641.6231/178: Telegram
The Acting Secretary of State to the Ambassador in the United Kingdom ( Kennedy )
201. Your 364, March 18, 6 p.m. Would refer you for guidance to the Secretary’s 169 of March 7, 6 p.m. The Department has never felt itself to be in possession of adequate information as to the objectives of these conversations (and also as regards the objectives of the conversations which it had been expected the British Government officials would undertake). Aldrich’s reports have given some indirect indication which while helpful were however not complete.
Among the various reports received were some to the effect that they were intended merely to achieve an agreement regarding competition in outside areas, particularly central and eastern Europe; others were to the effect that the interests would try to get safeguards against German competition in the British market, others were to the contrary effect that as part of the so-called policy of appeasement, German commerce would receive fresh opportunities and credits in the British market. In the face of such conflicting reports it is obvious that the Department has felt it necessary to reserve its opinion.
However, and this should be made clear to Stanley, from the beginning it has been disturbed lest the outcome should serve to strengthen the present German system of trading and handicap the type of commercial policy which this Government has sought to advance. Obviously as far as the matter may still be in the field of consideration, the events of the past week will have increased doubts as to whether such negotiations could possibly produce desirable results.
The Secretary suggests that you take this occasion to inform the British Government that it might serve a good purpose if the British Government would now reiterate a policy of lower trade restrictions under conditions permitting multilateral trade along lines of economic benefit and reciprocal equality of opportunity.
Since dictating the above, your 373 has been received.34 The arrangements described do not furnish any basis for enthusiastic approval. What seems to be visualized is a series of cartel agreements with no precise plans for enlarging the volume of trade anywhere. The numbered paragraph 8, carrying an implied threat that if industries of other countries do not join such agreements the German and British Governments will be asked to cooperate in order to bring pressure and to compel them to do so, will not make a happy impression here.
- Infra. ↩