560.AL/3–448: Telegram
The Ambassador in Cuba (Norweb) to the Secretary of State
secret us urgent
niact
niact
Habana, March 4,
1948—11 p. m.
278. For Douglas from Wilcox.
- 1.
- British agreement Articles 13 and 15 are of great assistance in completion negotiations Habana. USDel appreciates Embassy’s help.
- 2.
- Cripps suggestion Paragraph 3 urtel 9 March 41 would allow British unlimited freedom to introduce and expand discriminations and give them greater liberty than other countries on sole ground that British were obligated under Section 9 loan agreement not to discriminate. Am informed Department cannot accept proposal.
- 3.
- Exceptions to rule against discrimination may be provided either (a) by reference to historical base or (b) by establishing criteria.
- (a)
- Method employed in London and Habana drafts of Charter inevitably gives some countries greater latitude than others leaves British less latitude than some but more than others. This approach politically unattractive to British Government because extent discrimination on base dates affected by Section 9 loan agreement. Is preferred however by continentals.
- (b)
- Second approach would place all countries on same footing. Was spelled out in Geneva draft by British. Is now unacceptable to continentals. Would be preferred by Canadians and possibly others. Has political advantage for Britain because rules are affected in no way by provisions of loan agreement.
- 4.
- Suggest you sound out Cripps attitude toward following proposal: We insert both (a) Habana and (b) Geneva drafts in text and permit member entering ITO to elect either set of rules for its transitional period. (Would eliminate sentence on GATT from Habana Paragraph 1(c) might incorporate Geneva alternative by reference, printing text in annex. (Device would give UK choice between advantages of Habana and Geneva drafts and enable British Government to tell Parliament they would not be bound by Charter to operate under any rules affected by commitments in loan agreement.)
- 5.
- Text based on foregoing proposal would appear unattractive in US and make defense of Charter more difficult but believe we should consider going this far if acceptance Charter by British Government thus made easier.
- 6.
- Conference will probably complete committee work all other outstanding questions by Saturday night. Attention now focused on British position Article 23 as only obstacle to completion conference.
Repeated to Department for Clayton and Brown from Wilcox as No. 278, sent London unnumbered. [Wilcox.]
Norweb