Memorandum by the Secretary of State

The British Ambassador came in upon my invitation and I stated to him the substance of the New Zealand shipping question or controversy. I suggested that I considered it very important, for the sake of teamwork between the governments dealing with the matter, that the Government of New Zealand should not put into operation the discriminatory shipping authorization already enacted. I said that this should not be done pending full and elaborate conference between the proper governmental agencies with respect to the broader phases of the shipping situation, especially on the Pacific; that unless this should be done our shipping officials might unintentionally get at cross purposes in some ways, while thus working more or less in the dark as to the ultimate plans and purposes of New Zealand, for example, and that this especially would be true if New Zealand should place this discriminatory policy in operation without further delay.

The Ambassador replied that he doubted whether New Zealand would expressly commit herself on the matter; that this was a club she has in her hand which, as to the use of, in his opinion, she would not commit herself in advance; but that he felt entirely satisfied there would be no purpose to put this discriminatory legislation into operation pending any conferences, discussion, and consideration by the proper governmental agencies looking towards a mutually satisfactory settlement. I replied that was all that could be expected in the circumstances.

I am satisfied the Ambassador will emphasize to his government the view that they should not permit this legislation to be carried into effect pending further and broader consideration of shipping relations between our different countries and, if possible, satisfactory agreements upon policies, etc.

C[ordell] H[ull]