611.4131/1805: Telegram
The Ambassador in the United Kingdom (Kennedy) to the Secretary of State
[Received October 7—4:15 p.m.]
1141. I have had two unofficial talks with Oliver Stanley—last night and today—and, of course, the trade agreement was the subject most discussed. I have no doubt whatever that Stanley is definitely against the trade agreement as is all of the British Cabinet with the exception of Chamberlain.
The last demands which have just arrived, Stanley believes are just the last drop in the bucket. He feels that he has got concessions from practically everybody in order to make this deal and he feels that not only will Parliament regard it as a complete sell out but he believes that it will accentuate the already bad balance of trade existing between the United States and Great Britain.
To add to the difficulties J. M. Keynes, the economist, in a letter to the Times today pointing out the bad trade balances, says that it is [Page 60] becoming more and more apparent that England should only buy where they can sell and that barter doubtless must be considered strongly by the Government.
Against all of this we have Chamberlain but with the growing feeling against the agreement I think we need to move reasonably quickly. Stanley and his group will want to turn down all of your last demands. If you can give me some inside advice as to what you will take to settle I will go to work on it. I cannot find out yet whether Keynes’ letter is a plant and whether it is the beginning of propaganda against the agreement, but I think we must be very alert here. Have you any suggestions?