841.5151/8–1947: Telegram

The Acting Secretary of State to the Embassy in the United Kingdom

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3572. For Clayton. This message covers only technical discussions with U.K. subdelegation on commercial policy which began today with presentation of types of discrimination permitted by Art. 281 but not by Section 9 which British desire to undertake. The examples given did not indicate that any large savings in dollar exchange or increase in imports could be expected. However Lintott emphasized the public relations importance in U.K. of even limited benefits. Lintott further repeated Cripps statement that complete freedom to use full economic pressures to secure favorable bilateral compensation agreements might be needed if U.K. had back to wall and that they might not even be able to agree to an amendment to Section 9 which would bind them to provisions of Art. 28. Meeting terminated with no position being taken our side other than to point out the implications of the U.K. position and the difficulty of significant relaxation Section 9 without Congressional approval.

Lovett
  1. Reference is to Article 28, “Exceptions to the Rule of Non-Discrimination”, of the draft charter of the International Trade Organization.