81. Circular Telegram From the Department of State to Certain Diplomatic Missions0
300. Joint State-USIA Message. President expected announce Monday1 taking escape-clause action lead and zinc. Presidential proclamation giving details will be pouched. Plan institute quotas effective October 1 restricting imports to 80 percent of average competitive imports during 1953/57 period. Quotas allocated on quarterly basis to each principal country of origin and other countries combined and subdivided into lead ore, lead metal, zinc ore, zinc metal. Principal countries affected: Australia, Bolivia, Canada, Belgium, Guatemala, Luxembourg, Belgian Congo, Mexico, Peru, Italy and Yugoslavia.
Tariff Commission report finding injury and recommending import restrictions made in April. Presidential consideration suspended while Congress considered Minerals Stabilization Plan. Since Congress failed enact plan consideration Commission report necessary.
[Page 183]Immediate action restricting imports imperative view serious aggravated distress domestic industry, sharp curtailment of production, increased commercial stocks, decline in prices and high imports.
Administration conscious importance exports lead and zinc to friendly countries. Hopeful recent international discussion in London on lead and zinc will lead to a multilateral solution of problem through further discussion. Considers long-term outlook US will be expanding market for imported lead and zinc. Our Government’s concern [about] interest of other countries shown by institution of stockpile buying in 1954 instead restriction imports when Tariff Commission found injury from imports, Administration’s recently proposed Minerals Stabilization Plan, our government’s participation in recent international discussions and desire continue them actively with hope of reasonably early solution.
In any discussions prompted by local governments or press queries or initiated at Embassies’ discretion, Embassies should orally stress (a) quotas selected in preference to tariff in this exceptional case because compatible with international discussions regarding export curtailment, our hope that a permanent solution can be worked out on international basis promptly and because quotas allow foreign countries realize larger portion proceeds from sales in US market, (b) formula for distribution quotas is genuine effort equitably share burdens of acute imbalance between supply and demand, (c) we hope action will have effect of preventing further decline in prices which foreign exporters will receive in US market and may possibly bring about slight increase those prices, (d) US action subject to review when acceptable multilateral solution worked out.
- Source: Department of State, Central Files, 411.006/9–2058. Official Use Only. Drafted by Harry Conover, Deputy Director of the Office of Inter-American Regional Economic Affairs; cleared with E and USIA; and initialed for the Secretary by Deputy Assistant Secretary of State for Inter-American Affairs William P. Snow. Sent to Embassies in the other American Republics, except Guatemala City, La Paz, Lima, Mexico City, and Tegucigalpa. A virtually identical telegram which also listed specific quotas was sent to 22 posts, including the 5 listed above, on September 18. (Circular telegram 284; ibid., 411.006/9–1858)↩
- September 22.↩