472. Circular Telegram 1903, May 71
Rey-Marjolin visit. Rey and Marjolin, while stating that ecretement proposal did not represent fixed EEC position, proceeded to discuss as if in fact it were and made stiff defense.
U.S. position on negotiating plan as presented by Blumenthal in Geneva was reiterated. Marjolin asked for U.S. recognition of high tariff problem and invited a substitute for ecretement. The U.S. rejecting ecretement as basis for discussion, held firmly to linear approach.
On agriculture, Rey and Marjolin made clear that inclusion of agriculture in negotiations was not in question. EEC prepared to discuss all agricultural products in negotiations, but would make no commitments now as to nature or extent of liberalization. They rejected U.S. proposal to treat agriculture in three categories—those covered by tariffs, those covered by other restraints, and those for which commodity agreements are to be negotiated. Linear cuts should not necessarily apply to agriculture, they maintained. [Facsimile Page 2] Agriculture should be treated as a special problem.
EEC firmly resisted proposed interim arrangements on agriculture under which each contracting party shall pledge not to increase agricultural import restrictions while negotiations are in progress. U.S. reiterated its belief that such an agreement is necessary to dispel fears of unilateral EEC action doing further damage to U.S. agricultural trade.
Herter pressed for clarification of how agriculture would be treated in negotiations by the end of 1963 at the latest. He made clear that U.S. could not proceed with industrial products negotiations if prospects for significant liberalization of agricultural trade were not reasonably good. Rey agreed on end of 1963 as reasonable deadline.
On nontariff obstacles, EEC suggested preliminary discussions should begin this fall. Herter agreed, with proviso that these should not be long delayed. EEC wanted have initiative in this field.
In view of these discussions, probability is that GATT Ministerial will not resolve major problems on tariff reduction formula and agriculture, but Rey hopes that these will be settled before August and the end of the year, respectively.
[Facsimile Page 3]Rey and Marjolin suggested that Ministerial meeting might result only decision that negotiations would take place along lines of agreed principles of Working Party report. Schedule and negotiating machin[Typeset Page 1871]ery, such as establishment of Tariff Negotiations Committee, might also be agreed upon by Ministers.
Atmosphere was alternately tough and cordial, but posts should stress only cordiality of talks in discussion with host governments.
- EEC Discussions: Rey–Marjolin visit. Limited Official Use. 3 pp. Department of State, Central Files, FT 7 GATT.↩