611.47H31/57
The Secretary of State to the Consul General at Wellington (Bucklin)
Sir: Reference is made to your despatches dated November 16 and November 23, 1934,3 concerning a proposal of the New Zealand Government to negotiate a reciprocal trade agreement with the United States.
That part of my instruction dated September 17 [18], 1934,3a which related to the trade agreements program of this Government was designed to prepare you informally to discuss our point of view upon appropriate occasions. It has been presumed that you would have, upon such an occasion as your interview on November 13, 1934, with the Minister of Finance and Customs, attempted to convey to him the essence of our point of view and the reasons therefor. Although your report does not state that you have orally made reference to the difficulty of opening negotiations with New Zealand at this time, I am of the opinion that that Government is aware of the reasons why New Zealand was not included in the first group of countries on the program. You may now, however, address to the New Zealand Government the following note:
“I am directed by my Government to inform you that it has been greatly interested in the proposal contained in your communication to me dated November 15, 1934, and that it has given careful consideration to its details in an effort to determine whether the proposal could fit into the program of negotiations as begun by the United States.
“Far from diverting trade from one country to another this program [Page 71] has as its chief purpose the opening up of world trade by lessening generally the obstacles to trade. In this way it is hoped to increase the flow of goods both ways between the United States and other countries. It would leave trade balances to be effected in the natural roundabout fashion as in the past. It was planned for the United States to begin its program of negotiations with countries whose products were not so directly competitive with its own, and under this plan several agreements are in progress, with some in their final stages. The conclusion of these agreements is predicated upon the assumption that the tariff reductions made by the United States will be extended to all countries which do not discriminate against it. While the first set of agreements will not cover a large number of products in which New Zealand is interested, as the program progresses it will probably be found that certain New Zealand products, by reason of this generalization, will be placed in a more favorable position. It would follow that the total of exports from New Zealand to the United States would show an increase. It is the feeling of the United States Government that by thus without compensation (other than reciprocal most-favored-nation treatment) opening up its markets for the less competitive products of some countries, there might later on be found a better basis for negotiating with them respecting the more competitive products.
“In the meantime it is hoped that the New Zealand Government will have a full appreciation of the broad economic principles and policies, contained in the Montevideo resolutions to restore international trade,4 which underlie and are basic to this Government’s program, and will cooperate with this Government in its effort to play its part in bringing about a progressive removal of trade barriers throughout the world. Such program if carried out simultaneously by the important nations will very much increase both New Zealand trade and ours.
“You may rest assured that your proposal will have the continued interest of the United States Government, which, as soon as domestic agricultural conditions permit, will be glad to re-examine it in the light of the new conditions.”
There is enclosed a copy of the Report of the Delegates of the United States of America to the Seventh International Conference of American States, pages 196–198 of which contain the resolution pertaining to economic, commercial and tariff policies. You may either quote Appendix 29 as an enclosure to your note or transmit the entire publication, making an appropriate reference to the appendix.
Very truly yours,
- Latter not printed.↩
- Not printed.↩
- See Foreign Relations, 1933, vol. iv, pp. 1 ff.↩