611.47H31/75
Memorandum by the Assistant Secretary of State (Sayre)
Mr. Coates, accompanied by three experts, called to see me at three o’clock to discuss the trade situation between the United States and New Zealand. After a few general remarks, I proceeded to outline to Mr. Coates the general nature of the efforts which the present Administration is making to increase foreign trade and to reduce trade barriers. I spoke of our trade agreements program, of our desire to make as rapid progress as possible, and of the political and other difficulties which stand in our way. I also spoke of the difficulties in connection with agricultural imports and of the political obstacles toward sharply increased agricultural imports.
After giving a general picture of our trade agreements program, I concluded by saying that we hoped that the time would come in the future when we might enter into a trade agreement with New Zealand. I added, however, that important as we felt and realized New Zealand trade to be, we were already engaged in so many negotiations that it did not seem possible at the moment to undertake negotiations with New Zealand, particularly in view of the agricultural difficulties which such negotiations would involve.
Mr. Coates replied that he understood our difficulties and the reasons for not desiring to undertake negotiations at the present time. He nevertheless hoped that it might be possible to make some adjustments in order to meet the criticism which was making itself felt in New Zealand with respect to the excess of American exports to New Zealand in comparison with New Zealand’s exports to the United States. He said that if we could make some concessions, particularly with respect to beef exports, it would enable his Government to withstand criticism and to continue the present New Zealand purchases from the United States unabated. Without such an adjustment he was not sure what the outcome of such pressure might be.
I replied that if we should cut the tariff on New Zealand beef, because of our most-favored-nation program, it would mean a similar cut in beef from all other countries including Canada. Mr. Coates said that he understood that sanitary restrictions and embargoes would prevent imports from the Argentine, Brazil and Australia. I answered that there was no embargo against Canadian beef and whatever concessions we made to New Zealand would probably have to be made to Canada. I said that because of these obstacles and because the cutting of the tariff on beef would touch a very vital political nerve, there exist grave obstacles; but I said that we wanted to do everything possible to stimulate New Zealand trade and that we would like to consider with great care any concrete proposition which he might make [Page 79] so as to find if there were not some possible way of meeting New Zealand’s desires.
We arranged therefore to have Mr. Coates’ three experts, who were present, meet with Mr. Minter tomorrow morning so that they might lay their concrete proposition before Mr. Minter for our study and consideration.