560.AL/3—248: Telegram
The Ambassador in the United Kingdom (Douglas) to the Secretary of State
830. Presentation ITO problem made in manner suggested Deptel 690 and position fully explored with British officials who are fully aware of US views about urgency of situation but insist on full consultation among Ministers in view of political implications any action taken. Main issue is Article 23 on which British Ministers meet tomorrow and we should be able to report fully immediately after their meeting. Issue is likely to be clarification of text.
British officials state that Articles 13 and 15 may not present so much difficulty as Article 23, always providing that Article 23 may be clarified and satisfaction given in some way to their insistence that in Article 15 the British Empire should be able to be treated as a region and we understand from British that a move to achieve this has started in Havana.
[Page 881]For information USDel only, British aide-mémoire,1 still unofficial not cleared with Ministers, concentrates on paragraphs (b) and (c) under paragraph (1) of present text Article 23 which British feel establishes three different sets of rules without certainty which rule applies any given case and leave text open to so many doubts that it contains many possibilities of friction US–UK particularly with reference Section 9. British feel that “the assurance which the present text is intended to convey can in practice only be given by a simple provision to the effect that during the transitional period a country which is imposing import restrictions to safeguard its balance of payments may deviate from the strict rules of non-discrimination.” This to be subject to controls stipulated in latter part of paragraph 1 (c) of Havana text. This forwarded as possible assistance USDel appraising situation and not intended represent British proposal, which will be transmitted next message.
Sent Department 830, repeated Habana 7 for Wilcox.