560.AL/10–746
Memorandum by the Chief of the Division of Commercial Policy (Browon)92
Mr. Acheson’s memorandum submitting the Proposals for Expansion of World Trade and Employment to the President for his approval summarized the trade program which they envisaged and set forth the main obligations which would have to be assumed by the United States.
The memorandum stated:
“The tariff provisions (of the Proposals) would involve at an early stage the broad and substantial use of the authority under the Trade Agreements Act. The specific tariff concessions which we would offer to other countries would, of course, be submitted to you for prior consideration and would be subject to appropriate safeguarding provisions.”
The President approved this memorandum on September 11, 1945.
On December 6, 1945, the United States invited 15 nations, accounting for over two-thirds of our trade, to negotiate trade agreements. Three smaller countries have since been added. The negotiations are to begin in April 1947.
The Interdepartmental Trade Agreements Committee has now completed [Page 1350] its list of items on which tariff concessions will be considered (but not necessarily granted) by the United States at the April meeting. In accordance with standard trade-agreement procedure, this list includes the items of which the “nuclear” countries are, or are likely to be, principal suppliers. Public hearings on this list will be held in January.
The Trade Agreements Committee has also substantially completed a list, compiled on the same basis, of items on which it will request tariff concessions or bindings from the other nuclear countries.
If we are to obtain the commitments which we seek in the Charter from other countries with respect to the use of quantitative restrictions, exchange controls, preferences and other discriminations, and adequate tariff concessions on our export items, it is essential that we grant tariff concessions to them which are substantial in extent and cover a wide range of items. The list prepared by the Trade Agreements Committee (a copy of which is attached)93 has been developed in accordance with established trade-agreement procedure and should be a satisfactory basis for the nuclear negotiations.
Because of the number of countries involved, and their importance in our trade, the list is very extensive. The list includes at least one item, often many, from 450 paragraphs out of the 503 in the dutiable section of the Tariff Act and 150 paragraphs out of the 211 paragraphs in the free list. If concessions were granted on all or a substantial part of this list, it would, in effect, amount to a revision of the Tariff Act.
Most important of all, the list includes key items, such as wool, butter, meat, pottery, woolen and cotton textiles, sugar, copper, glassware and shoes, without which the negotiations would fail.
Therefore, the list has high political significance. Its publication will evoke vociferous protest from vested interests, from pressure groups and opponents of the trade-agreements program. The inclusion of the key items referred to will be the principal cause of this protest.
On the other hand, the list should evoke commendation from supporters of our program for expanding trade and substantial satisfaction from the nuclear governments.
The list is bulky. This is deliberate. We have made no effort to conceal the magnitude of the project. On the contrary, we have presented the list in two forms, one in the legal language of the Tariff Act, the other in the layman’s language of Commerce Department statistics, with useful supplementary data, so as to ensure that the public has the fullest knowledge of what we are doing. One of the great strengths of the trade-agreements program has been the integrity of its procedures [Page 1351] and administration. This list is designed to maintain that integrity.
It is highly important that these negotiations be clearly related in the public mind to the rest of our economic program, e.g. Article VII, Bretton Woods, the International Trade Organization. I suggest, therefore, that the President be asked to make a statement showing this relationship at the time the list is published and the importance of the negotiations. The list would also be accompanied by a Department press release, substantially in the form attached, giving background information about the tariff negotiations and relating them to our overall trade program.
In order to meet the time schedule, this list will have to be published on November 9. To get it printed, we should have Presidential approval by October 11. A suggested Memorandum for the President is attached, together with a suggested statement for him to make.94
- Addressed to the Director of the Office of International Trade Policy (Wilcox) and the Under Secretary of State for Economic Affairs (Clayton). A marginal notation by Mr. Brown reads: “Not read by Mr. Clayton, but substance given him orally by C[lair] W[ilcox] and W[inthrop] G. B[rown], specifically marked portions.” The latter comprised four paragraphs, beginning respectively, “Because of the number of countries involved. …”, “Most important of all. …”, “The list is bulky. …” and “In order to meet the time schedule. …↩
- Not found attached to file copy. See memorandum to the President, about November 5, p. 1352.↩
- See memorandum to the President, about November 5, p. 1352.↩