560.AL/2–1548: Telegram
The Ambassador in Cuba (Norweb) to the Secretary of State
199. For Lovett from Clayton reourtel 196. At informal meeting today with UK, France, Czech, Scandinavians, Belgium, Holland, Australia, New Zealand, South Africa, Canada, US presented proposal for resolution Havana Conference recommending acceptance by all governments concerned of draft agreement on MFN treatment foreign trade occupied areas. Agreement would bind signatory governments whether as occupying authorities or as governments of states trading with occupied areas to apply MFN treatment to such trade.
Reaction extremely negative. UK offered counter proposal for resolution of delegates willing sign at Havana recommending to governments concerned same agreement but in weakened form for study with a view to its being brought into effect “at an early date”.
Czech stated it would be politically impossible accord MFN treatment German goods in any manner which would become known to Czech population. Australia made similar statement regarding Jap [Page 861] goods. No support for US proposal Scandinavian and low country delegates remaining silent.
As result reception our proposal I withdrew US amendment to article 99 of charter and US proposal for separate agreement. Amendment to article 68 enabling ITO to deal with issue agreed.
Reaction our proposal probably indicative of strong attitude on part considerable number countries against goods occupied areas and possibility of unofficial boycott. Result fortifies me in belief expressed in ourtel 196 that only prompt and effective way attack problem vis-à-vis western European countries will be through insertion provision in relief legislation. [Clayton.]