411.006/7–1751
The Danish Ambassador (de Kauffmann) to the Secretary of State
Sir: Present discussions in Congress of an amendment to the National Production Act which would tend to control imports of dairy products and under certain circumstances completely to bar imports into the United States of various sorts of cheese have caused serious alarm in Denmark. It would seem doubtful to the Danish authorities how legislature of such a nature can be brought into accordance with the GATT-agreement, the effect of the amendment if passed totally or partly to cancel the effects of an American customs reduction which the Western European countries have paid for by reducing duty on American goods exported to these countries.
A cessation or reduction of cheese exports to the United States would be particularly detrimental for Denmark. Denmark’s export of cheese to USA constitutes between 12 and 13% of our total exports to the United States, and since cheese is one of the Danish products for which sales in USA have shown a particularly marked growth great expectations have been entertained with regard to exports of this commodity. In 1950 Denmark exported 4 million lbs of cheese to USA to be compared with a total American cheese production of that year amounting to 880 million lbs. It can hardly be thought that sales of this amount can in any way be detrimental to American cheese production. On the contrary it might be surmised that imports of European cheeses due to their special qualities would stimulate cheese consumption in the United States and therefore in the long run would benefit American dairy production.
In view of these facts and the common desire to promote international trade—expressed through ECA’s work in Europe—as well as the efforts taken to enable Western Europe as soon as possible to reach viability and to meet their dollar needs, I venture to express the strong hope that the contemplated legislation concerning import of cheese to USA will not be enacted.
I avail [etc.]