550.S1/734: Telegram
The Chargé in Great Britain (Atherton) to the Secretary of State
109. From Norman Davis. I discussed the tariff truce in detail with Runciman this afternoon on the basis of the draft quoted below which was prepared to combine your original draft with instructions in your 97, May 6, 3 p.m., and also to meet certain difficulties which had arisen in our earlier conversations. Runciman stated that as far as he could see this draft raised no difficulties from the point of view of the Board of Trade provided that it did not prevent carrying out of existing agreements. In this connection he referred to certain tariff increases [Page 595] which they might be obligated to make in the near future under the Ottawa agreements3 particularly copper, cod liver oil and salmon. He stated, however, that he was afraid it might raise some difficulties for the Ministry of Agriculture. They had in contemplation some restrictions on the import of eggs, fish, et cetera. He added that he understood we had somewhat similar problems as regards agricultural products and that he understood that both countries desired some leeway in dealing with these products.
Runciman said that he would circulate this draft and take the matter up particularly with the Secretary of Agriculture.4 He intimated that they would prefer to await the arrival of Leith-Ross before definitely committing themselves but when I told him it was highly important to settle the question without further delay he agreed to circulate the draft tonight so that it could be considered at once by the principal members of the Cabinet. I told Runciman that the resolution was not intended to prevent the carrying out of any existing arrangements and confirmed that the agricultural problem might require special treatment, having in mind particularly reference in your 83, April 28, 1 [6] p.m., to tariff changes which might be necessary under the new farm bill.
Please examine draft quoted below and advise me immediately if any changes are required under farm bill or otherwise. Draft follows:
“The governments of (here insert names of states represented on Organizing Committee) represented on the Organizing Committee for the Monetary and Economic Conference, convinced that it is essential for the successful conclusion of the Conference that the measures of all kind which at the present time misdirect and paralyze international trade be not intensified pending an opportunity for the Conference to deal effectively with the problems created thereby, recognize the urgency of adopting at the beginning of the Conference a tariff truce, the provisions of which shall be laid down by common agreement.
The said governments, being further convinced that immediate action is of great importance, themselves agree, and strongly urge all other governments participating in the Conference to agree, to abstain, at least until July 31, 1933, by which time the Conference shall have an opportunity to declare itself, from all new initiatives which might increase the many varieties of difficulties now arresting international commerce. One of the main motives which brings the governments together in conference is to surmount these obstacles; the said governments therefore urge all other governments, represented at the Conference, to act until the Conference has thus had an opportunity to consider these questions, in conformity with the spirit of this objective”.
- [Davis]
- Atherton