641.6231/181: Telegram
The Ambassador in the United Kingdom (Kennedy) to the Secretary of State
[Received March 20—2:26 p.m.]
373. My 372 of March 20, 6 p.m.35 The following is text signed March 16 of a joint declaration by the Reichsgruppe Industrie and the Federation of British Industries on the results of the convention held at Dusseldorf March 15 and 16, 1939. This will not be made public until tomorrow:
“The Reichsgruppe Industrie and the Federation of British Industries, having concluded a general discussion on Anglo-German trade relations, issue the following agreed statement:
1. The two organizations welcome the opportunity which these discussions have given of developing still further the friendly relations which have existed between the two bodies for so many years.
2. The two organizations recognize that both for Germany and for Great Britain a substantial and profitable export trade is vital to their economic life.
3. The two organizations recognize that the object of this export trade must be to give employment to their people, to improve their standard of living, and to provide a volume of foreign currency sufficient for their economic needs.
4. The two bodies are agreed that the objective to be attained is that the export of all countries should be conducted in such a way as to ensure a fair return for the producers of those countries. Hence it is agreed that it is essential to replace destructive competition where-ever it may be found by constructive cooperation, designed to foster the expansion of world trade, to the mutual benefit of Great Britain, Germany and all other countries.
5. The two organizations are agreed that it is desirable that individual industries in both countries should endeavour to arrive at industrial agreements which will eliminate destructive competition, wherever occurring, but prices must be fixed at such a level as not to diminish the buying power of the consumers.
6. The two organizations realize that agreements upon prices or other factors between Germany and Great Britain are only a step, although a most important step, towards a more ordered system of world trade. They would welcome the participation of other nations in such agreements.
7. The two organizations are of opinion that negotiations should be started immediately between those industries which are already organized for the purpose. They are further agreed that the wider the area of such agreements, both as to industries and countries, the more rapidly will international trade be established on a permanently progressive and profitable basis.
8. The two organizations realize that in certain cases the advantages of agreements between the industries of two countries or of a group [Page 78] of countries may be nullified by competition from the industry in some other country that refuses to become a party to the agreement. In such circumstances it may be necessary for the organizations to obtain the help of their governments and the two organizations agree to collaborate in seeking that help.
9. The two organizations agree that it is their objective to ensure that as a result of an agreement between their industries unhealthy competition shall be removed. Their aim is to secure as complete cooperation as possible throughout the industrial structure of their respective countries.
10. The two organizations have agreed to use their best endeavours to promote and foster negotiations between individual industries in their respective countries. They are encouraged in this task owing to the fact that a considerable number of agreements between individual German and British industrial groups are already in existence. There is thus available a large body of experience which inspires confidence that an immediate extension of this policy is both practicable and advantageous.
They are glad to state that approximately a further 50 industrial groups have already signified their willingness in principle to negotiate at an early date.
They also report with satisfaction that negotiations have already been started and are now taking place between 10 industrial groups.
11. In conclusion, the Reichsgruppe Industrie and the Federation of British Industries feel that the problem is not merely one of eliminating undesirable competition, but of taking concrete steps to increase world consumption of the products in which German and British industry are interested; they have, therefore, decided to maintain closer and more active relations with regard to this matter. They also recommend to individual industries that an effort should be made in any agreements that may be concluded for joint action to increase world consumption of the products in which they are interested. Again, this joint action should be considered as the precursor to a wider international collaboration between industries designed with a view to increasing world consumption and consequently production, to the benefit of all concerned.
12. The ultimate objective must be to increase world prosperity. The Reichsgruppe Industrie and the Federation of British Industries believe that the result of their discussions has been to lay a sound foundation upon which individual industries can usefully begin with mutual advantage.
In order to ensure the success of this policy it has been agreed between the Reichsgruppe Industrie and the Federation of British Industries to form a standing committee of the two organizations, which will meet regularly to review progress. The Federation of British Industries have invited the German members of this joint committee to pay a visit to England in June for this purpose, and this invitation has been accepted by their German colleagues.”
- Not printed.↩