Office of the Historian

611.4131/418

The Department of State to the British Embassy

Memorandum

1.
The proposals in the United Kingdom Government’s memorandum presented on November 5, 1937, with respect to the concessions on products in the essential list for inclusion in the proposed trade agreement, have received careful study. On the majority of items in the list referred to, the proposals are in varying degree less satisfactory than the concessions requested by the United States. With respect to some of the items involved the United Kingdom Government has made no proposals or those which it has made fall far short of the United States requests. In any agreement finally concluded, a substantial improvement in some of the concessions indicated by the United Kingdom Government is essential.
2.
Nevertheless, in view of the importance of instituting negotiations at the earliest possible date, the Government of the United States is prepared, on the assumption that the United Kingdom Government will obtain the necessary concurrence of the Empire Governments, to accept the present proposals as a basis for the announcement of contemplated negotiations and to leave for determination in the course of the definitive negotiations the concessions to be granted on the items on which the present proposals do not meet the United States requests, as well as the concessions to be granted on the non-Ottawa items which have been heretofore requested.
3.
On the basis indicated in the two preceding paragraphs, the Government of the United States is prepared, if agreeable to the United Kingdom Government, to make public announcement next week, or before, that the negotiation of a trade agreement with the United Kingdom is contemplated and to proceed as rapidly as possible with the negotiations.
4.
The Government of the United States is also prepared, if agreeable to the Government of Canada, to make public announcement of the contemplated negotiation of a new or supplementary trade agreement with that country. This announcement would be made not later than two weeks after the announcement with respect to the United Kingdom. The Government of the United States will inform the Canadian Government to this effect.
Washington , November 16, 1937.