Editorial Note
In a series of telegrams from June 1–3 (Annecy 173, 174, 175, and 184), the United States Delegation reported at length the details of a proposed formula in “continuous day and night meetings on South African matter”, whereby the United States would recognize the right of South Africa to discriminate in its import policy in favor of “war-disrupted countries” rather than “soft-currency countries”. The Department gave conditional approval to the scheme in its telegram 169, to Annecy, June 3 (560.AL/6–249). However, Annecy reported further on June 9 (telegram 204, 560.AL/6–949) that “Further discussion revealed tentative compromise … was understood differently by various parties … under these conditions obvious plan would not meet conditions your 169 … Working Party is completing report here to conclude consultations which will indicate divergent points of view on issues involved but will not reach any conclusions. To try to press for conclusions at this time would involve risk defeat on substance added to reluctance delegates to push to definitive conclusion in a consultation this character.” (560.AL/6–949) (This was the first application of the consultative procedure provided for in Article XII of the General Agreement.)
The Chairman of the United States Delegation (Willoughby) subsequently reported to the Secretary of State: “The principal interest of the United States in these consultations was to ensure that any discrimination against dollar countries involved in the South African restrictions was necessary and justifiable under Article XIV of GATT. The consultation enabled the United States to make its viewpoint clearly known to the South African Government in advance of the imposition of its new restrictions, and it gave the South African Government an opportunity to consider in advance the effects of the proposed measures not only on its trading position but on its relations with the United States and other countries.” (Public Official Report to the Secretary of State by the Chairman of the United States [Page 693] Delegation, transmitted under cover of a letter of November 10, 1949, neither printed, 560.AL/11–1049)