Foreign Relations of the United States, 1951, National Security Affairs; Foreign Economic Policy, Volume I

394.31/4–251: Telegram

The Chairman of the United States Delegation to the Special Session of the Contracting Parties to GATT (Corse) to the Secretary of State

secret
priority

Torquay, April 2, 1951—10 a. m.

635. ReDeltel 634, rptd London 250 and Paris for OSR 63.

1. At evening mtg Apr 1 Blankenstein presented written draft with provision along lines “invite clause.”

US first succeeded diverting discussion therefrom, but later unable prevent formulation proposal Deltel 634 for submission Washington when evident it offered avenue compromise between Blankenstein and Cohen. Proposal has strong backing Melander, Blankenstein, Cohen, Reisman, Wyndham-White. Reps Belg and Den also present and in favor of compromise. Motives behind this support not completely clear.

2. Invite clause gives Blankenstein opportunity have specific European tariff proposals worked out in purely European group, undoubtedly working Paris. Altho previously agreeing few non-Eurs on WP under ten country memo, be continued worry about their discussions delaying work on European problem. Also encouraged by Melander’s proposal (Deltel 627, Mar. 30 [31]), and showed impatience US attempt amend ten country memo to meet Brit. Moreover, point (d) terms reference gives priority consideration Eur problem in WP.

3. Cohen gets general study in point (c) terms reference, thus saving face. May be influenced failure US negots in desiring prompt study new negotiating techniques. We have not referred Acheson statement before House, that no major negotiation contemplated in next three years.¹

4. Others relieved by compromise nature proposal, including possibility have WP not loaded Euros and decrease importance Paris as mtg place.

5. We obtained modifications wording to make invite clause less obviously envisage complete formulation European tariff proposals outside GATT, as avowedly intended shld be case, with GATT role largely review for policing purposes re GATT principles. Thus under compromise formulation wld probably be influenced by OEEC without opportunity other CP’s to influence result or obtain background re factors involved. However European study will proceed on basis nondiscrimination principle. We agreed submit Washington in view strong support all countries present including Canada and belief alternative wld be consideration problem in OEEC with much less GATT participation or review. Wld be very difficult get Blankenstein back to approach ten country memo if we reject compromise.

Sent Dept 635, rptd info London 251, Paris 64 for OSR.

Corse

1. Reference is to a statement by Secretary Acheson before the House Ways and Means Committee, January 22, concerning renewal of the Trade Agreements Act. For text, see the Department of State Bulletin, February 25, 1951, p. 209.