611.4731/101: Telegram
The Secretary of State to the Consul General at Sydney (Caldwell)
Your May 1, 5 p.m. You may prepare a written proposal containing no reference whatever to entry and residence of business men. The principal points are that this Government feels that American interests have suffered greatly by the exception made in favor of Canada; that we ask that our proposal be considered in relation to American customs treatment of Australian goods, against which no duties are levied on inland freight above that contributing to market value (you are thus asking no more than reciprocal treatment in customs handling); that the peculiar geographic situation makes a condition not likely in any other part of the world, or if at all, on a much smaller scale. You may use whatever of my instruction of January 30 and other material in your possession, in your discretion, may strengthen your note and expand the above.
Orally you may point out that entry and residence of Australian business men is being considered in relation to Australian treatment of American business men, as will be evident from the draft agreement. [Page 840] For the reason that both matters are based on reciprocity and that the present status of one is more damaging to our interests than the other is to Australian interests, this Government does not feel that it is unreasonable to urge as quick action on the one as has been urged by Australia on the other.