Foreign Relations of the United States, 1948, General; the United Nations, Volume I, Part 2

560.AL/7–848: Circular telegram

The Secretary of State to Certain Diplomatic Missions ¹

confidential

Washington, July 8, 1948—8 a. m.

1. On June 26 President signed H.R. 6556 extending Trade Agreements Act to June 30, 1949. In statement issued that time President said he intended proceed near future with plans for bringing other countries into General Agreement on Tariffs and Trade (GATT).²

2. The item, Scheduling Future Tariff Negotiations, is included agenda Second Session Contracting Parties to GATT opening Aug 15 [16] Geneva. To prepare for and facilitate discussion this item and in light one year extension TA Act and President’s statement, interdepartmental Trade Agreements Committee has approved following line of action:

(a) Proposal has been made to Wyndham-White, Executive Secretary, Interim Commission for ITO, that Chairman Contracting Parties to GATT (Wilgress, Canada) immediately address communication to Governments signatories Final Act Habana not also signatories Final Act Geneva, inquiring whether such countries would be interested acceding GATT near future, including in conjunction therewith carrying out of tariff negotiations with contracting parties to GATT. These countries are: American Republics: Bolivia, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Mexico, Nicaragua, Panama, Peru, Uruguay, Venezuela; British Commonwealth: Ireland; Europe: Austria, Denmark, Greece, Italy, Portugal, Sweden, Switzerland; Middle and Far East: Afghanistan, Egypt, Iran, Iraq, Liberia, Philippines, Republic of Indonesia, Transjordan.

(b) U.S. missions in (1) countries referred to in (a) above (with exceptions and qualifications mentioned subpara 2(c) below) and (2) Argentina, Honduras, Paraguay, Finland, Iceland, Saudi-Arabia, Turkey, Ethiopia, Israel, Nepal, Yemen and Siam should be informed foregoing and requested discuss these developments informally with appropriate officials Gov to which accredited. In doing so should state this Gov desirous ascertaining soon as possible whether Gov concerned is interested in early accession GATT, and if so whether it would wish initiate bilateral exploratory conversations determine whether basis exists for tariff negotiations with US within framework GATT. Such a basis would depend primarily on whether respective country was principal or important supplier US imports commodities on which duty not already reduced in Schedule XX GATT maximum of 50 percent permitted under TA Act or bound free. It is of course not expected that basis would be found for number smaller countries which might nevertheless accede GATT without concluding tariff negotiations with US and possibly other contracting parties. Upon accession by any new country to GATT any existing trade agreement between US and such country would be suspended as was done in case UK, France and other countries. It should be explained that TA Act will again be before Congress for renewal in period preceding June 30, 1949 and that consequently US Govt feels any tariff negotiations it might undertake under present Act must be concluded prior consideration by Congress legislation for its extension beyond June 30, 1949. Should be emphasized this is merely preliminary inquiry and should not be construed as proposal enter into tariff negotiations; that until response each Gov to which inquiry addressed is obtained, and the matter considered at Second Session of Contracting Parties, US cannot of course make any definite commitments. Moreover, under procedures required by Trade Agreements Act, we would have to issue formal public notice intention negotiate with other country including list products under consideration for granting concessions by US. Such notice would probably have to be issued by middle Oct at latest and preferably earlier. Definitive negotiations could then be opened soon as practicable after first of year.

(c) Republic of Indonesia not to be included because Netherlands Indies presently included GATT, including Schedule II–C, as part Kingdom of Netherlands; Philippine Govt to be approached re accession GATT with explanation that trade agreement between Philippines and US prohibited under Philippine Trade Act of 1946 but probably no legal impediment on part US to Philippines becoming contracting party GATT, as amended by new Article XXXV at Habana; inquiry to be addressed to Trans Jordan Govt with statement inquiry not to be construed as diplomatic recognition of Transjordan by US Govt.

3. For time being foregoing for your background info only. As soon as response from Chairman Contracting Parties to proposal mentioned para 2 (a) above obtained missions countries mentioned above will be instructed whether proceed as outlined para 2 (b) and (c).³

Marshall

1. Sent to all diplomatic missions except Bogotá and Mexico.
2. For text, see Public Papers of the Presidents: Harry 8. Truman: 1948 (Washington, Government Printing Office, 1948), p. 385.
3. On July 9, after receiving word that Mr. Wyndham-White was addressing inquiries to non-GATT governments, the Department instructed United States Missions to proceed with the discussions. On August 18, the United States Delegation at Geneva reported in telegram 1023, not printed, that a follow-up had been sent to all countries not responding to the July 9 inquiry. The Department in a circular telegram, August 20, 1948, 4 a. m., not printed, asked its missions in ERP countries to “discuss this matter urgently with appropriate high officials and state US Govt earnestly hopes Govt you accredited is disposed seek early accession GATT and will so reply Chairman Contracting Parties. By such action it will he taking specific steps fulfil obligations reduce barriers to international trade embodied in OEEC Convention and reaffirmed in bilateral aid agreements recently concluded with US.” (560.AL/7–948, 8–1848, 8–2048)