FOREIGN RELATIONS) 1950, VOLUME ]


  7. WP report would follow lines Annecy report on South African
restrictions, recording diverse country views, without necessarily
identifying countries,
  8. We should maintain position that this report be declassified after
usual waiting period following end of fifth session.
  9. We would not commit ourselves to the British to follow the above
course but simply indicate to them that after consideration of their
representations, we believe we are not too far apart and that we do
not anticipate -any great difficulties in WP or plenary sessions on this
problem.
  Believe this course will:
  (a) Get Fund conclusions before CP's.
  (b) Support Fund conception proper scope consultation.
  (c) Put our views on propriety relaxation on record.
  (d) Maintain gain Fund decision and keep on pressure in CP's.
  (e) Avoid open break with British.
                                                           [Bronz]
                                                           BRowN


394.31/11-850: Telegram
The Secretary of State to the United States Delegation to the Fifth
       Session of the Contracting Parties to GATT, at Torguay

CONFIDENTIAL     PRIORITY   WASHRINGTON, November 9, 1950-8 p. m.
  148. 1. Reurtel 146, Nov. 8. Martin informed Rowan substance. of
para 4 ourtel 138.' Subsequent conversation revealed Rowan did not
fully understand that in US view Fund reports did not attempt to
decide question of common criterion for trade policies of sterling area
countries. Brit evidently interpret Fund reports as positively rejecting
this principle. We believe this is primary reason why they are attempt-
ing to prevent formal acceptance by CP's of IMF reports or con-
clusions of those reports. We think pressure toward relaxation as such
is secondary importance in their view. We would still hope that their
resistance to formal acceptance of IMF reports and conclusions simi-
lar to those reports would be lessened if we could get across to them
our view concerning relationship these reports to question of common
criterion. We urge you emphasize this point along lines ourtel. US
view that Fund reports do not attempt decide question common cri-
terion may be stated in GATT Sessions if appears desirable.
  2. Brit here appeared not fully conversant with basic issues and
asked that further consultations be held Torquay. May be advisable
to review with Brit Torquay substance para 4 ourtel 138.

  'November 8, 11 a. m., p. 761.


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