684


FOREIGN RELATIONS,. 1950,- fVOLUME I


Current Economic Developments,' Lot 70D467
           Extract From Bulletin No. 246, March.20,1950

SECRET
              COMMERCIAL TREATY PROGRAMk: REVIEWED

   [Here follows general commentary.]
   Further Delay in Benelux Negotiations     The commencement of
negotiations with the Benelux countries' has been subject to further
delay. Hitherto the Netherlands maintained a favorable disposition
toward the treaty, and expressed readiness to enter into negotiations
as soon as its Benelux partners'were prepared. Belgium has ascribed
its own failure to complete preparations to the absorption of a rela-
tively small Foreign Office staff in more pressing matters, rather than
to substantive objections to the treaty. Recently, however, the Dutch
have indicated that they are not now in a position to enter into nego-
tiations. It appears that serious differences of opinion among various
agencies of that government as to substantive features of the draft
have emerged; also, the Netherlands has seemed inclined to delay
negotiations until after the US has concluded similar treaties with
other important commercial or industrial countries, possibly because
of doubts that the US intends to push the treaty program. Recently,
however, the ECA Mission at The Hague, together with the Embassy,
impressed upon the Netherlands Foreign Office the relationship be-
tween the treaty and the long-range economic objectives of the Euro-
pean Recovery Program. The Foreign Office indicated that it'would
endeavor to have the differences within the Netherlands government
as to the treaty resolved in order that the negotiations might be
expedited.
  Additional European Negotiations In addition to the negotiations
with Ireland, which culminated in signature of -a treaty January 21,
1950, and the negotiations with France2 and the Benelux, as men-
tioned above, commercial treaty projects with several other European
countries are under way. The UK has indicated that it is now studying
the draft treaty which we submitted last month, and while the British
are anxious to conclude such a treaty with us, they probably can not
enter into active negotiations before the end of 1950 because of the
press of other matters. In response to an informal -approach which

  Master set of the Department of State classified internal publication Current
Economic Developments for the years 1945-1969, as maintained in the Bureau
of Economic Affairs and antecedent offices.
  2 Notprinted, but see paragraph entitled "Negotiation with France"
in the
memorandum prepared in the Bureau of Economic Affairs, March 10, 1950,
entitled "Present Status of Program for Negotiating Treaties of Friendship,
Commerce and Navigation," supra.