560.AL/7–1549: Telegram
The Secretary of State to the Embassy in the Dominican Republic
175. Amb Thomen informed today Depts decision withdraw sugar offer. Dept considered Factors ur 220 July 15 as well as new proposals USDel Annecy providing for maintenance offer Dom Rep with a reduction and unbinding Cuban rate and again reached conclusion offer to Dom Rep shld be withdrawn and sugar negot postponed until future meeting CPs at which time it might be possible negot Peru. Ur info: Owing wide publicity original offer and psychological and political importance attached to it both in Dom Rep and Cuba necessary weigh possible repercussions US action both countries. Consideration this in balance and factors below resulted final decision.
Dept regrets necessity this position and is aware your difficulty. Dept feels however this position in interest TA program and all concerned.
In any discussions with Doms this subject it shld be emphasized that: (a) Considered advisable maintain our bargaining position for negotiation Peru principal secondary supplier. (b) Dept maintains position that preferences not bound and will pursue its policy of encouraging elimination of discriminatory treatment in international trade. (c) Decision shld not be interpreted as departure established overall foreign economic policy or policy toward Dom Rep. (d) Present benefits insignificant owing export pattern Dom sugar. Future benefits to Dom Rep conditioned upon procedures after lapse quota system, (e) Dom economy not harmed withdrawal of offer. (f) Withdrawal preliminary offer in accordance rules procedure GATT and certain preliminary Dom offers at Annecy withdrawn. USDel Annecy instructed inform you when withdrawal formalized.