710.G Economic and Financial Problems/25: Telegram
The Acting Secretary of State to the Chairman of the American Delegation (Hull)
109. Your 74, December 19, 5:00 p.m. Department approves proposed general agreement but suggests desirability of including in line 16 on page 1 the words “multipartite” and “of general applicability” so that the line would read “by the parties to multipartite economic agreement of general applicability for the liberalization”. The object of this amendment is to forestall the inclusion in any multipartite conventions which may be negotiated of provisions leveled against a particular country or countries which because of special circumstances peculiar to them could not adhere to the multipartite convention or in practice comply with all of its terms. It is conceivable that without this safeguard obligations might be set up under a multipartite convention which would be meaningless or impossible of fulfillment by some countries.
It is also suggested for your consideration that the plurilateral conventions to which the proposed agreement would apply should include a trade area of substantial size as proposed in Section II, Part (a) of your proposal of July 21 to the London Conference.45
Bearing in mind possible objection of the Senate to this agreement by the executive not to invoke treaty rights, it is believed that it would be advisable to submit the agreement to the Senate and if the Senate should disapprove it would then be desirable to be able to terminate our obligations under the agreement on as short notice as possible. With this in mind it is suggested that the term be reduced [Page 205] to 90 days or 6 months. It would not be necessary, however, to include a specific provision in the agreement regarding ratification. An agreement could come into force upon signature as provided in the draft.