560.AL/8–449: Telegram
The Ambassador in the Dominican Republic ( Ackerman ) to the Secretary of State
Priority
246. Urtel 175, August 1. At his request I called on Foreign Secretary yesterday evening. He stated telegram received Thomen Department has instructed Annecy withdraw tariff offer. His government [Page 636] seriously considering retirement from Annecy as this development makes useless for present further efforts induce US remove discrimination against Dominican sugar. Disappointment greater because after Troncoso visited Washington preceding conference this government believed Annecy offer to be in harmony of expressed policy US Government to progressively eliminate discrimination. Postponing withdrawal Annecy awaiting further information Troncoso re other concessions USDel will offer in return Dominican concessions but the[y] doubtful value in contrast importance removing or diminishing tariff preferences sugar favoring Cuba.
Although aware immediate benefits insignificant so long quota applies, nevertheless would be interpreted evidence US intention eventually accord more equitable treatment Dominican sugar. I emphasized importance US maintaining bargaining position Peru and assured him Department maintains position preferences not bound and will continue encourage elimination discrimination.
He expressed surprise our consideration Peru’s importations, Peru sugar small in relation total and depended on arbitrary quota system and wondered whether Department’s determination was not primarily result pressure other quarters. Cuban delegation GATT has contended US not free reduce preferential other countries without Cuban consent. Foreign Secretary inquired whether assurance Department’s policy encourage elimination can be interpreted mean it intends reduce preferences soon. When I pointed out future benefits conditioned upon procedures after lapse quota system Foreign Secretary inquired whether quota system to be maintained and if so whether quota Dominican sugar would be increased permit Dominican producers have access substantial portion American market. I pleaded ignorance future intentions which largely dependent congressional action.
Urtel 179, August 3 received today.1 In my conversation last evening made ho mention possible political repercussions Cuba.
- Not printed: it instructed the Ambassador, in the event of discussions with Dominican officials on the withdrawal of the sugar offer, to emphasize the points mentioned in items (b) and (c) of the Department’s telegram 175, August 1, rather than the matter of possible political repercussions in Cuba (560.AL/8–249).↩