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ACTION AGR-20
INFO OCT-01 EUR-25 ISO-00 EB-11 STR-08 COME-00 PA-04 PRS-01
USIA-15 CIAE-00 INR-11 NSAE-00 RSC-01 OMB-01 TRSE-00
CIEP-03 DRC-01 /102 W
--------------------- 004793
P 131512Z SEP 74
FM AMEMBASSY THE HAGUE
TO SECSTATE WASHDC PRIORITY 4344
LIMITED OFFICIAL USE THE HAGUE 4542
PASS AGRICULTURE
E.O. 11652: N/A
TAGS: BBAK, NL, US
SUBJ: HOLLAND-AMERICAN GRAINS COUNCIL
1. ACCORDING TO INFORMATION WE HAVE OBTAINED FROM A.P. VAN STOLK,
DIRECTOR OF VAN STOLK'S KONINKLIJKE COMMISSIEHANDEL N.V.,
SUBJECT ORGANIZATION IS BEING SET UP IN RESPONSE TO DEMAND BY
THE FEDERATION OF DUTCH FEED COMPOUNDERS AND FEDERATION OF
DUTCH FLOUR MILLS FOR A MEANS OF ESCHANGING INFORMATION WITH
AMERICAN COOPERATIVES, SHIPPERS, FARM BUREAU, ET AL. THE
WASHINGTON OFFICE (918-16TH STREET, N.W., SUITE 302, TEL:
785-2398) WOULD BE "CLUBHOUSE" WHERE DUTCHVISITORS INTERESTED
IN U.S. GRAINS COULD MEET U.S. CONTACTS FOR EXCHANGE OF INFORMATION.
COUNCIL WILL HOLD ANNUAL MEETINGS (SYMPOSIA ALTERNATELY
IN U.S. AND NETHERLANDS.
2. DUTCH MEMBERS WILL APPRENTLY BE CONSUMERS OF, BUT NOT TRADERS
IN, WHEAT AND FEED GRAINS. VAN STOLK SAYS GREAT PLAINS WHEAT
("TOO POLITICAL") AND U.S. FEED GRAINS COUNCIL WILL NOT BE
MEMBERS ALTHOUGH SOME MEMBERS OF USFGC MIGHT BE INVITED TO JOIN.
3. PRESIDENT OF H-AGC: HENDRIK (DICK) VAN STOLK (BROTHER OF
A.P. VAN STOLK). VICE PRESIDENT: RAYMOND A. IOANES (FORMERLY
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ADMINISTRATOR, FOREIGN AGRICULTUREAL SERVICE). ECONOMIST:
JOHN SCHNITTKER (FORMERLY USDA UNDER SECRETARY).
4. INITIAL ORGANIZATIONAL MEETING SCHEDULED FOR SEPT. 16-17 AT
WATERGATE TERRACE HOTEL, WASHINGTON. PROGRAM INCLUDES, ON SEPT
16: TALK ON INTERNATIONAL ECONOMIC POLICY BY PHIL TREZISE,
FORMER U.S. AMBASSADOR TO EC; AFTERNOON SEMINAR INCLUDING DON
PAARLBERG, DUTCH MINAG DIRECTOR-GENERAL DE ZEEUW, CLARANCE
PALMBY, AND AFROEMENTIONED A.P. VAN STOLK. ON SEPT 17: SENATOR
HENRY BELLMON; DR. GARY SEAVERS, CEA; MICHAEL MCLOED AND TOM
SAYLOR, SENATE AG COMMITTEE STAFF; BRIEFING IN ROOM 5066,
USDA SOUTH BLDG. BY USDA OFFICIALS.
5. COMMENT: ACCORDING TO OUR CONTACTS HERE, IDEA FOR ORGANIZATION
MAY HAVE GERMINATED DURING VISIT TO U.S.LAST YEAR BY A.P.
VAN STOLK, DE ZEEUW, AND MARTIN WIJLER OF GRANARIA WHEN THEY WERE
TOLD THAT JAPANESE GOVERNMENT HAD EFFECTIVE LOBBY IN U.S.
SOMEONE (WIJLER DOES NOT REMEMBER WHO BUT BELIEVES IT MAY HAVE
BEEN USDAO OR DUTCH EMBASSY OFFICIAL) SUGGESTED THEN AN ORGANIZATION
FOR SIMILAR PURPOSES MIGHT BE GOOD FOR DUTCH INTERESTS. OTHER
CONTACTS HERE WHO ARE MEMBERS OF H-AGC HAVE TOLD US THAT THE
ORGANIZATION IS FOR PURPOSE OF LOBBYING. THE ESTABLISHMENT
OF THE COUNCIL HAS NOT BEEN PUBLICIZED TO FIRMS AND INDIVIDUALS
WHO MIGHT BE PRESUMED TO HAVE AN INTEREST. THE GENERAL MANAGERS
OF BOTH CONTINENTAL (MUDDE) AND TRADAX (HOEFFELMAN) HAVE CALLED
THE AG ATT TO ASK ABOUT THE ORGANIZATION AFTER HAVING HEARD ABOUT
IT FROM ONE OF THEIR CUSTOMERS. BOTH EXPRESSED CONCERN THAT
THE COUNCIL WILL BE NOTHING MORE THAN A VEHICLE FOR BY-PASSING
THE ESTABLISHED GRAIN TRADING COMPANIES, AMENEUVER WHICH,
THEY SAY, WAS UNSUCCESSFULLY ATTEMPTED BY A.P. VAN STOLK SOME
YEARS AGO. THIS CONCERN MAY HAVE SOME BASIS AS VAN STOLK
REMARKED TO AG ATT,WHEN COMMENTING ON THE PURPOSES OF THE H-AGC,
THAT "THE GRAIN TRADE IS BECOMING MONOPOLIZED AND BUYERS MUST
STICK TOGETHER." VAN STOLK'S FIRM, A COMMISSION HOUSE, BUYS
ABOUT 80 PERCENT OF THE IMPORTED WHEAT USED BY DUTCH MILLS AND
ABOUT 60 PERCENT OF THAT USED BY BELGIAN MILLS. WE SUGGEST
THAT U.S. INTERESTS IN THIS IMPORTANT WHEAT AND FEED GRAIN
MARKET WOULD NOT BE SERVED IF THE USG WERE TO SUPPORT, IN ANY
WAY, AN EFFORT TO UNDERCUT TRADITIONAL TRADING COMPANIES.
WHILE THE PURPOSES OF THE H-AGC MAY NOT GO BEYOND THOSE STATED
IN PAR 1, ABOVE, IT MIGHT NOT BE A BAD IDEA IF PAARLBERG OR
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OTHER USG OFFICIALS WERE TO TAKE THE OPPORTUNITY TO GIVE A
FAVORABLE NOD TO THE EFFECTIVE ROLE PLAYED BY TRADING COMPANIES
IN GENERAL IN INTERNATIONAL TRADE.
GOULD
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