561.311F1/119: Telegram
The Chairman of the American Delegation to the Monetary and Economic Conference (Hull) to the Acting Secretary of State
[Received June 27—5:01 p.m.]
71. For Wallace from Morgenthau. At morning session Bruce declared that his Government would not come to understanding until European countries have agreed to cooperate and further said that in event Europe would cooperate he would then submit plan for approval of each state and the farmers. Morgenthau then stated that under those circumstances he would not start negotiation with European countries and also questions whether this Committee had power to go [Page 802] beyond negotiation among the four exporting countries. Murphy21 then made strong appeal that four countries must agree as their failure would have disastrous influence on general Conference and on the wheat situation in the future. It was then agreed that the four delegates would confer with Prime Minister MacDonald. At meeting with MacDonald Bruce reiterated that his Government had not given him the power to enter into any arrangement except one subject to the assured cooperation of European countries. At Bennett’s suggestion MacDonald agreed in his capacity as chairman of the Conference to cable the Prime Minister of Australia of the present status of negotiations and the great importance of agreement on wheat. Le Breton also stressed Argentina’s desire to have European cooperation. We shall await answer to MacDonald cable, in the meantime European countries will be unofficially canvassed as to their inclinations. Have you any new instructions as a result of increased wheat prices and reported crop damage? [Morgenthau.]
- Frederick E. Murphy, adviser to Mr. Morgenthau.↩