Foreign Relations of the United States, 1961–1963, Volumes VII, VIII, IX, Arms Control; National Security Policy; Foreign Economic Policy, Microfiche Supplement

438. Aide-Mémoire, April 29¹

April 29, 1961

The Department has been informed by its Delegation to the tariff conference in Geneva that the EEC has completely rejected the proposals made by the United States Delegation on April 22 for settlement of outstanding issues with respect to certain agricultural commodities in the current negotiations under Article XXIV:6 of the General Agreement on Tariffs and Trade. The Belgian Ambassador is requested to convey the following views urgently through his Government to the Chairman of the Council of the European Economic Community, in order that they may be considered by the EEC Council at its meetings scheduled for May 2 and 3.

1. The United States Government is seriously disturbed to learn that the EEC has summarily rejected the proposals of the United States Government for a settlement on the agricultural aspects of the Article XXIV:6 negotiations which the United States Delegation put forward in Geneva on April 22. In informing the United States Delegation of the rejection, the EEC spokesman indicated that his instructions precluded further negotiation and that the Community was unwilling to work toward mutually acceptable solutions through further discussion and negotiation. The United States agricultural proposals were developed with great care within the United States Government, and were reviewed at the highest levels in the appropriate Departments of the United States Government, in an effort to develop a list of requests which could reasonably be submitted to the EEC for consideration.

2. The United States Government has now also been informed that in a meeting of the Trade Negotiations Committee in Geneva on April 28 the EEC Delegation has taken the position that the EEC would not be prepared to begin Phase II negotiations with the US or other countries until the Article XXIV:6 negotiations have been concluded. The US has for its part declared its willingness to begin Phase II negotiations with all countries including the EEC, in the expectation that solutions to the unresolved problems under Article XXIV:6 would be found while the reciprocal negotiations progress. The United States Government believes that the urgent business of Phase II of the tariff negotiations cannot be further delayed and believes that the EEC must reflect seriously on the situation which will result if the EEC on the one hand will not further negotiate for acceptable settlements under Article XXIV:6, but will not on the other hand open Phase II negotiations until settlements under Article XXIV:6 have been reached.

3. The United States Government is confident that the European Economic Community shares its desire to avoid actions that would endanger the harmony of the GATT and of the wider Atlantic Community.

4. The United States Government recognizes the special problems with which the EEC has to cope in carrying the Geneva negotiations to a successful conclusion. Taking these difficulties fully into account, there nevertheless appears to be insufficient recognition of the important political and economic interests of third countries which are affected by arbitrary decisions based on factors internal to the Community.

5. The peremptory position adopted by the Community will inevitably lose support for the EEC in the United States and elsewhere. It will encourage active opposition on the part of those who will be directly and adversely affected by EEC refusal to negotiate or to make appropriate tariff adjustments to which they believe themselves entitled under the GATT. It may well alienate those who have in the past given full support and encouragement to the development of the EEC and who have defended it against unwarranted criticism.

6. Similarly, it makes it more difficult for the United States to maintain a liberal trade policy toward the EEC, if the Community invites the criticism that it is moving in a protectionist direction. Evidence of a restrictive trade policy on the part of the EEC will lend new encouragement to protectionist forces in the United States.

7. The United States Government therefore urges that the Community give full and immediate consideration to the list of requests submitted by the United States Delegation in Geneva on April 22, so that negotiations may lead to an early resolution of the problems remaining unresolved. The United States Government invites the Council to put forward suggestions which will enable the outstanding differences to be resolved in a mutually satisfactory manner and which will preserve the close relationships which have been maintained with the EEC since its inception.

Attachment

April 28, 1961

SUBJECT

• Démarche to EEC on Rejection of U.S. Agricultural Package

Carl Corse in Geneva has reported that the EEC has already rejected the revised agricultural package which was presented to them on April 22. Apparently this rejection was without benefit of careful consideration or reference to the EEC Council and was not tempered by any suggestion for further negotiations. Carl Corse has urged, and Ambassador Butterworth agrees, that a démarche be made urgently to the EEC, in order to bring the matter before the EEC Council at its meeting on Tuesday, May 2. Accordingly, arrangements have been made for you to see the Belgian Ambassador, Mr. Scheyven, who would in this instance act as the channel to the Chairman of the EEC Council, the Chairmanship being filled by Belgium at the present time.

There is attached an Aide-Mémoire for presentation to the Ambassador. It is suggested that you orally make the same points to the Ambassador.

1. Demarche to EEC on rejection of U.S. agricultural package. No classification marking. Attached memo from Martin to Ball provides background information for Ball’s meeting with Belgian Ambassador. Official Use Only. 5 pp. Department of State, Central Files, 394.41/4–2961.