration, amendment, withdrawal and termination

Article XXII fixes the terminus of the Agreement at July 31, 1956 and stipulates that the Council at such time as it considers appropriate shall communicate to the contracting governments its recommendations regarding the renewal of the Agreement.

The Council may by a majority of the votes held by the exporting countries and a majority of the votes held by the importing countries recommend to the participating countries an amendment to the Agreement. Such

an amendment shall become effective if accepted by countries holding two-thirds of the votes held by the exporting countries and two-thirds held by the importing countries.

Any exporting or importing country which considers its interests to be prejudiced by nonparticipation in or withdrawal from the Agreement of any country listed in either Annex A or Annex B of Article III responsible for more than five percent of the guaranteed quantities in the Annex may withdraw from the Agreement by giving written notice of withdrawal to the Government of the United States before August 1, 1953.

Any country which considers its national security to be endangered by the outbreak of hostilities may withdraw from the Agreement by giving thirty days' written notice.

Article XXIII-Territorial application Article XXIII deals with territorial application of the Agreement and provides that any government may declare that its rights and obligations under the Agreement do not apply in respect of all or any of the overseas territories for the foreign relations of which it is responsible. In the absence of such a declaration its rights and obligations under the Agreement apply in respect of all its territories.

AGREEMENT REVISING AND RENEWING THE INTERNATIONAL WHEAT AGREEMENT

The Governments signatory to this Agreement,

Considering that the International Wheat Agreement which was opened for signature at Washington on March 23, 1949 was entered into in order to overcome the serious hardship caused to producers and consumers by burdensome surpluses and critical shortages of wheat, and

Considering that it is desirable that the International Wheat Agreement be renewed, with certain modifications, for a further period, and

Having decided to conclude for that pur◄ pose this Agreement revising and renewing the International Wheat Agreement, Have agreed as follows:

PART 1-GENERAL

Article I-Objectives

The objectives of this Agreement are to assure supplies of wheat to importing countries and markets for wheat to exporting countries at equitable and stable prices.

Article II-Definitions

1. For the purposes of this Agreement: "Advisory Committee on Price Equivalents" means the Committee established under Article XV.

"Bushel" means sixty pounds avoirdupois. "Carrying charges" means the costs incurred for storage, interest and insurance in holding wheat.

"C. & f." means cost and freight. "Council" means the International Wheat Council established by Article XIII.

"Crop-year" means the period from August 1 to July 31, except that in Article VII it means in respect of Australia the period from December 1 to November 30 and in

respect of the United States of America the country represent, subject to any increase or period from July 1 to June 30.

"Executive Committee" means the Committee established under Article XIV.

"Exporting country" means, as the context requires, either (i) the Government of a country listed in Annex B to Article III which has accepted or acceded to this Agreement and has not withdrawn therefrom, or (ii) that country itself and the territories in respect of which the rights and obligations of its Government under this Agreement apply.

"F. a. q." means fair average quality.

"F. o. b." means free on board ocean vessel. "Guaranteed quality” means in relation to an importing country its guaranteed purchases for a crop-year and in relation to an exporting country its guaranteed sales for a crop-year.

"Importing country" means, as the context requires, either (i) the Government of a country listed in Annex A to Article III which has accepted or acceded to this Agreement and has not withdrawn therefrom, or (ii) that country itself and the territories in respect of which the rights and obligations of its Government under this Agreement apply.

"Marketing costs" means all usual charges incurred in procurement, marketing, chartering, and forwarding.

"Metric ton" means 36.74371 bushels.

"Old crop wheat" means wheat harvested more than two months prior to the beginning of the current crop-year of the exporting country concerned.

"Territory" in relation to an exporting or importing country includes any territory in respect of which the rights and obligations under this Agreement of the Government of that country apply under Article XXIII,

"Transaction" means a sale for import into an importing country of wheat exported or to be exported from an exporting country, or the quantity of such wheat so sold, as the context requires. Where reference is made in this Agreement to a transaction between an exporting country and an importing country, it shall be understood to refer not only to transactions between the Government of an exporting country and the Government of an importing country but also to transactions between the private traders and to transactions between a private trader and the Government of an exporting or an importing country. In this definition "Government" shall be deemed to include the Government of any territory in respect of which the rights and obligations of any Government accepting or acceding to this Agreement apply under Article XXIII. "Unfulfilled guaranteed quantity" means, in the case of an exporting country, the difference between the quantities entered in the Council's records in accordance with Article IV in respect of that country for a crop-year and its guaranteed sales for that crop-year and, in the case of an importing country, the difference between the quantities entered in the Council's records in accordance with Article IV in respect of that country for a crop-year and that portion of its guaranteed purchases for that crop-year which it is, at the relevent time, entitled to purchase having regard to paragraph 9 of Article III.

"Wheat" includes wheat grain and, except in Article VI, wheat-flour.

2. Seventy-two units by weight of wheatflour shall be deemed to be equivalent to one hundred units by weight of wheat grain in all calculations relating to guaranteed purchases or guaranteed sales, unless the Council decides otherwise.

PART 2-RIGHTS AND OBLIGATIONS
ARTICLE III-GUARANTEED PURCHASES AND
GUARANTEED SALES

1. The quantities of wheat set out in Annex A to this Article for each importing

reduction made in accordance with the provisions of Part 3 of this Agreement, the guaranteed purchases of that country for each of the three crop-years covered by this Agreement.

2. The quantities of wheat set out in Annex B to this Article for each exporting country represent, subject to any increase or reduction made in accordance with the provisions of Part 3 of this Agreement, the guaranteed sales of that country for each of the three crop-years covered by this Agreement.

3. The guaranteed purchases of an importing country represent the maximum quantity of wheat which, subject to deduction of the amount of the transactions entered in the Council's records in accordance with Article IV against those guaranteed purchases.

(a) that importing country may be required by the. Council, as provided in Article V, to purchase from the exporting countries at prices consistent with the minimum prices specified in or determined under Article VI, or

(b) the exporting countries may be required by the Council, as provided in Article V, to sell to that importing country at prices consistent with the maximum prices specified in or determined under Article VI.

4. The guaranteed sales of an exporting country represent the maximum quantity of wheat which, subject to deduction of the amount of the transactions entered in the Council's records in accordance with Article IV against those guaranteed sales,

(a) that exporting country may be required by the Council, as provided in Article V, to sell to the importing countries at prices consistent with the maximum prices specified in or determined under Article VI, or

(b) the importing countries may be required by the Council, as provided in Article V, to purchase from that exporting country at prices consistent with the minimum prices specified in or determined under Article VI.

5. If an importing country finds difficulty in exercising its right to purchase its unfulfilled guaranteed quantity at prices consistent with the maximum prices specified in or determined under Article VI or an exporting country finds difficulty in exercising its right to sell its unfulfilled guaranteed quantity at prices consistent with the minimum prices so specified or determined, it may have resort to the procedure in Article V.

6. Exporting countries are under no obligation to sell any wheat under this Agreement unless required to do so as provided in Article V at prices consistent with the maximum prices specified in or determined under Article VI. Importing countries are under no obligation to purchase any wheat under this Agreement unless required to do so as provided in Article, V at prices consistent with the minimum prices specified in or determined under Article VI.

7. The quantity, if any, of wheat-flour to be supplied by the exporting country and accepted by the importing country against their respective guaranteed quantities shall, subject to the provisions of Article V, be determined by agreement between the buyer and seller in each transaction.

8. Exporting and importing countries shall be free to fulfill their guaranteed quantities through private trade channels or otherwise. Nothing in this Agreement shall be construed to exempt any private trader from any laws or regulations to which he is otherwise subject.

9. No importing country shall, without the permission of the Council, purchase under this Agreement more than ninety per cent of its guaranteed quantity for any crop-year before February 28 of that crop-year.

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*In the event of the provisions of Article X being invoked by Australia by reason of a short crop, it will be recognized that certain markets, by virtue of their geographical position, are traditionally dependent upon Australia for the supply of their requirements of wheat grain and wheat-flour. The necessity of meeting these requirements will be one of the factors to be taken into account by the Council in determining the ability of Australia to deliver its guaranteed sales under this Agreement in any crop-year.

Article IV-Recording of transactions against guaranteed quantities

1. The Council shall keep records for each crop-year of those transactions and parts of transactions in wheat which are part of the guaranteed quantities in Annexes A and B to Article III.

2. A transaction or part of a transaction in wheat grain between an exporting country and an importing country shall be entered in the Council's records against the

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