66. Editorial Note

On May 24, Secretary Dulles conferred with Senator George on several foreign policy issues, mostly economic matters. Dulles’ account of his discussion on the Organization for Trade Cooperation reads:

“Following discussion of NATO (to be reported by Mr. Palmer) I spoke alone with Senator George. I asked his views about the chances of OTC in the Senate. He said that he personally was sympathetic to OTC, feeling that it merely represented an intelligent and efficient way of doing what we had already agreed to do under the Reciprocal Trade Agreements Act. However, he said there was strong opposition and he doubted very much if it would be possible to get any action this year in the Senate. He was disposed to recommend letting the matter go over.” (Memorandum from Hanes to Hill and O’Connor, May 28; Department of State, Central Files, 394.41/5–2856)

Further developments on the OTC matter were summarized in Current Economic Developments, No. 499, August 7, 1956, page 4:

Trade Measures H.R. 5550, providing for US membership in the proposed Organization for Trade Cooperation, which had been introduced but not considered during the last session, was reported out favorably by the House Ways and Means Committee following hearings on the measure. Congressional leaders decided, however, not to bring the bill to a vote on the floor of the House in view of the uncertainty that a sufficient majority would be obtained. Some of the leaders felt that it would be dangerous to our foreign relations to risk any chance of defeat of the bill on the floor. Consideration of the OTC by the Congress at its next session would require reintroduction of legislation.”