411.006/8–2851
The Danish Ambassador (de Kauffmann) to the Secretary of State
The Danish Ambassador presents his compliments to the Honorable the Secretary of State and has the honor to inform the Secretary of the following:
As already pointed out in previous notes,1 the Danish Government considers restrictions of cheese imports into the United States of the nature now implemented incompatible with the international obligations of USA as set out in the GATT-agreement. Since no quantitative restrictions of cheese imports into the United States were in force when the United States signed the GATT-agreement in the autumn, 1947 the United States Government in the view of the Danish Government [Page 1441] must be bound by Section XI of the GATT-agreement not to institute such restrictions. The Danish Government is aware of the fact that Articles XI A, XII, XVIII, IXX and XXI of the said agreement, subject to certain conditions authorize exemptions from the general interdict against quantitative restrictions. It seems, however, that as far as American cheese imports are concerned prevailing conditions do not warrant the rigoristic steps now taken by the United States to limit cheese imports, nor do they bring such steps into harmony with the GATT-agreement.
Failure on the part of the United States to observe international obligations under the GATT-agreement has caused disappointment and concern in Denmark particularly since considerable means and efforts have been invested in an expansion of Danish cheese production in confidence of the encouragement offered by ECA and in the hope through increased dollar earnings to attain the viability aimed at by the Marshall plan.
This concern has been the more aggravated as the period chosen by the United States authorities as a base for the quota arrangement is particularly unfavorable for Denmark.
Denmark’s total cheese exports to USA in 1948, 1949 and 1950 were 394, 613 and 1896 tons respectively, out of which Blue Cheese constituted 354, 529 and 1576 tons.
During the American financial year 1950-51 the exports amounted to 2756 tons, out of which Blue Cheese accounted for 2319 tons.
During the first 6 months of 1951 exports totalled 1494 tons, 1259 tons of which were Blue Cheese.
Provided that the importers utilize the quota by buying from the individual exporting countries in the same proportion as has been applied for so far, the above mentioned basis period (1949–50) will result in a reduction of the monthly Danish cheese exports to the United States during the remainder of 1951 to less than of the monthly exports during the first 6 months of the current year.
For the purpose of comparison with Denmark’s cheese exports to USA prior to the second world war the following information may be given:
In 1937 Denmark’s export of cheese to USA—the major part of which was Blue Cheese—totalled 2228 tons and in 1937-40 averaged about 2000 tons per year.
A reduction on basis of the planned base period (1948-50) will com-sequently curtail the monthly cheese exports from Denmark to USA to about ⅓ of the pre-war level.
The Danish Government feels confident that upon further consideration of the matter the American Authorities will again bring their import regulations into conformity with international obligations. Pending an adjustment of the present regulations to that end [Page 1442] the Danish Government must urge that in order to minimize the damage that will be caused in the meantime the base period be changed forthwith from 1948–50 to the first six months of 1951.