The Chairman of the United States Delegation (Willoughby) to the Secretary of State
123. In view changed timetable South African consultations, worsened South African sterling position, and apparent shift focus of negotiations from Annecy to London (Deltel 120) believe time and opportunity now exist to put further pressure on UK and South Africa in London, Washington and Capetown with some prospect success.
2. Our position briefly as follows: British pressuring South Africa to discriminate without justification on balance payments grounds, and attempting use extreme South African difficulties to extort preferential treatment South Africa and channel trade between UK-West Europe and South Africa on bilateral basis. In so doing British demonstrating callous disregard multilateral nondiscriminatory trade objectives GATT and other instruments to which, committed, and disregard of interests of South Africa, Canada, US and even UK long term interests. British action particularly inappropriate in view current action by US re supersession section 9. Under circumstances US reaction must be most unfavorable as situation definitely harmful to working relations between our two governments as well as to future international economic cooperation under GATT-ITO.
3. If Department agrees suggest appropriate instructions to London and Capetown. London Embassy might have discussions with South African mission when it arrives London as well as with appropriate British officials.