394.31/2–1751: Telegram
The Acting Chairman of the United States Delegation to the Torquay Conference (Corse) to the Secretary of State
445. Department also for ECA/W, Paris or OSR.
1. As result developments on Blankenstein proposal, outlines of possible compromise position may be emerging.
2. First, proposal for agreement by GATT TAC to set up intersessional working party, in some way tied into OEEC work. Although this proposal, made by the US, was unenthusiastically received, US has been requested to draft proposal in specific terms. Draft taking following lines: CPs which are OEEC members and Canada and US would jointly request TNC set up Inter-Sessional Working Party composed OEEC members GATT and any other interested GATT country as observers, with terms reference as follows:
- a.
- To consider proposals by any member for multilateral or other forms tariff negotiation which might contribute reduction European tariffs and might provide means compensation such reduction by other members GATT.
- b.
- To develop such other tariff proposals as appropriate in line objectives OEEC and decisions OEEC Council.
3. Working Party would report to Sixth Session CPs progress made and submit for consideration that session such agreed proposals as may require action CPs in accordance provisions GATT. Working Party would meet, subject call Chairman, at such places as it may determine. [Page 1352] Secretariat, pursuant to direction Chairman, would enter into cooperative arrangements secretariat OEEC to insure adequate facilities Working Party.
4. Second element in possible compromise is letter to Marjolin by OEEC GATT countries stating that although excellent spirit has prevailed and some progress has been made at Torquay in reducing disparities European tariffs, nevertheless basic problem as envisaged OEEC Council decision October 27 has not yet been solved. However discussions will continue and further attempts at solution be made after Torquay. There, signatory countries believe premature to conclude satisfactory progress in sense of resolution not made. Blankenstein’s view letter would “put on ice” escape clause in October 27 decision until all means exhausted of solving tariff problem GATT OEEC context.
Sent Department 445, repeated information Paris 42, London 202.