711.932/7–1448: Telegram

The Ambassador in China ( Stuart ) to the Secretary of State

1292. ReDeptel 926, July [June] 25. Following study Embassy notes and aides-mémoire re exchange ratifications and notes on FCN treaty, head Treaty Department, Foreign Office volunteered opinion on July 14 that Senate reservation would have to be referred to Legislative Yuan and that permission exchange of notes re GATT, ITO and Trust Territory of Pacific Islands would have to be obtained from Legislative Yuan because of substantive changes involved. Executive Yuan plans submit only changes involved to Legislative Yuan on basis that old Yuan already ratified all other provisions which are to come into force unchanged. Foreign Office only now consulting other agencies of Executive Yuan re exchanges of notes and is encountering difficulties due complex nature GATT.

Foreign Office urgently requests soonest analytical interpretive cross reference of related provisions FCN Treaty, GATT and ITO to expedite preparation memoranda for use other agencies and for preparation justifications for submission Legislative Yuan. Embassy supports his request in view extreme shortage of time caused by possible adjournment Legislative Yuan July 21 and suggests that careful analysis indicating possible advantages both to US and China might prove extremely helpful in limiting Yuan discussion and obtaining prompt approval prior close of this session rather than sometime next fall or winter.

Individual members Legislative Yuan consulted by Embassy not in agreement on likelihood another extension present session.

[Page 757]

Foreign Office requests soonest full texts notes to be exchanged in order expedite obtaining concurrence other agencies prior submission Legislative Yuan.

Foreign Office envisages possible extended discussion GATT, Trust territories and ITO since they limit applicability of treaty or may work to advantage of US rather than China. However, feels Senate reservation not likely draw much fire since merely leaves matter to further negotiation.

Foreign Office interested learning whether acceptance by US Government of reservations by other governments subject to prior approval of Senate.

Foreign Office held (1) China has indicated provisional acceptance GATT and final acceptance not given until UN notified and (2) should FCN treaty come into force after GATT, provisions former will take precedence over latter unless notes exchanged.