The Department of State to the British Embassy

Memorandum on Present State of Our Studies With Respect to Possible Concessions Which May Be Granted by the United States

On March 17 the Commercial Counselor of the British Embassy submitted a questionnaire concerning the extent of the concessions which the United States might be in a position to make in a trade agreement with the United Kingdom. Our reply of March 19 furnished such general estimates as were then possible on the basis of preliminary and incomplete studies made at that time. A copy of the pertinent portions of the reply is attached hereto.51 Since then we have made intensive further studies, on the basis of which we have now reached somewhat more definite and detailed, though necessarily still tentative, conclusions, which we are in a position to communicate informally to the United Kingdom Government in amplification of our previous reply to the questionnaire of March 17.

Our present estimate of the extent and character of the possible concessions which it may be feasible to accord the United Kingdom is set forth in the attached tabulations.52

Of course, the concessions indicated are subject to such revision as may seem necessary as a result of further investigation or in the light of evidence presented by private interests following the regular public announcements. Naturally also, the actual granting of the concessions to the extent indicated would be dependent upon the reciprocal concessions which will be granted to the United States, including those coming within the scope of the minimum desiderata which have already been communicated, and those subsequently to be added.

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On certain items, particularly in Schedule 11, which are subject to compensatory, as well as to protective duties, only the protective portion of such duties can be considered at this time. However, in the event that the existing duties on the raw or semi-manufactured products which serve as the basis for the compensatory rates, should subsequently be reduced, it would be feasible to make corresponding adjustments in the compensatory rates. Consideration could be given to the inclusion in an agreement of a provision to this effect.

It will be noted that the total of items with respect to which concessions appear possible on the basis of present information is 246, of which 239 are reductions, and that on more than 100 of these it now appears that it would be possible to make reductions ranging from 40 to 50 percent of the present rates.

In addition to the products indicated in the attached tabulation, it will probably be feasible also to include for binding most of those products now on the free list of which the United Kingdom is the chief source of imports into the United States.

  1. See first three paragraphs of the memorandum of March 19, p. 19.
  2. Not printed.