411.549/8–2851
Memorandum of Conversation, by Mr. Daniel M. Lyons of the Office of Western European Affairs
Subject: Affect of Andresen Amendment on Exports of Cheese from Switzerland.
| Participants: | Dr. Fritz Real—Chargé d’Affaires—Swiss Legation |
| Mr. Harold F. Linder—Acting Assistant Secretary for Economic Affairs | |
| Mr. Daniel M. Lyons—WE |
Dr. Real called upon Mr. Linder to present a note1 protesting the application of the Andresen Amendment to cheeses imported from Switzerland. He pointed out (1) that the trade liberalization program of the OEEC would be affected by the restrictions placed by the U.S. on the imports of cheese, since European countries could see no reason to lower barriers to trade while one of their major markets was raising barriers.
(2) The Swiss Government felt that cheeses of the type manufactured in Switzerland did not fall within the purview of the Andresen Amendment because (a) Swiss cheeses were much higher priced than U.S. products and therefore did not interfere with production in the United States and consumption of the U.S. products; (b) U.S. imports of Swiss cheeses in 1950 were equal to less than 1% of total U.S. consumption and did not threaten U.S. production; (c) the cheeses exported by Switzerland were specialty types not in direct competition with U.S. types.
(3) A quota based on 1948–49–50 imports was not representative of the true situation because Swiss exports had been greatly restricted in 1948 and early 1949 to provide emergency food for Europe.
(4) The type of quota system established by the Department of Agriculture was in contradiction to Article VII of the Swiss-U.S. Trade Agreement of 1936.
In addition Dr. Real observed that while U.S. production of cheeses had practically doubled, U.S. imports of cheese from Switzerland, which had exceeded 11 million pounds in pre-war years, had not even reached 8 million pounds in 1950. Furthermore, the cutback resulting [Page 1443] from the application of the Andresen Amendment would bring Swiss exports down to 6 million pounds per year.
Mr. Linder received the note and stated that the U.S. was aware of the problems presented by the Andresen Amendment and referring to the President’s message to Congress noted that the Administration was attempting to secure its repeal. He stated that the Administration recognized fully that the Amendment was contrary to the spirit of our announced trade policy and that it might well justify compensating concessions on our part under GATT or other treaty obligations. Furthermore, the U.S. would at an appropriate time, give consideration to the possibility of some action to establish a more equitable base period. He stressed that the United States would carefully and sympathetically take into account the position of the Swiss when considering the possibility of remedial measures.
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