Office of the Historian

611.4131/1855b: Telegram

The Secretary of State to the Ambassador in the United Kingdom (Kennedy)

Washington, November 3, 1938—10 p.m.

679. I have given careful consideration to the matters mentioned in our conversation tonight.64 I have reached the conclusion that we have obtained from the British about all that can be obtained without further concessions in our tariff. I am not prepared to make such concessions. We have had various indications from the British delegation here that they are dissatisfied with our concessions, and yesterday a specific request for improvement was made on an important item. This request was immediately rejected. While it might be possible to obtain some improvements in the British concessions, I am certain that this would result in increased demands on us, and such additional concessions as might be obtained from the British would not warrant subjecting American industries to the risk of additional concessions on our side.

A further consideration is the growing dissatisfaction in business circles here over the delay and uncertainty in connection with these negotiations, which it is claimed is seriously detrimental to business. [Page 71] Only today the press carries an open letter in this sense from the American Tariff League.

Moreover, I have been impressed by the comments in certain of your telegrams to the effect that there is a growing doubt in British official circles as to the desirability of this agreement. Even Stanley’s statement yesterday65 was not wholly reassuring.

In these circumstances I do not feel that such improvements in the British offers as might conceivably be obtained would warrant the delay and inevitable risk to these negotiations.

At the same time I appreciate the spirit which prompted your message and again thank you for your helpfulness and cooperation.

Hull

[For text of Reciprocal Trade Agreement between the United States and the United Kingdom signed at Washington November 17, 1938, and exchange of notes published with the agreement, see Department of State Executive Agreement Series No. 164, or 54 Stat. 1897. The following notes and minutes were not published.]

  1. No record of this trans-Atlantic telephone conversation found in Department files.↩
  2. Oliver Stanley in the House of Commons on November 1 had stated that he would welcome a new Anglo-American treaty but he also expressed some fears as what its final form might be.↩