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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 36

  Mr. Sayre replied that he thought there would be no harm in this,
and gave copies to Mr. Chalkley.50 However, in doing so Mr. Sayre
stressed the tentative nature of this material, pointing out especially
that concessions to the extent indicated could be granted only if there
were a complete quid pro quo. Mr. Chalkley said he understood this
to mean full compliance by the United Kingdom with the requests
that we had submitted. Mr. Sayre emphasized that it meant more
than this; that the requests submitted are minimum and relate only to
products on which the United Kingdom has commitments under the
Ottawa agreements; that additional requests covering the whole range
of- our exports to the United Kingdom would later be submitted and
that concessions by the United States to the extent indicated could
only be granted if the requests to be made, as well as those already
made, were satisfactorily met.
  Mr. Sayre also stated that the indicated concessions by the United
States are tentative in the further respect that they must be subject
to modification in the light of further study and in the light of
evidence that will be submitted by private interests after the regular
public announcements.
  Mr. Chalkley stated that he fully understood our position on the
above points, and that in transmitting the material to London he would
stress them.
  Mr. Chalkley then referred to our list of requests already submit-
ted, and said that almost certainly the Dominions would insist upon
modifications on some points. For example, he said that he doubted
very much whether Canada would acquiesce in the granting by the
United Kingdom of free entry on American lumber. He thought
discussions between Canada and the United States might be necessary;
that it might be desirable to work out some agreement or arrangement
between the lumber producers in this country and in British Columbia.
He also referred to the difficulty from the standpoint of the British
most-favored-nation policy of a breakdown between the different spe-
cies of lumber whereby American Douglas fir would be granted better
treatment than the Baltic softwoods. He inquired whether we would
be prepared to discuss modifications in our requests in case it turned
out that the position of the Dominions should make this necessary,
  In reply, Mr. Sayre reminded Mr. Chalkley that in preparing our
list of requests, we had conscientiously sought to whittle them down
to the bare minimum compatible with our objective of concluding a
comprehensive agreement and with satisfying the political and other
pressures in this country. In view of these considerations, it is diffi-
cult, he said, to envisage the possibility of modifying our requests.
0 Only the covering memorandum is printed, infra.

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