[Enclosure]
Memorandum by the Minister in Canada
(Armour)
[Ottawa,] September 21,
1935.
I called on Dr. Skelton this morning by appointment and informed
him of my conversation with Mr. Hickerson the previous evening.
I told Dr. Skelton that I thought it would be very useful if the
State Department could be given through Mr. Herridge, at any
rate a rough idea of what concessions the Canadian Government
was prepared to make on American products under the trade
agreement. I pointed out that possibly they might be able to
submit their list on the distinct understanding that it was of
course subject to the Prime Minister’s approval, but that I felt
it would be difficult for the President to give his final
approval to our list of concessions if he did not have at least
a pretty good idea of what concessions the Canadian Government
on its part was prepared to make.
Dr. Skelton felt this to be a perfectly reasonable suggestion,
but wondered how it would be possible for them to put it into
practical effect. After thinking it over, however, he said that
he would make an attempt to get in touch with the Prime Minister
and see if it would not be possible for them to accept the
suggestion.
He said it was most unfortunate that they had not had one or two
more days with the Prime Minister before he left as this would
have enabled them to get his final approval. As it was, they
were not expecting him back until the end of next week, but
nevertheless he would see what could be done to comply with the
State Department’s wishes.
I asked Dr. Skelton what on their own list they felt to be the
essentials; not, I said, that I would interpret his answer as
meaning that articles not mentioned were unessential, but that I
merely wished to know the articles on which they placed the
greatest score.
His answer was cattle and Douglas fir. As to cattle, he agreed
that the results were what the Canadians were interested in and
that the formula or procedure by which these results were
arrived at, that is to say, whether by quota or some other
formula, was not he felt so important, and if the quota method
would make it easier for the American government to secure
approval of the cattle people he could see no objection to
it.
He said that he did feel that some concessions that would be
pleasing
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to the Maritime
Provinces were also essential. We had, it is true, suggested
concessions on halibut and were willing to “freeze” lobsters on
the free list, but potatoes of course constituted the most
important item so far as New Brunswick and Prince Edward Island
were concerned, and some concessions on cod would be most
helpful in order to placate Nova Scotia. He said that he
understood the difficulties confronting us on both these
articles. With this end in view they had prepared a formula by
which he thought we might do something for their “seed potatoes”
and hoped very much that our Government would see its way clear
to carry out this suggestion.
Dr. Skelton said that he felt that this was certainly the
propitious moment to put through the agreement and that every
effort to this end should be made. I expressed some surprise at
certain remarks I had seen attributed to the Prime Minister in
his speeches in the west, notably to the effect that he asked
for a mandate from the people in order to put through a trade
agreement with the United States after the elections, and asked
whether this meant that he no longer entertained the earnest
hope that he had expressed to me, particularly on August 13th
last, to see the trade agreement concluded at the earliest
possible date. Dr. Skelton said that he felt that this remark
might be explained as meaning that if no agreement was actually
reached prior to the elections the Prime Minister wished to
protect himself for the future; that he knew that the Prime
Minister still hoped very much to see an agreement concluded
along the lines indicated as soon as possible and he, Dr.
Skelton, personally felt that this was the time to do it He also
felt that an agreement concluded with the Conservative
government, whose past history of course had shown it to be less
in favor of tariff reductions, had certain advantages over a
similar agreement concluded with a Liberal government if such
were to come into power which, of course, had always stood for
some form of tariff reductions. In other words, he voiced the
idea already expressed by others (but coming from Dr. Skelton
this opinion, I think, carries with it a particular
significance). Dr. Skelton said he was leaving for Toronto
tonight but would endeavor to get in touch with the Prime
Minister before his departure and would communicate with me, he
hoped, later in the afternoon or early evening.
