The delegation headed by Borisov was informed today what these will be. His delegation now is returning to Moscow, leaving transactions to be worked out by a Soviet wheat purchasing commission. One State Department official, apparently more bearish than Roosevelt, said it still was "anybody's guess" whether deals would be consummated. He said it still was not known here what the Russians would consider a reasonable “C and F"' price. American officials likened any forthcoming transactions to "cold commercial" deals. Rusk told his news conference that as far as the United States is concerned "this is not a gesture of philanthropy," but a question of whether its self-interest is served by exchanging wheat for convertible currency or gold. ON UNIFORM ALLIED POLICY He was asked whether the United States and its allies were making progress toward working out uniform credit policies applicable to the Soviet Union. He replied in the negative, saying there would be further discussions of such matters by the Organization of Economic Coordination and Development and NATO. Turning to other matters, Rusk told his news conference that Soviet harassment of allied convoys on the autobahn to West Berlin was “very serious," since access to that city by the West was "utterly fundamental.” GRAVE IMPLICATIONS He said he was unable to "understand" the three recent incidents involving American vehicles since they seem to "cut across and interrupt” what the Russians have been saying about peaceful coexistence and are not in keeping with efforts to find new points of East-West agreement after the signing of the nuclear test ban treaty. Rusk said that, although such incidents might look like an “elaborate minuet” about procedures, they had grave implications. If the West conceded the Soviet right to compel the lowering of tailgates on allied vehicles, or accepted other procedures dictated by them, he said, the Russians ***. [From the Baltimore Sun, Nov. 11, 1963] CASEY HAILS U.S. POSITION PRAISES "FIRM, FAIR WAY" WHEAT DEAL IS HANDLED NEW YORK, November 10 (Special).—The administration's position regarding the use of American-flag ships in the transportation of any wheat sold to Russia was praised today by a spokesman for a large segment of the American maritime industry. But, at the same time, Ralph E. Casey, president of the American Merchant Marine Institute, lashed out at foreign maritime nations because of their protests concerning any governmental preference for American-flag ships in moving such grain. ROOSEVELT PRAISED Casey's statement praised Franklin D. Roosevelt, Jr., Under Secretary of Commerce, for "the firm and fair way in which the problem has been handled." On Friday, Roosevelt said that at least 50 percent of any wheat going to Russia would move on American-flag bottoms. It also was revealed Friday that transactions involving the sale of about 2,500,000 tons of wheat to Russia would soon be made. Negotiators for the United States and the Soviet Union agreed Friday that the Communists would deal directly with American grain dealers, who will be acting under "guidelines" set up by the Commerce Department. STUMBLING BLOCK When he announced Government approval of the wheat sale, President Kennedy said that American-flag ships would be given preference. Since then higher rates on American vessels have been a stumbling block in negotiations. Guidelines annoud Friday by the Commerce Department are $18 per ton from gulf ports fo nd $16 to Leningrad. tons for which a waiver is requested. Continental has informed the Maritime Administration it will continue its own efforts to obtain U.S.-flag ships through the period of processing the waiver application and until the final decision on this application is made by the Maritime Administration. The data supplied by Continental has been found by the Maritime Administration to be sufficient to warrant acceptance of the application for processing, and the Maritime Administration has, therefore, set in motion its procedures for determining whether the waiver should be granted. These procedures are described in Maritime's "Notice to Exporters and American Shipowners on Shipment of Wheat and Wheat Flour to Soviet Bloc Countries," issued on January 7, 1964. As a first step in its procedure, the Maritime Administration is immediately notifying American shipping interests of the filing of the waiver application, through wide distribution of a notice to that effect. At the same time, the Maritime Administration is making available the specific terms and conditions of charter and urging all interested shipowners of U.S.-flag vessels which are available under those specific terms and conditions to offer their vessels to Continental Grain Co. The responses of the shipowners are to be filed concurrently with the Continental Grain Co. and with the Office of Ship Operations, Maritime Administration. Vessels which are offered but which do not meet the terms and conditions of the tender cannot be considered by the Maritime Administration to be "available" for purposes of passing on the waiver application. No waiver will be granted for any portion of the tonnage requested to the extent U.S.-flag tonnage is offered in accordance with the terms and conditions of the tender. All offers from shipowners are to be filed within 5 days from the date of this notice and not later than 5 p.m., Wednesday, February 5, 1964. As of January 30, the Maritime Administration had been advised that the following U.S.-flag ships had been chartered by Continental Grain for the carriage of wheat to Russia for a total of 213,000 long tons: Niagara, 16,000 tons; American Export Lines (3 parcels) 15,000; Chilore, 22,000 tons; Columbia, 21,000 tons; Ocean Ulla, 30,000 tons; Sister Katingo, 30,00 tons; Spitfire, 23,000 tons; Venore, 22,000 tons; Washington Trader, 15,500 tons; York, 18,000 tons. In notifying the U.S. shipping industry of the waiver request and the conditions of tenders, the Maritime Administration is attempting to reach every segment of the industry. It has notified the major American shipping associations, including the American Maritime Association, American Merchant Marine Institute, Pacific American Steamship Association, and Committee of American Steamship Lines. It has notified individually every bulk cargo owner in the grain trade or the ship managing agents and operators. In addition, the information has been posted in the New York Maritime Exchange, 80 Broad Street, New York City. (NOTE. The Continental sale was for 1 million metric tons, which is equivalent to 988,000 long tons. The long ton is the standard wheat unit for the U.S. shipping industry.) U.S. DEPARTMENT OF COMMERCE, MARITIME ADMINISTRATION CONTINENTAL GRAIN CO. REQUEST FOR PARTIAL WAIVER OF THE U.S.-FLAG SHIPPING REQUIREMENT ON WHEAT SHIPMENTS TO THE U.S.S.R. Continental Grain Co., New York, N. Y., the licensee of export licenses issued by the Office of Export Control, Department of Commerce, for a total of 36,745,408 bushels of wheat (984,252 long tons) for exportation to the U.S.S.R. has made application to the Maritime Administration for authorization to ship less than 50 percent on U.S.-flag carriers, as required in Current Export Bulletin 883, dated November 13, 1963, claiming that such carriers are not available to wholly meet that requirement. Said application is made pursuant to "Notice to exporters and American shipowners on shipment of wheat and wheat flour to Soviet bloc countries," issued by the Maritime Administration on January 7, 1964. The applicant for this waiver, as of the date of this notice, has made shipping arrangements on U.S.-flag vessels for 213,000 long tons of wheat and requests a waiver on the balance amounting to 281,000 long tons but will continue to negotiate with U.S. shipowners until a waiver, if any, is granted. "Even parts of the American press," he said, "have unwittingly aided the Soviets in the current negotiations with stories and editorials which have tended to malign American shipping as exerting almost a subversive influence on the wheat transaction." ATTACHMENT No. 7 U.S. DEPARTMENT OF COMMERCE, MARITIME ADMINISTRATION, Washington, D.C., December 11, 1963. (This letter was sent to all shipowners or managing agents of vessels engaged in the grain trade. In addition it was sent to AMA, AMMI, PASSA, CASL, and Association of Ship Brokers & Agents and via the Department of Agriculture to grain exporters.) GENTLEMEN: Attached hereto is a proposed draft of "Notice to Exporters and American Shipowners on Shipment of Wheat and Wheat Flour to Soviet Bloc Countries." The Maritime Administration, Department of Commerce, would appreciate your comments or suggestions, if any, relative to procedures involved in this notice prior to its publication. There is an immediate need for a thorough understanding by all concerned of the procedures so outlined, and it will be appreciated if your comments or suggestions are submitted as early as possible, but not later than December 17, 1963. DEAR MR. ADMINISTRATOR: Many thanks for sending me the draft of "Notice to Exporters and American Shipowners on Shipment of Wheat and Wheat Flour to Soviet Bloc Countries" which you plan to publish soon in the Federal Register. I have not canvassed every member of my organization but, on my own responsibility, will indicate to you that the notification plan therein by which American operators are given 30 days' advance notice of "bloc" country shipments seems quite satisfactory. Your department's extreme caution in insuring maximum participation by U.S.-flag vessels is greatly appreciated. This has been a difficult matter for your department and we commend you and your staff for finding a fair and equitable solution. Very truly yours, ATTACHMENT No. 9 RALPH B. DEWEY. U.S. DEPARTMENT OF COMMERCE, CONTINENTAL GRAIN REQUESTS WAIVER ON USE OF U.S. SHIPS FOR 281,000 TONS OF GRAIN Continental Grain Co. has asked the Maritime Administration of the U.S. Department of Commerce for a waiver permitting shipment of less than 50 percent of its order of grain to Russia on U.S.-flag ships. The waiver requested is in the amount of 281,000 long tons. Continental Grain Co. has informed the Maritime Administration that it has fixed charters for shipment of 213,000 long tons of grain on U.S.-flag vessels but they have been unable to contract for U.S.-flag shipment of the 281,000 long tons for which a waiver is requested. Continental has informed the Maritime Administration it will continue its own efforts to obtain U.S.-flag ships through the period of processing the waiver application and until the final decision on this application is made by the Maritime Administration. The data supplied by Continental has been found by the Maritime Administration to be sufficient to warrant acceptance of the application for processing, and the Maritime Administration has, therefore, set in motion its procedures for determining whether the waiver should be granted. These procedures are described in Maritime's "Notice to Exporters and American Shipowners on Shipment of Wheat and Wheat Flour to Soviet Bloc Countries," issued on January 7, 1964. As a first step in its procedure, the Maritime Administration is immediately notifying American shipping interests of the filing of the waiver application, through wide distribution of a notice to that effect. At the same time, the Maritime Administration is making available the specific terms and conditions of charter and urging all interested shipowners of U.S.-flag vessels which are available under those specific terms and conditions to offer their vessels to Continental Grain Co. The responses of the shipowners are to be filed concurrently with the Continental Grain Co. and with the Office of Ship Operations, Maritime Administration. Vessels which are offered but which do not meet the terms and conditions of the tender cannot be considered by the Maritime Administration to be "available" for purposes of passing on the waiver application. No waiver will be granted for any portion of the tonnage requested to the extent U.S.-flag tonnage is offered in accordance with the terms and conditions of the tender. All offers from shipowners are to be filed within 5 days from the date of this notice and not later than 5 p.m., Wednesday, February 5, 1964. As of January 30, the Maritime Administration had been advised that the following U.S.-flag ships had been chartered by Continental Grain for the carriage of wheat to Russia for a total of 213,000 long tons: Niagara, 16,000 tons; American Export Lines (3 parcels) 15,000; Chilore, 22,000 tons; Columbia, 21,000 tons; Ocean Ulla, 30,000 tons; Sister Katingo, 30,00 tons; Spitfire, 23,000 tons; Venore, 22,000 tons; Washington Trader, 15,500 tons; York, 18,000 tons. In notifying the U.S. shipping industry of the waiver request and the conditions of tenders, the Maritime Administration is attempting to reach every segment of the industry. It has notified the major American shipping associations, including the American Maritime Association, American Merchant Marine Institute, Pacific American Steamship Association, and Committee of American Steamship Lines. It has notified individually every bulk cargo owner in the grain trade or the ship managing agents and operators. In addition, the information has been posted in the New York Maritime Exchange, 80 Broad Street, New York City. (NOTE. The Continental sale was for 1 million metric tons, which is equivalent to 988,000 long tons. The long ton is the standard wheat unit for the U.S. shipping industry.) U.S. DEPARTMENT OF COMMERCE, MARITIME ADMINISTRATION CONTINENTAL GRAIN CO. REQUEST FOR PARTIAL WAIVER OF THE U.S.-FLAG SHIPPING REQUIREMENT ON WHEAT SHIPMENTS TO THE U.S.S.R. Continental Grain Co., New York, N. Y., the licensee of export licenses issued by the Office of Export Control, Department of Commerce, for a total of 36,745,408 bushels of wheat (984,252 long tons) for exportation to the U.S.S.R. has made application to the Maritime Administration for authorization to ship less than 50 percent on U.S.-flag carriers, as required in Current Export Bulletin 883, dated November 13, 1963, claiming that such carriers are not available to wholly meet that requirement. Said application is made pursuant to "Notice to exporters and American shipowners on shipment of wheat and wheat flour to Soviet bloc countries," issued by the Maritime Administration on January 7, 1964. The applicant for this waiver, as of the date of this notice, has made shipping arrangements on U.S.-flag vessels for 213,000 long tons of wheat and requests a waiver on the balance amounting to 281,000 long tons but will continue to negotiate with U.S. shipowners until a waiver, if any, is granted. The Maritime Administration requests that shipowners of U.S.-flag vessels which are available under the specific terms and conditions of the attached tender and which are interested in offering their vessels under such tender to so notify the Office of Ship Operations, Maritime Administration, and concurrently notify Continental Grain Co., New York, N.Y., within 5 days from the date of this notice but not later than 5 p.m., February 5, 1964. No waiver will be granted for any portion of the tonnage requested to the extent U.S.-flag tonnage is offered in accordance with the terms and conditions of the tender. In the absence of offers meeting terms and conditions of the tender to cover all or part of the balance of the 281,000 long tons, the waiver requested by Continental Grain Co. will be granted for such portion of the 281,000 long tons not covered by U.S.-flag shipping. Dated: January 31, 1964. M. I. GOODMAN, Chief, Office of Ship Operations. TERMS AND CONDITIONS OF TENDER FOR THE SOLICITATION OF U.S.-FLAG VESSELS FOR THE SHIPMENT OF WHEAT IN BULK TO SOVIET BLOC NATIONS This tender is for the offering of U.S.-flag vessels at rates not in excess of those published by the Maritime Administration for vessels in the 15,600 to 30,000 total deadweight tons class. Geared dry cargo vessels, geared bulk carriers and bulk carriers and tankers equipped with self-discharging equipment cannot exceed 32 feet draft on arrival; appropriate consideration will be given to vessels not exceeding 33 feet draft on arrival provided the buyer/receiver approves of the additional cargo. Vessels of less than 15,500 total deadweight tons will be considered eligible provided the rates are not in excess of these referred to above. NAKHODKA Quantities.—21,000 tons of 2,240 pounds February 5 to 20, 1964; 37,000 tons of 2,240 pounds March 5 to 20, 1964. Commodity.-Wheat in bulk. Loading port.-One or two safe berths in Puget Sound or at charterers' option; one to two safe berths Columbia River including Portland Oreg. Rate of loading.-Six weather working days of 24 consecutive hours, Sundays and holidays excepted unless used, and if used, only actual time used to count. Rate of discharge.—Receivers to discharge cargo at the average rate of 1,500 metric tons per weather working day of 24 consecutive hours, with Sundays, official and local holidays and Saturday afternoons (unless Saturday already a holiday in which case entire day not to count) excepted, whether used or not, but actual time used to count, provided vessel can deliver at such rate. U.S.S.R. BLACK SEA Quantities.-53,000 tons of 2.240 pounds February 1 to 15, 1964; 93.000 tons of 2.240 pounds February 14 to 29, 1964; 77,000 tons of 2,240 pounds March 1 to 15, 1964. Commodity.—Wheat in bulk. Loading port(s),—One to two safe berths, one safe port U.S. gulf; charterer's option one to two safe berths, one safe port United States north of Hatteras, excluding Albany, Rate of loading.-Five weather working days of 24 consecutive hours, Sundays and holidays excepted unless used, and if used, only actual time to count. Rate of discharge.--Receivers to discharge cargo at the average rate of 2,000 metric tons per weather working day of 24 consecutive hours, with Sundays, official and local holidays and Saturday afternoons (unless Saturday already a holiday in which case entire day not to count) excepted, whether used or not, but actual time used to count, provided vessel can deliver at such rate. OTHER CONDITIONS Demurrage/despatch.-$1,500 to $730 at loading port(s): $2.500 to $1.250 at discharge port(s), Charterers to pay demurrage and collect despatch at loading port(s); receivers to pay demurrage and collect despatch at discharge port (s). |