INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [57 STAT. DRAFT CONVENTION PREAMBLE Accumulation of wheat surpluses. Relief in war-strick- en areas. Measures necessary to assure benefits of abundant supplies. Agreement. 1. The prospects with regard to the production and marketing of wheat are such that accumulation of wheat surpluses threatens to result in grave post-war difficulties for the economies of the producing countries and hence, because of the interdependence of nations, for the economies of all countries. It is also to be expected that, unless appropriate action is taken, such accumulation will recur. 2. A solution of the problem thus presented must be regarded as an essential part of any program of world economic reconstruction and will call for cooperative action by all countries concerned in inter- national trade in wheat. It will involve national and international measures for the regulation of wheat production in both exporting and importing countries, for the orderly distribution of wheat and flour in domestic and international trade at such prices as are fair to consumers and provide a reasonable remuneration to producers and for the maintenance of world supplies which shall be at all times ample for the needs of consumers without being so excessive as to create a world burden of unwanted surpluses. 3. Cooperative action is also necessary to meet the need for relief in the war-stricken areas of the world by the supply and distribution of gifts of wheat. 4. The benefits of abundant world supplies of wheat cannot be assured to consumers unless there is a substantial decrease in uneco- nomic incentives to high-cost production, a lowering of barriers to world trade and the charging of prices to consumers not substantially higher than the price of wheat in international trade. 5. In many countries the standard of living would be improved by increasing the consumption of wheat through a lowering of prices. In all countries the standard of living would be improved by stimulat- ing the consumption of foods rich in vitamins, proteins and min- erals. The increased prolluction of such foods would offer a more valuable use for land which has at times been used uneconomically for high-cost production of wheat. 6. Producers of an international commodity such as wheat are di- rectly affected by standards of living throughout the world, by inter- national purchasing power and by prevailing policies and practices affecting international trade generally. There can be no basic solu- tion of the problem of export surpluses without a general reduction of import barriers and no measure should be taken or maintained which has the effect of retarding such reduction or of preventing in any way the fullest possible development of international trade. Accordingly the contracting Governments have agreed as follows: ARTICLE I (EXPANSION OF TRADE) 1. The contracting Governments agree that an essential element of a solution of the world wheat problem is that consumers should 1384
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