To the Congress of the United States:
I am transmitting to you my Second Annual Report on the operation of the International Coffee Agreement as required by P.L. 89-23.
During the past year the International Coffee Agreement has successfully served both coffee producers and consumers in a changing market situation. New measures have made the Agreement more flexible and responsive to consumer wants. Coffee prices continued to be reasonably stable, at levels fair to consuming and producing countries alike.
Nevertheless, major problems remain. Until production is brought into balance with demand, countries heavily dependent on earnings from their production of coffee will face a continuing threat of instability. The Coffee Agreement provides time to work out: solutions. It has already encouraged ing countries to pay more attention to the need to diversify their economies.
With cooperation from all members, the Coffee Agreement will continue to operate as a stabilizing force in the world coffee market. It is an important adjunct to the Alliance for Progress in Latin America and to our economic assistance programs in other parts of the world.
LYNDON B. JOHNSON
The White House
January 19, 1967