of the United States Government sent to posts in Canada and to all employees (of Canadian nationality) of the Canadian Government sent to posts in the United States. This free entry on first arrival should cover private automobiles, but not spirituous liquors. 5. I should be glad to learn whether the proposals set forth above are acceptable to the United States Government. If they are, I should like to know whether your Government desires to have a formal exchange of notes suitable for publication, or whether this Note and your reply will be sufficient. Accept, Sir, the renewed assurances of my highest consideration. for Secretary of State for External Affairs. The UNITED STATES MINISTER TO CANADA, United States Legation, Ottawa, Canada. The American Minister to the Canadian Secretary of State for External Affairs LEGATION OF THE No. 783 Ottawa, October 29, 1942. U. S. consuls and vice consuls. Free entry on first arrival to certain U. S. employees. Reciprocal privileges to designated officials, ernment. I have the honor to refer to your note No. 113 of July 21, 1942, regarding the extension of the free importation privilege to American consuls and vice consuls of career on a basis of reciprocity, which would include on the part of Canadians in the United States, trade commissioners and assistant trade commissioners, since the Canadian Government does not now have consuls or vice consuls in the United States. It has been noted that the Canadian Government is also willing, on a basis of reciprocity, to affirm its previous practice of granting free entry on first arrival to United States Government employees, other than diplomatic and consular officers, which would include clerks of the United States Legation and Consulates and officers and employees of the United States Customs offices. It has also been noted that the Canadian Government is unwilling to have free entry on first arrival for these employees include spiritous liquors. I have now been instructed to inform you that my Government is etc., of Canadian Gov- prepared to accord, reciprocally, to Canadian consuls and vice consuls, should such officers be assigned to the United States, and to Canadian trade commissioners and assistant trade commissioners who are Canadian nationals and not engaged in any private occupation for gain, the privilege of importing articles, the importation of which is not prohibited, for their personal use free of duty upon their first arrival, upon their return from leave of absence spent abroad and during the time they are stationed in the United States. Furthermore, my Government is prepared to admit free of duty, on a reciprocal basis, all articles, except spiritous liquors and articles the importation Nov. 9, 1942 of which is prohibited, imported on first arrival for their personal use by Government employees of Canada other than diplomatic and consular officers, trade commissioners and assistant trade commissioners who are Canadian nationals and not engaged in any private occupation for gain. I shall appreciate receiving confirmation that the Canadian Government is prepared, reciprocally, to grant the same privileges to like American officers and employees, and, if this be the case, I suggest that this note and your reply thereto be considered as concluding the agreement on this subject between our two Governments, which shall remain in effect until terminated by either Government. Accept, Sir, the renewed assurances of my highest consideration. PIERREPONT MOFFAT The Right Honorable The SECRETARY OF STATE FOR EXTERNAL AFFAIRS, Ottawa. The Canadian Secretary of State for External Affairs to the I have the honour to refer to your note No. 783 of October 29, 1942, regarding importation privileges for government officials and employees. The Canadian Government agrees with the understandings set forth in your note which, with this note, shall be considered as concluding an agreement between our two Governments, which shall remain in effect until terminated by either Government. Accept, Sir, the renewed assurances of my highest consideration. LAURENT BEAUDRY for Secretary of State for External Affairs. April 22, 1942 [E. A. S. 384] Washington Wheat Meeting. Draft Convention. Memorandum of agreement between the United States of America, Argentina, Australia, Canada, and the United Kingdom respecting wheat. Initialed at Washington April 22, 1942; effective June 27, 1942. And related papers. MEMORANDUM OF AGREEMENT 1. Officials of Argentina, Australia, Canada and the United States, wheat exporting countries, and of the United Kingdom, a wheat importing country, met in Washington on July 10, 1941 to resume the wheat discussions which were interrupted in London by the outbreak of war in September 1939 and to consider what steps might be taken toward a solution of the international wheat problem. 2. The discussions at Washington, which extended over a period of many months, have made it clear that a satisfactory solution of the problem requires an international wheat agreement and that such an agreement requires a conference of the nations willing to participate which have a substantial interest in international trade in wheat. It was also recognized that pending the holding of such a conference the situation should not be allowed to deteriorate. The Washington Wheat Meeting has recorded the results of its deliberations in the attached Draft Convention in order to facilitate further international consideration of the subject at such time as may be possible and to provide a basis for such interim measures as may be found necessary. 3. The Washington Wheat Meeting has recognized that it is impracticable to convene at the present time the international wheat conSubmission of Draft ference referred to above. Accordingly, the five countries present at that Meeting have agreed that the United States, so soon as after consultation with other countries it deems the time propitious, should convene a wheat conference of the nations having a substantial interest in international trade in wheat which are willing to participate, and that the Draft Convention above mentioned should be submitted to that conference for consideration. Convention to proposed conference. Wheat for relief in war-stricken, etc., areas. Arrangements in ef fect. 4. In the meantime there should be no delay in the provision of wheat for relief in war-stricken and other necessitous areas so soon as in the view of the five countries circumstances permit. Likewise it is imperative that the absence of control measures over the accumulation of stocks in the four countries now producing large quantities of wheat for markets no longer available should not create insoluble problems for a future conference. Accordingly, the five countries have agreed to regard as in effect among themselves, pending the conclusions of the conference referred to above, those arrangements described in the attached Draft Convention which are necessary to the administration and distribution of the relief pool of wheat and to the control of production of wheat other than those involving the control of exports. con If agreement cluded prior to cessa Temporary controls. 5. If the conference contemplated above shall have met and concluded an agreement prior to the cessation of hostilities, no further tion of hostilities. action will be needed by the countries represented at the Washington Meeting. However, if this is not the case, it will be necessary, in order to prevent disorganization and confusion in international trade in wheat, to institute temporary controls pending the conclusions of the conference. Accordingly the five countries agree that in the period following the cessation of hostilities and pending the conclusion of a wheat agreement at the conference referred to the arrangements described in the attached Draft Convention which relate to the control of production, stocks and exports of wheat and to the administration thereof will be brought into effect among themselves. Those arrangements will come into effect on such date as may be unanimously agreed. Announcement of that date will be made within six months after the cessation of hostilities. 6. Pending the conclusions of the conference contemplated above, the five countries, on the cessation of hostilities or such earlier date as they may agree, will regard as in effect among themselves the arrangements described in the attached Draft Convention for the control of the prices of wheat. The determination of prices required to be made in accordance with those arrangements will be made by unanimous consent. If no determination of prices has been made on the cessation of hostilities, the five countries will, pending such determination but for a period not exceeding six months, maintain as the export price of wheat the last price negotiated by the United Kingdom for a bulk purchase of wheat from the principal country of supply: equivalent f.o.b. prices will be calculated for wheats of the other exporting countries and will be adjusted from time to time to meet substantial changes in freight and exchange rates. Prices of wheat. Decisions taken under Memorandum and 7. In taking any decisions under this Memorandum and the arrangements of the Draft Convention which it brings into operation Draft Convention. each of the five countries will have one vote and a two-thirds majority will be required for decision except as otherwise provided herein. 8. The provisions of this Memorandum will be superseded by any agreement reached at the proposed wheat conference or by any arrangements which the five countries and other interested countries make to deal with the period pending such a conference. In any visions. may event they are to terminate two years from the cessation of hostilities. Termination of pro Accumulation of wheat surpluses. Relief in war-strick en areas. Measures necessary to assure benefits of abundant supplies. Agreement. DRAFT CONVENTION PREAMBLE 1. The prospects with regard to the production and marketing of wheat are such that accumulation of wheat surpluses threatens to result in grave post-war difficulties for the economies of the producing countries and hence, because of the interdependence of nations, for the economies of all countries. It is also to be expected that, unless appropriate action is taken, such accumulation will recur. 2. A solution of the problem thus presented must be regarded as an essential part of any program of world economic reconstruction and will call for cooperative action by all countries concerned in international trade in wheat. It will involve national and international measures for the regulation of wheat production in both exporting and importing countries, for the orderly distribution of wheat and flour in domestic and international trade at such prices as are fair to consumers and provide a reasonable remuneration to producers and for the maintenance of world supplies which shall be at all times ample for the needs of consumers without being so excessive as to create a world burden of unwanted surpluses. 3. Cooperative action is also necessary to meet the need for relief in the war-stricken areas of the world by the supply and distribution of gifts of wheat. 4. The benefits of abundant world supplies of wheat cannot be assured to consumers unless there is a substantial decrease in uneconomic incentives to high-cost production, a lowering of barriers to world trade and the charging of prices to consumers not substantially higher than the price of wheat in international trade. 5. In many countries the standard of living would be improved by increasing the consumption of wheat through a lowering of prices. In all countries the standard of living would be improved by stimulating the consumption of foods rich in vitamins, proteins and minerals. The increased production of such foods would offer a more valuable use for land which has at times been used uneconomically for high-cost production of wheat. 6. Producers of an international commodity such as wheat are directly affected by standards of living throughout the world, by international purchasing power and by prevailing policies and practices affecting international trade generally. There can be no basic solution of the problem of export surpluses without a general reduction of import barriers and no measure should be taken or maintained which has the effect of retarding such reduction or of preventing in any way the fullest possible development of international trade. Accordingly the contracting Governments have agreed as follows: ARTICLE I (EXPANSION OF TRADE) 1. The contracting Governments agree that an essential element of a solution of the world wheat problem is that consumers should |