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threshold price.1 The rice regulation will go into effect at the same time as does a system to protect rice imports from developing countries associated with the Community. Prior to the application of the rice regulation, the EEC Commission will submit proposals to the Council on policies coordinating the Common Agricultural Policy and the Community's trade policy.

Gradual Establishment of Dairy Market Planned

Dairy prices in the member countries will be adjusted toward a common level beginning in 1966. The dairy regulation" provides for a levy system based on the differences between the established market prices in member states and Community supports for butter and cream production. Producers who do not receive the income expected at the target price 18 for milk will receive subsidies from their governments. This assistance must be adapted to a Community-wide system beginning in 1966-67.

The Council also decided to draw up a regulation on fats before November 1, 1964. Food oil production and export by the associated states of Africa and Madagascar, and Community olive oil production will be protected under this regulation. Subsidies for olive oil production will be financed by the Community's Guidance and Guarantee Fund and from an $87 million annual tax on margarine. During 1965 and 1966, the first two years this regulation is in force, certain member countries-particularly the Netherlands-will be able to make direct budgetary appropriations rather than levying the tax.

Target Price System Projected for Beef, Veal

A Community target price for beef and veal will be established." Member countries will use price supports and, in intra-Community trade, a levy system. Imports from non-member countries will be controlled by tariffs and levies. Import certificates will be issued for certain products and quotas will be applied to imports of frozen meat. The Council may increase the quotas beyond those guaranteed under GATT by a majority vote. Trade under the long-term German-Danish agreement will be excepted from the Community system."

Community to Finance Supports

The Council adopted regulations on contributions to the European Guidance and Guarantee Fund and payments from it to farmers. Member states will

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22

L.e. the "price used as a basis for calculating the levy on imported grains. It is fixed at a level that will bring the selling price of imported grains up to the level of the target price in the region of the Community with the least adequate supplies." [Definition in source text.]

17

Council of the EEC Regulation No. 13/64 of Feb. 5, 1964; text in the Journal officiel des Communautés européennes, 7e année, No. 34, Feb. 27, 1964, pp. 549/ 64-561/64.

18

I.e. "the base price for grains, set at the market of the region in the Community with the least adequate supplies. Farmers will receive subsidies in order to sell their crops at prices as close as possible to the target price." [Definition in the source text.]

19

See Council of the EEC Resolution of Feb. 5, 1964, on the basic principles for the common organization of the market for fats and oils; text ibid., pp. 602/ 64-603/64.

20

See Council of the EEC Regulation No. 14/64 of Feb. 5, 1964, providing for gradual establishment of a common organization of the market for beef and veal; text ibid., pp. 562/64-573/64.

"See Council of the EEC Regulation No. 15/64 of Feb. 5, 1964, authorizing the Federal Republic of Germany to take intervention measures allowing for importation of beef cattle from Denmark; text ibid., pp. 573/64-574/64.

"See Council of the EEC Regulation No. 17/64 of Feb. 5, 1964, on conditions for the grant of aid by the European Agricultural Guidance and Guarantee Fund; text ibid., pp. 586/64-594/64; and Council of the EEC Regulation of Feb. 5, 1964, concerning the European Agricultural Guidance and Guarantee Fund; text ibid., pp. 599/64-602/64

contribute partly according to the scale of their contributions in the EEC treaty and partly in proportion to their imports of given products.

The EEC Commission will be responsible for subsidy payments and grants for agricultural rationalization. The committee on agricultural guaranties and the permanent committee on the structure of European agriculture, each composed of representatives of the member countries, will assist the Commission. These organs are patterned on the management advisory committees which exist for each commodity under the Common Agricultural Policy.

Control of these funds by the European Parliament has been proposed by the Dutch Government. The Council has agreed to study this proposal in the framework of a general strengthening of the Parliament's powers, now under study.

Common Grain Price Scheduled for April

The ministers agreed that grain prices for the 1965-66 season will be set by the Council before April 15, 1964. The prices will be fixed on the basis of the EEC Commission's "Mansholt plan" proposed last November."3 The refund system in intra-Community trade will be abolished except where differences exist in the cost of grains used in the production of other commodities."

Kennedy Round Position Directives Approved

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Directives for the Community's negotiators in the Kennedy Round were approved for both industrial and agricultural products. These will enable the EEC Commission to play a constructive role in the negotiations which will establish the ground rules for the full-scale Kennedy Round GATT meeting beginning in May, 1964.

Before the Kennedy Round, a solution will be sought on the problem of disparities between the industrial tariffs of major industrialized countries. The Council agreed in the December meetings on certain criteria for identifying sizeable disparities. The Council was equally concerned with minimizing the number of exceptions to a linear reduction in tariffs.

In agriculture, the Council based its directive on the Commission's proposal ("second Mansholt plan")." The Commission will make proposals in GATT based on the need for reasonable access to the markets of the main importing countries and for a more steady flow of world trade.

Future Schedule Announced

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The agricultural regulations still require legal and linguistic editing. The dairy and beef regulations are to enter into force on April 1, 1964 and the rice regulation in September or October." The date for the financial regulation has not been set, but whenever enacted it will be retroactive to July 30, 1962. Exact texts of the regulations, as adopted, are expected to be available early in the spring.

Remaining Council decisions on the agricultural regulations may be made at its next meeting scheduled for late January. The European Parliament will discuss the projected grain price at a special session on January 7–8.

23 Submitted to the Council of the EEC, Nov. 5, 1963; Commission of the EEC doc. VI/Com (63) 430 final dated Nov. 20, 1963.

24

See Council of the EEC Regulation No. 18/64 of Feb. 5, 1964, on financing the costs of intervention in the domestic market for cereals; text in the Journal officiel des Communautés européennes, Te année, No. 34, Feb. 27, 1964, pp. 595/64-596/64.

25 Reference to a communication of the Commission of the EEC dated Oct. 30, 1963, and presented to the Council of the EEC, Nov. 5, 1963.

28 For a statement by a representative of the EEC (Rabot) before the GATT Committee on Agriculture regarding the negotiating plan of the EEC for the agricultural part of the "Kennedy Round," see GATT doc. TN.64/AGR/1 (RESTRICTED), issued Feb. 19, 1964.

"For information indicating that these regulations came into effect July 1, 1964, see the Bulletin of the European Economic Community, No. 3–1964, p. 44.

IV-68

FURTHER 10-PERCENT REDUCTION BY THE EUROPEAN ECONOMIC COMMUNITY IN CUSTOMS DUTIES ON TRADE WITHIN THE COMMUNITY, EFFECTIVE JANUARY 1, 1964: Statement Issued by the European Community Information Service, Washington, December 31, 1963 28

In accordance with the provisions of the Treaty of Rome," a new 10-percent reduction in customs duties on trade within the Common Market will be made tomorrow (January 1).

Customs duties on trade in industrial products within the Community will be brought down to 30 percent of the base level of 1957.

Tomorrow, duties on most liberalized agricultural products will move to 50 percent of 1957 levels. For other agricultural products, the reduction will be to 45 percent of 1957 levels.

Tariff reductions that the EEC member states accord each other are also applied to imports into the Community from the Associated African States and Madagascar.

The EEC Commission has proposed to the six member states that all internal duties be abolished by the end of 1966. In the event that such a decision is taken, the customs union between the Six will come into effect on January 1, 1967-three years in advance of the date set for the end of the Community's transition period.

C. The Problems of Germany and Berlin

[NOTE: Because, for 1963, the problems of Germany and Berlin were primarily issues in Soviet-American relations, the documents which would otherwise have been carried in this section (a feature of the 1956-1959 annual volumes) are printed in Part VI, "The Soviet Union."]

* European Community Information Service, Washington Office, press release dated Dec. 31, 1963. *Text in American Foreign Policy: Current Documents, 1957, pp. 426-518.

D. Relations With Certain Countries and Concerning Certain Problems of the Area

IV-69

CYPRUS

SUGGESTED MEASURES FOR FACILITATING THE SMOOTH FUNCTIONING OF THE STATE AND FOR THE REMOVAL OF CERTAIN CAUSES OF INTERCOMMUNAL FRICTION: Outline of a Memorandum From the President (Archbishop Makarios) to the Vice President of the Republic of Cyprus (Kutchuk), November 30, 1963 1

IV-70

1

“I ... ASK YOU MOST EARNESTLY TO DO ALL IN YOUR POWER IN ORDER THAT THIS BLOODSHED [IN CYPRUS] BE STOPPED FORTHWITH": Message From the President of the Republic of Turkey (General Gursel) to the President of the United States (Johnson), December 25, 1963 2

3

In Cyprus unleashed Greek Cypriot terrorists helped by the regular law forces composed of their kinsmen are perpetrating in the execution of a prearranged plan atrocities towards Turks of Cyprus without discrimination for women or children. This barbaric assault which continued with ever-increasing intensity on the Turkish community since Friday evening, December 21st, took the dimensions of acts of genocide aiming at the annihilation of the Turkish Cypriots. The appeals made unilaterally by us or jointly undertaken by the signatories of the Cyprus Agreements with a view of stopping this massacre proved of no avail. The latest action by issuing a joint statement by the three guaranteeing powers-Turkey, the United Kingdom, and Greece-has not been heeded by the Greek Cypriots and, therefore, did not bring about a change in the deplorable situation. I wish to bring to your high knowledge these dastardly acts of massacre undertakings by the Turks of Cyprus in this Twentieth Century where human rights and freedoms are enshrined in the most solemn universal documents and ask you most earnestly to do all in your power in order that this bloodshed be stopped forthwith.5

1 American University, Special Operations Research Office, U.S. Army Area Handbook for Cyprus (Washington, U.S. Government Printing Office, 1964), pp. 249-250. Details of Archbishop Makarios' proposals were also transmitted to the Governments of Greece, Turkey, and the United Kingdom.

2 White House press release (Austin, Tex.) dated Dec. 26, 1963 (text as printed in the Department of State Bulletin, Jan. 20, 1964, p. 90). President Gursel also sent appeals to Queen Elizabeth, Presidents de Gaulle and Luebke, and to King Paul.

3 Cyprus achieved full independence Aug. 16, 1960, with the signature at Nicosia of two agreements with the United Kingdom, Greece, and Turkey-the Treaty Concerning the Establishment of the Republic of Cyprus (Cmnd. 1252) and the Treaty of Guarantee (Cmnd. 1253). See also American Foreign Policy: Current Documents, 1959, pp. 765–775.

See post, doc. IV-80.

For President Johnson's reply, see infra.

IV-71

"I HOPE AND TRUST THAT TOMORROW WILL FIND ALL CYPRIOTS LIVING AT PEACE": Message From the President of the United States (Johnson) to the President (Archbishop Makarios) and Vice President (Kutchuk) of the Republic of Cyprus, Delivered December 26, 1963 €

6

DEAR FRIENDS: My Christmas holiday hours, and those of my fellow Americans, are saddened by the thought that Cypriots of both communities whose hands I have pressed less than eighteen months ago are killing and wounding one another. I will not presume to judge the root causes, or rights and wrongs as between Cypriots of the two communities. This is, in any case, inappropriate when innocent human lives are at stake.

I cannot believe that you and your fellow Cypriots will spare any efforts, any sacrifice, to end this terrible fraternal strife. I hope and trust that tomorrow will find all Cypriots living at peace with one another and with the three nations which have special treaty responsibilities for the security of Cyprus.

IV-72

COMMITMENT OF FORCES OF THE GUARANTOR POWERS IN CYPRUS TO SECURING, PRESERVATION OF THE CEASE-FIRE: Statement Issued at London Following a Meeting of Ministers of the United Kingdom Government, December 26, 1963 7

8

10

Ministers reviewed the initiative taken by Britain as a cosignatory of the Treaty of Guarantee of 1960. As a result, the Government of the Republic of Cyprus has accepted an offer that the forces of Britain, Greece, and Turkey stationed in Cyprus and placed under British command should assist it in its efforts to secure the preservation of the cease-fire and restoration of peace." The British forces at present in Cyprus, which are available to take part in restoring law and order, are the 1st Gloucesters, the 3rd Green Jackets, and the R.A.F. Regiment. These units are being replaced in the Sovereign Base Areas" by an armoured squadron from Libya and a battalion from the Strategic Reserve in Britain, in accordance with existing plans for the protection of the

"White House press release (Austin, Tex.) dated Dec. 26, 1963 (text as printed in the Department of State Bulletin, Jan. 20, 1964, p. 90).

Keesing's Contemporary Archives, 1963-1964, vol. XIV, p. 20114. This meeting was attended by the U.K. Prime Minister (Douglas-Home), Secretary of State for Foreign Affairs (Butler), Secretary of State for Commonwealth Relations and Secretary of State for the Colonies (Sandys), and the Minister of Defense (Thorneycroft).

8 See post, doc. IV-80.

9

Signed Aug. 16, 1960 (Cmnd. 1253); see American Foreign Policy: Current Documents, 1959, pp. 770-771 and 773.

10 See post, doc. IV-80.

"I.e. the Akrotiri and Dhekelia Sovereign Base Areas in Cyprus which remain under the sovereignty of the United Kingdom by virtue of the Treaty Concerning the Establishment of the Government of Cyprus of Aug. 16, 1960, between Cyprus, Greece, Turkey, and the United Kingdom (Cmnd. 1252).

Docs. IV-71, 72

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