550.S1/1318
The Chargé in Great Britain ( Atherton ) to the Acting Secretary of State
[Received December 26.]
Sir: I have the honor to refer to the Embassy’s telegram No. 276, September 25, 2 p.m., and previous, and to state that the Prime Minister sent for me on December 14th, as the remaining representative of the American Delegation to the World Economic Conference. He explained that after his consultation with Stamp and other English economists they had attempted to prepare a memorandum for limited [Page 761] circulation in line with the suggestion contained in the second paragraph of your telegram No. 259, September 22, 7 p.m. It had been contended, however, by the British authorities consulted that any such memorandum, even given a limited circulation by Mr. MacDonald as President of the World Economic Conference, would be interpreted as a memorandum coming from the British Government, through its Prime Minister, even though this document might contain inter alia suggestions dealing with the policy of the British Government itself. Accordingly, the plan for distributing this memorandum had been abandoned. Furthermore, the Prime Minister added, the survey of the work of the Economic Conference (reported in the next to the last paragraph of the Embassy’s telegram No. 270, September 19, 12 noon) had proven valueless since the preparatory work of the League Secretariat when presented to the Economic Council of the League of Nations in November had resulted in a final report36 by that body of such a general nature as to be practically of no value. Nevertheless, the Prime Minister continued, the intense nationalism of the world today was daily augmenting economic evils, and he felt it his duty, not only to enable him to reply to criticisms, but to meet the situation as President, to make every endeavor to maintain the continuity of the Conference.
The Prime Minister then added that he was addressing a personal note, as President, to the various “rapporteurs” of the Economic Conference, submitting certain data, and also calling upon the various Governments addressed for suggestions or surveys in connection with the future work of the Conference. Since the Chairman of the American Delegation was absent from the United States and Governor Cox, Chairman of the Monetary Committee, was not in Washington, the Prime Minister stated that, in accordance with the suggestion made to him by Secretary of State Hull, in this matter of the work of the Conference he would address his note intended for the American “rapporteur” to me.37 Mr. MacDonald stated that he expected this note would be prepared next week. Immediately upon its receipt I shall have it copied and forward it to the Department, together with a [Page 762] duplicate copy addressed to Governor Cox as Chairman of the Monetary Committee, to comply with the evident intention of the Prime Minister, for delivery in the discretion of the Department of State.
In the course of the conversation the Prime Minister made an interesting aside that early in the autumn, in return for a distinct understanding that the 15 per cent, discriminatory tax against British products would be discontinued, the French Government had been permitted to raise money in the London market. However, when these funds had been obtained the French Government had failed to live up to its agreement. It was with this situation in mind, and to have a free hand to meet it, Mr. MacDonald stated, that the British Government had given its notice of withdrawal from the Tariff Truce.38 The Prime Minister stated that the thirty days’ notice was almost up and that with the termination of this period the situation looked somewhat better and a very real possibility existed that the French Government would withdraw the 15 per cent, surtax without retaliatory measures being imposed by Great Britain.
Respectfully yours,
- League of Nations, Economic Committee, Report to the Council on the Work of the Fortieth Session held at Geneva from November 14th to November 17th, 1933 (Official No.: C.643.M.306.1933.IIB.).↩
- On December 18, 1933, the Prime Minister read to Mr. Atherton “the draft of a note he was intending to send to the various ‘rapporteurs’ of the World Economic Conference, seeking suggestions as to future effective work by this body.” (Enclosure with despatch No. 388, December 18, 1933, from the Chargé in Great Britain, p. 345.) On January 30, 1934, Mr. Atherton reported to the Department that the Embassy files revealed no trace of receipt or transmission of such a note to the Department (550.S1/1332). A reply of February 7, 1934, to his request for a search of the Department files stated: “Copy not available.” (550.S1/1333.)↩
- Effective December 7, 1933.↩