611.4731/205: Telegram
The Consul General at Sydney (Moffat) to the Secretary of State
[Received January 26—1:45 p.m.]
While in Canberra yesterday I endeavored to ascertain why we had not received a reply to our note of November 3rd.2 I think the answer is to be found in a growing feeling on the part of many officials (though probably not yet Gullett3 or Lyons4) that the present anti-American trade diversion measures must ultimately be reconsidered. This changing outlook seems due in part to our heavy purchase of wool which is altering the trade balance picture and in part to an increasing feeling that the United States and the British Empire should “clean the slate”. I definitely do not want to give the Department a feeling that a change in policy is imminent. For instance, I think it would be premature to anticipate a change before the Imperial Conference at the earliest, (1) because Australia wishes to assure herself that recent American purchases are not a mere flash in the pan, (2) because she wishes to make certain that a number of industries which have committed themselves to local manufacture actually set up factories and, (3) because she wishes first to drive the best possible bargain with Great Britain. Nevertheless, for the first time since last May I sensed a better atmosphere.
The foregoing is naturally impression only and does not represent any specific statement made during conversations.
I should add that every one with whom I talked referred with real interest to recent press despatches from Washington hinting at the possibility of some sort of United States–British Empire conference.
- See telegram of October 31, 1936, 2 p.m., to the Consul General at Sydney, ibid., p. 771.↩
- Sir Henry Gullett, Australian Minister in Charge of Trade Treaties.↩
- J. A. Lyons, Prime Minister of Australia.↩