560.AL/5–1649: Telegram

The Secretary of State to the Chairman of the United States Delegation (Willoughby), at Annecy 1

secret

115, SoAfr Min Econ Affairs Louw called May 17 on UNSecy to discuss number matters. UNSecy referred him Brown re import [Page 679]restrictions. (Uretels 110, May 15, 112, May 16)2 Brown stated out concern over fact general info we have re new restrictions seems envisage increased discrimination hard currency countries even tho SoAfr’s exchange position appears about as poor in sterling as dols. Louw expressed surprise this feeling, stating that at time he left SoAfr 6 weeks ago plans had been formulated on non-discriminatory basis. Said he was unaware developments since then but would look into situation on his return SoAfr May 21. SoAfr Emb officials also expressed surprise but said they had not been kept informed re restrictions. All intimated unaware Annecy discussions. Louw had appt earlier with Eximbank. Dept has feeling threat of discrimination and withholding announcement new restrictions related loan discussions and surmises that announcement perhaps waiting discussions with Louw on his return SoAfr. Dept representatives at meeting all felt Louw not entirely frank. Airmailing memo conversation.3

NAC Staff considering May 19 instr US representatives IMF re Fund consideration restrictions, Dept and Treas position that, based on present info, discrimination unjustified.

Acheson
  1. Repeated to London (1729) and Capetown (52).
  2. Latter not printed.
  3. Not printed.