394.31/10–2451: Telegram

The Secretary of State to the United States ( GATT ) Delegation2

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Gatt 124. For Leddy—deliver before 9 AM Oct 25.

1. State and Agr believe text resolution on Section 104 acceptable. Have no objection reference possible withdrawal concessions or other GATT obligations so long as clear such withdrawals cannot be made unilaterally. As we read resolution, we believe adoption res in present form would not prejudice our position unilateral withdrawal not permitted under resolution. If you feel our conclusion incorrect, suggest Del either (a) make statement in plenary or WP report (if there is one) indicating our interpretation res does not permit unilateral withdrawal, or (b) seek modification language res make this point clear. If Canadian or other dels assert in private discussion that res would permit unilateral action, USDel should in such discussion make clear its contrary interpretation res. USDel should seek to avoid Canadian or other dels making any statement in record supporting interpretation permitting unilateral withdrawals. If they should put such statement into record, USDel should record its contrary view.2

Here follows instruction on another subject.]

Acheson
  1. Repeated to Ottawa as 118.
  2. At the close of the Sixth Session on October 26 the Contracting Parties noted regarding this matter:

    • “1) that the concessions granted by the United States to several contracting parties had been nullified; 2) that the circumstances are serious enough to justify a number of the contracting parties in withdrawing concessions which they had granted to the United States; and 3) that the Executive Branch of the United States Government intended to seek repeal of Section 104. Without prejudice to the right of any contracting party to seek redress, the Contracting Parties advised those countries affected to wait a reasonable time for the situation to be rectified through the repeal of Section 104 and asked the United States Government to report not later than the opening of the Seventh Session on action taken.”

    (Report to the Secretary of State by the Chairman of the United States Delegation to the Sixth Session of the Contracting Parties to the General Agreement on Tariffs and Trade, held at Geneva, Switzerland, September 17–October 26, 1951, GATT Files, Lot 63 D 134, Box 268, “Miscellaneous Data GATT VI”) (GATT Doc. GATT/CP.6/51, 25 October 1951, GATT Files, Lot 66 D 209, Box 454)