Foreign Relations of the United States, 1952–1954, General: Economic and Political Matters, Volume I, Part 2

398.2544/3–454: Circular telegram

The Acting Secretary of State to Certain Diplomatic Missions¹

confidential
priority

Washington, March 4, 1954—8:06 p.m.

314. From State and FOA. US decision not sign International Tin Agreement will be given by Department on Friday March 5 to British Embassy for depository government and separately to Washington embassies other governments members International Tin Study Group. Embassy representatives will be invited to Department to allow opportunity discussion and delivery following aide-mémoire:

1. International Tin Agreement, terms of which established Geneva December 1953, open for signature March 1 to June 30, 1954. United States Government aware importance attached Agreement by number governments, and also aware interest shown in question whether United States prepared participate. This Government has therefore given prompt and careful consideration to matter so other interested governments might be notified of decision at earliest possible time.

2. United States Government has decided not sign Agreement. In making decision known, however, wishes make clear its position if other governments which participated in negotiations should decide that it in their interest proceed with Agreement. It is entirely possible for Agreement, as negotiated, to operate without participation United States, since Agreement did not provide for contributions by consuming countries to buffer stock and since any action to reduce production to bring in line with consumption would be taken by producing countries themselves. United States therefore does not anticipate its decision will prevent Agreement from entering into force and wishes make clear it will have no objection to such action if other governments decide it is in their interest.

3. At Geneva Conference, number of governments expressed interest in disposition to be made by United States Government of tin stocks held and to be acquired in excess of strategic stockpile requirements. This Government has now decided it will hold these stocks in insulation and any withdrawals shall be made only at direction of President as in case regular stockpile materials.

Department prepared make following explanation orally if embassies’ representatives inquire reasons US not signing: This Congress has heavy legislative program. Administration attaches great importance Congressional approval Trade Agreements renewal, foreign assistance, and other parts program already announced by President. Ratification of Tin Agreement very difficult if not impossible obtain in view opposition by American consuming industries. Submission Tin Agreement to Senate might interfere seriously other legislation.

Will avoid implying above is necessarily sole reason for decision. You authorized take such similar action with government at your discretion.

NSC decided US should take no formal position whether other governments should or should not implement Agreement, but authorized State and FOA informally encourage other nations to proceed with implementation among themselves. Accordingly, Department and FOA will so indicate to representatives in Washington but will make clear US Government is not urging such action. You authorized give similar indication in your discretion.

Will cable further instructions for press release. No public statement planned before Monday P.M. March 8.

Substantially similar cable being sent Djakarta, Bangkok, Tokyo, Singapore, and Kuala Lumpur.

Smith

1. This telegram was drafted by Nichols and cleared in the Office of the Assistant Secretary of State for Economic Affairs, the Offices of British Commonwealth and Northern European Affairs, Western European Affairs, South American Affairs, International Materials Policy, and the Foreign Operations Administration. Sent to London, La Paz, Brussels, The Hague, Canberra, Ottawa, Paris, Bonn, New Delhi, Rome, Lagos, Leopoldville, and Caracas for the Secretary.