500.C111/884: Telegram (part air)
The Consul at Geneva (Gilbert) to the Secretary of State
[Received September 26—11:55 a.m.]
370. Consulate’s 359, September 23, 3 p.m.1 It is expected that the following resolution, submitted by the British delegation to the Second Committee today and accepted by the French delegation, will be adopted by the Committee Thursday without material change.2
“The Second Committee
“Convinced of the inimical effect on international trade of arbitrary restrictions imposed by governments,
“noting that one of the ultimate objectives of governments is a return to an international gold standard,
“considering that even before the reestablishment of such an international monetary standard becomes possible effective steps might be taken with a view to removal of impediments to the exchange of goods and that such a removal is indispensable if the economic recovery of which signs are now apparent is to be developed,
“considering that the recovery of international trade would be greatly assisted by the conclusion by as many countries as possible of bilateral agreements having for their object the application of a more liberal economic policy and
“recognizing further that the beneficial effects of such agreements would be more widespread when based upon the principle of the most-favored-nation clause
“realizing that governments hesitate to enter into agreements of substantial duration if the circumstances in which they were entered into may be subject to violent changes as the result of currency fluctuations,
“recommended that governments should endeavor to encourage freer trade by the conclusion of bilateral agreements subject, should they consider it necessary, to the provision that in the event of a large variation in the rate of exchange between the currencies of the contracting parties there should be power to take steps to revise the agreement at short notice.”