561.311F1/130: Telegram
The Chairman of the American Delegation to the Monetary and Economic Conference ( Hull ) to the Acting Secretary of State
[Received July 5—5:37 p.m.]
103. For Wallace from Morgenthau. The meeting this morning reached a halt as to any real agreement.
The least unsatisfactory statement which all would agree upon is as follows:
“The four overseas wheat exporting countries, Argentina, Australia, Canada, United States, today reached agreement in principle on a policy of temporary adjustment of production and trade to world demand with view to improving the price of wheat and liquidating the surplus stocks now overhanging the market. They recognize, however, that the solution of the wheat problem depends upon the cooperation of the European countries.”
I agreed to the final sentence with a view to making it impossible for the other three countries to assert that the United States had stood in the way of agreement by refusing to allow agreement to depend on European assent. The sentence was inserted at my suggestion in place of the declaration desired by the other three representatives that the entire agreement was contingent upon European cooperation.
Both Australia and Argentina have for some time past been determined to make any solution dependent on European cooperation knowing full well that it was almost impossible to secure it quickly if at all.
In order to keep the Committee alive I appointed Le Breton, Bruce and Murphy to undertake negotiations with the European countries. Then the meeting adjourned subject to call. I believe you had better proceed with your plans expecting no timely international cooperation.
Do you not think it advisable that I should issue or that the Department of Agriculture should issue a statement reaffirming the American willingness to enter into a plan of reduction and limitation of exports unconditional on any European action during the first year. This would serve to keep the record clear which may be useful in the development of American marketing plans in the event of renewed discussions. Even though such a statment might force the dissolution [Page 809] of my Committee I should think it advisable. If you agree would you prepare the necessary statement and submit to the delegation to ascertain if any new developments have arisen. [Morgenthau.]