Office of the Historian

394.31/10–2351: Telegram

The United States ( GATT ) Delegation to the Secretary of State

confidential
priority
Geneva, October 23, 1951—11 p. m.

Tagg 109. Fol is text draft resolution re cheese drafted by Canad and agreed to by several other dels. Apparently because strong polit pressure that may develop in Canad for unilateral action before next session, Canad desire not use language implying action under Art XXIII, para 2 cld not be taken unilaterally without prior CP sanction. Though USDel cannot accept interpretation permitting unilateral action, willing consider res along these lines, probably merely referring rights under Art XIII, para 2 rather than withdrawal concessions determined appropriate. Any comments desired soonest.

  • “The contracting parties.
  • “Taking note of statement made on Sept 24 by US rep on Section 104 of US Defense Production Act under which the US Govt has imposed restrictions on importation into US of a number of dairy products;
  • “Taking note with satisfaction of strong determination on part of the Exec Branch of US Govt, as indicated in this statement, to seek repeal of Section 104 of US Defense Production Act, and of vigorous efforts which it has made with a view to speedy action;
  • “Taking note of further statement on Oct blank by US rep reporting that, in spite of these efforts, US Congress had concluded its blank session before it cld address itself to repeal of Section 104;
  • “Recognizing that concessions granted by US Govt and guaranteed to all CPs under the gen agmt have been nullified within the meaning of Art XXIII of the gen agmt;
  • “Recognizing that a large number of CPs have suffered serious damage as result of this nullification;
  • “Recognizing further that import restrictions in question constitute an infringement of Art XI of general agreement, and that any CP concerned has right to suspend, in accordance with para 2 of Art XXIII, such obligations or concessions under the general agreement as are determined to be appropriate in the circumstances;
  • “Resolve, without prejudice to right of any CP to take action in accordance with provisions of para 2 of Art XXIII,
  • “To counsel the CPs affected, in view of continuing determination of the Exec Branch of US Govt to seek repeal of Section 104 of US Defense Production Act and the high priority which it has stated it will give to this matter at opening of next session of US Congress, to afford to US Govt a reasonable period of time, as it has requested, in order to rectify situation through repeal of Section 104 of US Defense Production Act; and
  • “To request US Govt to report to CPs at as early a date as possible, and in any case not later than opening of seventh session of CPs, on action which it has taken.