611.4131/119
Memorandum by the Economic Adviser (Feis)
Mr. Chalkley, the Commercial Counselor attached to the British Embassy, invited a general discussion of trends in international trade. He freely expressed the opinion that with the exception of the policy advocated by the Secretary of State, all trade policies now being pursued were calculated either to restrict or deflect trade and not to develop trade. He said he was searching around for ways and means of developing trade and wished to present for the consideration of the Department the general idea of an arrangement between the two Governments by which surpluses could be exchanged for use outside of ordinary commercial channels, e. g., for distribution for relief purposes, in stocks for defense purposes, et cetera.
He said he believed the idea would be put before Mr. Oscar Johnson2 in the course of the discussions now going on in London. In addition, he believed that Mr. Johnson would be told that the solution of the problem depended on the provision of increased markets for British goods either in the United States or in outside areas. In this connection Mr. Chalkley emphasized the possibility of linking together the raw cotton situation and the cotton textile situation. In that connection he expressed anxiety as to possible action affecting the British textile trade in Cuba and the Philippines. He said a report had reached him that Cuba might increase its tariffs on cotton textiles for the primary purpose of keeping out Japanese textiles, but that the move would incidentally suppress British trade and that if this happened it would naturally affect the British disposition to buy American cotton. I emphasized in reply the fact that in our trade negotiation with Cuba,3 we had not sought to get an exclusive position in the Cuban trade, and that we were doing nothing whatsoever now to encourage the Cubans to take any action which would further shut out British textiles.
[Page 2]He then referred to similar contemplated action in the Philippines. I told him of the move that had arisen in the Philippines for greatly increased tariff protection and of the intervention of the American Government, but he professed himself disturbed over a renewal of the tariff revision program, and said that if action was taken he greatly hoped it would be along quota lines so that the British share in the market could be maintained.
- Apparently refers to Oscar Johnston, manager of the Cotton Producers Pool, Agricultural Adjustment Administration.↩
- See Foreign Relations, 1934, vol. v, pp. 108 ff.↩