Foreign Relations of the United States, Diplomatic Papers, 1933, General, Volume I

550.S1 Economic Commission/23: Telegram

The Chairman of the American Delegation (Hull) to the Acting Secretary of State ³⁹

London, July 6, 1933—10 p.m.
[Received July 6—8:30 p.m.]

106. Our 91, July 2 and Department’s 102⁴⁰ and 103^40a of July 4 regarding the possibilities of positive action by the American Delegation in the field of commercial policy.

The questions that will arise comprise [sic] in our attempt to execute by actual accords the general ideas contained in Department’s 102 are:

1. Is the delegation authorized to agree to any form of prolongation of the tariff truce under which the American Government will agree not to increase tariff rates or introduce any restrictions on foreign commerce? If it is not possible to agree without reservations exactly what types of action by us should be reserved?

2. Is the American delegation authorized to agree to join in any agreement calling for no further imposition of import quotas and restrictions and for a gradual removal?

Again precisely what must it reserve in this matter?

3. Is the American delegation authorized to join in any multilateral agreement for either the gradual or moderate reduction of tariff rates in any of the forms that have suggested themselves to wit;

(a) General horizontal reduction by moderate amount;

(b) Reduction of rates about [above?] a certain level;

(c) Reduction of rates covering certain classes of goods;

4. Provided we are in a position to join in any multilateral agreement for horizontal reduction such as the type of the Ouchy agreement⁴¹ is the delegation authorized not to insist on most-favored-nation rights as regards the concessions mutually extended to each other by those who do participate?

5. In regard to production agreements the delegation awaits instructions in regard to sugar and lumber agreements. Coal is also under consideration.

All attempts to carry forward these discussions towards actual agreement are certain to present one or all of these questions concretely and the delegation will find it difficult to proceed without a clear definition on these precise points consistently with the various domestic legislative actions which make up our recovery program.

At best if the participating governments can not deal with the points mentioned above, all that can be achieved is a declaration of general principle and intention representing little immediate achievement.

The delegation has begun its attempt to formulate its program and urgently needs clarification on this economic side which seems to be the main business of the [Conference?] for the immediate present.

Hull

39. Copy transmitted to President Roosevelt.
40. Ante, p. 685.
41. See footnote 21, p. 683.
41. Convention for the Lowering of Economic Barriers, signed at Geneva, July 18, 1932; for text and protocol, see Department of State, Treaty Information, Bulletin No. 37, October 1932, pp. 16–23.