561.311F1/162: Telegram
The Acting Secretary of State to the Chairman of the American Delegation to the Monetary and Economic Conference (Hull)
164. For Morgenthau from Wallace. Your 153, July 19, 4 p.m. With respect to Danubian countries, your recommendations to accept extension of preferences solely for the period of the agreement and to secure concessions on total export quotas if preferences are to be extended seem satisfactory.
With respect to importing countries, would urge they lower tariffs, eliminate milling restrictions and maintain free market to exporter after he has paid duty.
With respect to Russia we know of no way of granting collateral loan. Would suggest again that Russia may obtain a larger money return under agreement than without one. Russia may want to hold part of its surplus for a smaller crop next year. [Wallace.]