394.31/2–651: Telegram
The Temporary Acting Chairman of the United States Delegation to the Torquay Conference (Phelps) to the Secretary of State
priority
404. USTAC. Department pass ECA/W.
1. Fifth meeting on multilateral negotiations (MN’s) February 5. Decided appoint working party (UK, France, Italy, Germany, Benelux, Austria, Denmark with US present) to select items agreed suitable for MN’s, on basis lists submitted interested countries. WP to report back to main group at meeting Friday afternoon.
2. Apparently most countries will submit lists. Those already submitted are: Benelux, Brussels nomenclature 32.07, dye stuffs, 37.01, 37.02, 37.03, 37.04, photographic and movie products, 52.01, 53.01, 53.04 synthetic fibers; France 51.11, 51.14, 51.15 woolen textiles, 55.04, 55.06, 55.07, 55.09 cotton textiles, 87.02, 87.04, 87.05, 87.06 automobiles and parts, and (no numbers given) wine; Germany automobiles and parts same as France, 82.05, 82.08, 82.09, 82.10, 82.11, 82.12, 82.13, cutlery products; Sweden 84.56, 84.59, office machines, 84.25, 84.26, dairy machinery, 48.11, 48.09 building board; Norway (no numbers given) fresh and frozen herrings, medicinal cod-liver oil, calcium carbide, mechanical wood pulp, and ferrosilicon.
3. In expression of views regarding proposed MN “rehearsal”, all delegations agreed to go along with following qualifications: Italy referred to objections stated previous meetings but would join because majority wished to try. Sweden not optimistic. Austria has no authority beyond that available for Torquay bilaterals but will cooperate as far as possible. Britain will cooperate on understanding, (a) does not believe objective reasonable or practical, (b) subscribes no principles of [Page 1341] tariff negotiation beyond those in charter and GATT procedures, particularly insists “rehearsal” not interfere UK-Benelux bilaterals, (c) participation condition full participation by US, (d) reserves right withdraw any time it considers further work not able produce useful results. Emphasized desire avoid prolonging work Torquay or interfering present activity UK delegation. Denmark not optimistic especially view time, referred repeatedly to “last fortnight Torquay”.
4. On appearance practical unanimity and chairman proposal establish working party to select items and report, France, Benelux, UK entered on long discussion, participated briefly Norway and Austria, concerning effect failure of “rehearsal” on problem of achieving agreement at Torquay on principles and method wider effort. France took position must pursue goal alignment European tariffs by some method, listed three: (a) reduction excessive duties (failed at OEEC), (b) MN’s under GATT (c) preparatory study here and later action OEEC countries elsewhere on preferential basis. Doubted method (b) would succeed. Blankenstein feared failure here (apparently widely expected) would be considered evidence impossibility wider efforts basis Benelux proposal. Agreed rehearsal but felt necessary withdraw from rehearsal and suggest alternative method if apparent list too limited or one-sided or otherwise probable would prevent effort along lines Benelux papers. Agreed with France re main objective. Suggested main group go forward consideration Benelux papers while WP prepared lists (at lunch before meeting Blankenstein informed Schwenger new instructions from Hague preferred reasonable percentage reduction discrepancies European tariffs on all intra-European items to limited rehearsal few items). Austria pointed out rehearsal more difficult than large-scale effort later because smaller possibility compensate all countries involved.
5. US (Schwenger) called on by chair during original go around1 pointed out inappropriate express detailed opinion on essentially European effort facilitate integration through tariff reduction but assured US would do everything our authority compensate in case useful result.
Sent Department 404, repeated information Paris 35 for OSR, London 188, Rome 6.
- The United States was attending these informal meetings in an observer status.↩