611.5531/340: Telegram

The Ambassador in Belgium ( Morris ) to the Secretary of State

7. At a meeting at Belgian Foreign Office yesterday afternoon at which Sussdorff and Hughes19 were present as observers, representatives of General Motors, Ford and Chrysler expressed satisfaction at offer of reduction on automobile parts recently cabled to Belgian Embassy in Washington. The three American companies which have assembly plants in Belgium are in substantial accord with the Belgian Government regarding the new rates of duty on parts including the labor safeguard clause. It developed at the meeting that the American companies which do not have assembly plants in Belgium will derive no benefit from the proposed reduction of duty on parts on account of the labor safeguard clause. This fact undoubtedly lessens the importance of the concessions which the Belgian Government is prepared to offer on parts.

  1. Thomas L. Hughes, Commercial Attaché in Belgium.