611.4731/331a
The Department of State to the British Embassy
Memorandum
Referring to conversations which have been held from time to time regarding the possibility of negotiating a trade agreement between the United States and Australia, and in particular to those held with Messrs. Abbott and Murphy when they were in Washington on April 20, 1938, the United States Government is prepared to undertake immediately negotiations under the following conditions:
(1) If the negotiations cannot be completed and the agreement signed and made public by early September, it will be necessary publicly to announce that the negotiations have been terminated. This is due to the fact that the principal concessions sought by Australia are on important primary products.
(2) In view of the foregoing, it would be necessary, in order to complete the procedural requirements for public notice and hearings as laid down in the Trade Agreements Act, to make not later than July 7 the public announcement of negotiations.
(3) Since it is obviously desirable that negotiations not be publicly announced if there is any danger of their not being completed in the time indicated under (1) above, it is important that agreement be reached on essentials before public announcement is made, that is, before July 7. If announcement cannot be made on or before July 7, it would be necessary indefinitely to postpone such announcement.
(4) With this end in view there is transmitted herewith a more precise indication of the concessions desired by the United States. The Government of the United States would like to be informed at the earliest possible date whether the Australian Government is able to meet each of the precise requests made herewith.
(5) On its part, the Government of the United States, having examined the list of concessions sought by Australia, is prepared to make the following reductions in the American wool duties as part of a comprehensive trade agreement with Australia:
Wools, finer than 44s now subject to various duties under paragraph 1102 (b) of the Tariff Act of 193032 to bear rates of duty as follows: [Page 150]
- (1)
- In the grease or washed, 25 cents per pound of clean content;
- (2)
- Scoured, 28 cents per pound of clean content;
- (3)
- On the skin, 23 cents per pound of clean content;
- (4)
- Sorted, or matchings, if not scoured, 26 cents per pound of clean content.
It will be observed that these tentative offers represent a reduction in the existing wool duties by about 26½ percent. These offers are the result of exhaustive study by the interested branches of the American Government, and it has been definitely established that greater reductions in these rates cannot be considered.
The United States expects to be able to offer to Australia bindings on the free list or substantial reductions in the American tariff rates on those other products of which Australia is the principal supplier in the American market. Tentative indications of these offers can be transmitted to the Australian Government in the course of the next few days. All proposals of American tariff reductions put forward at this time are, of course, subject to alteration in the light of information which may be brought out in the briefs and at the public hearings in connection with the normal trade agreement procedure in the United States.
(6) The conclusion of a trade agreement between the United States and Australia is, as has been previously pointed out, contingent on the conclusion of a broad and comprehensive trade agreement between the United States and the United Kingdom. In the opinion of the American Government the proposals of the British Government in the current negotiations fall far short of the minimum requirements of such an agreement. It is fair to add, however, that the British Government is re-examining the requests of the United States, and it is hoped that a broad and comprehensive agreement can be reached. The cooperation of the Australian Government in making it possible for the United Kingdom, as well as Canada, to meet certain important requests of the United States should greatly facilitate the accomplishment of this objective.
- 46 Stat. 590, 647.↩