394.31/1–2551: Telegram
The Ambassador in the United Kingdom ( Gifford ) to the Secretary of State
priority
4100. Reference Depcirtel 413, January 22.
1. Embassy and EGA representatives jointly made high level representation at Board of Trade January 24 urging British support Benelux proposal conduct multilateral negotiations at Torquay on outstanding disparities European tariffs. British very firm in their position, stated by Sir Stephen Holmes, BOT,1 that they not prepared support Benelux proposal for following reasons:
- (a)
- Time too short at current session GATT permit any useful results whatsoever out of multilateral negotiations,
- (b)
- Whole GATT concept and procedure built around bilateral negotiations which would be seriously jeopardized if multilateral layer superimposed on current bilateral talks;
- (c)
- British believe multilateral proposal would not only muddy waters at Torquay but would provide no suitable basis on which to conduct negotiations.
- (d)
- British view Benelux proposal as Dutch effort cover up for their “overgenerous” agreements Geneva and proposal made in British view solely placate Dutch industrialists who feeling effects post-Geneva revised French tariff schedules.
2. British see no hope in negotiating from common list and strongly urge that OEEC trade liberalization and tariff negotiations be considered separate and distinct fields. They fear that any further moves on part Benelux to inject tariff issues into removal quantitative restrictions will mean that QRs will be used as bargaining counters in tariff reduction negotiations, whereas British consider QRs should be removed unilaterally as soon as balance of payments considerations warrant without reference to tariff levels.
3. We believe British have points warranting serious consideration and believe they honestly feel that injection multilateral negotiations on basis indicated in Dutch memo2 (which British consider “fuzzy”) presented at January 16 meeting would prejudice successful completion current bilateral negotiations.
4. British intimated they would attempt deal with alleged intra-European tariff inequalities via bilateral procedure and declared this is extent their pledge in concurring OEEC council’s decision October 27. They suggested that US might oil any troubled waters arising current bilateral negotiations OEEC countries by announcing US prepared consider granting reciprocal concessions for indirect benefits tariff reductions resulting from bilateral negotiations at Torquay which had effect of removing roadblocks to European trade liberalization.
Priority sent Department 4100, repeated information Paris 1379 for OSR, Torquay 135, Department pass ECA/W.