611.4131/1828: Telegram
The Ambassador in the United Kingdom (Kennedy) to the Secretary of State
[Received October 18—4:13 p.m.]
1206. Personal for the Secretary of State. I spent an hour with Stanley this morning discussing the trade agreement. It goes before the Cabinet early tomorrow morning. There is no question in my mind that while Stanley hopes an agreement can be worked out, he has made it very clear to his colleagues in the Cabinet that to grant any further concessions would make this agreement a farce as far as Great Britain is concerned. I arrived there today to give him an argument on the points that he had raised with your memorandum as a helpful factor but found to my amazement that your entire memorandum was contained in the document handed to the British, so there was little I could do since I had nothing new to contribute. It [Page 66] strikes me that the tone of the last document you handed the British was definitely in the nature of an ultimatum and the British so regard it. Far be it from me to make any suggestions as to how those handling the trade agreement should avail themselves of the Ambassador’s services, but it does seem to me that if they really want a trade agreement it might be well to have the man on the spot find out just how much further we could go without kicking the thing over.
I am getting through to the Prime Minister tonight to see what can be done with him before the Cabinet meets tomorrow morning. The influence of the Foreign Office is now definitely against the agreement I believe and I also think Halifax is convinced. Their entire argument they say is not political but that it is going to be a very bad agreement the way it is at present lined up and make worse the deplorable condition Great Britain finds itself in as far as trade is concerned.
I am confident that even if we can get something done when the Prime Minister gets back tonight you will not get everything asked for. As I have said to you over the telephone I am not in a position to judge the value of the agreement or the terms of it. I merely know what some people are likely to do in a game of cards when they are called. I am assuming naturally that you want to get this deal through if it is at all possible and my efforts are being directed to prevent a return ultimatum being sent back to you tomorrow.