611.4131/401
The British Commercial Counselor (Chalkley) to the Chief of the Division of Trade Agreements (Hawkins)
Dear Mr. Hawkins: You asked me on Monday afternoon if I could give you an indication of the attitude of my Government in regard to the items of your “essential” list in the light of the recent Canadian proposals, but as I had not had time to receive any views or instructions from my Government I could only speak personally. I have now received a telegram from my Government to the following effect:—
We would be glad if you would inform State Department officials as soon as possible that, while we must reserve judgment on the Canadian proposals affecting the United Kingdom until we receive them, we have learned with much gratification of the possibility of the recent U. S.-Canadian discussions leading to a solution of Canada’s difficulties.
You should also inform them that we are at work on fresh proposals on the U. S. “essential” list designed to provide in the shortest possible time a basis of negotiation for a United States–United Kingdom agreement and that we hope to let them have these proposals at a very early date.
The State Department officials will see when our proposals are presented that we have tried to eliminate matter which would present serious difficulty to Australia while leaving the way open for subsequent settlement, which we would try to facilitate.
We are very glad to hear of the possibility of negotiations of the United States with Canada. In normal circumstances we should have welcomed simultaneous negotiations by the United States also with Australia, New Zealand and South Africa, but in view of the limited time now available for finding a basis of negotiation of a United States–United Kingdom agreement such a course would introduce complications which would be likely to make the conclusion of negotiations impossible within the time available for conclusion after a basis has been found. Our anxiety in this regard arises solely from the time factor but on that score it is very serious.
Yours sincerely,