394.31/2–2351: Telegram
The Acting Chairman of the United States Delegation to the Torquay Conference (Corse) to the Secretary of State
priority
456. Department, also for ECA/W.
1. Proposed 9th session of multilateral negotiations group has been put off until Tuesday, February 27, to permit more time for drafting group.
2. US and Benelux have now developed in definitive form proposal for GATT WP along lines summarized ourtel 445, and proposed interim report of such WP to be submitted to Wilgress with suggestion transmission to Marjolin. Text proposed report follows separate telegram.1 Report would: (a) assert it is still premature judge effects Torquay tariff negotiations on problem being studied by WP, (b) acknowledge progress on general tariff reduction made through GATT, (c) assert such reductions not of nature which represents real progress toward single market in Europe, (d) state views of various delegations on justifiability existing tariff disparities in Europe, (e) observe that GATT proceedings heretofore employed not aimed at problem single market in Europe, (f) invite advice OEEC council.
3. Although approach has certain drawbacks from US viewpoint, it appears accomplish major objectives. Dutch requesting instructions from Hague to determine if able present jointly with US. Efforts reconcile Italian views with this approach so far fruitless. Leckie (UK) has indicated may be possible go along, although may wish debate specific wording. Holmes yet to be consulted.
[Page 1354]4. Believe extremely helpful if at this stage, prior to Tuesday meeting, French and Italian governments could be impressed with fact US attaches importance to solution at Torquay embodying following elements: (a) GATT should continue play direct role in further work European tariff problem, (b) measures taken in dealing with problem should not be such as afford escape to OEEC countries from obligation increased trade liberalization. Italian position particularly difficult. Italians seeking avoid definite action at Torquay through proposal to refer issue back to governments.
Sent Department 456, repeated information London 204. Paris 44 for OSR, Rome 11.