394.31/3–2651: Telegram
The Secretary of State to the Embassy in Australia1
priority
255. USTAC. Fol is text of Aide-Mémoire handed Amb Makin Mar 26, 11 a m: Begin verbatim text: The US Govt is deeply concerned over the unwillingness of the Govt of Austral to improve its present offers to the US at the Torquay Tariff negots. The US is particularly concerned over the refusal of the Austral Govt to give releases to the UK and Canad on bound margins of preference on certain key agricul products important in US trade with those countries.
The US is prepared to offer Austral the maximum permissible reduction in the duty on wool. The Austral Govt is undoubtedly aware of the importance of such a decision to the US Govt. At a particularly difficult period in the history of its trade agreements program, the US is prepared to make important tariff concessions to Austral and other countries of the Brit Commonwealth, because of the conviction of this Govt that it is vitally important for all concerned to continue [Page 1305] the progress towards freer trade already begun under the GATT. It is clear, however, that the objectives which both the US and Austral seek to attain, can only be achieved by cooperative efforts on the part of both countries. Not only has the principle of cooperation to achieve common goals been accepted as a guide in relations between our two countries, but the principle of reciprocity has been basic to the trade agreements program of the US for the 17 years of its existence.
The negots at Torquay have now reached a stage at which it is possible to define the points at issue.
On the one hand, the US is prepared to offer the maximum reduction in the duty on wool which is permissible under its present anth. In addition it is prepared to offer concessions on other products of interest to Austral. The US cannot make these offers, however, unless reciprocal concessions are obtained in return. It is the view of the US Govt that a balanced agreement between the US and Austral can only be reached if Austral is prepared to make certain concessions on its part. These concessions include (1) releases of bound margins of preference in the UK market on certain agricul products, namely, Cheddar cheese, unsweetened condensed milk, unsweetened milk powder, raisins, and preserved fruits, and releases of bound margins of preference in the Canad market on raisins, dried currants, and canned peaches; (2) agreement to reduce the preference margin in revising the Austral tariff on automotive items; and (3) agreement to negot with Southern Rhodesia for reduction in the tobacco preference within a reasonable time.
As the Austral Govt is no doubt aware, their position with respect to the offers to be made to the US is of vital importance in determining the outcome of the negots with other countries of the Brit Commonwealth at Torquay. The US Govt has agreed with Canad on the basis for a substantial and satis agreement which, however, depends in important part on the willingness of the Austral Govt to release the bound margins of preference previously mentioned.
In the opinion of the US Govt it is vitally important for all the countries concerned that the Torquay negots result in significant agreements between the US and the countries of the Brit Commonwealth. The bases for substantial agreements, which wld be fair and equitable to all parties, are clear. In the circumstances, it is the earnest hope of the US Govt that the Govt of Austral will reexamine its position with a view to making the offers which wld enable the US and Austral to reach a significant agreement and which are essential to the success of the negots between the US and the UK, Canad, NZ and the Union of SoAfr.
The Austral Govt will appreciate the urgency of this matter in view of the fact that negots at Torquay must be completed by Mar 31. End verbatim text.
[Page 1306]Basis this text and USDeltel from Torquay (sent Dept 568, rptd unnumbered Canberra, Mar 18) you instrd convey soonest to Min Ext Affairs deep concern this Govt over Austral position and earnest hope Austral Govt will review position and take action permitting early conclusion of significant agreements with Austral and other Brit Commonwealth countries.
- Repeated for information to U.S. Delegation at Torquay as telegram 509.↩