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

394.31/9–651: Telegram

The Ambassador in Italy (Dunn) to the Secretary of State

confidential

Rome, September 6, 1951—8 p. m.

1118. Re Embtel 1108.¹ FonOff memo dated September 4² re felt hats and hat bodies makes following points:

1. Measure effective December 1, 1950 invoking escape clause on felt hats and bodies originally intended to damage Czecho trade, but has actually harmed Western countries, incl Italy.

2. Compensations given Italy by US at Torquay insufficient to offset damage to Ital hat industry which now in serious crisis with shutdown and dismissals imminent.

3. US importers also seriously affected and have protested to Tariff Comm.

4. GATT working group studying Czecho protest on US action under Art XIX (GATT/CP/106, March 27, 1951) stressed such action should be of temporary duration and subject subsequent reconsideration in light market conditions with view restoring concessions.

5. Since imports Czech hats and bodies now eliminated and will not reappear on US market. Italy would like know whether US intends reconsider measures.

See Toeca A–529, Feb 23 re damage to Ital hat industry.²

Translation of Ital memo follows by desp.²

Dunn

1. Dated September 6, p. 1397.
2. Not printed.
2. Not printed.
2. Not printed.