740.00119 Council/2–2048: Telegram
The Ambassador in the United Kingdom (Douglas) to the Secretary of State
urgent
664. Delsec 1559. US Delegation [London Tripartite Conference] proposes for present to handle question urtel 543, February 18 informally with French and British. In conversation with Foreign Office today it developed previous British position on amendment to [Page 865] ITO charter due to (1) doubts regarding extent obligations but imposed on occupying powers and their ability to implement them; (2) uncertainty concerning corresponding obligations of non-occupying powers; (3) difficulties arising out of quadripartite control of Germany, particularly of customs duties; (4) doubts regarding applicability of Chapter III of charter to occupied areas; (5) and fears about extension of ITO benefits to Japan. We stressed failure to extend most-favored-nation treatment to German trade would be incomprehensible to US and expressed doubt any real difficulties would arise in Germany regarding reciprocity. Foreign Office experts, when apprised latest US proposal for special agreement on extension most-favored-nation treatment to occupied areas in connection with GATT, promised immediate consideration and held out prospect for more favorable reception of this more limited proposal. They stressed importance of receiving promptly draft of such proposed agreement and explanation its relation to GATT and ITO. Anticipated there would still be difficulty about extension to Japan on which consultation would have to take place with members Commonwealth. We informed Foreign Office to later efforts to get Germany into ITO anxious at present that to best our knowledge US Government without prejudice to get agreement only that GATT countries will simply extend most-favored-nation treatment to occupied areas on basis of reciprocity.1 Also expressed confidence such reciprocal treatment could be extended by western zones.
Will pursue matter further with British, also French as soon as further information and instructions received from Department and Habana.
British are taking up matter with MG in Germany which will probably consult with OMGUS re German ability to extend reciprocal most-favored-nation treatment.
Sent Department as 664; repeated to Habana as 2, and to USPolAd Berlin as 20.
- This sentence should apparently read: “We informed Foreign Office that to best our knowledge United States Government without prejudice to later efforts to get Germany into ITO anxious at present to get agreement only that GATT countries will simply extend most-favored-nation treatment to occupied areas on basis of reciprocity.”↩