A Time to Heal: on Free Trade
Gerald Ford:
Suspended then reinstated grain sales to Soviets
In 1975, I made a decision that infuriated millions of American farmers. Over the past 5 years, Soviet purchases of wheat & grain from this country had been highly erratic--as opposed to the steadier demands for grain from our traditional customers,
Western Europe and Japan--[and hence] had disrupted the market and contributed to price instability.Reluctantly, I suspended the Soviet grain sales. My Administration had urged farmers to increase their production and they had responded with record
yield. Here we were telling them not to sell what they had produced. They were outraged, but I didn't feel that I had any alternative. The American farmer would be far better off if we could reach a long-term understanding with the Soviets [with
guaranteed tonnage] and at least 1/3 of tonnage carried in American ships. [When the Soviets agreed on both points], I lifted the grain embargo and the long-shoreman loaded grain again.
Source: A Time To Heal, by Gerald Ford, p.312-313
Sep 9, 1975
Gerald Ford:
Vetoed US-flagged oil tanker rules as too protectionist
I pocket-vetoed--by simply withholding my approval--a measure that would have had serious inflationary impacts on the economy. The Energy Transportation Security Act of 1974 was otherwise known as the "cargo preference" bill.
It stipulated that 20% of all the foreign oil coming into the US had to be carried on US flag tankers. The figure would rise to 30% in 1977.
Not only would that bill have increased the cost of oil and gas to the American consumer; it would have also hiked the prices of all products and services that depend on oil.
Additionally, it would have served as a precedent for other countries to increase protection of their industries, and that would have posed a threat to free trade.
Source: A Time To Heal: The Autobiography of Gerald Ford, p.226
Dec 22, 1974
Gerald Ford:
Proponent of free trade, even with Japanese export pressure
I met with Prime Minister Kakuei Tanaka in Japan. Both of us agreed on the need to reconvene the GATT-General Agreement on Tariffs and Trade-talks in Geneva as soon as possible and to bring them to a successful conclusion by 1976.
Then Tanaka brought up the touchy issue of exports. He was concerned that Congress or the Executive Branch might impose new quotas upon a variety of Japanese goods.
He seemed very relieved when I assured him that I had always been a proponent of free trade and that
I wasn't about to alter these convictions despite obvious political pressures to which I would be subjected during a period of high unemployment at home.
Source: A Time To Heal, by Gerald Ford, p.210-211
Nov 18, 1974
Page last updated: Feb 25, 2019