Foreign Relations of the United States, 1961–1963, Volume XIII, Western Europe and Canada

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

Washington, August 30, 1963, 4:10 p.m.

Busec 82. Brussels also for Embassy. Ref:Ecbus 197.¹

1. After high-level interagency consideration Commission proposal, we fail to find it substantially more attractive than German overture reported Deptel Brussels 257.² Temporary eleven pfennig reduction to give time for negotiation of permanent solution begs question of what EEC considers negotiable. In our June discussions with Commission, EEC made no proposals that might have offered basis negotiation, merely rejected out of hand two US proposals for settlement.

2. We think it is now up to EEC Council either to come forward with specific counterproposals for permanent solution or to grant Commission sufficiently broad powers to negotiate with US. Under latter alternative we would want negotiations to be concluded by October 1 with agreement reached ad referendum on specific proposals to be submitted to Council and US for approval. Without any such specifics as to what basis might exist for negotiation or without mandate to Commission to negotiate, we feel the suggestion that negotiations be continued is quite empty and holds no reasonable hope for eventual settlement.

3. You may state that while 11 pfennig not enough for postponement, need to schedule US hearings through September 12 (about week longer than originally anticipated) will make it impossible anyway for us to proclaim withdrawals until late September.

4. You should state US prepared to respond positively to any meaningful proposals from Council and continues to hope that negotiated settlement is possible. In conjunction with alternatives indicated above US would welcome Council approval of 11 pfennig reduction as an earnest of good intentions.

Rusk

0. Source: Department of State, Central Files, INCO Poultry US. Limited Official Use; Operational Immediate. Drafted in STR and cleared by the Departments of State and Agriculture. Repeated to Paris, Rome, Bonn, The Hague, Luxembourg, and Geneva.
1. Ecbus 197, August 26, reported that the EEC Commission had requested the U.S. reaction to a temporary 11-pfennig reduction pending final solution of the problem. (Ibid.)
2. Telegram 257, August 21, reported that representatives from the German Embassy, on instructions from Bonn, had inquired whether an 11-pfennig reduction would be sufficient to cause the United States to suspend action on poultry. (Ibid.) After interagency consultation at the highest level, the German representatives were informed on August 21 that such a small reduction would not have a sufficiently meaningful effect on trade.