611.4731/328

The British Embassy to the Department of State 32a

His Majesty’s Government in the Commonwealth of Australia have given careful consideration to the memorandum handed to me at the State Department on June 13th and the list of probable concessions33 received from the State Department on the 20th June.

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They wish me to communicate to you the attached list33a of formal requests made by the Commonwealth Government: this list would have been supplied before had the Commonwealth Government thought that the United States Government wished and were in a position to proceed to detailed discussions.

The Commonwealth Government desire me to say that whilst they are anxious to negotiate with the United States of America a mutually satisfactory trade agreement, such an agreement naturally must have regard to the circumstances of both countries and, in the case of Australia, to the great need for an expansion of its exports to the United States of America, particularly in such commodities as wool, beef, mutton and lamb. In their opinion the offer the United States Government have made falls very far short of constituting a reasonable basis for negotiations, and they hope that the United States Government will be able to accept as a basis the list they are now submitting.

In explanation of the above, I should say that the Commonwealth Government are preparing to consider only an agreement which is of real value to both parties. To be of value to Australia an agreement must promise a more even balance in trade between the two countries and contain concessions which will make possible some expansion of the Australian Export Trade to the United States of America, for the Commonwealth Government cannot contemplate a continuance indefinitely of anything approaching the figure of the present annual adverse balance. But whilst the requests submitted by the United States Government would expand to a very considerable extent United States exports to Australia the concessions offered by the United States of America promise no expansion of Australian trade and so actually threaten to increase Australia’s adverse balance of trade. For these reasons the Commonwealth Government are seeking such further concessions as would promise some increase in their exports and so a more equitable and mutually satisfactory distribution of trade.

  1. Delivered to the Department by Mr. Keith Officer, Australian Counselor of the British Embassy; the first-person references in this document are to Mr. Officer.
  2. List not printed.
  3. Not printed.