560.AL/9–2947: Telegram
The Consul at Geneva (Troutman) to the Secretary of State
us urgent
niact
1059. For Wilcox and Willoughby from Brown. UK answer our proposal preferences was flat refusal on ground British offers already generous in light US offers. At Douglas’ urgent request to Bevin British have, however, agreed they would consider any proposals made by US provided general balance present offers not disturbed. This leaves negotiators Geneva free at least to consider slight improvements preference offers.
Conferred Wilgress, Coombs separately Friday evening suggesting on my personal responsibility would be tragic have breakdown multilateral agreement and might be possible reach settlement if we could secure elimination key agricultural preferences in UK and Canada. If Australia would agree might be possible secure improvement our offers beef and butter. Wilgress indicated Canada willing make contribution but Coombs said elimination canned and dried fruit preferences fantastically difficult for Australia because these industries built up under preference peopled by last war veterans and elimination these preferences would leave Australia without bargaining power for future negotiations for reduction our remaining high agricultural tariffs. Nevertheless promised consider proposal.
[Page 1005]Have now received revised Australian offers prepared prior my meeting Coombs described by Australians as final which are unsatisfactory basis agreement even without any improvement beef or butter. I am telling Coombs informally that I do not believe I can even present them TAC.
Saw Wilgress again today. He advises Ottawa greatly concerned possibility breakdown negotiations UK and failure multilateral approach and that King1 telegraphed Attlee2 urging every effort avoid this outcome. Canadian Ambassador Washington instructed make similar approach US Government and Foreign Office Ottawa will confer Atherton.3 Wilgress reports Coombs also most anxious avoid breakdown.
Coombs and Wilgress have been endeavoring bring Helmore Geneva at once in effort find solution. Helmore replied could not leave London before Tuesday evening since he is in consultation heads UK Government departments this subject. Wilgress interprets this as faint ray hope.
Wilgress reaffirmed Canadian Government attitude described by Robertson4 as reported my letter Wilcox September 24.5 Told me in strictest confidence strong group Ottawa wishes impose discriminatory import controls because of balance payments problem. Group advocating cure this situation by nondiscriminatory methods relies heavily ITO charter and proposed provisioning general agreement. Should general agreement not be signed and ITO fail hand of those advocating discriminatory path for Canada would be greatly strengthened. Our friends there much concerned this possibility.
Pillai6 advises India prepared give response our offers but awaiting UK clearance their offer elimination preference automobiles. I gave him broad outline US-UK situation. He expressed strong hope there would be no breakdown and strong advocacy multilateral approach but stated he would recommend separate agreement with US if break should come. He promised ask his government apply pressure UK obtain their waiver automobile preference India.
Probable no further substantial developments here before Wednesday. Please show this Clayton and Douglas and ask Clayton defer recommendation Secretary and President until I can report further.
Sent Department 1059; repeated London 122 personal for Hawkins, [Brown.]