Foreign Relations of the United States, 1958–1960, Foreign Economic Policy, Volume IV

86. Memorandum From Acting Secretary of State Herter to President Eisenhower ⁰

December 29, 1958.

SUBJECT

• Initiation of Preparations for Tariff Negotiations

At the recent 13th Session of the Contracting Parties to the General Agreement on Tariffs and Trade,¹ the United States proposed that the Contracting Parties sponsor a new round of tariff negotiations beginning in mid-1960. In making this proposal the United States Delegation pointed out that negotiations beginning in mid-1960 would fit in with the need for the six member countries of the European Economic Community to adjust their existing tariff concessions before taking their first step on January 1, 1962 toward establishing a common external tariff. Negotiations at that time would also make possible optimum utilization of the authority granted by the Congress in the Trade Agreements Extension Act of 1958.² The need to negotiate with the European Economic Community was, in fact, one of the principal points advanced by the Executive Branch in support of extension of the trade agreements authority.

The new round of tariff negotiations is certain to be extraordinarily technical and difficult in view of the complexities resulting from the development of the common external tariff. Preparations for the negotiations are correspondingly complex and time-consuming, and should be given high priority by all Government agencies concerned. I suggest that you mention this matter at an early meeting of the Cabinet with a view to encouraging members whose departments have responsibilities in this field to issue appropriate instructions to their staffs to proceed with the necessary preparations as rapidly as possible.³

A suggested statement is enclosed for your use.

Christian A. Herter ⁴

Enclosure

⁵

SUGGESTED STATEMENT BY THE PRESIDENT

SUBJECT

• Initiation of Preparations for Tariff Negotiations

On signing the Trade Agreements Extension Act of 1958, on August 20 of this year, I said, “. . .⁶ the free nations are now assured of a continuity in United States trade policy that will make possible new international negotiations to promote mutually advantageous commercial exchange and increased world productivity.”

In such negotiations under the General Agreement on Tariffs and Trade we will be faced with unprecedented complexities arising out of the tariff changes which are an integral part of the newly created European Economic Community. As a consequence, the project of preparing for and conducting the negotiations is an enormous one which presents a challenge to every agency of the executive branch concerned with the trade agreements program. It is vital that this project be promptly and carefully planned, vigorously pushed forward, and successfully concluded. This result can be achieved only with the full cooperation of every agency having responsibilities in the trade agreements field.

Under the 1958 Extension Act, authority to enter into trade agreements expires on June 30, 1962. In view of the evident complexities, even to meet this date would require immediate initiation of preparatory steps and diligent attention to every phase of the work. It must be our aim, however, to complete the negotiations and enter into trade agreements well in advance of June 30, 1962 in order that the results of our important negotiations with the European Economic Community can be made effective by January 1, 1962 when the common external tariff of the Community comes into effect.

I therefore request that every agency concerned begin at the earliest opportunity and give continuing high priority to the work required to fulfill its responsibilities under the trade agreements legislation and relevant executive orders.

0. Source: Department of State, Central Files, 394.41/12–2958. Official Use Only. Drafted by Kallis on December 18 and cleared by Birch, Frank, and Dillon. The source text bears the following notation written in an unidentified hand: “President has approved proposal and Goodpaster gave to Cabinet Secretaries. Per AJG 1/5/59.”
1. Held at Geneva October 16–November 22. For text of the U.S. Delegation report on the session’s accomplishments, see American Foreign Policy: Current Documents, 1958, pp. 1549–1556. Additional documentation on U.S. participation in the session is in Department of State, Central File 394.41.
2. See footnote 1, Document 77.
3. The Department of State had already begun its preparations. Instruction CA–4894, December 5, asked posts to discuss the negotiations with their host governments. (Department of State, Central Files, 394.41/12–558) Consultations were held with foreign embassy officials in Washington in early December. (Memoranda of conversation; ibid., 394.41/12–958 through 394.41/12–1258)
4. Printed from a copy that bears this stamped signature.
5. No classification marking. Prepared in the Department of State.
6. Ellipsis in the source text.