273. Information Memorandum From the President’s Assistant for International Economic Affairs (Flanigan) to President Nixon1
- Trade Negotiation Objectives
Attached for your information (Tab A) is a memorandum from Secretary Rogers forwarding a report from Under Secretary Irwin on US-EC consultations in Brussels last month. In his report, Irwin cautions that we not underestimate the serious difficulties ahead with the EC and points to their insistence that the forthcoming trade negotiations involve reciprocal concessions.
In this regard, Irwin refers to a draft Treasury memorandum on trade negotiating objectives2 suggesting a non-reciprocal basis for those negotiations and the possible avoidance of general industrial tariff reductions. Irwin fears that such an approach might jeopardize the present “state of relative calm” in our relations with the Europeans.
I am reworking the draft memorandum, based on discussions with Treasury, STR, State and OMB. When we have either reached agreement or narrowed the areas of disagreement I will report to you.
- Source: National Archives, Nixon Presidential Materials, NSC Files, Subject Files, Box 402, Trade, Volume V 1/72-4/7/73. Confidential.↩
- Neither Connally’s draft memorandum nor a final text was found. On May 16 President Nixon announced that George Shultz would replace Connally as Secretary of the Treasury. See Public Papers of the Presidents of the United States: Richard Nixon, 1972, pp 593-596.↩
- Confidential; Nodis. Rogers’ May 1 covering memorandum to the President is not printed. It reads in part: “our aim is to try to deal with our monetary and trade problems with the enlarged Community, whose ten members generally parallel the Western European membership of NATO, in a manner which will both benefit our long-term economic interests and avoid unnecessary strains in our alliance relationships.” Rogers indicated Irwin would be working with Connally, Eberle, Flanigan, and others with an interest in trade issues on options and policy recommendations for the President’s consideration following his return from his late-May trip to the Soviet Union.↩
- See Documents 261 and 262.↩
- See footnote 2 above.↩
- Reference is to the agreement on a realignment of exchange rates reached by the G-10 Ministers at their meeting December 17-18, 1971, at the Smithsonian Institution in Washington. For documentation, see Foreign Relations, 1969–1976, vol. III, Documents 221 ff.↩
- Irwin had been in Santiago for the UNCTAD III Ministerial earlier in April. See Document 146.↩