550.S1/672
The Department of State to the British Embassy
Memorandum27
The Government of the United States has studied with interest the memorandum entitled British Policy on Economic Problems and has noted with satisfaction the desire of the British Government to cooperate with the Government of the United States in promoting a solution of the world’s economic difficulties. With many points in the British memorandum the Government of the United States is in agreement, and it is the hope of this Government that a rapid exchange of views may bring speedy agreement upon those matters in regard to which the two governments now appear to differ.
To expedite agreement it seems desirable that the Government of the United States should state briefly its general approach to the field of mutual interest which we might profitably explore.
The Government of the United States is of the opinion that a number of problems must be solved if the economic life of the world [Page 473] is to be revived and that it is undesirable to establish an order of priority in regard to those problems. The solution of all is essential for a restoration of prosperity. This principle seems to be recognized by the British Government in paragraph 4 of its memorandum, in which the statement occurs: “It is a question whether monetary action is sufficient by itself to raise prices without long delay, which the condition of the world hardly permits, but that does not alter the fact that monetary action is necessary to create the conditions in which a price rise can take place.” The Government of the United States is, therefore, of the opinion that, although we should seek the best solution for each problem individually and not bargain one solution against another; we should in so far as possible explore simultaneously such questions as international commerce, tariffs, quotas, embargoes, monetary questions, the gold standard, the rehabilitation of silver and others.
The Government of the United States is of the opinion that nothing is to be gained by partial solutions and, if paragraph 15 of the British memorandum indicates that the British Government considers that a new settlement of the debt owed by the British Government be a precedent to a solution of the questions outlined in the tentative draft agenda prepared for the Economic and Monetary Conference, this Government must express entire disagreement. In this connection, it is perhaps well to note that this Government considers that the closing sentence of the British memorandum is not in accord with the observations of the Preparatory Committee on this point.
The Government of the United States, however, in response to the request made by the British Government, is prepared to discuss the debt question at the same time as—but separately from—the range of questions on the tentative draft agenda. This Government in this connection, however, notes with satisfaction the fact that the British Government has raised no question as to the validity of the debt it owes under the existing agreement nor of its present ability to pay.
The Government of the United States, believing that a close collaboration between the British and American Governments in all the fields of foreign affairs is today of the utmost importance not only for the welfare of the peoples of the United States and Great Britain but also for the welfare of the whole of mankind, suggests that the representatives of the British Government in Washington should as soon as possible discuss with the officials of the Department of State any questions which may have been raised by this memorandum.
- Approved by President Roosevelt, Secretary of State Cordell Hull, Under Secretary of State William Phillips, and Assistant Secretary of State Raymond Moley.↩