560.AL/12–1947: Telegram

The Acting Secretary of State to the Embassy in Cuba

confidential

723. For Wilcox from Brown. Reurtel 709. Australian Ambassador-handed us today his Govt’s reply Clayton’s approach to him reported Deptel 670.

Australians give strongest assurances their position Geneva and Havana not influenced slightest by lack support U.S. regarding question eligibility Australia participate election thirteenth Director Fund. Australian Govt fully appreciates attitude U.S. in relation fourteenth Directorship.

Last sentence para 2 Article 24 inserted initiative U.S. at comparatively late stage Geneva discussions.

Australia maintains that while Fund should be fully consulted by ITO on matters such as exchange restrictions which affect its special responsibilities, it would be wrong in principle for the “final decision” on issues arising under Trade Charter to rest with another organization parallel but not superior in status to ITO.

Since Australian amendment proposes not merely that Fund would have right to be consulted but that special weight would be given its opinions, Australia thinks Fund would have all protection it could reasonably ask for its own interest and status.

As member Fund Australia anxious promote its success. Feels more harm than good might be done by attempting expand Fund’s authority at expense other international organizations.

Australians recognize Clayton difficulties with Congress but also has Parliament and people which have been induced only with greatest difficulty accept Bretton Woods. Govt feel still active opposition in Australia to Bretton Woods might easily extend to Trade Charter if key clause in Charter were to be administered in last resort by Fund.

Australia feels its proposed amendment goes long way towards meeting U.S.

Australia sees no need under its amendment for ITO create any additional machinery or organization for handling matters arising this connection.

Ambassador stated this message came direct from Prime Minister. We regretted Australia not able agree our proposal and reiterated this was crucial issue for U.S. which might make all difference our attitude Charter.

[Page 818]

Ambassador suggested any further conversations this subject be held by Clayton or Wilcox with Dedman.1

Text Australian memo follows airmail. [Brown.]

Lovett
  1. John J. Dedman, Australian Minister for Post-war Reconstruction, Minister for Defense, and Minister in charge of the Council for Scientific and Industrial Research; Member of the Australian Delegation at Habana.