NEGOTIATIONS FOR SALE OF US SURPLUSES TO JAPAN

Press, Volume XC, Issue 27471, 4 October 1954, Page 11

NEGOTIATIONS FOR SALE OF US SURPLUSES TO JAPAN

(Rec. 8 p.m.) WASHINGTON, October 2. Japan was negotiating with the United States to buy up to an estimated 100,000,000 dollars worth of surplus United i P. roducts for local currency, diplomatic sources told Reuter today.

But it would be at least several weeks before the Japanese authorities would be in a position to talk in firm figures, the sources said. Many details of the surplus disposal law, affecting the use of the local currency m the United States aid programmes to Japan, had still to be worked out. The United States Secretary of Agriculture, Mr Ezra Taft Benson, told President Eisenhower on Thursday that the first agreements to sell about 384,000,000 dollars worth of the surplus farm commodities under the new law were expected to be signed in the near future with Britain, Japan, Spain, Jugoslavia, Pakistan, Chile, and other countries. Congress has authorised the sale for foreign currency of 7'00,000,000 dollars worth of surplus farm products over the next three years. The current negotiations involve tentative estimates of 143,000.000 dollars worth of bread grains; 87.000.000 dollars of cotton; 50,000,000 dol-

’“to oI fats an( t oils; arid 104,000,000 dollars worth of other commodities, including tobacco and dairy products. The Agriculture Department did not disclose the amounts under consideration for negotiation with the various countries. But an informed diplomat said Japan was interested in taking about onefourth of the total surplus products now under negotiation, with particular emphasis on wheat, barley, soya beans and cotton. Japan has been the most important single outlet for United States surpluses over the last few years, and last year she headed the list with imports totalling 367.000.000 dollars worth ° yt Jp erican farm commodities. Under the provisions of the new surplus disposal law. the local currencies ”=® ,ved ‘2’ e United States ‘he goods could be used for foreign economic aid, promotion of multilateral rading, purchase of strategic materials nf T?S er /°c-° 1 d i and services, payment of United States obligations abroad,

defence bases costs, loans to promote traae and economic development, and to finance educational exchange programmes. Before any firm commitments can be signed between the United States and Japanese Governments to purchase the farm commodities with yen there will have to be agreements on intended use of the local currency within these categories. Once an accord is reached on this between the Governments, the way wouid be open for private firms in both countries to engage in the actual buying and selling transactions. Congress specified that wherever Possibie this business should be .handled by private traders rather than by governments. of Agriculture statistics showed that last year the United States shipped to Japan 10.000,000 tons of wheat. 284.000 tons of barley, 474.000 tons of soya beans, 176,000 tons of rice and 641,000 bales of cotton.