394.31/2—2351: Telegram
The Acting Chairman of the United States Delegation to the Torquay Conference (Corse) to the Secretary of State
457. Re ourtel 456, February 22 [23], repeated to London as 204, Paris for OSR as 44, Rome as 11. Following is text of proposed interim report which intersessional WP on European tariff problem would make at Torquay.
1. This WP was created by decision of CP’s at special session Torquay with following terms of reference (terms of reference as in previous telegrams).
2. WP held (blank) meetings. CP’s represented at these meetings were, et cetera.
3. At present moment, Torquay tariff negotiations not completed. Accordingly, premature make final judgement as to effects of such negotiations on problem being studied by WP. It is anticipated that significant tariff concessions will emerge from Torquay which, when added to Annecy and Geneva results, will have made measurable contribution to reduction of European tariff barriers.
4. It is not too early to conclude, however, that reductions achieved at Torquay will be of such scope and magnitude as to represent real step in direction of creating single market in Europe.
5. Some delegations made it clear that in their opinion reduction of disparities and leveling European tariffs would be limited by existing disparities in production cost and social conditions. Other delegations admitted that absolute equality of European tariffs not immediately feasible in view these circumstances, but felt that much more could be achieved in reduction of existing disparities, as indispensable condition for achievement single European market as stated in OEEC Council resolution of 27 October 1950.
6. Majority of WP agreed that although methods heretofore applied in GATT negotiations had proved their worth, these methods had not been designed with purpose achieving single European market.
7. Majority of WP agreed that there existed problem of disparity of European tariffs and that WP should continue efforts in this field. They were of opinion it would be of vital importance to their work in this field that WP would be informed of opinion OEEC Council as to method, scope and general outline along which existing disparities in European tariffs could be reduced.
Sent Department (for ECA), repeated info London 205, Paris 45 (for OSR), Rome 12.