500.C1112/145: Telegram

The Consul at Geneva ( Gilbert ) to the Secretary of State

235. Grady informs me as follows:

The Raw Materials Committee closed its session today after reaching substantial agreement on the preliminary text of a report. It was decided to hold a short session beginning September 1st to agree on the final text. In the meantime the Bureau of the Committee and the Secretariat will supplement certain parts and redraft the report [Page 818] which was chiefly prepared in sections by subcommittees. Moreover, certain members will study and prepare memoranda on technical phases of the present draft, particularly with reference to the concrete recommendations.

The British showed a decidedly liberal attitude and made every effort to meet the Japanese and Polish points of view and while on several controversial issues the report as yet merely expresses different points of view there seems to be every prospect that the final report as a whole will be constructive. The recommendations as they now stand are along the lines of a liberalization of trade and financial controls and if as seems likely they are maintained in the final report they will furnish very real moral support to our policies. Certain of the recommendations may also aid some of the smaller European countries in dealing with their raw materials problems.