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FOREIGN ECONOMIC AND COMMERCIAL POLICY


expression of views by all members of the Cabinet. Secretary Sawyer,
was absent. Mr. Foley for the Treasury, Secretary Chapman for
Interior, Mr. Harriman, Mr. Steelman, Mr. Tobin, Mr. Brannan, all,
expressed their concurrence. The other members had no comments to&amp;
make.&quot;
   Mr. Brannan and Mr. Tobin hoped that our action in dropping the.
 ITO could be done in such a way as not to appear to yield ground to,
 the opposition.
   Mr. Steelman suggested that it might be possible to use this willing-.
ness to abandon the ITO in order to gain some concessions from some,
of the members of ;the House and Senate who might otherwise dis,-
approve our Trade Agreements Program. He said that he was under
the impression that we would find considerable opposition to, the Trade
Agreements Act.
  At the conclusion of the discussion the President authorized me-to
go forward on the basis of the recommendations made. I told him that
we would keep in touch with him     and with Mr. Steelman on the,
development of our discussions.
  I am not clear from the recommendations made to me by the De--
partment whether the Department will now go forward with Con,
gressional discussions or whether it wishes discussion through the
White House..2

  'The persons named in this paragraph are, in the order mentioned: Charlea
Sawyer, Secretary of Commerce; Edward H. Foley, Jr., Under Secretary of
the Treasury; Oscar L. Chapman, Secretary of the Interior; W. Averell Har-
riman, Special Assistant to the President; John R. Steelman, The Assistant
to
the President; Maurice J. Tobin, Secretary of Labor; and Charles F. Brannan,_
Secretary of Agriculture.
  2 Circulated to Mr. O'Gara, the Assistant Secretary of State for Congressional,
Relations (McFall), the Director of the Policy Planning Staff (Nitze), and
tha
Under Secretary of State (Webb).


394.31/12-4,50: Circular telegram
The Secretary of State to Certain Diplomatic and Consular Ofies

CONFIDENTIAL                 WASHINGTON, December 4, 1950--7 p. m.
  Circular 229. In next fe;w days, probably Wed Dec 6, White House
will issue statement along fol lines:
  Begin statement. Pres has decided ask for legislative auth to increase,
effectiveness of US participation in GATT. Proposal to authorize US.
participation in ITO will not be reintroduced in Congress.
  Now more important than ever that economic unity of free worlcd
be strengthened and causes of commercial friction among friendly
  1 Circulated to 38 posts and the U.S. Delegation at Torquay. The Torquay
Dele-
gation had been notified immediately on November 21 of the President's decision
by teletype conversation which was confirmed by telegram 191 (to Torquay)
November 21, 7 p. in., 394.31/11-2150.


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