611.4231/1583
Memorandum by Mr. James C. H. Bonbright of the Division of Western European Affairs
Mr. Armour5 telephoned at half past ten this morning from Ottawa to say that he had seen the Prime Minister last night and that the latter is very much worried by the delay in getting down to actual negotiations of a trade agreement with us. A meeting of his Cabinet is to be held this afternoon at 3 o’clock, when the exact date of the general election will be chosen, the two alternatives being September 30th and October 15th. Mr. Bennett told Mr. Armour that a number of his colleagues were opposed to having a trade agreement with us and were in favor of the earlier date for the general election. He felt, however, that he could stand them off and insist on the October 15t’h date if he could receive a definite assurance from the President that active negotiations would be inaugurated in the near future. Mr. Armour referred to the recent attacks on the Administration by Premier Hepburn of Ontario, in which the latter said that whereas in 1911 the Conservative Party had cried “No truck or trade with the Yankees,” the roles were now reversed and the policy of our Administration was “No truck or trade with the Bennett Government.” Mr. Bennett was naturally anxious to counteract this attack, even though he, himself, felt that it was not true. Mr. Armour felt that unless we gave Mr. Bennett some definite assurance today to go on it would very probably have the unfortunate result of having the Conservative Government call off the negotiations, publish their note to us of November 14th last, and carry on a strong anti-American election campaign.
Mr. Hickerson6 described the present situation to Mr. Armour and told him that Mr. Grady7 hoped to see the President today and obtain from him final approval on certain of the proposed concessions to Canada regarding which he had requested additional information. Mr. Armour urged that either the Secretary or Mr. Phillips8 also [Page 20] see the President and point out to him the very important political implications as well.
It is our understanding that the Prime Minister’s request for a definite statement today is purely for his own use with his colleagues in the Cabinet and that if we can assure him that active negotiations will be started in the near future there is no immediate desire on the Prime Minister’s part to issue a statement to the press. If, as is now hoped, Congress may adjourn by the 24th of this month, it seems likely that we can keep the Canadian Government from issuing a press statement until after that date.
Mr. Hickerson promised to telephone Mr. Armour at 1:15 this afternoon and indicate to him at that time what message he could give the Prime Minister.
Mr. Hickerson telephoned Mr. Armour at 12:30 suggesting that the following message be given to the Prime Minister:
“The American negotiators will be ready to receive the representatives of Canada on Monday, August 26, to take up negotiations looking to a trade agreement between the United States and Canada.”
The above message was previously approved by Mr. Dunn,9 Mr. Grady and Mr. Phillips.
Mr. Armour said that he was very pleased with the message and seemed to think that it would meet the Prime Minister’s requirement.