560.AL/2–1048: Telegram

The Ambassador in Cuba ( Norweb ) to the Secretary of State

secret

175. For Clayton and Brown from Wilcox. Met Tuesday morning with UK, France, Belgium, Holland, Norway, Canada, Australia and Czechoslovakia. Feeling unanimous must complete charter next ten days or abandon undertaking. Believe final showdown must be precipitated. General pessimism as to prospects resulting from exhaustion all participants.

Prospect is Coordinating Committee1 must now enter into continuous session, with lines of possible compromise undeveloped countries now indicated:

(1)
Articles 15 and 42, more latitude on new preferences, customs unions, free trade areas.
(2)
Article 13, development of criteria establishing presumption for automatic prior approval on non-negotiated commitments on non-scheduled items.
(3)
Modification of provisions relating to Tariff Committee and establishment of Economic Development Committee.

All foregoing highly controversial and will be bitterly contested. May finally be necessary lay down offers on take it or leave it basis.

Should attempt settle differences with other countries outside Coordinating Committee. No agreement yet in sight on (1) European [Page 853] discrimination issue, (2) non-members, (3) occupied areas. Europeans still desire put Stucki in wrong by offering him concession he might turn down.

Should still be possible arrive generally acceptable compromises with fresh negotiators and additional time, but present atmosphere not encouraging. [Wilcox.]

Norweb
  1. Established by the Heads of Delegations at a meeting on February 4, the Co-ordinating Committee, under the chairmanship of Max Suetens, sought to end the conference by solving those questions on which opinion remained divided, particularly those related to questions of economic development. For documentation regarding this Committee, see United Nations Conference on Trade and Employment Held at Havana, Cuba, From 21 November 1947 to 24 March 1948, Reports of Committees and Principal Sub-Committees (Geneva, 1948). (Interim Commission Document ICITO I/8); and Lot 57D284, Box 103.