Evening star., 1933-08-15
j. U.S.T0C0-0PERATE s.
ON WHEAT PLANS
Prepared to Accept Any Rea-
sonabIe Idea of Europe,
Says Wallace.

BY the Associated Press.
Secretary Wallace said today this
country was prepared to accept any
reasonable plan for European co-opera-
ton involving the reduction OF wheat
production which Is satisfactory to
Canada, Australia and Argentina"
Wallace made his statement at
press conference after receiving report
from Henry Morgenthau, sr., American
delegate to the London Wheat Confer
ence. which Is scheduled to reconvene
at London on August 81.
Subsidized Exporting" Seen.
At the same time, Wallace said that
unless a program of international re-
duction of wheat production was OBJ
tained, this country was prepared TO
proceed with program of Subsidized
exporting" in order to remove It's sur
plus OF the grain.
Subsidized exporting" in effect he
described as similar to dumping ex-
cept that the program he had in mind
would involve assurance that this coun-
try could export near the amount of
its normal exports rather than in excess
of normal exports. If the program in
volved expectation in excess of the nor
NAL flow Of grain out Of this country
dumping" would be the correct term,
Wallace said.
Wallace in a formal statement said
Mr.. Morgenthau reported that the
United States position had been made
quite clear from the beginning of the
negotiations" which began at Geneva
and were transferred to London when
the Economic Conference began there
in June
Urges Foreign Reductions.
This country" Wallace said he was
informed by Morgenthau Offered to
make a substantial reduction In It's
wheat acreage for the next two years
If the three other large exporting coun-
tries. Canada, Australia and Argentina.
also would reduce their wheat produc-
ton.
The United States was ready TO
agree that each country should be at
liberty to choose its own method of re-
duction and agreed to accept control
of wheat exports and diversion of ex-
cess wheat to other uses in lieu OF
acreage reductions"
Wallace's statement said:
Furthermore, the United States rec
ognized the difficulties in the way Of
European cooperation and stood will
ing to engage in joint reduction pro-
gram with the other great exporters for
one year at least, even If, European CO.
operation could not be obtained for this
first year.
The other exporting countries in
sisted that before they would enter into
a Joint program with the United States,
European importing countries must
agree to reduce restrictions against
wheat imports. and to cease further O.
forts to expand wheat production: -
European exporting countries must
to control production or exports.
Only Two Genuine.
MI Morgenthau reported that salts
factory agreements were worked out
with the Danubian exporters and til
the Russians indicated a co-operat
spirit. but that Of all the import.
countries only Great Britain and Aust
showed any genuine Willingness rea
, to help in solving the problem.
Throughout the negotiations. Mr..
MCrgenthau emphasized, the United
States stood willing to waive all minor
| points but despite the efforts TO reach
! satisfactory basis for action, the other
| three exporting countries were not salts
| fed when the conference recessed to
| meet again August 81 with the conces-
sions offered by the importing countries" ="
Wallace announced that Frederick E.
Murphy. publisher of the Minneapolis
| Tribune, one of the American experts
| at the conference, nov is visiting some
of the wheat importing countries and
| will represent the United States when
the conference reconvenes.
We will stand ready to participate in
any reasonable plan which the other
| three great exporting countries will &C
| cept." Wallace added in his statement.
We do not insist on European CO.
| operation at this time, but if the other
| exporters insist on it. we will accept
| any reasonable plan for European CO.
| operation which is satisfactory to
| Canada Australia and Argentina We
shall wait until August "A to see if
they can reach an agreement for def
| mite action, before We announce our
wheat reduction for next year.
Will Protect U. S. Growers.
| If the other exporters Will not CO.
operate. We fortunately do have the
agricultural adjustment act and shall
use its full powers to protect American
wheat growers.
In such a case We will make less
reduction in acreage than If other coun-
| tries were working with us. We will
| maintain our wheat producers incomes
| through benefit payments. and we will
move out of the country burdening sur
pluses of wheat, such as that now ex-
isting on the Pacific Coast
| We recognize that our European
market for wheat has greatly dimin-
| ished. but If no agreement is reached,
We Will find place for our wheat in
| Oriental markets. In the past those
markets have been divided between
American, Canadian and Australian
sources. with the distribution of the