394.31/1–2251: Circular telegram
The Secretary of State to Certain Diplomatic Offices 1
priority
413. For Emb and ECA Mission from State and ECA.
1. Benelux Del to GATT Conference Torquay, England has presented plan for multilateral tariff negots OEEC countries, US and Canad in attempt solve problem inequalities tariff levels OEEC countries which may obstruct further OEEC liberalization efforts. Private mtg was held Torquay Jan 16 at which UK, Benelux, Ital, Fr, Aust, Nor, Swed, Den, Ger, Canad, US were represented. In presenting plan, Benelux Del recalled OEEC Council Ministers decision Oct 27, 1950 pledging progress at Torquay session toward removal disparities Eur tariffs.
2. US Del as result instrs from Wash and with TAC approval, took position that although Benelux proposal is being made very late in Torquay negots, nevertheless proposal has merit and shld be fully explored in hope that positive results may be obtained by this method at least on ltd list of items before end Torquay session.
3. At mtg Canad agreed with US that proposal had merit and urged that OEEC countries proceed negot and present concrete proposal before other CPs, for consideration as to reciprocal payment. UK, Fr, Ital, although emphasizing difficulties did not oppose Benelux proposal. Den, Nor, Ger generally supported.
4. Further exploratory mtg to be held Jan 25. Benelux has proposed use of possibly one section Brussels Study Group nomenclature and Brussels Eur average as basis discussion; Fr suggested OEEC common liberalization list or variant thereof. Negots likely be confined products important intra-Eur trade and not prime interest US.
5. Since Torquay negots scheduled end Feb 28, time is short. If significant accomplishments this GATT session, US prepared consider reciprocal concessions for indirect benefits of any tariff reductions or bindings resulting these multilateral negots at Torquay. However, US is not prepared to participate in multilateral negots of any scope after Torquay and wld not now be able give commitment re US concession in payment indirect benefits derived therefrom as result negots among [Page 1329] OEEC countries. Question compensation wld have to be left open for consideration in light facts existing at time results presented to CPs. This limitation on US future participation emphasizes importance results being achieved at Torquay.
6. In view above consideration and urgency some solution problem inequality in tariffs OEEC countries, US feels most important that proposal for multilateral procedure and immed negots be supported. Expect tendency particularly on part UK, Fr, Ital to drag their feet. Missions urged therefore, to use concerted pressure in order to indicate to govts importance concrete results these negots and express US view that every effort shld be made to make as much progress as possible during life Torquay. Missions may wish point out importance making progress in interest removing important roadblock to further trade liberalization. Missions shld indicate that Torquay delegs OEEC countries shld be prepared with lists commodities for discussion Jan 25 mtg.
Missions shld also emphasize that US support this project in no way detracts great importance it attaches successful conclusion Torquay negots now in progress. Therefore, it shld also be urged by the Missions that every effort be exerted by the govts on their delegs to consummate successful Torquay bilaterals as well.
- Sent to the Embassies at Paris, London, Brussels, Copenhagen, Athens, Rome, The Hague, Oslo, Stockholm, and Ankara; the Legations at Vienna and Luxembourg; the High Commissioner at Frankfurt (Germany), for action. Sent to the U.S. Delegation at Torquay for information.↩