Foreign Relations of the United States Diplomatic Papers, 1937, The British Commonwealth, Europe, Near East and Africa, Volume II

647.006/73: Telegram

The Consul General at Sydney (Wilson) to the Secretary of State

Sydney, December 8, 1937—9 p.m.
[Received December 10—5 a.m.]

Referring to telegram of December 8, 6 p.m.,²⁴ my impressions from Canberra visit have crystalized as follows:

(1) The statement made by White December 7 is generally regarded as eliminating the principles of discrimination against United States, as meeting our requirements and removing all objections to exploratory discussions;

(2) That the statement was finally agreed to despite divided opinion at a meeting of the Cabinet held immediately before;

(3) That the Government while sincere in purpose to end discriminatory action nevertheless considered it necessary to save face before Australian manufacturers;

(4) That the Government is under strong pressure to effect cooperation with the United States even though some sacrifice is entailed.

Apart from the foregoing Moore who was introduced to me by White as his chief adviser on trade treaty matters states the position of the Government as follows:

Government proposes to investigate immediately all commodities on prohibited list not included in list of 34 (telegram of December 8, 6 p.m.) to determine whether additional tariff protection is necessary but regard must be paid to assurances given Australian manufacturers to protect industries established as a result of diversion policy. Where additional protection not necessary steps will be taken to issue licenses freely for United States goods.

Arrangements will be made simultaneously to issue licenses freely for United States goods at the time higher tariffs, where decided upon, are imposed. When tariff legislation is introduced early next year diversion policy should disappear.

Situation with respect to motor chassis will remain unchanged with regard to United States and Canada until the final policy is determined with respect to manufacture in Australia.

Australian Government trusts that United States will take the view that there is now no substantial discrimination against the United States. Australian Government is most anxious to enter into exploratory discussions with the United States Government simultaneously with negotiations between the United States and United Kingdom and is prepared to send officials immediately to Washington. End of Moore’s statement.

Wilson

24. Not printed; it summarized the statement made by Col. T. W. White, the Australian Minister of State for Customs, December 7, supra, and reported that the Collector of Customs had been instructed to issue permits irrespective of country of origin for 34 classifications of goods (647.006/71).