394.31/10–950: Telegram

The Secretary of State to the United States Delegation to the Torquay Conference


57. USTAC. For Corse. Re procedures urtel 51, Oct 9, para 1(1),1 US prefers avoid separate hearings, public notice, etc. Prefer discuss compensation within list items already published for Torquay negots if leeway exists. No legal difficulties contemplated here. Recognize [Page 1527] compensation might of course require additional auth from Pres. This preferable to (a) withdrawal compensatory items by other country which wld reduce scope of GATT or (b) consideration items not listed Torquay which wld require new public notice, etc. In arguing for alternative (1) del might point out that published list already includes most of items in which CP’s directly concerned have substantial interest.

Re para 1(2). Tar Com “Procedure and Criteria” (copy pouched) page 6 construes “unforeseen developments” as fol: “When imports any commodity enter in such increased quantities and under such conditions as cause or threaten serious injury, this must in light objective TA program and of escape clause itself be regarded as result unforeseen developments.” Since tariff concessions made to increase imports, cannot be argued mere increase is unforeseen, but where there such large percentage increase which has been found actually result injury, this situation has not been foreseen, therefore properly interpreted as unforeseen development.

Re para 2. No objection informal discussions under pledge of secrecy.

Re para 4. We prepared issue press release concurrently with formal presentation matter CP’s. Our only concern is whether CP’s may construe public announcement as arbitrary action our part. Vitally important however there be no leak and no possibility that first news our action come from Torquay. Press announcement wld precede Presidential proclamation but no difficulty that respect. If you decide secrecy likely not be maintained advise us exact day and hour of presentation CP’s and we will coordinate press releases to coincide. Tar will issue substantive release and State will issue supplementary statement noting first time clause applied and pointing out CP’s being consulted.

Re compensation, make clear that although termination hat concession effective Dec 1 we prefer that compensation be made effective only when Torquay concessions enter into effect. (You, of course, realize that for US make compensatory concessions effective prior that date be very objectionable from viewpoint public relations.) If CP’s object, point out that US has record of putting its concessions into effect (subject to rights withholding) promptly after conclusion negots, and that US wld contemplate giving effect compensation promptly after end Torquay negots. Also stress that compensatory action must be coordinated with other action Torquay and time lag not much greater under our preferred arrangement owing time needed for consultation.

Proclamation will be issued Nov 1 at latest even though consultation not completed. However Dept wishes fullest report prior that date.

  1. Not printed.