394.31/1–1751: Telegram

The Acting Chairman of the United States Delegation to the Torquay Conference ( Corse ) to the Secretary of State

confidential

355. 1. With TAC approval, made following statement at private meeting called by Benelux January 16 re Blankenstein proposal. (See Deltel 354 repeated Paris 22 for fuller report meeting).

a.
US recognizes this proposal is being made very late in conference and foresees many technical difficulties in reaching practical results.
b.
We have grave concern that it might curtail results to be obtained through bilateral negotiations.
c.
Nevertheless US feel that proposal has merits providing it does not lead to a preferential system.
d.
Therefore we recommend immediate further exploration and, if possible, obtain positive results, perhaps on limited list of items.

2. Above statement considered consistent with instructions in Deptel 316 repeated info Paris 3718.

3. TAC reluctant to support proposal more strongly. Chances of achieving results at Torquay, even if negotiations extended beyond February 28, scheduled cutoff day, are not promising.

a.
Delegates would have to seek new instructions and prepare new positions on individual items;
b.
Chief burden of concessions would fall on high tariff countries, who would probably stall.

4. TAC approved following course future action;

a.
USDel to make every effort obtain positive results Torquay at least on limited number items perhaps even by recommending extension of February 28 deadline by up to week.
b.
US to support further multilateral negotiations after Torquay.
c.
Indicate to OEEC countries any indirect benefits to US result multilateral negotiations Torquay would be considered as part payment for US concessions.
d.
Indicate US unable participate negotiations after Torquay; can give no commitment re US payment indirect benefits but leave matter open to consideration light facts existing at time results presented CP’s.

Sent Department 355, repeated information Paris 23 for TAC member agencies and for Havlik OSR.

[Corse]