611.4731/220: Telegram

The Ambassador in the United Kingdom (Bingham) to the Secretary of State

372. I made an appointment with Lyons for this afternoon immediately following receipt of your 232, of June 10, 5 p.m. I conveyed to him your message and he went on to say that he understood the situation did not admit of discussion of a trade agreement at this time. He said, however, that he regretted that on his visit to the United States 2 years ago he had not been able to get at least some slight concession especially as regards wool and wines which he could have used as leverage to combat the tendency in his country which led ultimately to the adoption of their embargo policy. He said he believed in a general restoration of international trade as the best hope for a restoration of stability and for peace in the world and that he hoped the time would come when his country could make a contribution in that direction; but that he could not guarantee such action because it would depend on the local political situation.

He said that he had lunched today with the British Prime Minister and had been assured by Chamberlain that he was heartily in favor of working out a trade agreement between Britain and the United States and that he had told the Prime Minister he hoped it might be possible for Australia to make a contribution in this direction although Chamberlain must understand it would mean concessions on the part of Britain.

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He said too that he had been again assured by Chamberlain that nothing would be done here to embarrass him in his coming election in Australia. In that connection he said that he personally had favored holding the election last February when he felt certain he would have won so that he might have come to the Imperial Conference with a mandate which would have given him a freer hand; but there had been a leakage about his intention, opposition arose, and he felt it was unwise to go on with an election last February; that now he could hold on until the 12th of December; but that he had told the Prime Minister and wanted to tell me that it was his purpose to hold the election as early as possible—if practicable in September—but he could not attempt to fix a time until after his return to Australia.

He referred again to his hope for a pact of non-aggression in the Pacific and said that he had been told by the British Government that it would take up this subject with the United States, Japan, China and other interested countries and that he had left the matter in that position because he felt it properly belonged to the United Kingdom to deal with this subject.

Bingham