560.AL/7–949: Telegram
The Ambassador in the Netherlands (Baruch) to the Secretary of State
582. From Martin, Schockner and Campbell. Accompanied by Steere and Beede1 of Embassy staff discussed Japanese MFN with eight representatives of Netherlands Ministry Foreign Affairs, Economic Affairs and Overseas Territories, headed by Van Kleffens of Ministry Economic Affairs. Discussions were frank and friendly. Results were as follows:
1. Dutch reaffirm their inability to make decision prior clarification position of Netherlands vis-à-vis US of Indonesia. Suggested probability that as result round table discussion question of MFN for Japanese exports to Indonesia would be entirely up to new Indonesian Government. Although unable to predict what views new government might be, pointed out that slow rehabilitation Indonesia industries, past history of Japanese economic exploitation in Indonesia and memory of Japanese occupation are all present obstacles to agreement by the new government to MFN treatment.
2. Dutch expressed view that adherence by Japanese to GATT was more favorable solution our problem than MFN agreement alone. Such adherence more permanently binding on the Japanese, would cover more completely possible trading policy problems between the Japanese and other countries and would be more likely to carry over beyond period of occupation kind of trading policy everyone wants to continue. Also interested in getting as much on future trade policy in peace treaty as possible. It was indicated that US Government would consider carefully possibility of Japanese adherence GATT. We pointed out strong feelings believed to be held by the governments now member GATT, respect Japanese adherence and inability without peace treaty or further decisions of policy by Far Eastern Commission of Japan to undertake such international commitment.
3. Van Kleffens suggested more important for US to reaffirm vigorous non-discriminatory policy on part Japanese and to press for MFN [Page 703] agreement by countries now discriminating. Did not feel signing of such agreement by countries like Netherlands which are not now discriminating would accomplish much either economically or in determining future Japanese trade policy.
4. Copies of appendix A2 were left with them with request they examine them and raise any questions with Embassy. They expressed appreciation and agreed to follow suggested course of action.
5. Subsequently saw Boon acting Secretary General Foreign Office who reaffirmed Netherlands support for Japanese adherence GATT. Expressed appreciation of consultation by US, referring to Netherlands surprise at recent US announcement re Japanese reparation which Netherlands will protest.
Sent Department, repeated Tokyo unnumbered, Annecy unnumbered. [Martin, Schockner, and Campbell.]