To the Senate of the United States:
I am transmitting herewith, for the advice and consent of the Senate to acceptance, the Protocol for the Continuation in Force of the International Coffee Agreement of 1968, as Extended. This Protocol, which was adopted by the International Coffee Council in its Resolution Number 273 of September 26, 1974, contains no operative economic provisions, but preserves the structure of the International Coffee Organization through September 30, 1976, or up to 12 months beyond that date if the conclusion of a new Coffee Agreement has progressed to the degree specified in the Protocol. Without this Protocol, the Coffee Organization would expire on September 30, 1975. The United States signed the Protocol at the United Nations Headquarters on January 15, 1975.
The purpose of this extension is to continue the International Coffee Organization as a source of statistical information and technical studies on developments in world coffee markets and as a forum for discussion and eventual negotiation of a new coffee agreement whenever producing and consuming countries determine such action would best serve their common interests. This Protocol will preserve twelve years of institutional cooperation between seventeen major consuming countries (of which the U.S. is the largest) and fortytwo producing nations of the developing world who rely on coffee exports for a significant portion of their foreign exchange earnings. In 1973, for example, coffee exports from ten major Latin American producers earned over $2.5 billion and six Latin American countries obtained more than 20 percent of their foreign exchange from coffee. In that same year, the United States imported 37.3 percent of all coffee in world trade and 39.1 percent of Latin American coffee exports.
I believe that continued United States participation in the Coffee Agreement will serve both our foreign policy and our consumer interests. It will reaffirm our commitment to cooperate with the developing countries on this matter of vital interest to them. As the largest consuming nation, it will guarantee us a substantial voice in discussions and negotiations for a new coffee agreement. Preliminary work for such negotiations started in early January 1975. I am hopeful that the constructive spirit which has characterized the International Coffee Organization in the past will enable producing and consuming countries to again harmonize their interests in a mutually beneficial accord.
I am also transmitting, for the information of the Senate, the report submitted to me by the Department of State explaining the provisions of the Protocol extending the International Coffee Agreement of 1968, as Extended, and providing background on the current state of the world coffee economy.
I, therefore, recommend that the Senate give early and favorable consideration to this Protocol and give its advice and consent to acceptance.
GERALD R. FORD
The White House,
April 16, 1975.