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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

Canada,   pp. 160-199 PDF (14.9 MB)

Page 164

a manner as to promote the principles of bilateral balancing of trade
or payments between nations. We have made these sacrifices for the
sake of the broad objectives of our program and because we are con-
vinced that the principle of bilateral balancing is utterly unsound,
inimical to a prosperous world trade, and thus dangerous to the cause
of world peace. We mention these matters to demonstrate that our
Government has, regardless of the action of other governments, used
every force at its command not only to promote the continued syste-
matic reduction of trade barriers but has, in fact, assumed a position
of world leadership in such a program.
  We should be less than frank if we failed to state that in our view
the response of the principal trading nations of the world has not been
all that had been expected. The failure of other nations to follow
similar policies and to assume their share in such a broad attack on
trade barriers has not only been the source of great disappointment to
us but has resulted in special difficulties for us in the matter of pur-
suing as rapidly as we would desire our own objectives. We need
hardly say that this failure on the part of other important trading
nations has greatly intensified our domestic difficulties, whereas their
fullest cooperation should of course make it increasingly easy for us
in this movement.
  We had hoped that even before the present time the cumulative
effect of a world-wide trade agreement program, participated in by
most of the leading countries of the world, would be such that it
would have been possible to conclude a more comprehensive trade
agreement with Canada in addition to new agreements with other
countries. The inability thus far of our Government to conclude more
ageements in which most of the reductions on the part of the United
States would be on industrial products and the preponderance of the
reductions obtained would be on American primary products has
created unusual difficulties in the way of further negotiations at this
time with countries like Canada where, it is to be expected, further
reductions would be expected of the United States on primary prod-
ucts. These difficulties have not yet been overcome.
  Very truly yours,                                CoRDELu Hma
    The Minkster in Canada (Armour) to the Secretary of State
No. 1662                                OTTAWA, October 14, 1937.
                                            [Received October 18.]
  SIR: I have the honor to inform the Department that the Prime
Minister called at the office of the Legation this morning and informed

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