560.AL/8–147: Telegram

The Secretary of State to the Consulate at Geneva

confidential
us urgent

944. For Clayton from Wood.1 Discussed with Nitze problems raised urtel 802 Aug 1.2 Following our tentative thoughts:

1.
Apparent Br econ and domestic political situation such that we must accede their demands for permission to discriminate.
2.
Believe you and US Del best position determine technique (a) which would do least damage to ITO and (b) also which would not destroy chances TA renewal and acceptance ITO by Congress.
3.
However suggest consideration alternative: That discrimination would be permitted on showing of need and fact, and with arrangements for consultation, although clearly understood that country proposing discrimination would have unilateral authority to (a) determine facts and need and (b) put into force discrimination. Belief that this approach might (a) be more palatable to US interests and Congress and (b) prevent oblique use discriminatory authority for purely protective purposes. [Wood.]

Marshall
  1. C. Tyler Wood, Deputy to the Assistant Secretary of State for Economic Affairs.
  2. Not printed, but see memorandum of conversation of July 31, p. 969. 560.AL/8–247: Telegram