740.5–MSP/1–1852
The Netherlands Ambassador (van Roijen) to the Secretary of State
The Netherlands Ambassador presents his compliments to the Honorable the Secretary of State and has the honor to inform him of the following:
The existence of section 104 of the Defense Production Act is a source of continuing concern to the Netherlands Government and to the Netherlands business community and public in general. Press comments in the Netherlands continue to stress the contradiction between United States efforts to promote multilateral world trade on the one hand and the existence of the present import restrictions which are in no way related to defense production on the other. Thus, these restrictions tend to cause increasing doubts among the Netherlands public as to the basic aims of United States policies towards Europe in general [Page 1459] and as to United States support of endeavours to close the Netherlands dollar gap in particular.
In conformity with the resolution adopted at the sixth session of the Contracting Parties of the General Agreement on Tariffs and Trade the Netherlands have abstained from taking measures of a compensatory nature. It is sincerely to be hoped that the need for any such measures will soon entirely cease to exist by early repeal by the United States Congress of section 104.
That repeal will be an important factor in restoring the faith of the Netherlands people in United States leadership in international economic matters and in the sincerity of the United States aim of strengthening the European defense effort.