560.AL/1–3048: Telegram

The Secretary of State to the Embassy in France

secret

296. For Caffery. USDel Habana has proposed amendment ITO Charter whereby occupying powers in their conduct trade Western Zones Germany would be subject obligations and entitled benefits Charter, including most-favored-nation tariff treatment. UK and French Dels oppose. Dept attaches major importance this amendment as part policy integration Germany economy Europe. Congress and public here will not be able understand refusal French and British undertake now in ITO charter give trade occupied zones most-favored-nation treatment especially in view Marshall plan and fact US carries major burden administration zones.

Dept. is pressing French and British Embassies here urgently for second time obtain reversal their govts. position. They have already refused once. Dept. does not insist exact wording USDel amendment and would be willing leave exact terms full admission zones ITO for later determination but does insist commitment now that ITO members will not discriminate against trade zones when ITO established. This is clearly to advantage French and British zones as well as US zone.

French will contend this position may prevent Czechs and Poles from joining ITO. Dept. recognizes this risk but is willing accept it.

Please convey these views urgently French Govt and urge its support US position Habana.1

Marshall
  1. On February 1 in telegram 567 Paris, not printed, Ambassador Caffery reported that he had conveyed the Department’s views to Hervé Alphand, Director of the Economic Section of the French Ministry of Foreign Affairs. The initial French response was deemed unsatisfactory, and the Ambassador reported in telegram 659 from Paris, not printed, that he had met with Foreign Minister Bidault on February 5, to discuss the Department’s position. The French had not come to accept the United States view, but, upon the Ambassador’s urging, agreed to reconsider the matter. Caffery added that “I am not at air certain how far such modifications as he may make will go towards meeting our view.” (560.AL/2–148 and 2–548)