561.311F1/80

The Head of the American Delegation (Morgenthau) to the Secretary of State

My Dear Mr. Hull: I am sending you by Dr. George C. Haas a full statement of what occurred during the conferences of the wheat exploring committee.16 I thought I would supplement it by a personal letter to you to explain some of the conditions here.

The three delegates were personally extremely congenial and ready to cooperate to the fullest to arrive at some definite conclusions. Unfortunately none of them had any more powers than I had to agree to anything. The Canadian gave us the impression that his Government feels that they are in about the same position that we are in and are extremely desirous of reducing their production so as to raise their prices. But unfortunately the central Government cannot come to any definite conclusion until it has consulted their various states where the wheat is raised. Canada desires, if possible, to have some agreement as to export quotas.

The Australian representative had several telephone conversations with Mr. Bruce in London and then informed us that Mr. Bruce did not wish to commit himself on any tentative propositions until he has had three or four hours’ talk with Mr. MacDougall in London.

The Argentine delegate, as I cabled you, reiterated again and again that although his country was very willing to agree to some reduction in acreage they would in no circumstances agree to any limitation of export quotas. He explained that the debts and obligations which his country had to meet in Europe necessitates the selling of a certain amount of wheat there so as to secure sufficient exchange to make their payments.

It seems to me that it is up to the Secretary of Agriculture and his associates who are to carry out the provisions of the Farm Bill and also to you who are conducting the general economic program of the Government to let me know how desirous you are of having these three countries agree to reduction of acreage. Of course, I understand that the psychological effect of an agreement between the four countries represented here may be desired by you even though you may share my fears that these countries may not be able to carry out the agreement.

I am very glad that Dr. Haas will be with you by May 25th and can then not only tell you all the details but submit to a cross-exanimation [Page 796] which will give you all an exact understanding of conditions here. If it is essential that some agreement as to reduction and so forth be reached before June 12th, I really believe it can be done in London. It might be wise for you to designate someone whom I can call up in Washington from London on or after May 30th after I have had several conversations with the other delegates and their superiors.

With kindest personal regards,

Yours sincerely,

H. Morgenthau
  1. Statement not found in Department files. For summary of the conferences, see Report on the Work of the Wheat Experts Who Met from May 10th to 17th, 1933, in Appendix of League of Nations Economic Committee Report (Official No. C.317.M.158.1933.II B).