The Consul at Geneva ( Troutman ) to the Secretary of State
416. For Clayton from Wilcox. Dr. Coombs returned Geneva today. Carried message from Prime Minister of Australia1 to head of United States delegation as follows:
Neither this government nor any other government in Australia can agree to surrender of preferences or to approval of ITO Charter unless Australia receives cut in wool duty. Issue is regarded in Australia as test of sincerity of American proposals on whole program. Australia will cooperate fully in negotiating satisfactory agreement with respect to liquidation wool stocks and protection against price decline.
Australia vigorously supporting our proposal to include provisions for protection of investment in charter. Coombs indicated that Australia might find it necessary to inform Preparatory Committee that Australian agreement to charter provisions depends on satisfactory tariff concessions. On my advice he agreed to postpone any such statement pending outcome of present developments in United States. Australian cooperation all aspects charter negotiations to date has been excellent.