Foreign Relations of the United States, 1961–1963, Volume IX, Foreign Economic Policy

222. Telegram From the Embassy in Japan to the Consulate General in Geneva⁰

Tokyo, July 12, 1961, noon.

10. From Ball. Geneva for John Evans, information to Department for Martin. Deeply concerned about state Dillon Round negotiations due to meagerness US offers. I feel it is essential this situation be brought to attention of the President, including indication extent to which limited character of our offers stems from peril point proposal.

Suggest you prepare draft memorandum from Secretary to President which would set forth in simple terms danger extensive withdrawal by EEC and UK of offers tentatively made, in view inadequacies US offers; consequences such restrictive action for free world economy; impact minimal results Dillon Round on US exports, etc.

I will want to discuss general problem with Wyndham-White immediately upon my arrival Geneva and then go over draft memorandum with you.

After transmittal this draft memorandum to Washington I want Martin and Schaetzel to put it in final form, with particular reference steps which might be recommended to President to improve US offers in order to avoid downward spiraling of Dillon Round negotiations.

Reischauer

0. Source: Department of State, Central Files, 394.41/7-1261. Confidential; Limit Distribution. Repeated to the Department of State as telegram 122, which is the source text.