611.8331/128

Memorandum of Conversation, by the Chief of the Division of Trade Agreements (Hawkins)

The Minister [of Egypt] phoned to ask what decision we had reached on the proposed trade agreement, and what our plans are in this regard. I told the Minister that we had been working on the subject in an effort to reach conclusions which would permit us to go ahead with the negotiations; that, unfortunately, we were forced to conclude, in view of the uncertainties of the present time, such as those arising out of the war in Europe and absence of any definite plans regarding a cotton conference, that it is virtually impossible for us to formulate proposals at this time; nor could I foresee when it would be possible to do so. The Minister indicated that he understood from this that the possibility of trade-agreement negotiations is ended for the time being and thanked me for giving him this information. He said he fully realized the large amount of time and effort which we had expended on this matter, which is appreciated by him and by his Government.