394.31/3–2051: Telegram

The Secretary of State to the Embassy in the United Kingdom 1

confidential

4267. Re GATT special session Torquay Mar 29 and 30. Dept believes highly desirable Emb make early approach appropriate FonOff and BOT officials with view obtaining modification of Holmes position re intersessional WP on Eur tariffs. Pis consult with Corse in Torquay prior to making such approach.

Dept anticipates Holmes will attempt prevent formation intersessional WP by urging non-Eur countries to resist terms ref proposed by US and ten Eur countries. Holmes will probably argue for WP along lines summarized Torquay tel 505, Mar 5, rptd to London as [Page 1363] 213. Evident objective of UK is (1) avoid exercise which may in end require reduction UK trade barriers accordance with any formula, particularly if formula limits UK freedom to choose products to be subj to tariff reduction, and (2) avoid close identification of UK with Eur community, particularly where relationship differs from that of US and Canad to Eur.

You may wish point out to appropriate UK officials that UK approach on this subject at Torquay forced situation in which UK alone voted against US and ten Eur countries. You may also wish state belief that means can be found for progressing on Eur tariff disparities problem in GATT WP, along lines which leave individual countries substantial measure of discretion in selecting products for tariff reduction. You are authorized indicate US willingness give careful consideration any proposed UK amendments to proposal for WP, provided amendments do not prejudice possibility cooperation from other Eur countries in project and provided WP operates in Paris.

US interested having WP established in Paris because Paris location will facilitate and encourage at least de facto OEEC participation and will simplify backstopping US reps. Also all Eur countries, except. UK, prefer Paris for similar reasons.

Acheson
  1. Repeated to the U.S. Delegation at Torquay as 487.