611.47H31/27
The Secretary of State to the Consul General at Wellington (Hitch)
Sir: Reference is made to your despatch No. 290 of April 10, 1933, in which you report the growing sentiment in New Zealand for a reciprocal trade agreement with the United States and raise the question of opening negotiations for such an agreement as soon as the necessary legislation shall have been enacted by Congress.
Inasmuch as the legislation to which you refer has not as yet been enacted the matter should not be discussed with the New Zealand authorities at this time. However, anticipating that a policy of concluding reciprocal trade agreements will eventually be adopted, studies [Page 111] are now being made with a view to formulating tentatively the terms of such agreements with the various countries with which negotiations are likely to be undertaken. It would be helpful to receive from you concrete suggestions as to the provisions which should be included in any such agreement with New Zealand. While no definite conclusions in these matters will be reached until Congress shall have acted, a survey of the situation with a view to formulating the possible terms of such agreement will facilitate the conduct of the negotiations when the basis on which the United States will be prepared to proceed shall have been defined.
Without approaching the New Zealand Government in the matter, therefore, you should submit to the Department your recommendations as to the products on which concessions might best be sought from New Zealand, and any information you may have as to the concessions which New Zealand would be likely to ask in return. You will of course, consider in this relation the preferences made by New Zealand in favor of the United Kingdom or other parts of the British Empire and indicate the extent to which you consider it desirable and possible to bring about the removal of these preferences.
You should also bear in mind the fact that any concessions made by either party under such an agreement will in all probability be generalized to other countries. It is essential, therefore, that in selecting products on which concessions would be sought consideration be given to the competitive position of the United States in supplying the New Zealand market. In other words in the case of any given product you should consider whether the competitive situation is such that the United States would be likely to obtain a substantial share of any increase in total importations resulting from a reduction in duty applicable to importations from all foreign sources.
All publicity concerning the above-mentioned studies should be most carefully avoided until the question whether negotiations will be undertaken with New Zealand has been decided and you have been instructed as to the basis on which such negotiations might proceed.
Very truly yours,