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ACTION ARA-10
INFO OCT-01 ISO-00 ARAE-00 SSO-00 NSCE-00 USIE-00 INRE-00
SP-02 AID-05 EB-07 NSC-05 CIEP-01 TRSE-00 SS-15
STR-04 OMB-01 CEA-01 PA-01 PRS-01 AGR-05 COME-00
CIAE-00 INR-07 NSAE-00 /066 W
--------------------- 001970
O 091805Z APR 76
FM AMEMBASSY SAN JOSE
TO SECSTATE WASHDC IMMEDIATE 3489
LIMITED OFFICIAL USE SAN JOSE 1790
E.O. 11652: N/A
TAGS: EPAP, EAGR, CS
SUBJECT: 1976 MEAT IMPORT PROGRAM
1. ACTING FONMIN VICTOR HUGO ROMAN CALLED IN CHARGE
AND THE ECON OFFICER APRIL 9 FOR A FURTHER DISCUSSION
OF THE PROPOSED 1976 MEAT IMPORT AGREEMENT. ROMAN
HAD RECEIVED A PHONE CALL FROM AMBASSADOR SILVA
IN WASHINGTON REPORTING A CONVERSATION IN WHICH DEPUTY
ASST. SECRETARY JULIUS KATZ HAD INFORMED HIM OF THE
FIRM OPPOSITION OF AUSTRALIA TO INCLUSION IN THE
1976 VRS AGREEMENTS OF A REGIONAL REALLOCATION FORMULA.
2. ROMAN EMPHASIZED THE SERIOUSNESS OF THE MEAT PROBLEM
FOR COSTA RICA, ESTIMATING THAT THERE WOULD BE A SURPLUS
EXPORT AVAILABILITY OF 12 TO 15 MILLION POUNDS ABOVE
THE ALLOCATION PROPOSED IN THE AGREEMENT. HE SAID THAT
THE GOVERNMENT IS RELYING STRONGLY ON THE PROPOSED
REGIONAL REALLOCATION TO FIND A WAY OUT OF THE PREDICAMENT,
AND THAT HIS REPORTS INDICATE THAT THERE WILL
INDEED BE SHORTFALLS IN THE AREA THAT COULD BE
REALLOCATED TO COSTA RICA. ROMAN STATED THAT THE
CATTLE AND MEAT PACKING INDUSTRIES WERE INFORMED
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ABOUT THE FAVORABLE RECEPTION THAT THE REGIONAL
REALLOCATION PROPOSAL RECEIVED WHEN PRESIDENT ODUBER
AND FONMIN FACIO DISCUSSED IT WITH SECRETARY KISSINGER,
AND THAT THEY WERE SUBSEQUENTLY INFORMED, BASED ON
INFORMATION FROM THE EMBASSY'S AIDE MEMOIRE OF
MARCH 4, 1976, THAT THE U.S. WOULD INCLUDE THE
REGIONAL REALLOCATION FORMULA IN THE 1976 AGREEMENTS
(THE EMBASSY'S AIDE MEMOIRE BASED ON AN INSTRUCTION
FROM THE DEPARTMENT SAID, "A NEW PROVISION IN THE PROGRAM
THIS YEAR, WHICH COULD BE OF GREAT POTENTIAL BENEFIT
TO COSTA RICA, PROVIDES FOR INITIAL REALLOCATION OF
SHORTFALLS WITHIN THE LATIN AMERICA/CARIBBEAN REGION.
ONLY IF SUFFICIENT QUANTITIES ARE NOT AVAILABLE WITHIN THAT
REGION WOULD SHORTFALLS BE REALLOCATED OUTSIDE OF THE REGION."
3. CLEARLY, THE COSTA RICANS MAY ARGUE THAT THEY HAVE
BEEN GIVEN A COMMITMENT THAT REGIONAL REALLOCATION
WILL BE USED THIS YEAR TO HELP THEM WITH THEIR MEAT
SURPLUS PROBLEM. HOWEVER, IT WAS EQUALLY CLEAR
THAT ROMAN DID NOT WISH TO PUT THE ISSUE AT THIS TIME IN TERMS OF
HOLDING US TO A COMMITMENT, BUT RATHER TO EMPHASIZE
THE HEMISPHERIC RELATIONSHIP AND THE STRONG RATIONALE
FOR CARRYING OUT REALLOCATIONS WITHIN THE REGION. ROMAN
EXPRESSED FULL UNDERSTANDING OF THE DIFFICULTIES FACED
BY THE USG IN ATTEMPTING TO NEGOTIATE AGREEMENTS
WITH ALL SIGNATORY COUNTRIES WHICH WOULD MAKE
SPECIFIC PROVISION FOR REGIONAL REALLOCATION.
HIS AMBASSADOR HAD REPORTED THAT A POSSIBLE
SOLUTION MIGHT BE TO AVOID MENTIONING ANY FORMULA FOR
REALLOCATION IN THE 1976 AGREEMENTS, THEREBY LEAVING
THE U.S. FREE TO MAKE REALLOCATIONS BASED ON WHATEVER
CRITERIA IT THOUGHT APPROPRIATE. ROMAN IMPLIED THAT
SUCH A SOLUTION WOULD BE ACCEPTABLE TO COSTA RICA AS IT
WOULD MAKE IT POSSIBLE FOR THE U.S. TO CARRY OUT A
REALLOCATION WITHIN THE REGION.
4. ROMAN SAID THAT IT IS PROBABLE THAT THE MEAT ISSUE
WILL ALSO BE RAISED AGAIN WITH THE DEPARTMENT BY
AMBASSADOR SILVA.
LANE
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