394.31/9–2551: Telegram
The United States ( GATT ) Delegation to the Secretary of State
Tagg 29. Summary number 6.1 Netherlands-Danish complaint against US import restrictions on dairy products strongly supported by Italy, New Zealand, Norway, Australia, France, Canada and Finland. They were all gravely concerned, not only with the nullification and impairment of concessions, but more importantly with serious implications of violation of principles of agreement. Number dels indicated matter of importance as test case GATT’s effectiveness. Also questioned whether it meant basic change US foreign economic policy. Netherlands and Norway pointed out action had effect of hindering their attempts to become independent of outside economic aid; Netherlands and France pointed to the curtailment of US exports that had resulted. Although not directly affected, UK and Sweden felt matter of fundamental importance and urged prompt and effective action. Czechoslovakia expressed view that action clearly violation.
Thorp expressed regret situation had arisen and presented in detail legislative history. He stressed that vigorous efforts being made by executive branch to obtain repeal of measure which clearly wld be happiest solution problem. If it becomes apparent these efforts not likely to be successful, US Govt wld anticipate entering immediately [Page 1452] into appropriate consultations with interested govts. He emphasized this particular incident must not be interpreted as indicating basic change in US foreign economic policy, and cited trade agreements act renewal as indication of legislative intent this area. He also pointed to McCormick’s2 and his statements in hearings3 as indication executive intent.
In summarizing, chairman stated discussion revealed general agreement that section 104 not in conformity with Art XI. If US executive branch’s efforts to obtain modification of section not successful, matter shld be brought up under Art XXIII and possibility of withdrawing concessions from US considered. Canadian del indicated if situation not corrected it may still lodge complaint this session seeking retaliatory action. CPs agreed to note Thorp’s explanatory statement, await further developments and retain item on agenda this session, and if necessary, also on next.
[Here follows discussion on another matter.]
- This was a daily telegraphic summary of the United States Delegation to the Sixth Session of the Contracting Parties at Geneva. For the composition of the United States Delegation to the Sixth Session, see footnote 2, supra.↩
- Clarence J. McCormick, Under Secretary of Agriculture.↩
- Regarding those hearings, see footnote 2, p. 1449.↩