102.78/2959: Telegram

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

3836. For Agriculture. Leith-Ross92 has indicated his view to Steere93 in an informal discussion of the draft wheat agreement that it will not be possible to obtain his Government’s acceptance of the proposed price formula. The Board of Trade index has risen so sharply that the standard price he calculates would work out at 54 shillings 9 pence on basis of the July index. He and other officials feel that this price is or looks impossibly high. He suggested rather tentatively that an approach based upon F. O. B. prices might be found preferable.

Appleby,94 Evans95 and Steere have had conversations with several Ministers in which wheat agreement has been raised and will have other talks upon all of which they will report a little later. It may be said now, however, that the Ministry of Agriculture balks at the idea of reducing British wheat acreage below two million acres insisting winter wheat indispensable for proper rotation and maintenance fertility. Hudson96 even speaks privately of new post-war policy to maintain fertility as long range measure of national defense.

Winant
  1. Sir Frederick Leith-Ross, Director General, British Ministry of Economic Warfare.
  2. Loyd V. Steere, Agricultural Attaché, American Embassy at London.
  3. Paul H. Appleby, Under Secretary of Agriculture.
  4. Rudolph M. Evans, Director, Agriculture Adjustment Administration.
  5. R. S. Hudson, British Minister of Agriculture and Fisheries.