635.4131/84a: Telegram
The Secretary of State to the Chargé in Great Britain (Atherton)
96. For Norman Davis.1 As Under Secretary Phillips just explained to you over the telephone:
“It seems to the Government necessary that it take note of the terms of the treaty now in process of negotiation between the British Government and the Government of the Argentine Kepublic, because of [Page 728] its bearing on the Economic Conference program and upon American trade.
The Department has discussed with the Argentine representatives now in Washington the possible significance of the terms of the treaty, particularly in regard to (a) the operation of the foreign exchange rationing arrangements and (b) the ultimate effect on American trade of the contemplated tariff changes.
The American Government realizes that the British Government may, in the light of the plans for the Conference and the conversations that have taken place here, wish to hold the final conclusion of this treaty in abeyance pending the outcome of the Economic Conference. Still, in accordance with the spirit of candor in which our recent conversations with the Prime Minister were carried on, this Government desires to express the judgment that the proposed treaty, certainly as a consequence of the exchange arrangements which are laid down and possibly as a consequence of its tariff features, contains elements of discrimination in favor of British trade which are inconsistent with the aims of world cooperation which alone can give meaning to the Economic Conference and to the preliminary conversations in which the American Government is engaged.”
The Department leaves to your judgment the decision as how this view is to be brought before the British Government and in what form, and leaves further to your judgment the question of the exact language which had best be employed.
It realizes the importance of acting in such a way as to strengthen MacDonald’s position and not weaken it.
The Department feels very strongly that some action should be taken to present this point of view clearly because if this treaty is completed without a clear indication of our position it may easily lead to a succession of other treaties between other nations which will render the idea of a tariff truce illusory and give rise to so much criticism as to defeat the other objects of the Conference.
- American representative on the Organizing Committee for the Monetary and Economic Conference.↩