Foreign Relations of the United States, 1964–1968, Volume VIII, International Monetary and Trade Policy

322. Telegram From the Mission to the European Office of the United Nations to the Department of State¹

Geneva, September 23, 1966, 1711Z.

1118. GATT. For Governor Herter from Blumenthal. BUSEC. Ref: Geneva 1103.²

Subject: Opening of US–EEC bilateral discussion of KR agricultural offers, September 23.³

1. After brief discussion procedures for remainder of series, first meeting devoted to exchange general preliminary reactions each other’s offers and indications general emphasis each plans give in forthcoming meetings.

2. U.S. opening statement said we would seek clarification and improvement of present EEC offer on specific, case-by-case basis, using criterion of expanded trade opportunities. Emphasized willingness approach with open minds and examine all means achieving real trade liberalization. Recognized Community’s achievement in tabling offers and difficulties involved, but stressed disappointment with present offers, as we understand them, and concern that expanded trade opportunities which they would produce seem extremely modest and in some cases nonexistent. Concluded that if improvements not possible, consequences for maintenance present US offer in both agricultural and industrial areas could be serious. Hoped that bilaterals would put both parties in position to assess what each needed and what each needed to do to make negotiation success.

3. EEC (Rabot) agreed that real trade liberalization goal of negotiation, and that US–EEC bilaterals of extreme importance for negotiations as a whole. EEC would discuss all its offers and examine gaps in constructive manner. After noting EEC interest in relatively unimportant list US exceptions affecting EEC exports, EEC expressed disappointment that US offers limited to tariff reduction. Said it would wish explain value of comprehensive character its own offers and discuss internal US policies affecting trade opportunities which not included in present US offer. In EEC view, inclusion in negotiation of all elements support and protection of a necessity if real trade liberalization to be achieved. Reserved right to request bilateral discussion of products now reserved for group treatment including cereals and dairy, and to require multilateral discussion of commodities which in EEC view might require such treatment. Said primary EEC emphasis would be on present and future condition of world markets in addition to expansion of export interest.

4. Tone of meeting frank and constructive. Both sides agreed no publicity desirable and that press and public have no part to play in present discussions.

5. Detailed examination will begin with bilateral meeting scheduled for September 30.

6. US opening statement follows by airgram.

Brodie

1. Source: Department of State, Central Files, FT 7 GATT. Limited Official Use. Repeated to Bonn, Brussels, The Hague, Luxembourg, Paris, and Rome and passed to the White House.
2. Dated September 22. (Ibid.)
3. Tagg A–81 from Geneva, October 13, which provided a detailed account of this first bilateral meeting with the EEC on agricultural offers, offered this general conclusion: “the tone of the meeting was good; both sides professed a willingness to discuss their offers and the points at issue between them in a specific and comprehensive manner.” (Ibid., FT 7 GATT)