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the free flow of goods, instead of this the last several years of rapid expansion in and exporters voting separately. Since the eternal Government planning? Govern

world trade resulted largely from deterioria- United States has 400 out of 1,000 votes held

tion in world coffee prices. Since 1955, ment planning is part and parcel of so

by the importers, we have virtually a veto Latin American coffee exports increased cialism-communism, which is our dedi

power over decisions affecting quotas. (To about 12 percent in quantity but fell by make the veto effective, we would need only cated enemy. And I think that needs to

almost 30 percent in value from approxi- one other importing country voting with us be said, because under any quota system, mately $2 billion to less than $1.4 billion. because the agreement provides that one you would be going along with those peo

The disequilibrium between coffee pro- country alone cannot exercise a veto.) Other ple who believe in Government control duction and coffee consumption is so great provisions of the agreement provide for prorather than free trade. And Govern- that it can be corrected only by interna- tective action in the event of marked price ment trade is exactly what the Socialists tional cooperation. To rely on normal mar- rises or falls within a brief period. Finally,

ket forces alone would mean a disastrous in the unlikely event that the agreement opand the Commies are doing all the time.

erated against the interests of the U.S. conFinally, there is the matter of admin

drop in prices, bringing panic in its train. istrative cost that is involved. This is In fact, the situation had reached the point sumer, the United States could withdraw

where cutthroat competition, injurious to from the agreement by giving written notice. another Federal program involving in

all producing countries, threatened the mar- Such withdrawal would become effective 90 creased administrative cost. I happen ket. .

days after notification. The agreement could to be for less administrative costs, not

not operate without U.S. participation.



5. IMPORTANCE OF IMPLEMENTING LEGISLATION As to the matter of foreign policy, we

Our efforts to help the low-income The agreement entered into force proviare threatened that if we do not take countries help themselves are frustrated by sionally on July 1, 1963, when an adequate this, we might indeed be undercutting

adverse developments on world commodity number of importing and exporting countries our State Department and the agree- markets, and losses from declining prices had signified their intention to seek ratificament that they have worked out. For For often more than offset our development aid. tion or had deposited their instruments of

ratification. myself, I think it would be salutary and In announcing the Alliance for Progress, the

The United States signified its intention to not too dangerous if we expressed our- President assured the countries of Latin

seek ratification after the U.S. Senate gave selves here, as the representatives of America of our full cooperation in efforts to

its advice and consent on May 21, 1963. The the people, 'as in disagreement with our bility and price erosion of recent years. We correct on a case-by-case basis the insta

U.S. letter of notification states that impleState Department and the various treaty repeated this assurance at Punta del Este. menting legislation will be necessary and arrangements that we have had in re- The Latin American countries want to be that until such legislation has been enacted, cent months, because they are not work- able to earn their way through trade and not

“the United States does not assume any of ing in the best interests of the United rely on aid alone. Through participation in

the obligations for which such legislation is States. I know there are a great many the coffee agreement, we can help sustain necessary." people in this country who feel the way Latin America's export earnings, revitalize The agreement will expire on December 31

of this year if it has not been fully ratified I do, and I would like us to check on this and strengthen the Alliance for Progress, and

by an adequate number of participants (20 foreign policy of our country. To me it give concrete substance to our assurances.

Coffee, as the single most important agricul. exporting countries having at least 80 perdoes not look as though the State Detural commodity in the trade of the develop

cent of total exports in 1961 and 10 importpartment officials have been trying to ing countries is a test case. The good faith ing countries having at least 80 percent of look after America, but rather, trying to of this administration and the credibility of total imports in that year). It is urgent, look after everybody else in the world our efforts to help the low-income countries therefore, that implementing legislation be at U.S. taxpayers' expense.

raise their living standards is involved. enacted so that the United States can deposit In other words, I do believe I am

its instrument of ratification and so that 3. WHAT THE IMPLEMENTING LEGISLATION IS FOR

other governments which have deferred acamong those who feel that this is un

The Senate has recognized the economic tion until the United States ratifies can wise legislation, even if it is to imple- and political significance of the coffee agree- similarly deposit their instruments before ment a treaty. I do not think it is right. ment and has given its advice and consent the end of this year. Therefore, I am so stating and shall so to ratification. The agreement, however, is vote. not a wholly self-executing treaty. Two pro

Mr. BAKER. Mr. Chairman, I yield

10 minutes to the gentleman from Iowa Here I want to include some back- visions of the agreement require implement

ing legislation: (1) An obligation placed on [Mr. GROSS]. ground material from our Ways and importing members to require that all coffee Means staff research which supports the be accompanied by a certificate of origin as like at the outset to ask the chairman

Mr. GROSS. Mr. Chairman, I would views I have stated:

a condition of entry into their markets, and BACKGROUND OF INTERNATIONAL COFFEE (2) an obligation to limit imports of coffee

of the committee how many witnesses AGREEMENT from nonmember countries. The imple

were heard with respect to this legis1. ECONOMIC SIGNIFICANCE OF COFFEE

lation? menting legislation now before the Congress

The provides the necessary authorization. AGREEMENT

Mr. MILLS. We had no public hearinitial authorization is limited to a period ings on the bill. The agreement is essential to arrest the

of 2 years to assure congressional review after Mr. GROSS. I am asking the gentlepersistent downward trend in coffee prices.

a reasonable period of experience with the Since 1955 the average price of Brazilian

man how many witnesses were heard by operation of the agreement. coffee has declined from 57 cents a pound to

the committee. 33 cents, a decline of 42 percent. Current

4. PROTECTION OF DOMESTIC CONSUMERS AND Mr. MILLS. We had no public hearprices are at their lowest point since 1949.


ing. All information sent to the comThe decline has cut sharply into export earn- The domestic coffee industry worked closely mittee was made available in executive ings of the 35 coffee-producing countries of with the administration in developing the session. There were no witnesses who Latin America, Africa, and Asia which de- coffee agreement and fully supports the

were heard. The National Coffee Assopend on coffee earnings to finance their eco- agreement. The stated price objective of nomic development. Coffee exports account the coffee agreement is a modest one: To ciation wrote us in behalf of the bill, for more than 70 percent of Colombia's ex- stabilize prices at a general level no lower

for example. They did not request to port earnings, 60 percent for Guatemala and than that in 1962 when they were lower than

be heard. El Salvador, more than 50 percent for Brazil, at any time since 1949. One would be hard Mr. GROSS. Let me say to the genand 25 percent on the average for the 15

put to find other items in the housewife's tleman that I have a letter in my files Latin American coffee-exporting countries. budget that cost less today than 14 years ago. from one who knows the coffee trade Five African countries obtain more than 40

Moreover, the U.S. consumer is protected and who says he asked to be heard on percent of their foreign exchange earnings against unwarranted price increases not only this legislation, and was denied that from coffee. In Latin America more than

by the existence of tremendous stocks of 12 million persons depend on coffee for their green coffee, equal to approximately 12 years

opportunity. livelihood, and perhaps 20 million for the exports, now held in Brazil and Colombia, Mr. MILLS. I have no recollection of world as a whole. The overwhelming major

and by the fact that current production is anyone being denied the opportunity to ity of coffee farms in the world belong to running approximately 25 percent ahead of be heard. small farmers cultivating less than 5 acres consumption, but also by provisions in the

Mr. GROSS. The gentleman's comof land. It should be noted that a 1-cent agreement. Under the agreement, the level drop in the price of green coffee means a of export quotas controls the amount of

mittee had no witnesses at all? decrease of about $50 million in the foreign coffee that may be marketed and that di

Mr. MILLS. We had no public hearexchange receipts of the Latin American rectly influences price. All decisions on the ings. countries. In fact, the virtual stagnation of setting and adjustment of export quotas re

Mr. GROSS. You had no State DeLatin American export receipts (from $9.3 quire a distributed two-thirds majority vote; partment and no Treasury Department billion in 1956 to $9.6 billion in 1961) during i.e., a concurrent two-thirds of the importers witnesses?

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Mr. MILLS. Oh, yes; we had some Mr. GROSS. All right. Just a min- Mr. MILLS. I have the average coffee Government officials in executive session. ute. Please bear with me.

prices for 1963, by month, from January. Mr. GROSS. You did have the bu

You did have the bu- I have information to the effect that Mr. GROSS. I am not talking about reaucracy in, but nobody, who might one of the first resolutions of the coffee 1963 alone. I am talking about what have spoken in behalf of the consumers council in London a few weeks ago was has happened to coffee prices in the last of this country. Mr. Chairman, I am not to fix the volume of export quotas for few years. here today to give lip service to the all producing countries at 1 percent be- Mr. MILLS. There was a time when consumers as are some people. This bill low the estimated world consumption. the gentleman paid $1.80 for his coffee. is going to increase coffee prices, make Does the gentleman deny that?

Mr. GROSS. And under this bill and no mistake about it. The International Mr. MILLS. Will the gentleman yield the international cartel that is in the Coffee Agreement has already increased to me at that point?

making, American consumers will again coffee prices.

Mr. GROSS. Certainly.

be paying through the nose. Mr. Chairman, this entire proceeding Mr. MILLS. The coffee council did fix Mr. MILLS. I may say I have bought would be amusing if it were not so seri- export quotas 1 percent below the to- coffee for 19 cents that went up to $1.20. ous. “The purpose of the International tal basic quotas held by all exporters, Mr. GROSS. If this bill means anyCoffee Agreement is to stabilize the world but this was still 2 percent above the thing, it means higher prices. I am not coffee market and thereby avoid the estimated world demand, that is, con- here to give lip service to the consumers. major fluctuations in price which have sumption of coffee, for the year.

Mr. MILLS. I have the figures here occurred in recent years,” according to Mr. GROSS. All right.

by years and by months, since 1953. the committee report accompanying the Mr. MILLS. If we do not implement Mr. GROSS. There is not one provibill.

it by December 31 then the agreement sion in this bill to prevent coffee prices Who around here today is interested cannot become effective.

from going to any level the traffic will in the fact that the farmers of Iowa and Mr. GROSS. I have the further in- bear. elsewhere in the Nation are getting less formation that fixing the volume of ex- Mr. MILLS. That is the reason why than $15 a hundred for their hogs? port quotas for all producing countries it is not price fixing. Their prices are fluctuating and down. at 1 percent below the estimated world Mr. GROSS. Oh, you put a floor unHow about the cattle producers over the consumption was enough to start a der it, and that is price fixing. country? Their prices have fluctuated strong movement of price increases, Mr. MILLS. No, we have not put a down to about $20 for good cattle, ranging from 1 cent to 10 cents a pound.

floor under it. good fed cattle. What about the lamb Mr. MILLS. I do not know where the

Mr. GROSS. I say that is the effect and wool producers in this country? gentleman is getting his information. of this legislation and the agreement. Whose hearts are bleeding today for the Mr. GROSS. I am getting this in- Mr. MILLS. No, we do not. agricultural producers in this country? formation from the coffee trade in New

Mr. GROSS. If that is true then this Oh, no, there are no bleeding hearts for York.

bill is not worth the paper it is written American farmers. Instead you initiate Mr. MILLS. From the coffee trade?

on. If you have not put a floor under here today another and new foreign give- Mr. GROSS. Yes, who I am sure know

prices how is it proposed to take care away program. This foreign giveaway a great deal more about this proposed

of 12 million foreigners engaged in coffee program is to be financed by American cartel than most anyone I have heard

production? This legislation is meanconsumers. It is to be piled on top of the talk about it today.

ingless unless coffee prices are stabilized millions upon millions of dollars that go Mr. MILLS. If the gentleman will

at the present level or higher. into Latin America every year through yield further, who in the coffee trade?

Mr. MILLS. Would the gentleman the Alliance for Progress and other such Would the gentleman mind telling me?

tell me what the floor price is in this programs and devices.

Mr. GROSS. The gentleman had an

bill? You want to compound the felony of opportunity to get this testimony before

Mr. GROSS. You tell me. The genthe giveaway program. You now propose his committee.

tleman is the author of the bill. to go to the consumers of this country Mr. MILLS. We considered all infor

Mr. MILLS. We are saying we hope and nick them for some more foreign aid mation that was drawn to our attention. through higher coffee prices.

Mr. GROSS. The gentleman has the

to be able to stabilize the price at the Mr. Chairman, I would like to ask the name of this gentleman in his files.

1962 level. That is one of the lowest

levels in recent years for the price of chairman of the Committee on Ways and Mr. MILLS. The committee consid

coffee. · Means, the gentleman from Arkansas ered all the information and communi[Mr. MILLS], who and what is the Coun- cations which we received on this subject.

Mr. GROSS. Prices have already

been raised from 1 cent to 10 cents a cil to which he refers on page 2 of the

Mr. GROSS. Just a minute. committee report, at the bottom of the

pound, and a 1-cent-per-pound increase Mr. Chairman, I do not yield any fur

means taking about $30 million out of page? There is to be found the statether at this time.

the hides of consumers in this country. ment that the treaty will be adminis

Now, then, on top of this, 1 to 10 cents tered by a Council. What is this Council per pound increase since this interna

Mr. MILLS. I do not have the retail and where is it located?

prices for the month of November yet, tional coffee agreement was set up, you Mr. MILLS. If the gentleman will

but in January the retail price for cofprovide in this bill a sop in the form of yield, is that page 2 of the report?

fee was 69.2 cents, according to the section 5. This provides that the PresiMr. GROSS. That is right, at the bot- dent report to Congress on January 1,

statistics I have. In September it was tom of the page.

69.6 cents. In the meantime it had 1965, and in the meantime, for a full Mr. MILLS. It is the International

been down to 68.7 cents in March. It year, the defenseless consumers of this dropped some in March and April. But Coffee Council.

country are going to be exploited. BeMr. GROSS. That would be the Cof- lieve me, they are going to be exploited.

this is one of the lowest price levels we fee Council located in London, England; They are already being exploited.

have had since World War II.

So, is that correct?

Mr. GROSS. Is the gentleman telling Mr. MILLS. Yes, it is that Council; these operators to take the hide right off you propose to give another full year for

me he is going to stabilize the price at that is true.

the present level? the consumers in this country. Mr. GROSS. All right. So our coffee

Mr. MILLS. That is the purpose of prices are fixed in London. I do not like

Why do you not in this bill, if you want

the legislation. to be fair, put a ceiling on coffee prices? that particularly.

Mr. GROSS. I do not care what you Mr. MILLS. No. Will the gentleman

Mr. Chairman, I bought a 2-pound can

say is the purpose. It was the purpose yield further? of coffee the other day and paid $1.40.

of the original foreign aiders to end the Mr. GROSS. Yes. This was selling not so long ago at 65

so-called Marshall plan in 5 years—in Mr. MILLS. There is nothing in this cents a pound.

1952. I am asking you if you will say agreement and there is nothing in this

Mr. MILLS. No.

here and now on the floor of the House implementing legislation fixing the

Mr. GROSS. Oh, yes.

that coffee prices are going to be stabiprices of coffee. There is nothing to that Mr. MILLS. No; I have before me, if lized at the present level? effect. There is an agreement to fix the the gentleman will yield further

Mr. MILLS. So far as this legislation exports of coffee, but not the prices.

Mr. GROSS. Yes.

is concerned

Mr. GROSS. I am asking the gentle- by the proper percentage of the nations, on the importation of coffee and it is difman a question.

would expire December 31. Then we ficult to accept the statement that the Mr. MILLS. Will the gentleman let could negotiate anew, bearing in mind result will not be an increase in the cost me answer?

the consumer interests of the United of coffee to the housewives of America. Mr. GROSS. Certainly. States,

Of course, there is overproduction of Mr. MILLS. So far as this legislation I asked Mr. Brodie, who came before coffee in certain countries including is concerned, the purpose and the inten- our committee, whether or not, if Chase Brazil and Colombia, and I am not option and the expected result is to stabi- & Sanborn, Maxwell House, Savarin, posed to a program of trying to help lize prices at that level.

and other coffee companies had entered stabilize the economies of certain counMr. GROSS. Yes. I have heard that into an agreement, with the powers we tries who depend mostly on coffee to susstory from others, so many others, but it are to give the President under this leg- tain their economies. An international does not work out that way, and the islation, that would be a violation of agreement with such an objective, if it gentleman knows it.

law, and he said, “Yes.” In other words, does not raise prices to the consumer, Mr. Chairman, I say again that this Bobby Kennedy is prosecuting com- might well invite support. is a brandnew foreign aid program that panies for doing what the President of However, Mr. Chairman, once again is to be financed out of the pocketbooks the United States is to be given the power we find our Government actively enof housewives and consumers. We have to do under this legislation.

gaged in implementing a program to help again heard the old, old story this after- Then Mr. Brodie in his statement had foreign peoples. Here we impose a quota noon of "what do you think the foreign- a very warming sentence on page 2, on imports to benefit other nations. ers will think of us if we refuse to pass where he said:

When it comes to a quota to help a this bill." I hope the day will come soon

The political and economic significance segment of our own American economy, when the citizens of this country will tell

of the agreement, its bearing on the success however, it is a different matter. For exCongress in words and deeds that they of the Alliance for Progress, and its meaning ample, our fishing interest is suffering have had enough of this dancing to the in human terms for the millions of families from foreign imports. But does the adtune of foreigners, whether in South who depend on coffee for their livelihood ministration support a quota system for America or elsewhere. I am opposed to cannot be overstated.

the benefit of the American fisherman? this bill because I will not approve the

I asked Mr. Brodie this: “I am inter- To the contrary, we continue to allow unorganization of an international cartel.

ested in the peasant in Latin America restricted imports of low-cost foreign I am opposed to this bill because of the

who picks the coffee bean. Can you fish products. violence it does to the citizens of this

assure me that if we pass this bill his Mr. Chairman, through the Trade Excountry.

income would be increased?” And he tension Act, our State Department has Mr. BAKER. Mr. Chairman, I yield

very frankly said no, he could not. moved toward reducing tariffs on sub5 minutes to the gentleman from New

So what is going to happen? The standard low-wage fish products from York [Mr. DEROUNIAN].

peasant is still going to be a peasant with other nations. Mr. DEROUNIAN. Mr. Chairman, I low income. The coffeegrower is going

I would point out that always we am opposed to this legislation. While

to get richer and the coffee manipulators practice charity abroad while American we are discussing the price of coffee, I around the world are going to get richer. citizens must suffer under a policy of recall when Mr. Brodie from the Depart

Why are they going to get richer? Be- indifference for our own people. ment of State was testifying before our cause the President can with his own Mr. Chairman, I urge legislation to put committee in closed session, the news

authority, as is indicated in the bill, reg- a quota on imports of fish if we are going papers that morning announced in

ulate the entry of coffee for consump- to enact legislation along the lines of this creases in the prices of both regular tion, or withdraw coffee from ware- coffee bill. Meanwhile let me assure the ground and powdered coffee.

houses for consumption. In other words, Members of this House that the fisherUnlike some Members of this body, I he turns the faucet on or turns it off, and men in the First Congressional District do not have coffeegrowers in my dis

speculators have ways of knowing when of Washington State will be drinking trict, but we grow a lot of consumers it is going to be turned on and off. plenty of imported coffee and I hope and, like some previous speakers, I owe

We hear a lot about the President's under this bill the price of this coffee will a duty to them, and that is why I am letters. This is getting to be a favorite not go up under legislation such as this. here today opposing this bill.

gimmick in the New Frontier. We all Mr. BAKER. Mr. Chairman, I yield We have been told we must pass this

recall President Kennedy's letter on the 5 minutes to the gentleman from Ohio legislation because not to do so would

tax bill. He said, “Yes, the administra- [Mr. TAFT]. be casting aside a treaty that was signed

tion was dedicated to holding down ex- Mr. TAFT. Mr. Chairman, as I have by the United States.

penditures.” Just yesterday before the been sitting listening to this debate many I am getting a little bit sick and tired

Senate Finance Committee Dr. Heller, questions have arisen in my mind that of some of our executive branch going to

the Chief Economic Adviser, had to ad- certainly have not been answered. At foreign countries and committing us in

mit to Senator BYRD that the expendi- the same time that we are considering advance-like Secretary Dillon did to

tures were going to be much higher next taking action here which apparently is the extent of $10 billion for the Alliance year, that spending was going to be much designed to strengthen the economies of for Progress and then coming back to

higher next year, despite the fact that our neighbors in Latin America, and us and saying “Take it. We need it, we were going to be reducing taxes at the indeed this is a most worthy objective, you have to do it."

same time. So I do not put too much we read in the papers that numerous of It would be wise, in the future, to have faith in letters from President Kennedy. them are considering without any propthese executive representatives come to For all of these reasons I am opposed er compensation confiscating some of the appropriate committees of Congress to this bill, because it does not play fair our own interests in this area. to get our feelings and suggestions before with the American consumer, who pays We read also the balance-of-payments they go to these foreign countries. high taxes and who pays high prices un- situation in which the United States

What would happen if we did not pass der our farm programs, and is expected finds itself today is continuing to be a this legislation today? Catastrophe? to pay higher prices for coffee under this serious one. We have heard no discusOf course not. legislation.

sion of what effect this might have on Henry Brodie, Director of the Office Mr. PELLY. Mr. Chairman, I ask the balance of payments if we continue of International Resources, Department unanimous consent to extend my re- to raise or keep high our coffee prices and of State, who was the principal witness marks at this point in the RECORD.

thereby cause ourselves additional forbefore our committee, said that if this

The CHAIRMAN. Is there objection eign exchange. implementation were not passed then we to the request of the gentleman from

But, particularly there is one question could not deposit our instrument of Washington.

that I have really taken this time today ratification by December 31, 1963, which There was no objection.

to discuss. There is one question which would mean this agreement would then Mr. PELLY. Mr. Chairman, this bill I certainly had a lot of doubt about in expire, because apparently we have a to authorize procedures under the Inter- my mind as the chairman of the comprovisional agreement in force, effective national Coffee Agreement in essence ismittee talked first on the bill. This is as of July 1, 1963, which, if not ratified foreign aid legislation. It sets a quota the point which was made by the chairman relating to the treaty obligation Mr. TAFT. What does the report stability as possible at the 1962 level into in effect and the argument that we would mean then by saying, we are party to the price of coffee. We have no assurbe going back on our obligation if we the treaty as a provisional member upon ance, however, that that can be done. did not go ahead and enact this legisla- enactment of appropriate legislation? We frankly do not know. We do not tion. Yet, I read in the report apparent- Mr. MILLS. We are a provisional know what may transpire from this. As ly that the treaty obligation itself is member until we finally do this last people have said, we think we know, but conditioned, and I think it properly thing—of signing and depositing the in- we cannot be sure. should have been so conditioned, upon strument of ratification with the The gentleman knows this is for a 2the passage of this very legislation which Council.

year period, this implementation. The is before the Congress. Now I would Mr. TAFT. Well, the word "pro- people who are producing coffee, I want like to know if the chairman of the com- visional” to me, in my language, means to make it eminently clear, are on trial mittee would be so kind as to comment that there is a condition and that con- in this 2-year period that they not try on it; do we have a treaty obligation dition has not been met so we are not to take advantage of the American conhere which is forcing us to vote for this bound by a treaty.

sumer. If they do, we will not continue legislation or do we not?

Mr. MILLS. There is no condition the agreement. You know that and I Mr. MILLS. Mr. Chairman, will the with respect to our commitments under know it. Our own people who are adgentleman yield? the treaty; there is none.

ministering this program are on trial in Mr. TAFT. I am glad to yield to the Mr. TAFT. I thank the gentleman. that they must see in this 2-year period gentleman.

The CHAIRMAN. The time of the we are not taken advantage of and that Mr. MILLS. The formal instrument gentleman has expired.

our consumers are not required to pay of ratification of the agreement has

Mr. BAKER. Mr. Chairman, I ask more than reasonable prices for coffee. not been deposited. That has to be de

unanimous consent that the gentleman Mr. BECKER. Let me say that I have posited by the end of this year. It has from Tennessee [Mr. QUILLEN] may ex- the greatest respect for and trust in the not been deposited because it is neces- tend his remarks at this point in the gentleman I am addressing now, the sary for us to be able to require certif- RECORD.

chairman of the Committee on Ways and icates of origin, and so forth in order The CHAIRMAN. Is there objection Means, but the President in his letter to carry out the commitments we have to the request of the gentleman from * to the committee, to you, states that he made under the treaty. The treaty it- Tennessee?

is putting a floor under the ceiling. self is not conditional, but our partici

There was no objection.

Mr. MILLS. Would the gentleman pation is provisional provisional on us Mr. QUILLEN. Mr. Chairman, I join yield further? having the capacity to carry out our with my colleague from Tennessee and Mr. BECKER. I yield. commitments and that is what is in- a member of the Committee on Ways Mr. MILLS. I did not write the letter. volved in this legislation. But our word

But our word and Means (Mr. BAKER], in urging pas- I would not have said we are putting a has gone out and the Senate has ratified sage of the bill before us today, H.R. floor under coffee prices, because I do that word.

8864, to carry out the obligations of the not think we are. I think what we are Mr. TAFT. Am I correct in under- United States under the International trying to do is to prevent disastrous price standing then that the treaty document Coffee Agreement of 1962. The Presi- declines and certainly at the same time itself contains no reservation which dent and the Department of State have we have to prevent disastrous price inmakes our participation dependent upon given assurances that the purpose of the creases, and through this process of prethe action on this legislation before this treaty is not to raise prices of coffee but venting the declines and increases bring body today?

to assure an adequate supply. I trust about stability. Mr. MILLS. I am sorry, but let me

H.R. 8864 will be approved by the House. Mr. BECKER. Then, the gentleman see if I can answer the gentleman's ques

Mr. BECKER. Mr. Chairman, will is not subscribing to the statement in tion in this way. The arrangement has the gentleman yield?

the President's letter where he says we been made advice and consent to rati

Mr. BAKER. I yield 2 minutes to are putting a floor under these prices? fication has been given. Everything has the gentleman from New York [Mr. Mr. MILLS. I do not subscribe to the been done with respect to that treaty BECKER).

statement that we are trying to put a except our final handing over of our

Mr. BECKER. Mr. Chairman, I want floor under a price at all. No, sir. instrument of ratification to Council. to get a question to the chairman of the Mr. BECKER. This is what the letter That has not yet taken place and it is committee, because there is so much con

from the President said to the gentlenot done until a country is fully qualified fusion about this.

fusion about this. At one point we say man. in all respects to carry out its part and its we have an agreement to which we are Mr. MILLS. What I subscribe to is commitments. This involves our ability obligated because we have ratified it, that we are trying to balance supply and to do the things we commit ourselves to and this legislation is implementing that demand with the purpose of preventing do; namely, limiting imports of coffee agreement. At the same time, the chair- prices from falling below the general from the countries that are signatory to man, in answering the gentleman from level prevailing in 1962—to the extent this agreement. Now we have to keep Iowa (Mr. GROSS], said there is no price this is possible. That is all it is. records in order to know that; and that fixing involved in this. Yet in the Presi- Mr. BECKER. May I say the carryis what is involved here.

dent's letter here to the gentleman, the ing out of this agreement, its implemenMr. TAFT. Do we or do we not have chairman of the committee, he does state tation, will be in the hands of the Presia treaty obligation at this time?

that this will put a floor under prices and dent and the State Department, and it Mr. MILLS. Oh, yes, we have a very

will permit the growers of coffee to in- is his position, which is contrary to the definite treaty obligation and that is

crease their earnings. If that statement position of the gentleman, as he has just what

the gentleman from Missouri and of the President is not plain English, I stated it. I talked about earlier. We here have do not know what is. Will the gentle

Mr. MILLS. The President is always our commitment. If we do not carry man please answer the question?

charged with the responsibility of carrythrough on our commitment, I do not

Mr. MILLS. Mr. Chairman, will the ing out treaties, as my friend knows, but know what the consequences may be in gentleman yield?

I do not want to say for the record if our relations with other peoples.

Mr. BECKER. I yield to the gentle- you vote for this legislation you have Mr. TAFT. Is our commitment, howman from Arkansas.

accomplished the objective of putting a ever, not conditional upon the enacting this is quite simple and it is very clear in think we can say that any more than I

Mr. MILLS. My own interpretation of floor under the price of coffee. I do not of the bill or the legislation before us here today?

my own mind, let me say to my friend think the other gentlemen who made the

from New York. There is no price fixing point are right that it means an increase Mr. MILLS. Our commitment is not in this whatsoever. What is being at- in the price of coffee. I do not think that conditional.

Our ability to carry out tempted, through this arrangement is the situation. What we are trying to our commitment is, of course, conditional this international agreement is to set do is avoid these disruptive ups and upon us having the machinery with up machinery that will bring stability downs. There will be fluctuations over a which we can carry it out.

and knock out the peaks and knock out period of 12 months because of the way commitment is not conditional.

the valleys and try to bring as much coffee comes in and because of the way coffee is made available in world trade. Mr. VANIK. Mr. Chairman, I oppose The amount of the contributions of the It may be higher one month than it is the the provisions of H.R. 8864 because it United States to administer the agreement month afterward, but on the average would establish an international cartel for any period shall not exceed 20 per centum what we are trying to do is average this which would limit the amount of coffee which would limit the amount of coffee period to administer the agreement.

of the total contributions assessed for such thing out in relation to the 1962 prices. produced. produced. Production controls would

SEC. 7. The joint resolution of April 11, Mr. BECKER. I appreciate the kind- provide price controls. Furthermore, 1941, entitled "Joint resolution to carry out ness of the gentleman.

the managers of the cartel would have the obligations of the United States under Mr. BAKER. Mr. Chairman, I yield the power to exercise further restric

the power to exercise further restric- the Inter-American Coffee Agreement, signed myself 1 minute.

tive authorities on coffee producers such at Washington on November 28, 1940, and Mr. Chairman, I take this time to state

as arbitrary quality controls which could for other purposes” (19 U.S.C. 1355 and 1356) that so far as I am concerned, and I be- operate in favor of the large producer

is repealed. lieve it is the opinion of the Committee and ultimately force the small producer Mr. MILLS (interrupting the reading on Ways and Means and this Congress, out of business.

of the bill). Mr. Chairman, I ask unanithis bill should not be used as a device

Since the International Coffee Agree- mous consent that the bill be considered to permit an unreasonable increase in

ment would most certainly result in high- as read and open for amendment at any coffee prices, but just the contrary should

er coffee prices to the American consum- point. be taken into account in administering

er, it seems ridiculous for Congress to The CHAIRMAN. Is there objection it.

sanction agreements which could vic- to the request of the gentleman from Mr. Chairman, I have no further re- timize the American household.

Arkansas? quests for time.

The CHAIRMAN. All time has ex- There was no objection. Mr. MILLS. Mr. Chairman, I yield pired. The Clerk will read the bill for

AMENDMENT OFFERED BY MR. MILLS myself 2 minutes. amendment.

Mr. MILLS. Mr. Chairman, I offer a Mr. Chairman, I want to agree com- The Clerk read as follows:

committee amendment which is entirely pletely with the final statement made

Be it enacted by the Senate and House of clerical in nature. by the gentleman from Tennessee [Mr. Representatives of the United States of BAKER). I think that the objective the

The Clerk read as follows: America in Congress assembled, That this gentleman announced must be achieved; - Act may be cited as the “International Coffee Committee amendment offered by Mr. that every effort must be made not only Agreement Act of 1963".

MILLS: On page 2, line 12, strike out "or oriby the people here who are to represent SEC. 2. On and after the entry into force gin" and insert "of origin”. And on page 2, us in this International Coffee Council, of the International Coffee Agreement, 1962,

lines 15 and 16, strike out "satistics” and and for such period prior to October 1, 1965, insert "statistics”. but the people who produce coffee

as the agreement remains in effect, the Presthroughout the world must recognize

The committee amendment ident is authorized, in order to carry out the

was that we are not in this business to bring provisions of that agreement

agreed to. about the gouging of the American con- (1) To regulate the entry of coffee for con- AMENDMENT OFFERED BY MRS. SULLIVAN sumer by any artificial operations that sumption, or withdrawal of coffee from ware

Mrs. SULLIVAN. Mr. Chairman, I they may engage in to bring about higher house for consumption, including (A) the

offer an amendment. prices for coffee. We do want to be of limitation of entry, or withdrawal from ware

house, of coffee imported from countries such assistance as we can to bring to

The Clerk read as follows: which are not members of the International their economies perhaps a greater de

Amendment offered by Mrs. SULLIVAN: On Coffee Organization, and (B) the prohibition page 2, line 17, after the word "distribution” gree of stability than has existed in the

of entry of any shipment from any member insert "prices”. past, but we are not going to do it

of the International Coffee Organization of through a process of allowing them to coffee which is not accompanied by a certifi

Mr. MILLS. Mr. Chairman, will the gouge us here at home.

cate of origin or a certificate of reexport, gentlewoman from Missouri yield? For 2 years I think we are perfectly issued by a qualified agency in such form as Mrs. SULLIVAN. Yes. justified in taking this program and in required under the agreement.

Mr. MILLS. Mr. Chairman, during seeing what happens to it, because every

(2) To require that every export or re

the course of the general debate the body is on notice about how it must work

export of coffee from the United States shall
be accompanied by a certificate of origin or

gentlewoman from Missouri pointed out and what we expect of it. If at the

a certificate of reexport, issued by a quali- the fact that she would offer the amendend of that 2-year period this turns out

fied agency of the United States designated ment at the appropriate time. I advised to be not in the best interests of the by him, in such form as required under the the gentlewoman then, as I recall, that American people this Congress will not agreement.

I would have no objection to the amendextend this implementing legislation and

(3) To require the keeping of such records, ment and that I would urge it be if it is not extended at that time we canstatistics, and other information, and the

adopted. not participate in it and we would have

rendering of such reports, relating to the im-
portation, distribution, and consumption of

Mrs. SULLIVAN. I thank the gentleto get out of the treaty.

coffee as he may from time to time prescribe. man from Arkansas. I think the gentleman from Tennessee

(4) To take such other action, and issue Mr. Chairman, as I explained during would agree also with my statement and

and enforce such rules and regulations, as general debate on the bill, H.R. 8864, join me in expressing the hope that the he may consider necessary or appropriate in

as reported, calls upon the President to House will pass this legislation, for I order to implement the obligations of the

report annually to the Congress on the doubt that any of us want to be in the United States under the agreement.

operation of the International Coffee position of saying that we do not want at

SEC. 3. As used in section 2 of this Act, "coffee” means coffee as defined in article 2

Agreement, including, and I quote, "full least to make this genuine effort within this period of time to accomplish these

of the International Coffee Agreement, 1962. information with respect to the general

Sec. 4. The President may exercise any level of prices of coffee.” Such reports purposes.

powers conferred on him by this Act through are called for in order to give the ConMr. Chairman, I yield to the gentleman

such agency or officer as he shall direct. gress a basis on which to decide whether from Tennessee [Mr. BAKER).

SEC. 5. The President shall submit to the continued U.S. participation in the inMr. BAKER. Mr. Chairman, I thor- Congress an annual report on the Interna- ternational agreement is to our national oughly agree with the Chairman that this

tional Coffee Agreement, 1962. Such report interest, and whether the consumer is bill must not be considered or taken by

shall contain full information on the opera- being properly protected against unwarthe administrating parties as a vehicle

tion of such agreement, including full inforto permit increases in coffee prices; but prices of coffee. Such annual report shall be mation with respect to the general level of ranted increases in prices.

Elsewhere in the legislation, in section on the contrary to protect our American submitted not later than January 15 of each 2, paragraph 3, the President is authorconsumers as well as to help stabilize the year. The first such report shall be submit- ized to require the coffee trade to keep economy of these Latin American coun- ted not later than January 15, 1965.

such records, statistics, and other intries.

SEC. 6. There are hereby authorized to be

formation, and to render to him such reMr. MILLS. Mr. Chairman, I agree

appropriated from time to time such sums

as may be necessary to carry out the provi• tribution, and consumption of coffee as with my friend from Tennessee com

ports, relating to the importation, dissions of this Act, including the necessary expletely.

penses and contributions of the United he may from time to time prescribe. Mr. Chairman, I yield back the bal

States in connection with the administration However, it should be noted that ance of my time.

of the International Coffee Agreement, 1962. whereas the President "shall” submit to

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