International Trade Files: Lot 57D284, Box 104
Memorandum by the Acting Director, Office of International Trade Policy (Brown)1
The Habana Conference, the ITO Charter and the Trade Agreements Act
summary of conclusions reached in conversations between the under secretary, the counselor, assistant secretary armour, mr. clayton
It appears certain that it will be impossible to reach unanimous agreement at Habana on the kind of ITO Charter that we could accept. The alternatives open are:
- 1.
- To press for a really acceptable Charter with the adherence of 30 or more nations representing over 75 percent of world trade. This would probably take until March 1.
- 2.
- To get general agreement at Habana on the majority of the points in the Charter and adjourn to Geneva or New York in June to try to get general agreement on remaining issues. This could be done by February 1.
- 3.
- To agree at Habana on a Charter for a purely consultative ITO without substantive commitments. This could be done by February 1.
These alternatives and the questions (a) of how best to present the resulting Charter to the Congress, and (b) what action should be taken with respect to renewal of the Trade Agreements Act, were discussed by Mr. Clayton with the Under Secretary, the Counselor and Assistant Secretary Armour.
It was agreed:
- 1.
- That we should press for a strong and acceptable Charter, staying at Habana as long as necessary to get concurrence of a majority of the countries representing at least three quarters of world trade.
- 2.
- That it was unlikely that we could get Senate action on the Charter at this session, and that the chances of favorable action at this session were slim. However, before any definite decision was taken as to whether the Charter should be presented to the Senate at this session, further consultation should be had with Senator Vandenberg. It was felt important that if it were decided not to present the Charter at this session, the decision should be shared by him. Senator Barkley, Mr. Clifford, House Democrats and Mr. Biffle should also be consulted. It was felt, however, that such consultation should be deferred until Mr. Clayton’s return on the 16th, as it would be almost impossible to [Page 830] get any considered Congressional judgment in the first few days of the session.
- 3.
- In any event, the Department should plan to seek a renewal of the Trade Agreements Act at this session, probably for a year, and possibly with a gentlemen’s agreement not to use it extensively or with a right to Congress to disapprove resulting agreements.2
House Democrats, Mr. Biffle and Mr. Clifford should be consulted as to timing and tactics, the main objectives being (a) to preserve the negotiating authority in the Executive, at least until the Charter were acted on by the Congress, and (b) to promote to the utmost favorable action on the Charter.