560.AL/5–2549: Airgram
The Ambassador in South Africa ( Winship ) to the Secretary of State
A-46. Deptel 56, May 21, 1949. I wish inform Department I approached Union Government May 24 on possible discriminatory features of new import control measures announced by the Acting Minister Economic Affairs Dr. T. E. Donges. Following is text aide-mémoire I handed Secretary External Affairs:
“With reference to the statement on import control made yesterday, May 23, by the Union Government, the US Government had cherished the hope that such restrictions would not contravene the provisions of GATT and would uphold the principle of multilateral non-discriminatory trade.
“When Minister Louw called at the Department of State on May 17 he declared that at the time he left the Union the plans for import restrictions had been formulated on a non-discriminatory basis.
“Dr. Norval also informed the American delegation at Annecy on May 20 that since South Africa’s sterling as well as dollar resources were exhausted there would be no discrimination for the next six months.
“In view of the fact that South Africa does not appear to be in a significantly better position in sterling than in dollars the US wishes to express its deep concern and belief that discrimination against hard currency countries is not justifiable on the basis of information currently available.”
Both the Counselor Embassy C. E. Dickerson and I have taken every opportunity to bring this matter to the attention of Mr. Forsyth, Secretary for External Affairs; Dr. Dekock, Government Reserve Bank; and officials of Ministry of Finance.
Very little comment has been forthcoming from South African officials except to justify the Union’s contention that no discrimination [Page 687] is involved. It is felt that South Africa should buy from those countries which purchase the larger share of its exports. Mr. Forsyth mentioned in passing that by buying from and selling to Europe the Union would be contributing in the only way it could to European recovery by stimulating trade with those countries.