28. Memorandum From the Secretary of State to the President1
SUBJECT
- Escape Clause Action on Bicycles
The Governments of Great Britain and certain Western European countries have indicated great concern about the Tariff Commission’s recommendation to increase duties on bicycles. Ambassador Aldrich sends you a personal message,2 which I enclose, emphasizing the potentially serious effect on Anglo-American trade relations of the proposed increase. The British have in addition delivered a strongly worded Aide-Mémoire3 stressing the serious effect of such an increase on future US-UK trade relations.
Acceptance of the Tariff Commission’s recommendation could stimulate adverse political and psychological effects among our Allies, far out of proportion to the grievances claimed by the United States industry. This case appears to be a crucial one in terms of the future of our announced trade policy.
I, therefore, recommend that the Tariff Commission proposal to increase bicycle duties be turned down.
I am acutely aware, however, of the relationship of the case to H.R. 1. It seems most important that the Tariff Commission’s recommendations be turned down in a manner that is not prejudicial to the enactment of H.R. 1. I think it will be helpful if representatives of the Department discussed procedures in this matter with Dr. Hauge.
- Source: Department of State, Central Files, 411.414/3–2455. Confidential. Drafted by Frank Taylor of the Office of British Commonwealth and Northern European Affairs and Fuqua.↩
- Supra.↩
- Dated March 25, 1955, not printed. (Department of State, Central Files, 411.414/3–2855)↩
- Printed from a copy which bears this stamped signature.↩