Foreign Relations, Foreign Relations, 1969-1976, Documents on South Asia, 1969-1972
Released by the Office of the Historian

 

Department of State   TELEGRAM

UNCLASSIFIED 202

PAGE 01 DACCA 04747   140152Z

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ACTION AID-59

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039706
P R 131142Z NOV 72
FM AMEMBASSY DACCA
TO SECSTATE WASHDC PRIORITY 7812
INFO AMEMBASSY BANGKOK
AMEMBASSY ISLAMABAD
AMCONSUL KARACHI
AMEMBASSY NEW DELHI
AMEMBASSY OTTAWA
AMEMBASSY TOKYO
USMISSION USUN NY

UNCLAS DACCA 4747

 

SUBJECT: FOODGRAIN SUPPLY TO BANGLADESH

REF: STATE 202246 (NOTAL)

 

SUMMARY

MUJIB INFORMED OF USG WILLINGNESS PROVIDE 100,000 TONS WHEAT FOR ARRIVAL IN JANUARY. BDG MAKING COMMERCIAL PURCHASES AS WELL - 50,000 TONS OF RICE FROM THAILAND AND BURMA AND 100,000 TONS OF WHEAT FROM CONTINENTAL GRAIN, NY. GAP BETWEEN THIS PROCUREMENT AND UN DELARED TARGET 700,000 TONS FIRST QUARTER CY 1974 STILL GREAT. OTHER SOURCES FOODGRAINS (OUTSIDE PAKISTAN) MAY NOT BE ABLE TO SUPPLY. BDG FOOD SECY HAS URGED CASH DONATIONS IN LIEU TO ENABLE BDG CONTINUE TO MAKE COMMERCIAL PURCHASES. END SUMMARY.

 

1. NOVEMBER 11 CHARGE INFORMED PRIME MINISTER MUJIBUR RAHMAN THAT IN RESPONSE TO UN APPEAL FOR 700,000 TONS FOODGRAINS, USG PREPARED TO PROVIDE 100,000 TONS WHEAT FRO ARRIVAL, IN JANUARY. IN ACCORDANCE WITH REFTEL. CHARGE ALSO TOLD MUJIB WE CAN REASONABLY HOPE TO SUPPLY ANOTHER 100,000 TONS DURING BALANCE THIS FISCAL YEAR, BUT IN ALL PROBABILITY NO MORE THAN THAT.

 

2. TO EMPHASIZE LATTER POINT, CHARGE SUPPLIED MUJIB WITH SUMMARY STATEMENT ON TIGHTNESS OF FOODGRAIN SUPPLY WORLDWIDE

 

3.MUJIB EXPRESSED GRATITUDE AND WENT ON TO REPORT THAT BDG WAS PURCHASING COMMERCIALLY AS WELL - 30,000 TONS OF RICE FROM THAILAND, 20,000 TONS RICE FROM BURMA, AND 100,000 TONS WHEAT FROM CANADA. WE HAVE BEEN UNABLE CONFIRM CANADIAN PURCHASE EITHER WITH CANADIAN HIGH COMMISSION OR FOOD GRAIN SECRETARY, BDG. LATTER SPECULATED THAT MUJIB'S OFFICE MAY HAVE CONFUSED COMMERCIAL PURCHASE FROM CANADA WITH ONE OF SAME MAGNITUDE FROM CONTINENTAL GRAIN, NEW YORK, CONTRACT FOR WHICH SIGNED DACCA NOVEMBER 11.

 

4. MUJIB DID NOT REQUEST AMPLIFICATION USG FOODGRAIN SUPPLY NOR DID HE COMMENT ON GAP BETWEEN 100,000 TONS FROM US AND 700,000 TON REQUIREMENT. FOOD SECRETARY DID SO, HOWEVER, AND URGED THAT AID DONORS UNABLE TO SUPPLY FURTHER FOODGRAINS CONSIDER PROVIDING CASH IN RESPONSE UN APPEAL. POINTED OUT THAT BDG HAD AGREED PAY VERY HIGH PRICE TO THAILAND AND BURMA IN ORDER LAY BASIS FOR FUTURE GOVERNMENT-TO-GOVERNMENT PURCHASES BY BDG. HAD ALSO AGREED THAT SINCE US UNABLE TO SHIP RICE, IT IN ADDITION CONSIDER CASH DONATION TO ENABLE BDG TO CONTINUE TO BUY ON WORLD MARKET. IN THIS CONNNECTION MENTIONED PURCHSES "THROUGH SINGAPORE" (I.E., OF WEST PAKISTAN RICE).

 

5. CONTINENTAL GRAIN'S REP AMRAM, NOW IN DACCA, HAS TOLD US THEIR POISITION PAK RICE "STRONG". HE HAD ALMOST GAINED BDG cLEARANCE TO SEEK 100,000 TONS VIA SINGAPORE BUT LAST MINUTE HITCHES HAVE DEVELOPED. UMBRICHT UNROD ADVISES THAT ANOTHER PAK RICE DEAL WAS IN TRAIN BUT WAS CANCELED WHEN PAKS ALLEGEDLY TRIED TO RAISE PRICE YET HIGHER. SINGAPORE INTERMEDIARY FORCED TO WITHDRAW FROM CONTRACT AND PAY PENALTY CLAUSE. ACCORDING UMBRICHT, BDG NOT INCLINED CONSIDER FURTHER PURCHASE PAK RTCE.

 

6. WE HAVE INFORMED CANADIANS, AUSTRALIANS, AND JAPANESE OF USG RESPONSE TO UN APPEAL. NONE OF THEM COULD GIVE MUCH ASSURANCE THAT THEIR GOVTS COULD PROVIDE FOODGRAINS. CANADIAN INTERNATIONAL DEVELOPMENT AGENCY CHIEF ARRIVING SHORTLY AND CANADIAN HIGH COMMISSION HAS URGED THAT HE COME PREPARED TO MAKE SOME SORT OF OFFER OF FOOD SIDE.

 

7. JAPANESE INDICATED ONLY THAT GOJ MOVING TO PROVIDE 12,500 TONS RICE AS PART OF KENNEDY ROUND COMMITMENT. DID NOT SEE MUCH HOPE IN EARLY SHIPMENT "DEFERRED-PAYMENT" RICE. WE EMPHASIZED THAT IF FOODGRAINS COULD NOT BE SUPPLIED IN ADEQUATE MEASURE, GOJ CONSIDER CASH DONATION AS ITS RESPONSE UN APPEAL.
NEWBERRY