611.4131/1805: Telegram
The Acting Secretary of State to the Ambassador in the United Kingdom (Kennedy)
612. Your 1141, October 7, 7 p.m. Late Thursday afternoon60 the following letter from the Secretary was handed to the British Ambassador:
[Here follows text of letter dated October 5, printed on page 57.]
Enclosed with that letter was a complete draft trade agreement, with a memorandum 36 pages in length61 commenting in detail on the points in the agreement still in dispute.
We offered in this draft agreement additional concessions to the United Kingdom on a number of important products, including wool fabrics and unbleached cotton cloth. Some of the American products for which improvements are requested are as follows: (1) Lard—free entry; (2) tobacco—reduction of marginal preference by one shilling in 1942 subject to approval of the British Cabinet and Parliament; (3) lumber—detailed proposals which had already been accepted in principle by the British and Canadian Governments; (4) plywood—reduction to 5 percent on plywood faced with soft wood; (5) corn—rebinding free entry (the British Delegation had indicated to us informally that this request would cause no difficulty); (6) wheat flour—bind present duty with commitment on part of U. K. to agree to give sympathetic consideration to any improvement in treatment which Australia may later agree to (the full marginal preference is bound to Australia); (7) electric motors weighing 80 pounds or less each—reduction to 15 percent; (8) 4-bank portable typewriters—reduction corresponding to offer on 3-bank machines; (9) motor cars—binding [Page 61] of existing duty on cars 20 horsepower or more (the British offer had been to bind cars of 25 horsepower or more, but this would leave out a substantial part of the American trade.
Copies of the above-mentioned documents are being sent to you by mail. Full information is given in the memorandum. We believe it best to await the British reply to our proposals without any further approach to them at this time. After you receive the papers which are en route to you we may desire to request you to take up at a later date certain points with Stanley or the Prime Minister.