611.4131/1789

Memorandum of Conversation, by the Assistant Secretary of State (Sayre)

Participants: The Honorable Sir Ronald Lindsay, Ambassador from Great Britain;
Mr. Francis B. Sayre;
Mr. Harry C. Hawkins.

The British Ambassador called to see me at his request at twelve o’clock. After a few remarks about the present tense international [Page 56] situation, the Ambassador asked whether there were any new developments in connection with the trade agreement. I replied that there were no new developments and that we were waiting to get the British reply to the proposal recently given to Mr. Overton with respect to the lumber formula. I made it clear to the Ambassador that until we received the British reply, since their reply constituted so essential a part of their position, it would not be possible for us to bring the British proposals up for consideration to the Cabinet and the President. I stressed the point that much would depend upon the British reply with respect to this very essential problem of lumber.

In commenting upon the lumber formula, I added that our proposal was not satisfactory from our viewpoint and that the only satisfactory solution would be the one first proposed, which depended upon a sub-classification of lumber by species. I said, however, that inasmuch as the British Government declared itself unable to accept the first formula, our effort has been to adjust ourselves to the British position even though by a formula not altogether satisfactory.

I went on to express my concern as to the trade agreement. I said that I did not know how the President and the Cabinet would react to the present British proposals, and I felt worried as to the outcome. I said that Secretary Wallace54 felt quite distinctly that there must be an improvement in the British position with regard to agricultural concessions. I said that others also felt concern over some of the other items.

In conclusion, I told the British Ambassador that we would not lose an hour in placing his Government’s proposals before the President as soon as we received the British reply on lumber. I asked him if he could give us any indication as to when the British reply might be forthcoming. He said he had no idea,—particularly in view of the tense international situation which confronts London. He also remarked with reference to my comment on the unsatisfactory character of the British concessions, that in formulating any requests for improvements, we should bear in mind that any improvements requiring further consultation with the dominions would be out of the question.

F. B. Sayre
  1. Henry Wallace, Secretary of Agriculture.