611.60F31/4–2248
Mr. William L. Clayton, Adviser to the Secretary of State, to Senator Arthur H. Vandenberg 1
My Dear Senator Vandenberg: I have reference to our recent conversation in which we discussed the signature by Czechoslovakia of the Protocol of Provisional Application of the General Agreement on Tariffs and Trade,2 and the implications of this action for the United States in the light of the events surrounding the governmental changes of last February in Czechoslovakia.3 This matter has been given the most careful study both within the Department of State and in meetings of the President’s Cabinet.
The President today has decided to issue a proclamation putting into effect the provisions of the General Agreement on Tariffs and Trade with respect to Czechoslovakia, thereby implementing an obligation entered into by this Government more than five months ago, on October 30, 1947, when the General Agreement was concluded at Geneva, and prior to the Communist coup of February, 1948. Since Czechoslovakia has now placed the General Agreement in effect with respect to the United States and the other contracting parties, this country [Page 535] as well as the other contracting parties is obligated to apply the agreement to Czechoslovakia. This Government’s attitude towards the events of last February in Czechoslovakia has not changed from that indicated in the joint statement of February 26, 1948 by the Secretary of State of this Government and by the Foreign Ministers of the Governments of the United Kingdom and France.4 These events, however, do not directly affect the legal status of the reciprocal obligations under the General Agreement.
The General Agreement is a comprehensive trade agreement among twenty-three countries. It is part of a worldwide program, sponsored by the United Nations and actively participated in by the United States, designed to reduce trade barriers and to restore international trade to an orderly and stable basis. It is clearly to the interest of such a program to include the fullest possible participation by any countries which are willing to undertake the necessary obligations.
Concern has been expressed by a number of persons that making effective the General Agreement as between the United States and Czechoslovakia will give undue assistance, without receiving adequate reciprocal advantage in return, to a country subject to the influence of the Soviet Union, while depriving the American economy of the goods which are necessary to maintain our defensive strength. I would like to emphasize in particular that should Czechoslovakia or any other contracting party fail to fulfill the obligations of the Agreement or adopt any policy which impairs or nullifies the tariff concessions, the application by the United States to that country of such obligations or concessions under the Agreement as may be appropriate in the circumstances may be suspended. In addition, if, as a result of unforeseen circumstances, any of the concessions extended in the Agreement should result in such increased imports from Czechoslovakia as to cause or threaten serious injury to domestic producers in this country, the United States is free to withdraw or modify the concessions to the extent necessary to prevent or remedy the injury.
In addition to this safeguard with respect to imports, the United States also exercises export controls to protect the American economy generally, to promote the objectives of foreign policy, and to safeguard national security. Since March 1, 1948, no shipments to European destinations, including Czechoslovakia, can be made without appropriate license. These export controls prevent shipment of goods contrary to the national interests of the United States.
There is enclosed a statement being issued to the press today which contains some of the considerations discussed in this letter and outlines [Page 536] the pertinent facts relating to the reciprocal concessions included in the General Agreement on the part of the United States and Czechoslovakia.5 It should be noted that the entry into force of these concessions granted by the United States on products of special interest to Czechoslovakia, will also benefit certain other countries which signed the General Agreement in Geneva and which are particpating in the European recovery program.
Sincerely yours,
- Identical letters were sent to Senator Alben W. Barkley and to Representatives Joseph W. Martin, Jr., Sol Bloom, and Robert A. Grant.↩
- Documentation regarding the negotiation of the General Agreement on Tariffs and Trade, completed at Geneva on October 30, 1947, is included in Foreign Relations, 1947, volume i .↩
- For documentation regarding the attitude of the United States with respect to the Czechoslovak governmental crisis of February 1948, see pp. 733 ff.↩
- For the text of the Declaration under reference here, see the editorial note, p. 738.↩
- For the text of the statement under reference here, see Department of State Bulletin, May 9, 1948, p. 610.↩