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

279. Telegram From the Department of State to the Mission to the European Communities⁰

Washington, May 7, 1963, 5:41 p.m.

Busec 484. Deliver Ambassador Tuthill 9 A.M. You should obtain appointment first thing Wednesday¹ morning with Rey and deliver following letter from Governor Herter. You should also see to it that Marjolin receives a copy prior to opening of Council meeting Wednesday, and make such other use of letter as you deem appropriate:

Begin text:

Dear Mr. Rey:

Subsequent to our discussion regarding the prospects and timetable for the trade negotiations,² I again reviewed these questions with the President.

I told the President of the suggestion that the basis of tariff cuts might be left open to be worked out over a period of months. His view is that it is difficult for the United States Government to commit itself to broad-scale negotiations and set the machinery of the Trade Expansion Act in motion without having agreement with the EEC regarding the general basis upon which the reduction of tariffs is to take place. I myself feel that we should seek to reach an agreement during the May Ministerial meeting regarding the nature of the linear cut and the disposition of the tariff disparity problem. I am confident that this can be worked out.

As I have emphasized to you in our several discussions of this subject, we are conscious of the fact that in your view the problem of highs and lows³ is one that requires some attention. We agree that this is a matter which must be examined. We are convinced that once we establish the principle of an equilinear cut as the basis for negotiations we can then deal with the question of highs and lows.

The nature of the rules for exceptions is, of course, an important related problem that will require further discussions between us. I think, nevertheless, that it would be possible to reach agreement at the Ministerial meeting on the basic negotiating rule while leaving for further discussion the precise rules that are to govern exceptions. I say this assuming that we are agreed that the exception list in any case must be very limited and subject to individual confrontation and justification.

I found our discussions very useful and I greatly appreciate your coming to Washington. I shall look forward to the opportunity for further exchange of ideas with you in Geneva.

Sincerely yours,

(s) Christian A. Herter

End text

FYI: Department will send you no later than tomorrow indications, for your background information, regarding possible formula for reaching agreement high-low problem with EEC. End FYI.

Rusk

0. Source: Department of State, Central Files, FT 7 GATT. Confidential; Emergency. Drafted by Kaysen, cleared by Herter by telephone and Benjamin H. Read (S/S), and approved by Ball. Repeated to Bonn, London, Luxembourg, Paris, Rome, and The Hague.
1. May 8.
2. For a position paper summarizing the principal trade issues, which was prepared for the May 2-3 Rey/Marjolin talks, see the Supplement. See also Document 275.
3. Reference is to the ecretement proposal; See Document 278.