804


FOREIGN RELATIONS, 1950, VOLUME I


tariff negotiations. No doubt your staff will be discussing these. recom-
mendations with you soon, as the ;Conference opens formally today
(the "28th). The Committee's recommendations were unanimous ex-
cept on a few items (raw wool, wool noils, grapes, raisins, certain
kinds of hair, and cotton cloth). The report which I forwarded to
you contains full comments by the majority of the Committee on those
items as well as the views of the two dissenting Agencies (Agriculture
and Labor).
  I want to mention wool particularly, because of its importance to
the success of the negotiations.
  The proposed offer on finer wools is to the legal limit (17 cents per
pound) on the main category and practically to the limit on the re-
mainder. The proposal on coarse apparel wool cuts about half way
to the legal limit from present rates (about 30 percent cuts).
  The point I would like to emphasize is that the wool items are the
most important products in the negotiations with Australia and New
Zealand. In our judgment neither country will negotiate with us with-
out ,the offer of a reduction in the duty on wool. Equally important,
however, is the fact that fa.ilure to conclude negotiations with Aus-
traliaand New Zealand may seriously affect the success of our nego-
tiations with Great Britain. You will recall that a concession on wool
was a key consideration in -the success of the Geneva Conference in
1947. Without the bargaining power which a reduction in the wool
duty gives us, we will not be able to secure the reduction or elimina-
tion of the preferences Britain gives Australia and New Zealand on
products of great importance to our export trade.


394.31/9-2950
             The President to the Secretary of State

                                  WASHINGTON, September 29, 1950.
  DEAR MR. SEcRETARY: The recommendations of the Interdepart-
mental Committee on Trade Agreements with respect to concessions
to be offered and requested at Torquay, transmitted with the memo-
randum of September 26, have been carefully reviewed. I understand
that the United States delegation at the conference hopes to open
tariff negotiations with other delegates in the near future.
  The recommendations of the Committee are hereby approved, with
the exception of the five items covered by the dissent of the Depart-
ment of Agriculture. The issues set forth in the statements of the
Department of Agriculture and the majority opinions on the items
require further consideration and, accordingly, I am taking no action