Foreign Relations of the United States, 1947, General; The United Nations, Volume I

560.AL/6–2747: Telegram

The Consul at Geneva (Troutman) to the Secretary of State

confidential
us urgent

Geneva, June 27, 1947—9 p.m.

578. From Wilcox. Re Finance Committee report urtel 675, June 26.¹

(1) Substantive content in general agreement not yet scheduled discussion full committee and will depend results charter discussions. Therefore, US amendments not yet prepared.

(2) Small working party (US, UK, Canada, France, Belgium, Netherlands) inclined favor US proposal reduce scope general agreement confining it to matters clearly related tariff concessions. This may be difficult carry through in view interests Australia and others in employment and development chapters. US delegation will in no event commit US to provisions going beyond executive authority.

(3) Absolutely essential US interests that adequate mechanism exist police balance of payments exception (Articles 10, 12) economic development exception (Article 17) and possibly other provisions. Consistent with this consideration, US delegation will explore methods of modifying provisions which Millikin thinks imply establishment of provisional ITO with broad functions in advance congressional action. One method might be replace reference committee in substantive articles by phrase “the contracting parties” and replace Article 22 by article providing for periodic meetings of contracting parties to determine application agreement.

(4) Suggest you point out Millikin that criticism by Finance Committee of Interim Trade Committee will embarrass US delegation and strengthen hand of several countries who would like general provisions substantially eliminated from general agreement and not made effective until after charter enters into force. If this were done US would be placed in impossible bargaining position at World Conference since tariff concessions would be already agreed to and we would have failed obtain in general agreement precise and firm commitments on provisions re nontariff trade barriers which, are essential to adequate quid pro quo for US tariff reduction. [Wilcox.]

Troutman

1. In telegram 675, not printed, the Department expressed concern that the impending Senate Finance Committee report might be extremely critical of the Interim Trade Committee. (560.AL/6–2647) The first session of the Preparatory Committee, which met in London in 1946, prepared a draft general agreement on tariffs and trade. This provided for the creation of an interim trade committee to implement the agreement, and to deal with disputes regarding its interpretation. The committee was to be dissolved when the ITO could assume its functions.