501.BB/10–2346: Telegram
Senator Austin to the Secretary of State
us urgent
[Received October 24—12:05 a.m.]
702. For Hiss and Green from Gerig. Reference my telegram 691 of October 22. Second meeting was held today with British experts re monopolies question in trust territories, Stinebower and Fowler assisting. Difficulty still remains question of prior approval by Trusteeship Council. British representatives informed us that present instructions prevent them accepting any provision requiring such approval. Following text for Article 10(c) suggested by British experts:
“Where the interests of the economic advancement of the inhabitants of Tanganyika may require it, to establish, or permit to be established, for specific purposes, other monopolies or undertakings having in them an element of monopoly, under conditions of proper public control: provided that, in the selection of any non-governmental agencies to carry out the purposes of this clause, the administering authority shall not discriminate on grounds of nationality against other members of the United Nations; and that in every case in which use is made of the powers conferred by this clause the administering authority shall immediately report to the Trusteeship Council a full explanation of the circumstances and the reasons why the measures taken are considered necessary.”
Above text not cleared with British delegation or with London. British representatives in sending to London for instructions desire to know reactions of United States to above draft proposal. We are presenting it for consideration of delegates tomorrow. [Gerig.]