Foreign Relations of the United States, 1947, The American Republics, Volume VIII

611.1231/1–1047

The Secretary of State to the Ambassador in Mexico (Thurston)

restricted
No. 879

Washington, March 4, 1947.

Sir: I refer to your despatch No. 2517 of January 10, 1947,⁵⁷ reporting your conversation with the Minister of Foreign Relations⁵⁸ during which he expressed the hope that this Government might find it possible to open negotiations for the revision of the present trade agreement between the United States and Mexico⁵⁹ not later than April or May, 1947, and that in the meantime experts from the United States might go to Mexico to study conditions there and to initiate preliminary conversations.

Your remark to the Foreign Minister that this Government would probably be unable to enter into trade-agreement discussions or negotiations during the next few months reflects the views of the Department. You may inform the Foreign Minister of this Government’s regret that, for the reasons set forth in this instruction, it will not be in a position, during the next several months, to comply with the request of the Mexican Government. The documents referred to in the following discussion are identified in detail at the end of this instruction.

By a resolution of February 18, 1946 (See Annexure 1 of Report,⁶⁰ page 60) the Economic and Social Council of the United Nations set forth its decision to call an International Conference on Trade and Employment, and, for the purpose of preparing for the Conference, including an agenda and a draft charter for a proposed international trade organization, created a Preparatory Committee consisting of 18 members, including the United States. The Preparatory Committee held its first meeting in London during October and November, 1946, and made progress in the preparation of a draft charter for an international trade organization, basing its deliberations largely upon the Suggested Charter for an International Trade Organization⁶¹ which had been submitted by the delegation of the United States. The Suggested Charter was an elaboration of the Proposals for Expansion of World Trade and Employment⁶² which the Government of the United States, in December 1945, transmitted to the Government of Mexico and to other governments for consideration.

The second meeting of the Preparatory Committee will convene in Geneva, Switzerland on April 10, 1947 (See Annexure 5 of Report, page 74), at which time it will complete its work on the proposed Charter⁶³ and will prepare definite recommendations for submission to an International Conference on Trade and Employment. It is now anticipated that the International Conference will be held shortly after the conclusion of the Preparatory Committee’s second meeting, perhaps before the end of the present year.⁶⁴ The Government of Mexico has stated its intention to participate in the Conference.

Since specific action to reduce, modify or eliminate barriers to trade is essential to the establishment and success of an international trade organization, the Preparatory Committee at its first meeting in London recommended (See Annexure 7 of Report, page 75) to the Governments concerned that the Committee sponsor trade-agreement negotiations among its members, and approved a Memorandum on Procedures for the conduct of those negotiations (See Annexure 10 of the Report, pp. 77–86). The negotiations accordingly are scheduled to be held at Geneva during the second meeting of the Preparatory Committee, and it is expected that they will continue for several months.

This Government, on November 9, 1946, announced its intention to conduct trade-agreement negotiations with the 18 countries which are members of the Preparatory Committee. The major attention of the interdepartmental trade-agreements organization of this Government must at present be focused upon preparations for those negotiations and later upon the negotiations themselves. The burden of this work on the entire organization now and until the conclusion of the Geneva meeting is such as to preclude consideration of trade-agreement discussions or negotiations with other countries for the next several months.

Moreover, in consonance with this Government’s policy of participating in the work of the Preparatory Committee looking to the establishment of an international trade organization, its current program of trade-agreement negotiations provides exclusively for the announced negotiations with members of the Preparatory Committee.

Following the conclusion of the Geneva meeting, this Government’s program for trade-agreement negotiations will be integrated within the framework provided by the Charter of the proposed international trade organization, as developed at the second meeting of the Preparatory Committee for presentation to the International Conference on Trade and Employment. Such a course of action is implicit in the adherence by this Government to the principles of the Charter.

The Memorandum on Procedures, to which reference has been made, suggests alternative procedures for tariff negotiations involving members of the United Nations which are not parties to the General Agreement (See Section J. Annexure 10, second part, page 85). The Preparatory Committee will, at its second meeting, consider the suggestions and determine procedures for future negotiations.

Following the establishment of such procedures, the Government of the United States will be pleased to consider the possibility of entering into trade-agreement negotiations with the Government of Mexico, although it is not possible to state at the moment whether such negotiations may be considered prior to the International Trade Conference, concurrently with it, or following its conclusion.

The following documents mentioned in this instruction are enclosed, in duplicate, for the information and use of the Embassy:

1. Suggested Charter for an International Trade Organization.

(The Suggested Charter was submitted to the Preparatory Committee of the United Nations Conference on Trade and Employment for use as a basis for discussion at its first meeting, which was held in London during October and November, 1946).

2. Preliminary Copy of Redraft of a Charter for an International Trade Organization.⁶⁵

(This was prepared in the Department as an interim working paper to show the provisions of the proposed Charter on which agreement was reached by the Preparatory Committee at its London meeting).

3. Report of the First Session of the Preparatory Committee of the United Nations Conference on Trade and Employment, London, October–November, 1946.

(As reproduced in part [Charter and Annexure to the Charter omitted]⁶⁶ by United States Delegation to the United Nations).

The foregoing statement of this Government’s policy with respect to future trade-agreement negotiations, together with copies of any or all of the documents enclosed, may, in your discretion, be conveyed to officials of the Mexican Government and discussed with them in whatever manner you may consider appropriate.

Very truly yours,

For the Secretary of State:

C[lair] Wilcox

⁶⁷

57. Not printed.
58. Jaime Torres Bodet.
59. For text of the reciprocal trade agreement of December 23, 1942, see Department of State Executive Agreement Series No. 311, or 57 Stat. 833.
60. See Report of the First Session of the Preparatory Committee of the United Nations Conference on Trade and Employment, London, October–November, 1946; the Annexures of the Report are not printed.
61. Department of State publication No. 2598.
62. Department of State publication No. 2411.
63. For draft Charter for the International Trade Organization of the United Nations, (ITO) embodied in the report of the second session of the Preparatory Committee of the United Nations Conference on Trade and Employment at Geneva, April 10–Oct. 30, 1947, see Department of State publication No. 2947. For the General Agreement on Tariffs and Trade (GATT), completed at this meeting on October 30, see Department of State Treaties and Other International Acts Series (TIAS) No. 1700, or 61 Stat. (pt. 5) and (pt. 6), A 3–A 2054.
64. For documentation on the United Nations Conference on Trade and Employment, Havana, November 21, 1947–March 24, 1948, see Department of State publication No. 3117, Havana Charter for an International Trade Organization, and Final Act and Related Documents.
65. Not printed.
66. Brackets appear in the original.
67. Vice Chairman, United States Delegation, Second meeting of the United Nations Preparatory Commission, and Vice Chairman, United States Delegation, United Nations Conference on Trade and Employment, Havana.