560.AL/3–348: Telegram
The Ambassador in the United Kingdom (Douglas) to the Secretary of State
836. British position ITO problem now more clear (reEmbtel 830 to Department and 7 to Habana).
- 1.
- British will go along on Article 13.3
- 2.
- British face serious political risk in Parliament unless way found in Article 15 meet requirement that Commonwealth must be able to be regarded as an economic region under paragraph 3(a). Understand this under negotiation Habana and British hope USDel would give some help without so much risk.
- 3.
- British feel both sides House Commons will be deeply suspicious of Article 23 and unless government able give clear explanation of how UK covered by transitional provisions there would be real danger that charter would be rejected. Present text allows no clear explanation and therefore not acceptable paragraph 1(b) (originally intended give UK necessary freedom under IMF rules but Habana discussions indicate IMF will interpret narrowly and British expectation disappointed.) Many doubts also about paragraph 1(c) down to phrase “the organization may, etc.” British urge redraft subparagraphs (b) and (c) and state “we are of the opinion that assurance which present text intended convey can in practice only be given by simple [Page 882] provision to effect that during transitional period a country which is imposing import restrictions to safeguard balance of payments may deviate from strict rules of non-discrimination. Manner of applying restrictions under this provision should be subject to right of organization to make representations in exceptional circumstances and require termination of unjustifiable discriminations as in latter part paragraph (c) of Habana text. Such provision in place of sub-paragraphs (b) and (c) would be simple, comprehensible and likely produce least possible friction. Would moreover conform with relevant paragraph US proposals”.
Embassy feels British insistence revision Article 23 involves two political risks for US: (1) Risk of trying simplify text at present stage of conference and throwing it open to debate; (2) political risk vis-à-vis Congress in accepting simple categorical statement of exceptions to non-discrimination rule as against more involved statement, particularly with trade agreement program coming up.
Ambassador meeting Cripps briefly early tomorrow morning discuss balance between British and US political risks. Telegraph most urgently views Department and USDel on importance US risks against British risks. Imperative your message reach London tonight. Ambassador will telegraph immediately after Cripps conference.