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

411.656/8–1551

The Department of State to the Italian Embassy ¹

Memorandum

The Department of State acknowledges the receipt of the memoranda from the Italian Embassy, dated July 14 and August 15, 1951, requesting the Department of State to give its attention to the recent imposition of restrictions on imports of fats, oils, cheese, and certain other dairy products with a view to avoiding any unfavorable repercussions in the trade relations between Italy and the United States.

The Embassy pointed out the adverse effects the restrictions are likely to have on the Italian economy. The Embassy expressed its belief that restrictions are not required under the law with respect to sheep’s milk cheeses, that they are not in conformity with Article XI of the General Agreement on Tariffs and Trade, and that they tend to impair or nullify tariff concessions which the United States has granted Italy in return for concessions extended by Italy to the United States.

Section 104 of the Defense Production Act was, as is known, enacted into law on July 31, 1951, and, in accordance with its provisions, the Secretary of Agriculture on August 9 imposed import restrictions on fats, oils, cheese and other dairy products. The application of the restrictions was subsequently modified to provide that the quotas for cheese be allocated according to country of origin. Shares allotted are proportionate to the trade accounted for by the individual supplying countries in the base period 1948–50.

Following enactment into law of the Defense Production Act Amendments of 1951, the President, on August 25, recommended to Congress changes in the legislation. In his message to Congress, the President asked for prompt repeal of Section 104 of the Defense Production Act, which section requires the imposition of restrictions on fats, oils, and certain dairy products. The President noted that these restrictions run counter to the United States policy of reciprocal trade agreements. Assistant Secretary of State Thorp and Under Secretary of Agriculture McCormick also testified before the Senate Committee on Banking and Currency on August 31 in support of the President’s request for repeal of Section 104. S. 2104, a bill to repeal Section 104, has been introduced in Congress by the Chairman of the Senate Committee on Banking and Currency.²

The Department of State understands the concern of the Italian Government with respect to the imposition of the restrictions on fats, oils, and certain dairy products, will continue to make every effort to have the situation remedied, and will continue to give sympathetic consideration to the representations of the Italian Government in this matter.

Washington, September 27, 1951.

1. The same reply, mutatis mutandis, was transmitted also to other Embassies as follows: Canada (September 21), the Netherlands (September 24), New Zealand ( September 26), and Denmark (September 27).
2. S. 2104 was introduced on September 7. Hearings on the bill began on September 13. The bill was reported out by the Committee on September 20 with a recommendation that Section 104 be repealed. (Senator Burnet It. Maybank, South Carolina, was the Committee Chairman.)