Office of the Historian

611.4131/10–945: Telegram

The Secretary of State to the Chargé in the United Kingdom (Gallman)

Washington, October 9, 1945—6 p.m.

8934. On October 5 US–UK Commercial Policy Committee discussed problems of state trading, export taxes, and exchange control. With regard to state trading there appeared to be no difference of objectives between the two groups. On export taxes British disagreed with US proposal that protective export taxes should be completely abolished, and proposed instead that they should be subject to individual negotiation as in case of import tariffs.78 With regard to exchange control, British feel that since this subject has been covered in International Monetary Fund Agreement, no substantive provisions relating to it should be included in proposed multilateral agreement on commercial policy.79 These three topics have been referred to subcommittees for further discussion on details.

On October 8 US–UK Committee on Commercial Policy discussed the British counter-proposal to US cartel policy. British agree in principle in opposing cartels and restrictive practices, but would leave door open for the existence of some cartels whose effect is not considered harmful.

US proposal would bind the signatory countries to prohibit their nationals from entering into agreements that restrict international trade, and lists in detail certain practices, such as price-fixing, which ipso facto are considered to be in restraint of trade. It would provide for a Commission on Business Practices under the International Trade Organization to deal with these questions.

British, on the other hand, are unwilling to accept the flat proscription of all the described practices, and would prefer to deal with abuses on a case by case basis. They therefore propose that the Commission on Business Practices be empowered to receive complaints from member states that commercial policy objectives of the ITO are being jeopardized by the operation of any particular agreement. That body would then consult with member states on a remedy, and would call upon them to enforce it. A subcommittee will consider cartel question further in an effort to secure an agreed position.79

Byrnes
  1. The United States representatives re-drafted their proposals to accord with the British suggestion on export taxes (611.4131/5–146, Folder 3, Sixth Meeting).↩
  2. See telegram 9593, October 31, 7 p.m., to London, p. 152.↩
  3. See telegram 9593, October 31, 7 p.m., to London, p. 152.↩