894.31/2–351: Telegram
The Temporary Acting Chairman of the United States Delegation to the Torquay Conference (Phelps) to the Secretary of State
priority
397. USTAC. Department pass ECA/W. Fourth meeting on Blankenstein proposal multilateral negotiations February 2 opened with suggestion from chair that committee proceed with discussion as to drawing up lists.
French delegate felt it important reach some agreement on principles and methods to be followed in submitting informal lists. Mentioned two methods:
- 1.
- List of items on which reductions desired from other countries.
- 2.
- List of items in which prepared to make reductions.
French indicated strong preference second method.
Italian delegation felt it premature discuss method and composition lists until there had been agreement on principle of negotiations and extent such negotiations. Thought whole matter outside province Torquay negotiations.
United States delegation, called on by chair, commended French proposal as constructive, suggested two methods could be combined, each country selecting one or two items by each method.
UK del reiterated view whole exercise impractical, particularly in view short time remaining and inevitability exercise would have to continue beyond present session. Under circumstances and since US unable participate beyond June 12, no assurance exercise could be completed. Without discussing European integration, exercise of this nature, which implies broad and exhaustive attempt equalize European tariffs not practical if confined to Europe. If attempt were to have meaning, US must participate but cannot. Since impossible or unlikely France (Larre, who had been to Paris since third meeting) opposed principles discussion as waste of time. Proposed move quickly to negotiations to expand Torquay achievement. Thought contribution to integration could be very small; where trade chiefly intra-European, might help; where imports from overseas large, might hurt if on MFM basis. But expanding Torquay would be worthwhile itself. Maximum chance success basis his second method.
Italy (Di Nola) said Benelux items showed impossibility doing anything. Italian tariffs already reduced to scientifically necessary minimum in view relative efficiency Italian industries involved. Could not “level” European rates. Integration was larger problem not appropriate GATT.
Chairman proposed (although he thought main problem might not be limited negotiations) meet Monday, February 5, delegates to be prepared state definitely whether they favored proceeding limited [Page 1340] negotiations Torquay. Those countries so wishing to submit lists products. View limited time, urged very short list (3–5 items) be selected by committee.
Norway then illogically asked UK whether they would compromise on transferring multilaterals to Paris. Chair ruled him out of order and adjourned for tea, apparently to prevent British reply.
On resumption, UK delegate “noted” little enthusiasm. However, UK did not want prevent “exercise” if other countries desired. If others so decided next meeting, prepared go along subject certain “conditions” to be explained then.
Chairman’s proposal apparently accepted by all.
Sent Department 397, repeated information London 186, Paris 34 for OSR, Rome 5.