611.4131/374: Telegram
The Chargé in the United Kingdom (Johnson) to the Secretary of State
[Received September 27—3:15 p.m.]
618. The Foreign Office having learned last week that Senator Thomas of Utah was in London, a suggestion came from Cadogan80 that if Senator Thomas would care to do so he would be very glad to see him for a talk. I informed Senator Thomas of this initiative of the Foreign Office and with his consent an appointment was made for us to see Cadogan on Thursday. The conversation for the most part dealt with generalities connected with various difficulties in the Far East and in Europe. Toward the end of the conversation however Senator Thomas mentioned the Secretary’s great interest in the American trade agreement program and expressed his own belief in its value as an instrument for world peace. Sir Alexander then stated quite simply that he knew that the Prime Minister, personally, and the Foreign Secretary, personally, were strongly in favor of a trade agreement with the United States but that the Government was faced with real difficulties in putting such a program into effect.
He mentioned the following difficulties specifically:
- 1.
- Great Britain up to recent years he said had been a free trade country which had reached great prosperity under that system. Then came a great depression and the institution of a system of tariffs and Imperial preferences. Under this new system Great Britain had made a large measure of economic recovery. It was therefore difficult to convince those interests which had passed from depression and had made recovery under the new system that it would be wise to adopt now some other system.
- 2.
- That there were Imperial difficulties. He did not elaborate on the subject.
As illustrative of the type of opposition to a trade agreement with the United States which the Government must face under point one [Page 72] above is the memorandum presented to the Board of Trade on September 24 by the National Union of Manufacturers. This memorandum has been partially published and after referring to statements made by the Foreign Secretary at Geneva on September 20 stated in part: “The Foreign Secretary can hardly be aware of the damage to inter-Imperial trade which would be caused if the preference now given to Dominion products over American were to be reduced. The Dominions would be unable and unwilling to continue the preference they now give to our goods, and the Americans, with their high tariff, cannot be expected to take the British manufactured goods that would be thus shut out from the Dominion markets”.
Although this group is not considered important enough to sway the Government’s policy, its memorandum illustrates the confusion of mind and the fears of a section of British industry, now profiting under the mantle of Imperial preference, when abatement of the preference is mentioned.
Senator Thomas sailed for the United States on the 25th and I understand he expects to call upon you on his arrival.
- Sir Alexander Cadogan, British Deputy Under Secretary of State for Foreign Affairs.↩