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

May 11, 1970

To the Congress of the United States:

I transmit herewith my 1969 report on the operations of the International Coffee Agreement, 1968.

This treaty, which continues in modified form the International Coffee Agreement, 1962, embodies the oft-stated concern of the United States that the developing countries dependent on the export of primary commodities be able to achieve the stability in foreign exchange income essential for economic growth. The International Coffee Agreement, which involves the most important agricultural export of the less developed world, has evolved into an effective mechanism for influencing coffee prices toward levels which are equitable for producers and reasonable for consumers. While the Agreement is not designed to eliminate reasonable price fluctuations, it has been successful in 1969 as in the previous years of its existence in moderating price movements and preventing prices from reaching levels disastrously low for exporting countries or unacceptably high to the importing countries.

I am encouraged also by the progress which the Agreement has made in achieving long-term market equilibrium through the setting of production goals for the coffee year 1972-73 and the establishment of the Coffee Diversification Fund designed to bring the supply of coffee in line with demand. I hope that negotiations for United States participation in this Fund soon will be completed.

Agreement with Brazil was reached April 30, 1969 on a temporary arrangement regarding the export of soluble coffee from that country to the United States. Consultations toward a permanent solution to this problem are currently under way.


The White House

May 11, 1970

Note: The report, entitled "1969 Annual Report of the President to the Congress on the International Coffee Agreement" (16 pp., plus annexes), was published by the Department of State.

Richard Nixon, Message to the Congress Transmitting Annual Report on Operation of the International Coffee Agreement. Online by Gerhard Peters and John T. Woolley, The American Presidency Project

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