Office of the Historian

International Trade Files, Lot 57D284, Box 109

United States Delegation Paper (Third Session of the Contracting Parties)

undated

Intensification of United Kingdom Import Restrictions Letter From the Leader of the United Kingdom Delegation

The following letter dated 5 August has been received from the Leader of the United Kingdom Delegation:

“I have been instructed to address to you the following communication, which you will no doubt circulate to the Contracting Parties as a restricted document.

“As the Contracting Parties will be individually aware, but will no doubt wish to note in their joint capacity, there have recently been certain developments in the balance of payments position of the United Kingdom as a result of which we are under the necessity of revising our import programme. The Annex to this letter contains relevant extracts from the statements on this subject made by the Chancellor of the Exchequer in the House of Commons on the 6th and 14th July.

“In this connection we have taken note of the provisions of paragraph 4(b) of Article XII of the General Agreement, under which the Contracting Parties may in due course wish to invite the United Kingdom to enter into consultations. In this regard I would point out that (as will be seen from the statements quoted in the Annex), we have so far only taken action of a short-term and interim character, and that we shall not be in a position for some time yet to provide particulars of the revised import programme of the United Kingdom which will in due course be worked out, as a basis on which such consultations, if desired, could proceed. We shall, of course, be glad to provide these particulars when the programme has been worked out.”

One copy of the Annex1 referred to containing statements made by the Chancellor of the Exchequer has been distributed to each Contracting Party.2

  1. Annex not printed.↩

  2. At a meeting of the CP’s on August 10 at which this item appeared on the agenda, Mr. Shackle, the British delegate, said that he had little to add to the letter and its annex. He emphasized that until the Washington conversations had been concluded, the British Government would not be able to come up with a definitive import program. The United States Chairman (Willoughby) stated that the United States attached “much importance” to the consultation procedure; and so welcomed the statement by the United Kingdom. Willoughby suggested that the contents of the British letter be noted and the question of the timing of any consultations be left to the Chairman of the Contracting Parties, who should work the matter out with the CP’s and particularly the United Kingdom. The Contracting Parties agreed to this procedure suggested by the United States. (United States Delegation files, Lot 57D284, Box 109)

    For information regarding the Washington financial conversations, September 7–12, 1949, and text of the Joint Communiqué issued by the United States, the United Kingdom and Canada on September 12, see Department of State Bulletin, September 26, 1949, pp. 473 ff.

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