611.5531/340: Telegram

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

5. Your 7, February 6. The representatives of assembly plants in Belgium would naturally be satisfied with the Belgian proposal, but it should he borne in mind that the requests of the whole automotive industry in the United States sought the same treatment for assembled cars as for automotive parts. The Belgian negotiations have in addition to the concession on parts offered a 20 percent reduction in duty on items covered by Tariff Number 1100 (2) B, C, D, and E. This still leaves the differential between parts and assembled cars so great as to make it unlikely that the small reduction on assembled cars would mean anything.

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We seem to have no definite information here with regard to “The labor safeguard clause”.

Please inform me briefly with regard to this.