FOREIGN ECONOMIC AND COMMERCIAL POLICY


  present time in view of. the very substantial changes which have oc-
  curred in the external financial position of the sterling area countries.
  As for our part, we have no significant questions to raise regarding
  the justification for actions taken in July 1949 and that we do not
  think that the time of the Contracting Parties would be well spent
  on such an exercise. Inasmuch as the annual review of the discrimi-
  natory import restrictions of all the Contracting Parties will probably
  be on the agenda at the Sixth Session, we believe that further con-
  sideration of the import restrictions of the sterling area countries
  might well be deferred until that time when they can be discussed in
  a realistic manner in the light of the then available information.4

  4A lengthy position paper prepared for the United States Delegation to
the
  Fifth Session of the Contracting Parties, "Import Restrictions of
Certain Sterl-
  ing Area Countries," is not printed, as the substance of its contents
has already
  been set forth (Doe. TAC/GP/24 (Rev. 1), October 23, 1950, Lot 57D284,
Box.
  165, Folder "Balance of Payments").


  394.3i/11-650: Telegram
  The Secretary of State to the United States Delegation to the Fifth
        Session of the Contracting Parties to GATT, at Torquay 1

 CONFIDENTIAL                 WASHINGTON, November 6, 1950-7 p. i.
   133. Rowan, Claine, and Burns'2 called on Thorp 3 Nov I to discuss
 substantive and procedural points re sterling area consultations at
 Fifth Session. Brit had previously discussed same range problems with
 Martin 4 of Treasury. They indicated full agreement had been reached.
 with other sterling area members on fol UK views and on paper UK
 is submitting to CP's in connection consultation.5 Brit set forth basicG
 position as follows:
   1. They consider Fund report reveals basic difference between US
and UK     views on merit sterling area arrangements. This presents-

  The Fifth Session of the Contracting Parties of the General Agreement con--
  vened at Torquay, England, on November 2. For the composition of the United'
States Delegation, see Department of State Bulletin, November 6, 1950, p.
747.
Winthrop G. Brown, Director, Office of International Trade Policy, was Chairman;
of the Delegation.
  I Sir (Thomas) Leslie Rowan was Economic Minister in the British Embassy;
Sir Sidney Caine was Head of the United Kingdom Treasury and Supply Dele-
gation, Washington, and Minister in the British Embassy; Robert Burns was
British Counselor of Embassy.
   Willard Thorp was Assistant Secretary of State for Economic Affairs.
   'William McChesney Martin, Jr., Assistant Secretary of the Treasury, in
charge of the Office of International Finance.
  'A draft of this paper was submitted to the Department of State (and to,
the Department of the Treasury) about October 25, not printed. It set forth
at length the historical background of the sterling area arrangements anl
recited in detail the financial history of the sterling area for the years
1947-
1950. (394.31/10-2550)


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