DEPARTMENT OF STATE Memorandum of Conversation
March 28, 1949
Subject: Foreign Relations Matters of Interest to the Farmers' Union
Participants: Secretary Acheson Mr. Patton, President, National Farmers' Union Mr. Gale, IR
Copies to: CP E ITP SEA OFD UNE
Mr. Patton stated that he had asked for the appointment in order to discuss with the Secretary a number of foreign policy matters which are of interest to his organization. These include the following:
1. ITO
Mr. Patton said that he is strongly in favor of ITO and will support its approval by Congress because he feels that, although not perfect, it lays down desirable principles of conduct in the international trade field. His organization, he said, favors handling agricultural problems generally through FAO, rather than through other intergovernmental organizations in which the influence of business groups will presumably be strong. He added that his organization had been in favor of the World Food Board, which he knew had not been supported by the Department, and that it was now prepared to accept a system of commodity agreements as a substitute for the World Food Board if there is to be a broad commodity agreements program covering a substantial number of commodities.
2. Point 4
Mr. Patton stated that his organization favors the implementation of the Point 4 Program to the fullest extent possible through international organizations, rather than by bilateral agreements between the United States and individual foreign countries. He said that he had discussed this matter both with Secretary Brannan and the President and had learned that they shared his views. He agreed with Mr. Cale's observations that some of the personnel in the Department of Agriculture, especially those individuals who have been involved in programs of bilateral cooperation in the agricultural field, question the desirability of putting major emphasis on implementing the agricultural phases of Point 4 through international organizations.
3. India Under Point 4
Mr. Patton indicated that for a variety of reasons, including political as well as economic considerations, he believed that India should come in for a very considerable amount of attention under Point 4. In response to his request for the Secretary's comments on this suggestion, Mr. Acheson agreed that India is of particular importance to the United States under present conditions. He pointed out, however, that one of the primary factors to be taken into account in deciding the areas of the world which should be given chief attention under Point 4 is the way in which the products that would be produced in such areas would complement European production under ECA. Mr. Patton agreed with the Secretary's observation that it would be desirable for production to be encouraged under Point 4 in areas with which sound trade relations can be developed with western Europe.
4. The International Bank
Mr. Patton said that he was disappointed by the International Bank's failure to take greater risks in making loans. He attributed the Bank's slowness in assuming such risks, in part, to the fact that Congress looked upon the Bank's lending primarily as a supplement to private lending. Mr. Acheson pointed out that a number of other factors had undoubtedly discouraged the Bank from making additional loans, including the fact that goods have been supplied on a grant basis or on very favorable loan terms under ECA and that the Export-Import Bank has also been a "competitor." Mr. Acheson also said that there has been uncertainty as to whether this Government prefers that financial assistance should be provided to foreign countries primarily through the International Bank or through our own Government institutions, although he expressed a preference for using International Bank loans to the greatest extent possible.
5. What the Public Needs to be Told About Foreign Policy
Mr. Patton inquired what, in the opinion of the Secretary, it was most important that the public should be told about United States foreign policy. Mr. Acheson replied that one point which it would be helpful to keep emphasizing is the fact that United States foreign policy is the sum total of the impressions regarding this country which representatives of foreign countries obtained not only from statements made by the President and the Department of State but by observing our conduct and evaluating developments in this country. He said that notes which the Department might exchange with foreign governments or agreements which might be signed or pronouncements which might be made by the President are not likely to be taken very seriously if foreign governments do not feel that they reflect the thinking and strength of this country.
ITP:IR:EDCale:gv 3/29/49