411.006/8–151
The Danish Ambassador (de Kauffmann) to the Secretary of State
Ref. no. 88.F.3.
The Danish Ambassador presents his compliments to the Honorable the Secretary of State and has the honor to refer to the Ambassador’s note of July 17, 1951, in connection with import control provisions contained in the proposed amendments to the Defense Production Act of 1950.
It has been learned that the Department of Agriculture in preparing regulations to carry out the provisions of the amended section 104, now appearing in the Defense Production Amendments of 1951, is inclined to suggest that importation of dairy products with the exception of cheese be prohibited. It is further learned that importation of cheese is proposed regulated on the basis of average imports of each type for 1948, 1949, and 1950 from each country.
Should such provisions be established they would completely bar Danish exports to the United States of other milk products, for instance whole milk powder, and, furthermore, such provisions would seem to discriminate unfairly against Danish cheese exports to USA. In 1939 Danish cheese exports to the United States aggregated 1820 metric tons, in 1948: 394, 1949: 613, 1950: 1895, and during the first five months of 1951: 1274 metric tons.
During World War II and the immediate post-war years Danish dairy production suffered a serious setback from lack of sufficient protein feed. Mainly as a result of the Economic Assistance Program this production recovered. Constantly encouraged by ECA, Danish efforts to increase exports of dairy products—primarily cheese—to the United States were successful. However, as illustrated by the figures above, the export of cheese did not reach prewar levels until 1950. This development in the Danish cheese sales to the United States is in line with the aims and purposes of the European Recovery Program, and in the opinion of the Danish Government implementation of restrictions of the above mentioned nature would not Only have a special discriminatory effect upon Danish cheese exports to the United States, but would also be completely contrary to the aims of said Program. Likewise such regulations do not seem to be in harmony with the provisions [Page 1431] of the GATT agreements concerning quantitative restrictions on imports.
At a time when the economic assistance is being drastically reduced, a severe cut in Danish dollar earnings—which would be the result of such restrictions—would seriously counteract Danish efforts to improve Denmark’s balance of payments through exports to the United States.
It is, therefore, the sincere hope of the Danish Government that no restrictions will be introduced adversely affecting Denmark’s trade with the United States.