394.31/1–2651: Telegram

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

confidential

371. 1. Private meeting held January 25, on Blankenstein plan with England, France, Benelux, Norway, Sweden, Denmark, Italy, Austria, Germany, Canada, US present.

2. Blankenstein presented paper1 outlining following possible procedure for multilateral negotiations:

(a)
Examine each item Brussels’ nomenclature2 to determine whether major part of import of such product into more than one OEEC country originates from other OEEC countries; if so, designated as important intra European trade;
(b)
Such products important intra European trade to be further classified as follows:
(i)
Items of significant interest, US and Canada.
(ii)
Items of significant interest to non-European GATT members.
(iii)
Items of significant interest to other non-European countries.
(c)
“Basic duty” for an item used as target should be that duty of the country having lowest duty among countries having sizeable production of that item;
(d)
Countries having higher duty on that item should reduce to basic duty unless they can show sufficient reason;
(e)
Country with basic duty should bind rate;
(f)
“Position of countries with lower duty should be considered”;
(g)
Results of leveling of duties of item in (b (i) should be submitted to ITS and Canada;
h
Results to be incorporated in GATT;
(i)
“Rehearsal” on limited group of items in Torquay.

3. During meeting British thought there was a fundamental unsoundness about entire Blankenstein plan (a) exceptions under 2 (d) above would be so numerous as to make plan unproductive but (b) exceptions necessary as no single rate economy for every country. Among points cable London to Department 4100 January 25, Holmes made points paragraph 1a, b, c and paragraph 3.

4. France and Italy, although not instructed, prepared nevertheless to proceed with exploration.

5. Norway suggested the group immediately start to select about 30 items at next meeting by submissions each country several items for consideration.

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6. Sweden, Austria, Denmark, Germany, Benelux supported this idea with Benelux suggesting that perhaps fewer than 30 items be selected.

7. USDel expressed strong hope that results of substance would be achieved here at Torquay on at least a selected list of items important to intra-European trade. We would give compensation for Torquay results but unable to give commitment on compensation for results after Torquay. Urged every effort should be exerted to make plan effective at Torquay.

8. Next meeting to be held January 30 to discuss new procedure paper (reference paragraph 2). Believe possibility of February 2 meeting for discussion possible list of specific items.

Sent Department 371, repeated information Paris 27 for OSR. Department pass ECA/W.

[Corse]
  1. Not printed.
  2. The conclusion in September 1950 of the Brussels Convention on Tariff Nomenclature (on the initiative of the European Customs Union Study Group) resulted in the drawing up of a common tariff nomenclature known as the 1950 Brussels Nomenclature.