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

411.656/11–2451

The Department of State to the Italian Embassy

Memorandum

The Department of State acknowledges the receipt of the Italian Embassy’s memorandum of November 24, 1951 concerning possible restrictions on United States imports of olive oil. The Embassy’s note expresses particular concern over the possibility that the United States might adopt quantitative restrictions on imports of olive oil under the provisions of Section 104 of the Defense Production Act of 1951, or invoke the “escape clause” (Article XIX) of the General Agreement on Tariffs and Trade in order to increase the rates of duty on edible olive oil.

The Embassy’s note has received close study in the Department and its contents have been discussed orally by an officer of the Department with an officer of the Embassy. With respect to possible action on olive oil under Section 104 of the Defense Production Act, the Department of Agriculture has informed the Department of State that there is no plan or intention to bring olive oil under Section 104 at this time. The Department of Agriculture announced on January 7 the establishment of a price support program for the 1951 domestic crop of olive oil. A copy of the announcement is enclosed.¹ No restrictions are placed on imports of olive oil in connection with this price support program. As the Department of State has indicated previously, the Administration is continuing its efforts to obtain repeal of Section 104 and will oppose vigorously, the extension of its provisions beyond the present termination date of June 30, 1952.

With respect to possible action under the escape clause (Article XIX) of the General Agreement on Tariffs and Trade; it is the practice in this country for the United States Tariff Commission to make an investigation before any action is taken, in order to determine whether or not the domestic industry concerned has been seriously injured or is threatened with serious injury in accordance with the provisions of the escape clause. The Tariff Commission is required by law to conduct an investigation upon the application of any interested party. To date, the Commission has received no application for an escape clause investigation on olive oil.

It is apparent from the foregoing that no import restrictions have been applied by this Government on olive oil and none are pending at this time. The Department of State has noted the Embassy’s concern with respect to any possible future restrictions and has conveyed the Embassy’s views on this subject to the interested agencies of this Government.

Washington, March 20, 1952.

1. Not printed.