Message to the Congress Transmitting Annual Report on Operation of the International Coffee Agreement.

To the Congress of the United States:

I transmit herewith my report on the operations of the International Coffee Agreement during 1971.

Last year the International Coffee Agreement proved its continuing value as an instrument of international economic cooperation. The 62 members of the International Coffee Organization worked together effectively to stabilize world coffee trade.

This stability serves the interests of the United States in two important respects.

First, it benefits the American consumer by helping to prevent the recurrence of the extremely high coffee prices recorded in the years prior to the Agreement. In 1971, for example, the International Coffee Organization successfully dealt with the supply crisis of the previous year and served to bring down the price of our imported green coffee by eight cents per pound between January and December.

Secondly, the International Coffee Organization reduces the fluctuation in the foreign exchange earnings of coffee producers. It thereby supports the development efforts of over 40 nations in Latin America, Africa, and Asia and supports our own aid objectives.

The recent passage by the Congress of enabling legislation permits us to fulfill certain of our obligations under the Agreement. Approval of this important legislation constitutes an important reaffirmation of our determination to cooperate with the developing countries.

RICHARD NIXON

THE WHITE HOUSE,

April 4, 1972.