840.70/10–944: Telegram

The Secretary of State to the Ambassador in the United Kingdom (Winant)

8386. For Hooker from Berle, reEmbs 8534, October 9th, 10 p.m. The Department is reluctant to see the authority of EITO too drastically reduced particularly as Article VII, Sections 2 and 6 are already restricted by the phrase “within the framework of priorities determined by the appropriate authorities”.

Department believes use of the term “sanctions” in connection with these sections of the agreement places too much emphasis on punishment of a “noncooperating” country and that this aspect of the functions should be minimized. The authority granted to EITO in Sections 2 and 6 should be looked upon as a coordinating function to permit the formulation and execution of decisions at the technical level with a minimum of delay and a maximum of efficiency. Only by such centralized coordination can the essential traffic be most expeditiously handled during the difficult period of transport shortage and disruption. These points might be clarified by full explanation to Soviets and British and, if necessary, amendments could be made with these objectives in view. Perhaps an amendment circumscribing the use of powers as penalties would adequately overcome Soviet objections without weakening the ability of EITO to function expeditiously. In the last analysis, the countries whose transport systems are directly involved stand to gain most by establishing a technical [Page 822] body which can act quickly when circumstances require, and the powers provided in the agreement are in the nature of inducements to secure cooperation. Action with respect to noncooperative states would be a matter for consideration at a political level and need not involve technical administration.

As you know, it is our policy not to assume major responsibility for EITO, and therefore after presenting our view as to authority necessary for efficient coordination (minimizing “sanctions”) Department is prepared to consider requisite modifications to satisfy British and Soviet views and those of other governments.

For your confidential information, if Soviets not satisfied by foregoing explanation, Department would give some thought to suggestion that the Executive Board might act by unanimous vote of its members which might overcome Soviet objection to Sections 2 and 6 of Article VII, as this would give them equal control. Your reaction requested. [Berle.]

Hull