FOREIGN RELATIONS) 19 5 0, VOLUME I


  In general, it may be said of all of these cases that a continuation
of present active domestic demand, including accelerated defense pur-
chasing, will somewhat lessen the intensity and considerably lessen
the effectiveness of protests. However, where the reason for the pro-
test is fear rather than any actual difficulty, the fact that conditions
are good now may not satisfy the interests concerned, despite the
favorable record of the program with respect to avoidance of injury.
  It may be anticipated that, during the course of the negotiations,
various domestic interests will urge that no reductions should be
made in duties on products of particular concern to them, especially
if the international situation does not improve substantially. In such
circumstances these interests will probably cite the continued emer-
gency situation in support of their protests, just as they have already
urged that the negotiations should be postponed because of the exist-
ing emergency. It is recommended that such contentions should be
rejected. The offers which you are being asked to approve, if finally
negotiated, will have an anti-inflationary effect domestically and will
help to strengthen and integrate the economies of all friendly
countries.
   It is, of course, not possible to say that these offers if approved and
 the recommendations yet to be formulated on the basis of the second
 supplementary list will offer sufficient bargaining power to secure
 an agreement with all of the countries at Torquay. It may therefore
 be necessary to request additional authority on particular items as
 the negotiations proceed. However, it is believed that the offers which
 are recommended at this time will provide an adequate basis on which
 to begin negotiations.
   Your approval of the Committee's recommendations is requested.
                                                     CARL D. CoRsE


 394.31/9-2650
   Memorandum of Conversation, by Mr. Lucius D. Battle of the
         Executive Secretariat of the Department of State

 CONFIDENTIAL                   [WAsHINIGTOI,] September 26, 1950.
 Participants: Mr. Acheson
                Mr. Bevin1
                Mr. Barclay 2
                Mr. Battle

   In a conversation on other matters, Mr. Bevin mentioned the Tor-
 quay tariff negotiations. He said that he hoped that the negotiations
   F~rnest Bevin, British Secretary of State for Foreign Affairs.
   '3R. E. Barclay, Private Secretary to Mr. Bevin.


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