500.C1199/292: Telegram

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

273. Grady informs me as follows:

The Economic Committee closed its session today. The draft report (despatch 2191, August 7, 1937,35) was adopted with a number of modifications among which were the following: [Page 821]

The Committee states that while it hesitated to submit a report in view of present disturbed political situation it felt that nevertheless these circumstances make it more necessary than ever to make an effort which by helping to bring about economic improvement may contribute to safeguard peace.
The section on trade balances was rewritten to reduce emphasis on the commodity item in the account by specific reference to invisible items.
The failure to mention our policy in the preliminary draft was an oversight which was corrected by references to “the influence of the commercial policy for which Mr. Cordell Hull is responsible” and to the renewal of the Trade Agreements Act as among the favorable factors in the world situation.
The recommendation for the general suppression of quotas was changed to avoid giving the impression of defending agricultural quotas. Pending complete suppression it is strongly urged that quotas be administered on a non-discriminatory basis.
The report as a whole as finally adopted is a strong endorsement of the principles on which the American program is based. This endorsement should be of real value in furthering American policy.

The report36 will be released to the press tonight.

  1. Not printed.
  2. League of Nations, Economic Committee, Forty-Sixth Session, Report to the Council, September 10, 1937 (Official No.: C.358.M.242.1937.II.B.).