Foreign Relations of the United States, 1961–1963, Volume IX, Foreign Economic Policy

251. Circular Telegram From the Department of State to Certain Diplomatic Missions⁰

Washington, September 27, 1962, 5:25 p.m.

537. House Senate conferees September 26 approved final form of trade bill with following principal changes in bill as passed by Senate (Depcirtel 484):¹

(1) Senate receded on its amendment which would have continued President’s authority to extend MFN treatment to Poland and Yugoslavia. Thus Act will require denial of trade agreement benefits to “products, whether imported directly or indirectly, of any country dominated or controlled by Communism.” Ways and Means Committee report makes clear Committee contemplated that, in addition to those countries and areas designated pursuant under existing legislation, Poland and Yugoslavia will be designated under new Act.

(2) Senate receded on its amendment which would have permitted President to include in agreements negotiated under special EEC authority not only EEC but also any EFTA member countries designated by him. Thus special authority can be used only in negotiating trade agreements with EEC, as originally proposed by Administration and passed by House.

(3) Senate receded on an amendment which would have authorized President, when he finds it in national interest, to increase tariffs to any extent necessary or impose other import restrictions to any extent necessary. However, conferees agreed retain other Senate amendments somewhat strengthening House provision on President’s authority to take action against foreign import restrictions adversely affecting U.S. trade interests.

Agreed bill now goes to House and Senate for final action which expected next week.²

Ball

0. Source: Department of State, Central Files, 611.0041/9-2762. Unclassified. Drafted by Selma G. Kallis (OTF) on September 26, cleared by John Bertram Rehm (L/E) in draft, and approved by Leonard Weiss (OTF). Sent to 30 posts and pouched to all others except Moscow, Budapest, Prague, Bucharest, and Sofia.
1. Dated September 19. (Ibid. 411.00/9-1962)
2. The Trade Expansion Act of 1962 was enacted on October 11, 1962. (P.L. 87-794; 76 Stat. 872) For excerpts, see American Foreign Policy: Current Documents, 1962, pp. 1383-1396.