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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

United Kingdom ,   pp. 1-135 PDF (51.1 MB)

Page 8

  Mr. Runciman said that he definitely wanted to go forward with a
trade agreement and again suggested that our experts meet tomorrow
and make all progress possible. He added that in view of the rising
tide running toward protectionism in England it would be far better
to have a trade agreement even if it went no further than conven-
tionalizing rates than to have none at all.
  Mr. Runciman then said that he was tired and wanted to return to
the British Embassy. He therefore withdrew and I joined our ex-
perts who were waiting downstairs, namely Messrs. Hawkins,20
Pasvolsky,21 Hickerson 22 and Dunn on our side, and Messrs. Chalkley
and Helmore on the British side. We talked over possibilities until
after midnight.
  In view of Mr. Chalkley's and Mr. Helmore's telling us, however,
that the provision in the new agreement to be signed between the
United Kingdom and Canada required the consent of both sides
before any adjustments in preferences could be made, further progress
seemed most difficult. It was suggested that we, on our side, give
further particulars with regard to the commodities upon which we
feel we must have concessions as the basis of a trade agreement and
that the British then approach the Canadian Government asking for
Canadian consent with regard to these commodities.
                                                     F. B. SATYB
         The British Embassy to the Department of State
  The Government of the United Kingdom concur fully in the view
expressed in the first paragraph of Mr. Cordell Hull's oral communi-
cation of January 17th, 1937, that economic recovery and conditions of
peace cannot be achieved unless something more effective is done to re-
duce excessive barriers to international trade and to arrest and limit
the increase of armaments.
  As regards the second paragraph they feel that their own efforts
for the restoration of international trade have made a notable con-
tribution to this end. They are ready and anxious to continue those
efforts and they feel that any suggestion that they have abandoned
them is disproved by the facts that United Kingdom tariff rates have
' Harry Hawkins, Chief of the Division of Trade Agreements.
2 Leo Pasvolsky, Special Assistant to the Secretary of State.
2 John Dewey Hickerson, Assistant Chief of the Division of Western European

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