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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 9

been maintained at a lower level than those of almost any other coun-
try, and, particularly, that the balance of visible trade of the United
Kingdom shows the following great and growing excess of imports
over exports:--
                 1934              2284,000,000
                 1935               275, 000, 000
                 1936               348, 000,000
  The United Kingdom Government have already given proof of
their desire to cooperate with the United States Government in en-
deavouring to eliminate restrictions on world trade. They earnestly
desire to continue that cooperation, more especially in any sphere in
which it can produce practical results, and they are ready as they have
always been to consider any definite projects which the United States
Government may have in mind for the realisation of the aims which
they believe to be common to both Governments.
  With regard to Mr. Cordell Hull's observations on the agreements
negotiated between the United Kingdom and Dominion Governments,
the United Kingdom Government cannot refrain from observing that
in their opinion there is no justification for the suggestion, based on
reports of the nature of the United Kingdom agreement with Can-
ada, which is on the point of signature and of which no particulars
have been published, that their policy is obstructing and impeding
economic disarmament. On the contrary the apprehension which
the United States Government appear to entertain that this agree-
ment is likely to restrict the expansion of the trade of the United States
with Canada or with the United Kingdom is unfounded. On the
United Kingdom side there is no increase in the fixed margins of pref-
erence while on the Canadian side the United Kingdom Government
have agreed in a number of cases to reduce or abolish fixed margins,
thus making it possible for Canada if she so desires to offer concessions
in those cases to the United States.
  The United Kingdom Government desire to make it clear that in
their opinion the Ottawa agreements do not constitute a bar to the
rehabilitation of world trade, as is evidenced by the far-reaching
agreement made a year ago between the United States and Canada 22
nor can they agree that these agreements which form part of the con-
sidered policy of the United Kingdom Government have had any
prejudicial effects upon armaments or upon the cause of world peace.
  Subject however to the general principles governing this policy the
United Kingdom Government are ready to examine any possibilities
of making adjustments in individual Ottawa agreements to meet par-
  2a Signed November 15, 1935, Department of State Executive Agreement Series
No. 91, or 49 Stat. 3960; for correspondence, see Foreign Relation8, 1935,
vol. it,
pp. 18 if.

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