394.31/3–1751: Telegram
The Acting Chairman of the United States Delegation to the Torquay Conference ( Corse ) to the Secretary of State
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555. Eyes only Beale.1 Fol are considerations pertinent to TAC recommendation transmitted Deltel 552.
1. Reps various agencies were in difficult procedural position. Without exception, Labor absent, reps were in favor of proposed package deal with Canada. However, package contained for each representative one or more products on which he had instructions to oppose or dissent: Defense, aluminum; Treas, aluminum; ECA instructed abstain aluminum; Commerce, plywood; Interior, canned salmon and aluminum; Agri, Cheddar cheese. The vote was State, Agri, Defense, Commerce, Durand, and Interior, for; Treas and ECA reserved; Labor absent. Basis of votes for was that as package motion acceptable but not voting specific concession on individual items from key list of Douglas fir plywood, canned salmon, aluminum, birch plywood and Cheddar cheese in isolation. Several reps stated Pres shld approve recommendation on all 5 items or on none and no condition should be placed on the granting of any single item that did not apply to all 5. For example, authorization for Cheddar cheese concession shld not be tied to obtaining concession from Canada on raisins.
2. At time acting chairman forced because of trend Canada negots to step into negots, Canadians rightly or wrongly were prepared accept no agreement with US or at most limited agreement containing only non-controversial products both ways. Such limited agreement wld have no economic significance and its possible political significance might boomerang because of evident insignificance. The Canadians lent themselves no path of retreat in event US had accepted proposal for limited agreement.
3. Action re Canada has important effect on success or failure negots other Commonwealth countries, especially preference issue which in UK concessions involves importantly agri products, in Australia non-agri products. Substantial agreement with Canada and Canada’s commitment not to stand in way of reductions by other Commonwealth countries of preferences Canada enjoys in those markets, important [Page 1279] incentive for other Commonwealth countries also to successfully conclude substantial agreements with US.
4. Because importance successful conclusion substantial agreement with Canada, suggest highest level Dept discuss issues involved with highest level Commerce, Agri, Defense, Treas, ECA, Interior and Labor (although Labor absent consistently opposed concessions aluminum). In addition to stating importance substantial agreement Canada to whole trade agreement program and reciprocal benefits arising out of agreement itself, suggest broadest level considerations including substantial contribution such agreement wld make to vital maximum integration Canadian and US economy, calling attn to fact this undoubtedly last time for several years such opportunity present.
5. Understand Sawyer2 strongly in favor aluminum concessions; also Chapman3 wld agree if convince aluminum concessions required for important agreement Canada.
6. Speedy Pres approval needed for maximum use this agreement in other negots, particularly other Commonwealth countries; also because some of schedules both ways makes technical problems enormous in light Mar 31 cutoff date.