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Air Commodore A. A. L. Cuffe, Royal Canadian Air Force Head

quarters, Ottawa, Ontario; Hugh L. Keenleyside, Counselor, Department of External Affairs,

Ottawa, Ontario; Secretary.

The Permanent Joint Board on Defense was set up by the United States and Canada in pursuance of a joint announcement of the President and Prime Minister W. L. Mackenzie King, dated August 17, 1940, at Ogdensburg, New York, for the purpose of carrying out studies relating to sea, land, and air problems, including personnel and matériel, and to consider, in the broad sense, the defense of the northern half of the Western Hemisphere.


OF EUROPEAN COLONIES AND POSSESSIONS IN THE AMERICAS (Act of Habana, Second Meeting of the Ministers of Foreign Affairs of the

American Republics, 1940 s) United States Member: Sumner Welles, LL.D., Under Secretary of


The Emergency Committee was established in accordance with the Act of Habana, adopted by the Second Meeting of the Ministers of Foreign Affairs of the American Republics, held at Habana in July 1940. The Act of Habana provides for the constitution of the Committee as soon as two thirds of the American republics appoint their members. The following 16 countries have appointed representatives on the Committee: Bolivia, Brazil, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Peru, United States of America, and Venezuela. The Emergency Committee is to function only until the convention on the provisional administration of European colonies and possessions in the Americas shall come into effect, at which time it will be superseded by the Inter-American Commission for Territorial Administration.

The Committee shall assume the provisional administration of any region in the Western Hemisphere now under the possession of a non-American nation 81 whenever it is in danger of becoming the subject of barter of territory or change of sovereignty. The purpose of the Act of Habana in establishing this Committee was to give immediate effect to the main provisions of the convention, also signed at Habana, regarding the setting up of a provisional administrative regime over any possessions of a non-American state in case of their attempted transfer to another non-American state. The establishment of such provisional administration is to be exercised in the interest of the security of the Americas and for the benefit of the region under administration until such time as the region is in a position to govern itself or is restored to its former status.

** Executive Agreement Series 199; 54 Stat. 2491. 30 See ante, p. 1.

Territories or possessions which are the subject of dispute or claims between European powers and one or more of the republics of the Americas are excepted.

It is also provided that, should the need for emergency action be so urgent that action by the Committee cannot be awaited, any of the American republics may act individually or jointly with others in the manner which its own defense or that of the continent requires. The country or countries taking such action must place the matter before the Committee immediately in order that it may adopt appropriate measures.

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(Established by the inter-American coffee agreement, 1940 62) Offices: Washington, D.C. United States Delegate: Paul C. Daniels, Assistant Chief, Division of

the American Republics, Department of State; Chairman of the Board.

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The Second Meeting of the Ministers of Foreign Affairs of the American Republics,83 held at Habana in July 1940, adopted a resolution entrusting to the Inter-American Financial and Economic Advisory Committee 84 the study of steps to be taken to promote the orderly marketing in international trade of commodities of primary importance to the economic life of the countries of the Western Hemisphere, with a view to assuring equitable terms for both producers and consumers. As a result of months of study on the part of representatives of the United States and the 14 coffee-producing American republics, the inter-American coffee agreement was signed at Washington, D.C., on November 28, 1940, to ameliorate the abnormal and distressing situation which had arisen with regard to coffee, one of the most important commodities in the economy of this hemisphere. As a result of hostilities abroad, European markets for coffee had been shut off or greatly curtailed and surpluses had

* Treaty Series 970.

See ante, p. 1. ** See ante, p. 61.


piled up in the producing countries, with the result that prices declined to record low levels and the purchasing power of the coffeeproducing American countries for the goods and services of the United States was seriously affected.

The purpose of the inter-American coffee agreement is to make possible the orderly marketing of coffee under the extraordinary circumstances which have resulted from the present world conflict. To accomplish this purpose, the agreement establishes quotas for exports of coffee to the United States and to the market outside of the United States, from each of the countries participating in the agreement (other than the United States). The agreement is to remain in force until October 1, 1943, although any government may withdraw at any time after one year's prior notice. Provision is also made for termination by unanimous agreement before October 1, 1943, or for its continuance after that date if agreed to by all the participating governments.

The inter-American coffee agreement came into effect on April 15, 1941 as between those countries which had ratified the agreement, upon the signature of the protocol for that purpose at the Pan American Union by representatives of the following countries : Brazil, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Peru, and United States of America. The Dominican Republic, Ecuador, Haiti, and Nicaragua have also ratified the agreement and signed the protocol. Venezuela has ratified the agreement but had not signed the protocol at the end of the fiscal year 1941.

The basic annual quota for imports into the United States from all countries was set at 15,900,000 bags, of 60 kilos each. Provision was made however for modifying the quotas under certain conditions in order to adjust supplies to estimated requirements.

The agreement is under the administration of the Inter-American Coffee Board, which is composed of a delegate from each of the contracting governments. Mr. Paul C. Daniels, Assistant Chief of the Division of the American Republics, Department of State, was designated as the Delegate of the United States on the Board. At the first meeting of the Board, Mr. Daniels was elected Chairman and Mr. Eurico Penteado, Delegate of Brazil, was elected Vice Chairman. An executive committee was appointed at this meeting, composed of the following members: Roberto Aguilar (El Salvador), president; Enrique López-Herrarte (Guatemala); Rafael Montoya Perez (Colombia); Eurico Penteado (Brazil); and Paul C. Daniels (United States).

At a meeting of the Board on May 28, 1941, it was resolved to increase, as of June 1, 1941, the quotas for the United States market by 5 percent of the basic quotas, in accordance with article III of the coffee agreement. Another resolution approved by the Board authorized advance shipments to the United States under the 1942 quota (the quota-year covers the period from October 1 to September 30, inclusive), provided they are not entered for consumption in the United States prior to October 1, 1941. These shipments are not to exceed 15 percent of the respective basic quotas of the producing countries.

Article XIII of the agreement provides that the expenses of delegates to the Board shall be defrayed by their respective governments and that all other expenses necessary for the administration of the agreement shall be met by annual contributions of the governments of the participating countries. Under the provisions of this article, the contribution of the United States is one third of the total contribution. This share corresponds to the voting power of the United States on the Coffee Board. The sum of $6,000 was appropriated by Congress (55 Stat. 561) for the share of the United States toward the expenses of the Inter-American Coffee Board for the period from April 15, 1941 to September 30, 1941, including installation expenses.

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