560.AL/2–1148: Telegram
The Ambassador in France (Caffery) to the Secretary of State
772. In view of Foreign Office note reported Embtel 567 February 1,1 and Alphand’s reaction to US proposed amendment ITO (International Trade Organization) charter concerning trade western zones Germany, (see also Embtel 659, February 51) I sent letter to Chauvel on this subject (Deptel 296, January 30). There follows in translation text of Foreign Office letter in reply dated February 10.
“You have been good enough to draw my attention to the position taken by our delegation at the conference at Habana with respect to the amendment to Article 99 presented by the American delegation.
The proposals of the Department of State have been made the object of careful examination by the services of the Ministry. This examination has resulted in the conclusion that the so-called proposals are acceptable with respect to substance (quant au fond), but are not acceptable with regard to their method of application.
The conference assembled at Habana, indeed, does not have competence to deal with the question raised by your amendment. Only the occupying powers in Germany can judge whether the engagements which they take or are prepared to take with respect to the foreign trade of Germany are or are not in contravention with other engagements of an international character undertaken by them.
Besides, it is difficult to understand that questions concerning Germany, which were originally made, up to the end of December, the objective of tripartite examination and which have, in fact, been discussed on a bilateral basis since the beginning of January, should now be considered by 50 nations.
On the other hand, we cannot admit that the whole of the charter, and more especially Chapter III concerning economic development, could apply immediately to Germany which, by being placed with respect to its reconstruction on the same footing as the allied countries [Page 854] devastated by the war, would immediately prejudice the restoration of these countries.
I permit myself to draw your attention to the fact that our delegation proposed to transform your amendment into a resolution undertaken by the conference which would express the wish that the powers responsible for German economic policy notify as soon as possible either the organization or the provisional committee of the organization of the decisions which they would have taken with respect to this policy. This would give, in substance, satisfaction to the desire expressed by the Department of State.
We would be equally in agreement if it was suggested at Habana that German economic policy should be, to the extent possible, in accordance with the provisions of the charter and if it was proposed to amend the articles of the charter concerning the adherence of new members in such a way that Germany or a part thereof could adhere to the organization, it being understood that this adherence could be made only if the candidacy of Germany or a part of Germany was presented with the consent of the responsible occupying powers.
These proposals in their entirety would give to the members of the organization the possibility of committing themselves not to employ, once the organization has been established, discriminatory measures in their trade with the occupied zones. The wish which you express in your letter would thus be satisfied.
It seems to me therefore that in the light of the above-mentioned considerations we can only maintain the instructions addressed to our delegation in Habana.
Since the Department of State has set forth to our Ambassador in Washington its views on the subject raised by your letter, we are asking M. Bonnet2 to advise the Secretary of State of our point of view and to propose including in the agenda of the tripartite conversations which are going to open in London a paragraph drafted in the following form: ‘study of the development of German foreign trade in its relations to the ITO’.
We are asking our Ambassador3 at London to make the same proposal to Mr. Bevin”.4
Sent Department 772 repeated London 77 and Habana for Wilcox 6.