[Senate Treaty Document 105-4]
[From the U.S. Government Publishing Office]



105th Congress                                              Treaty Doc.

                                 SENATE
 1st Session                                                      105-4
_______________________________________________________________________


 
                 INTERNATIONAL GRAINS AGREEMENT, 1995

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 THE GRAINS TRADE CONVENTION AND FOOD AID CONVENTION CONSTITUTING THE 
  INTERNATIONAL GRAINS AGREEMENT, 1995 SIGNED BY THE UNITED STATES ON 
                             JUNE 26, 1995.




 April 7, 1997.--Agreement was read the first time and, together with 
the accompanying papers, referred to the Committee on Foreign Relations 
          and ordered to be printed for the use of the Senate


                         LETTER OF TRANSMITTAL

                              ----------                              

                                    The White House, April 7, 1997.
To the Senate of the United States:
    With a view to receiving the advice and consent of the 
Senate to ratification, I transmit herewith the Grains Trade 
Convention and Food Aid Convention constituting the 
International Grains Agreement, 1995, open for signature at the 
United Nations Headquarters, New York, from May 1 through June 
30, 1995. The Conventions were signed by the United States on 
June 26, 1995. I transmit also for the information of the 
Senate, the report of the Department of State with respect to 
the Conventions.
    The Grains Trade Convention, 1995, replaces the Wheat Trade 
Convention, 1986, and maintains the framework for international 
cooperation in grains trade matters. It also continues the 
existence of the International Grains Council.
    The Food Aid Convention, 1995, replaces the Food Aid 
Convention, 1986, and renews commitments of donor member states 
to provide minimum annual quantities of food aid to developing 
countries.
    The International Grains Council and the Food Aid Committee 
granted the United States (and other countries) a 1-year 
extension of time in which to deposit its instruments of 
ratification, and have permitted the United States in the 
meantime to continue to participate in the organizations.
    It is my hope that the Senate will give prompt and 
favorable consideration to the two Conventions, and give its 
advice and consent to ratification so that ratification by the 
United States can be effected and instruments of ratification 
deposited at the earliest possible date.

                                                William J. Clinton.



                          LETTER OF SUBMITTAL

                              ----------                              

                                       Department of State,
                                          Washington, July 3, 1996.
The President,
The White House.
    The President: I have the honor to submit to you, with a 
view to transmission to the Senate for advice and consent to 
ratification, the Grains Trade Convention and Food Aid 
Convention constituting the International Grains Agreement, 
1995. The Conventions were open for signature at the United 
Nations Headquarters, New York, from May 1 through June 30, 
1995. They were signed for the United States on June 26, 1995.
    The International Grains Agreement consists of two legal 
instruments: the Grains Trade Convention, 1995, and the Food 
Aid Convention, 1995. The Conventions were adopted at meetings 
of the International Wheat Council and Food Aid Committee at 
London on December 7 and 5, 1994, respectively. They entered 
into force on July 1, 1995. The Conventions will remain in 
force until June 30, 1998.
    The Grains Trade Convention, 1995, replaces the Wheat Trade 
Convention, 1986. The Food Aid Convention, 1995, replaces the 
Food Aid Convention, 1986. From December 1993 to December 1994, 
the United States and other governments party to these 
Conventions engaged in negotiations to draft the new texts of 
both of these Conventions in a manner that would, inter alia, 
redistribute voting rights and assessments to reflect more 
accurately changing patterns of world trade.
    The Grains Trade Convention, 1995, is designed to reinforce 
international cooperation in grain matters between exporting 
and importing members, serving as a forum for the discussion on 
a regular basis of world grain matters. The Convention contains 
no economic provisions placing strictures on parties regarding 
pricing or marketing, a position strongly supported by the U.S. 
Government. A major purpose of the Grains Trade Convention is 
to continue to collect, analyze and disseminate information on 
market conditions and on developments concerning the 
improvement and expansion of trade, utilization, and storage 
and transportation of grain, especially in developing 
countries.
    The Grains Trade Convention improves upon the Wheat Trade 
Convention by strengthening its informational activities. For 
example, the scope of the new Convention has been broadened to 
permit increased attention to grains other than wheat (i.e., 
barley, maize, millet, oats, rye and sorghum). Such a change 
benefits the United States because the United States has relied 
heavily on the information generated regarding wheat and it now 
finds similar information on other grains very useful.
    The Food Aid Convention, 1995, continues the commitment of 
the donor member states to provide minimum annual quantities of 
food assistance in the form of edible grain--principallywheat, 
rice and coarse grains--and provides an international forum for 
overseeing food assistance. The Convention commits the United States to 
donate or sell on concessional terms at least 2.5 million metric tons 
of food aid annually. This figure represents a significant reduction 
from the U.S. commitment of 4.47 million metric tons in the Food Aid 
Convention, 1986, due to current and anticipated U.S. budget cuts 
during the Convention's three-year duration. The contributions of the 
United States under this Convention are made up of commodities sold or 
donated under the Agriculture Trade and Development Act of 1954, as 
amended (``P.L. 480'') or through other bilateral aid programs. The 
amount of the new U.S. food aid commitment is within the current level 
of authorized food aid programs. The Food Aid Convention ensures 
burden-sharing among food aid donors. A floor for food aid assistance 
of 7.6 million metric tons per year has been established, over the 
three-year term of the Convention.
    While the basic principles and objectives of the Food Aid 
Convention, 1995, have not changed from those of the Food Aid 
Convention, 1986, there are several innovations in the new 
Convention, including:
          the list of grains whose supply as food aid is 
        permissible has been broadened to include grain legumes 
        and beans;
          the formula under which contributions of foods other 
        than wheat can be evaluated in terms of their ``wheat 
        equivalents'' is more flexible, reflecting long-term 
        changes in the export price relationship between wheat 
        and such other foods as rice.
These changes are beneficial because they encourage new donors 
to provide additional food aid.
    Consistent with the informational and forum role of the new 
International Grains Agreement, and in order to encourage 
participation and continuity of activities, the new texts 
provide for future extensions of up to two years.
    The International Grains Council and the Food Aid Committee 
have granted the United States (and other countries) an 
extension until June 30, 1996, to deposit instruments of 
ratification to become a party to these Conventions. The 
Council and Committee are expected to make decisions allowing 
for a further extension. The Secretary of Agriculture joins me 
in recommending that these Conventions be transmitted to the 
Senate for its early and favorable consideration.
    Respectfully submitted,
                                                    Strobe Talbott.
    Enclosure: As stated.




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