The Acting Secretary of State to the Embassy in South Africa
56. Dept greatly concerned contemplated institution discriminatory import controls SoAfr (Deptel 115 to Annecy,1 rptd to Capetown as 52). Dept considers SoAfr proposal made Annecy May 11 evasion GATT obligations. Viewed here as serious challenge to principle multilateral nondiscriminatory trade. AmEmbassy London being requested take matter up with Brit. Pls take matter up soonest SoAfr officials indicating our deep concern and belief that discrimination not justifiable in view fact SoAfr’s exchange postion appears as weak in sterling as in dollars.
Until June, pls keep Annecy current on developments in gold, dollar and sterling holdings central bank, and drawings UK loan.
Sent Capetown as 56, rptd Annecy as 129, London as 1773.