88. Memorandum of a Telephone Conversation Between the President’s Assistant (Adams) and the Secretary of State, Washington, May 23, 1957, 8:38 a.m.1
The Pres signed the wool recommendation but we have not put it out yet.2 A told the Pres he would call the Sec because of the contrary view from State. The overriding issue was statistics of the domestic wool industry which look pretty bad. A mentioned the combat with the cotton people and how they want to beat OTC and HR1 and take authority away. We have to negotiate them out of business—according to them. The Sec said they indict State for making recommendations and think we don’t see their side. We are trying to make them see OTC is an organization which will give them a broader base of considerations when negotiations come up. A said on the basis of the jam we are in we are pushed in reluctantly—he wants OTC so signed. The Sec does not know if it makes a great [Page 237] deal of difference whether Congress pulls down our trade structure or we do it ourselves. A said it is one item. The Sec said it adds on to lead and zinc and the cumulative effect will satisfy the world they cannot depend on US markets. The whole purpose of our trade agreements is being frustrated. The Sec went into a discourse on this and mentioned lead and zinc. Under agreements we are not supposed to put duties on these unless 2 conditions prevail—there is a finding it is due to imports and unless some compensating benefits to trade are off(?). A said if he were to give an opinion re this he would think where things are so precarious it is better to make a couple of mistakes than to risk completely this whole structure. The Sec said we are throwing it away. Then A said that is strong. The Sec said they indict State for not recommending as they want but we point out what we consider foreign policy aspects and you decide knowing both sides. It will be bad for Mexico, Peru, Australia and to some extent Canada. The Sec said he told the Pres we support the Swiss watch thing—we tried for voluntary importation restrictions on lead and zinc and so on—and this when the country is enjoying prosperity.
- Source: Eisenhower Library, Dulles Papers, Telephone Conversations. Transcribed by Phyllis Bernau.↩
- On May 24, President Eisenhower established a new tariff quota on woolen fabrics which stipulated that the rates of duty on imports in excess of 14 million pounds, estimated to be roughly 5 percent of average domestic production, would be 45 percent ad valorem instead of the lower rates which would normally apply. The texts of the White House announcement and the President’s letter of May 24, 1957, advising the Secretary of the Treasury of his action are printed in Department of State Bulletin, July 8, 1957, pp. 84–85.↩