Presidential Papers, Doc#570 To John Foster Dulles, 1 December 1953. In The Papers of Dwight David Eisenhower

Document #570; December 1, 1953
To John Foster Dulles
Series: EM, AWF, Dulles-Herter Series

The Papers of Dwight David Eisenhower, Volume XV - The Presidency: The Middle Way
Part IV: "Pushing ahead along the broad center"; December 1953 to March 1954
Chapter 8: A world "racing toward catastrophe"

 

Memorandum for the Secretary of State: I have before me the findings and recommendations of the United States Tariff Commission with respect to the imports of oats.1

As you know, a majority of the Commission found that under Section 22 of the Agricultural Adjustment Act, the level of imports is materially interfering with and rendering ineffective the price support program for oats undertaken by the Department of Agriculture pursuant to the Agricultural Act of 1949.2 It proposes a quota on the imports of oats of 23 million bushels during the period October 1, 1953 to October 1, 1954. On the basis of careful examination of the Commission's report, I have come to the conclusion that some steps must be taken as prescribed by law to protect our domestic program on oats against imports. It is our duty to carry out faithfully the laws enacted by the Congress.

I am, as you know, reluctant to impose restrictive measures on the trade of any friendly nation, and especially our neighbor Canada, which would be most affected in this case.

In order to explore every possible course of action, I request that you lay this matter before our Canadian friends to see whether they can limit their exports of oats to the United States to 23 million bushels from some current date, such as December 10, 1953 to October 1, 1954. In my opinion, this would be a far better way of achieving the necessary objective than by our resorting to the application of the quota.

I want to reach a decision in this case after full consultation with our Canadian friends in a way which squares with our responsibilities under our own law and with our responsibility toward a valued and respected neighbor.3

1 Commission hearings had begun in July and had prompted correspondence from the Canadian Prime Minister, who was disturbed by the prospect of U.S. restrictions that "could not fail to create resentment and ill-will and consequential demands for action on our part" (St. Laurent to Eisenhower, July 17, 1953, AWF/I; U.S. Department of State Bulletin 29, no. 739, [August 24, 1953], 244-45). Eisenhower had included in his response to the Prime Minister (July 27, 1953, AWF/I) a letter describing the problems facing the U.S. grain-growing states and offering assurances that such investigations did not automatically result in import restrictions. White House aide Gabriel Hauge drafted this note for Eisenhower.

2 Section 22 of the Agricultural Adjustment Act of 1933 allowed the President, after a Tariff Commission investigation, to impose quotas on any import that interfered with a program administered by the AAA. The Agricultural Act of 1949 provided for the stabilization of prices of agricultural commodities (see Benson, Cross Fire, p. 166; and Kaufman, Trade and Aid, pp. 26-27).

3 A letter from Acting Secretary of State Smith to the Canadian Secretary of State for External Affairs would describe the U.S. position and result in an agreement by Canada to limit its shipment of oats in keeping with the President's recommendations (U.S. Department of State Bulletin 30, no. 758, [January 4, 1954], 21-22). For subsequent restrictions on rye see no. 810.

Bibliographic reference to this document:
Eisenhower, Dwight D. To John Foster Dulles, 1 December 1953. In The Papers of Dwight David Eisenhower, ed. L. Galambos and D. van Ee, doc. 570. World Wide Web facsimile by The Dwight D. Eisenhower Memorial Commission of the print edition; Baltimore, MD: The Johns Hopkins University Press, 1996, http://www.eisenhowermemorial.org/presidential-papers/first-term/documents/570.cfm

 


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