107 Cablegram From Walker To Department Of External Affairs
223. Your 204.
Japan and G.A.T.T.
Chadwick the British Economic Counsellor spoke on the telephone to
Yukawa about his reported statement. According to Yukawa he had
answered questions in the Diet Foreign Affairs Committee which was
considering the bill for accession to G.A.T.T. and which wished to
know what steps could be taken by Japan against discriminatory
treatment on the part of those G.A.T.T. members that invoked
Article 35. After the Diet Committee he had been approached by the
press and had held a press conference on which he repeated the
substance of the replies he had given to the Diet Committee. His
statement was therefore intended for home consumption.
2. There is little doubt of the attitude that the Government is
likely to adopt. Yukawa explained to Chadwick that when Japan is
admitted to G.A.T.T. she will apply the tariff rates agreed at
Geneva to all contracting parties except those who invoke Article
35 and to the latter Japan will continue to apply the existing
tariff rates. Consequently there will be in effect a double column
tariff. In addition there is the possibility so far as the present
tariff law is concerned of establishing even a third column of
still higher duties against countries that discriminate against
Japanese goods. Yukawa agreed that Japan must continue most-
favoured-nation treatment to the United Kingdom until April, 1956,
but said that after that date Japan would be free to apply
discrimination if circumstances warranted such a policy.
3. I have not thought it expedient to approach Yukawa myself
unless instructions are received to do so.
[AA : A1838/283, 759/1/7, ii]