20. Telegram From the Delegation to the Ninth Session of the General Agreement on Tariffs and Trade to the Department of State1
Tagg 367. Section 22 application debated plenary today and sent to working party. Level of debate high but somber in tone, reflecting sense of crisis in affairs of GATT as result action by its leading member. Twenty delegations spoke. All except Brazil, which stated would not accept waiver under any circumstances, appreciated considerations connected with Congressional presentation which led to US request and importance firm US participation new organization, but expressed most serious concern at implications for their own trade with US and for future of GATT. Canada, New Zealand, Netherlands pointed out possibly injury to their trade. Many speakers emphasized difficulty for their governments in living up to their obligations if US got exemptions from some of its major obligations. France, Sweden, Italy, Austria and several others said US problem was no different instance from hard-core European problem and both should be treated on same basis. UK stated they would have to have facilities for their problems roughly equivalent to those received by US.
France for obvious reasons urged that US waiver be decided first and then applied to solution European hard-core problem.
Several countries emphasized inequity special treatment for US and additional imbalance such waiver would create in agreement.
[Page 83]No discussion terms proposed waiver but many countries urged that it be limited to existing restrictions and contain time limit.
Only countries indicating clear support for waiver were France and Greece.
Discussion in steering group after plenary clearly indicated group felt US application had substantially diminished chances placing significant restrictions on use hard-core quotas.
Working party discussion will begin Friday afternoon. Statements UK, Canada and Australia being airpouched.
- Source: Department of State, Central Files, 394.41/2–355. Official Use Only.↩