560.AL/2–1548: Telegram

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

secret   urgent
niact

196. For Lovett from Clayton and Wilcox. USDel has, pursuant instructions, pressed vigorously for amendment articles 99 of charter [Page 860] in re occupied areas. Determined resistance has centered around UK which sought primarily to block any action whatever at Havana re occupied areas and, failing this, to confine action to weak recommendation for study by govts. France, under special instructions not reported Washington, has followed UK lead pending London discussion. Slavic states have used obstructive tactics. Australia and China have opposed. Even support from Denmark has been withdrawn in face UK position.

If US is to obtain, within reasonable period, most favored nation treatment for trade of occupied areas, believe only effective method would be inclusion provision in ERP1 and Chinese legislation along following lines:

“Any govt receiving aid under this act shall agree to the application, on a reciprocal basis, of most favored nation treatment to the trade of areas under military occupation for the period of such occupation”.

In view of forthcoming reporting of legislation out of congressional committees, suggest urgent steps be taken toward inclusion above provision in bill as reported.

USDel will press for amendment to article 68 in any case but feel weak resolution recommending study along lines acceptable UK worse than nothing. [Clayton and Wilcox.]

Norweb
  1. For documentation regarding the European Recovery Program see vol. iii, pp. 352 ff.