394.31/9–2850
Memorandum by the Chief of the Commercial Policy
Staff (Beale) to the Director of the
Executive Secretariat of the Department of State (McWilliams)1
secret
[Washington,] September 28, 1950.
Subject: Proposed United States Offer on Wool
As I told you by telephone, the Secretary of Agriculture has talked with
the President about the offer on wool which the Committee on Trade
Agreements has recommended should be made at Torquay and which is
opposed by the Department of Agriculture. On the basis of a conversation
with a member of Dr. Steelman’s staff, I recommend that Mr. Webb talk
with the President about wool at the earliest opportunity. The Torquay
Conference opens today (September 28) and the President may make his
decision on the offer list within the next day or so. Wool is probably
the most important single item in the tariff negotiations and is the key
not only to the negotiations with Australia and New Zealand but, on the
basis of our experience at Geneva, will largely affect the outcome of
our negotiations with the British.
Attached is a memorandum which it is recommended Mr. Webb use as a basis
for his conversation with the President.
[Attachment]
Proposed United States Offer on Wool
On Tuesday last the Committee on Trade Agreements forwarded to you
for your approval its recommendations regarding the concessions we
should offer and the requests we should make in the Torquay
[Page 804]
tariff negotiations. No
doubt your staff will be discussing these recommendations with you
soon, as the Conference opens formally today (the 28th). The
Committee’s recommendations were unanimous except on a few items
(raw wool, wool noils, grapes, raisins, certain kinds of hair, and
cotton cloth). The report which I forwarded to you contains full
comments by the majority of the Committee on those items as well as
the views of the two dissenting Agencies (Agriculture and
Labor).
I want to mention wool particularly, because of its importance to the
success of the negotiations.
The proposed offer on finer wools is to the legal limit (17 cents per
pound) on the main category and practically to the limit on the
remainder. The proposal on coarse apparel wool cuts about half way
to the legal limit from present rates (about 30 percent cute).
The point I would like to emphasize is that the wool items are the
most important products in the negotiations with Australia and New
Zealand. In our judgment neither country will negotiate with us
without the offer of a reduction in the duty on wool. Equally
important, however, is the fact that failure to conclude
negotiations with Australia and New Zealand may seriously affect the
success of our negotiations with Great Britain. You will recall that
a concession on wool was a key consideration in the success of the
Geneva Conference in 1947. Without the bargaining power which a
reduction in the wool duty gives us, we will not be able to secure
the reduction or elimination of the preferences Britain gives
Australia and New Zealand on products of great importance to our
export trade.
