611.4131/256

Memorandum by the Chief of the Division of Trade Agreements (Hawkins) of a Conversation With the Commercial Counselor of the British Embassy (Chalkley)

Mr. Chalkley referred to our memorandum setting forth the products subject to the Ottawa agreements on which improved treatment would be essential in any trade agreement negotiated with the United Kingdom and said that this memorandum will be submitted to the British Cabinet at its next meeting which will probably take place Monday or Tuesday, March 22 or 23. Mr. Chalkley stated that it is naturally desired to present the matter to the Cabinet in the best light; and with that end in view, he had been instructed to ask us to provide him with answers to the following questions:

1.
Some more precise indication than that already given of the extent to which the United States are likely to be able to meet the reciprocal desiderata of the United Kingdom.
2.
Are there any commodities in the United Kingdom desiderata on which concessions are out of the question?
3.
Where existing United States tariff rates are high (say of the nature of 40 percent ad valorem or its equivalent) might the maximum reduction of 50 percent be expected?
4.
With reference to paragraph 2 of the last United States memorandum on what products not subject to Ottawa commitments is improvement in present treatment likely to be requested as essential for a basis for negotiation?

Mr. Chalkley said it would be necessary to have our replies by Friday afternoon (March 19).