394.31/10–251: Telegram
The Acting Secretary of State to the United States ( GATT ) Delegation
Gatt 63. President today signed notification to Treas of withdrawal of trade-agreement concessions from Czech after close of business Nov 1. We are issuing following press release for immediate publication. “Pres today notified Treas that after close business Nov 1 US concessions made in trade agreements will be suspended with regard imports from Czech. Action taken in accordance Sec 5 Trade Agreements Extension Act 1951 which states in part that ‘As soon as practicable Pres shall take such action as is necessary to suspend, withdraw, [Page 1424] or prevent application any reduction in any rate duty, or binding any existing customs or excise treatment, or other concession in any trade agreement.… to imports from any nation or area dominated or controlled by foreign government or foreign organization controlling world communist movement.’
Dept announced July 31 (Press Release 689) US had determined withdraw from Czech benefits of trade-agreement tariff concessions and to request CP’s to GATT now meeting at Geneva to concur in termination all obligations between this Govt and Czech by virtue provisions of GATT.
On Sep 27 CP’s by vote 24 to 1 with 4 abstentions agreed that Govts of US and Czech shld be free to suspend their obligations to each other which occur in GATT. On Sep 29 Chairman USDel to CP notified secretariat to CP’s that US invoking rights under declaration adopted Sep 27 and suspending, effective immediately and until further notice, obligations of US with respect to Czech under GATT.
US concessions provided for in Schedule XX of GATT will continue to be applied to imports from other countries to which US is currently granting benefits of trade-agreement concessions with respect tariff matters”.