Foreign Relations of the United States, 1951, National Security Affairs; Foreign Economic Policy, Volume I

411.436/9–1151

The Australian Embassy to the Department of State

Washington, September 11, 1951.

Aide-Mémoire

The Australian Government has considered the terms of Section 104 of the Defence Production Act as amended and has noted the statement of 9th August, 1951, by the United States Secretary of Agriculture in which were set out decisions regarding the restriction of imports of agricultural products into the United States.

The United States Government will recall that the Australian Ambassador in Washington on the 23d September, 1949, 7th October 1949 and 6th June, 1950, addressed notes to the Secretary of State regarding the prohibition of the import of butter into the United States which was then being maintained under the second War Powers Act.¹ The Australian Government was much concerned that the import controls previously applied under that Act which was understood to be temporary in character should now be continued and in some respects extended in scope under the Defence Production Act.

Australia’s interest in this matter relates to butter, cheese and dried milk. With respect to butter, the United States prohibition of imports-has nullified the tariff concession negotiated jointly by New Zealand and Australia at Geneva in 1947 and has hindered the formulation, of a balanced external marketing policy for Australian butter.

Australia is interested in the export of cheese to the United States in the Australian summer period and the Australian Government would be pleased to receive assurances that import licenses will be forthcoming if applied for by United States importers.

It has been noted that no import restriction has been applied to full! cream milk powder. However, so long as this product appears in the list of commodities which may be restricted under the Defence Production Act, the development of the trade will be hindered.

The Australian Government is disappointed that the Government: of the United States has not allowed its previous agricultural import controls to lapse but is continuing and tightening them. The Australian Government hopes that the United States Government will be able to offer assurances that Australian exports to the United States of the products referred to above will not be impeded.

It is requested that this aide-memoire be regarded as the commencement of consultations between the United States and Australian Governments in the sense of Article XXII of the General Agreement on Tariffs and Trade, and the Australian Government would be glad to receive advice as to how the United States authorities regard the measures now under discussion in relation to the provisions of the General Agreement.

1. Notes not printed. The statutory provision for extending certain import controls under the Second War Powers Act is in P.L. 69, June 30, 1951, 65 Stat. 110.