841.24/1019
Memorandum of Conversation, by the Assistant
Secretary of State (Acheson)
[Washington,] October 17,
1941.
Mr. Acheson and Mr. Hawkins called on the British Ambassador at his
request. Mr. Opie was present with the Ambassador. Mr. Opie had
brought from England with him drafts of two papers: One was a draft
of temporary lease-lend agreement prepared in London; the second was
a draft of communication to accompany the former. The Ambassador
stated that the British Government did not wish to transmit any
document which was not agreeable to this Government and that he was
therefore taking this opportunity to acquaint us in the most
informal manner with the tentative proposal so that, after
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considering it with the
appropriate officials of the Department, we might transmit to him in
an equally informal manner any comments or suggestions, which he
would promptly take up with London. He hoped that the Department
would find it possible to accept the tentative draft.
The Ambassador then to a large extent repeated the substance of his
earlier conversation with me, reported in my memorandum of October
3, 1941. Briefly his comments were that there was general accord in
London with the purposes of our draft as explained more fully to the
Ambassador in my conversation with him of last August and in Mr.
Hawkins’s memorandum to the Secretary,48 a copy of which was given to him. The
purpose of the tentative draft was to provide against the
possibility which the British Treasury officials believed existed in
our draft that the British Government would be undertaking
unilateral obligations which it might be unable to fulfill. He again
stated the earnest desire of the Prime Minister to reach an economic
understanding with this country. He spoke also of the possibilities
of political difficulties within the Conservative Party which might
arise from attempting to deal too generally with the matter of
imperial preference before the point arrived at which concrete
alternatives might be discussed.
The Ambassador stated that the suggestion which was included in the
alternative draft that representatives of the British Government
should come to this country for the purpose of continuing the
development of an economic understanding did not necessarily have to
appear in the document itself, but that his Government attached
importance to this part of the proposal.
We stated to the Ambassador that we would immediately discuss the
documents which he gave us with the Secretary who would undoubtedly
wish to discuss them with the President and that as soon as possible
we will again communicate with him.
Copies of the documents are attached.
[Annex 1—Extract]
Draft of Temporary Lend-Lease Agreement
Prepared by the British Government49
. . . . . . . . . . . . . .
Article VII
The terms and conditions upon which the Government of the United
Kingdom receives defence aid from the Government of the United
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States of America
and the benefits to be received by the United States of America
in return therefor, as finally determined, shall be such as not
to burden commerce between the two countries, but to promote
mutually advantageous economic relations between them; they
shall provide for joint and agreed action by the United States
and United Kingdom, each working within the limits of their
governing economic conditions, directed to securing as part of a
general plan the progressive attainment of a balanced
international economy, the avoidance of harmful discriminations,
and generally the economic objectives set forth in the joint
Declaration made by the President of the United States of
America and the Prime Minister of the United Kingdom on August
12th [14th] 1941.
And furthermore it is agreed that at an early convenient date
conversations should be begun between the two Governments with a
view to discussing the best means of attaining the above objects
and generally the better ordering of economic intercourse
between nations in future conditions of settled peace.
. . . . . . . . . . . . . .
[Annex 2]
Draft Letter for Lord Halifax To Accompany the
Amendments Proposed to the “Consideration” Proposals
Dear Mr. Acheson: My Government have
taken advantage of my presence in London to instruct me in the
light of careful thought which they have given to the draft
proposals under Section 3 (b) of the
Lend-Lease Act which you handed to Mr. Keynes on July 28,
1941.
- 2.
- They are very sensible of the generosity of the terms of
these proposals and are anxious to accept them in spirit and
in substance with the least possible amendment of the form
of words proposed. They are no less keenly alive to the
magnitude of the question and are most anxious to respond to
the broad manner in which the United States Government have
invited their collaboration.
- 3.
- They are therefore glad to say that apart from some verbal
changes of no significance which are set out in a separate
paper,50
no question arises except in regard to Article VII. My
Government believe that their intentions and their hopes for
the economic organizations of the post-war world are closely
in line with those of the President. They have found that it
is not easy to refer to these in precise terms until the two
Governments have defined them in their own minds in more
detail than is yet possible. Meanwhile H. M. Government are
anxious in all candour not to subscribe to phrases which
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might be interpreted
hereafter in more than one sense. They also think it better,
and in this they feel sure the President will agree, to
emphasise that what both Governments have in view is part of
a general plan and that the escape from restrictions on one
side will only be practicable by their relaxation on all
sides.
- 4.
- My Government suggest therefore, below, a form of words
which better serves—so they feel—the common desire to
collaborate. And since, admittedly and inevitably, the bare
words themselves carry insufficient content with them, they
have added a clause, which is, I think, in conformity with a
suggestion you made to Mr. Keynes and which will, my
Government hope, commend itself to the President, providing
for the initiation of conversations at an early date with a
view to giving substance and clarity to the preceding
phrases.
- 5.
- The Departments chiefly concerned are now at work trying
to clear up their own minds, which is none too easy when we
know so little about the sort of world we shall have to deal
with when the struggle is over; and to prepare concrete
proposals. Progress is not so rapid as it would be if our
time were less taken up with more immediate preoccupations.
But we should be glad to make a start as early as may be
found mutually convenient in company with those whom the
President may designate to represent him with a view to
formulating measures for the achievement of the ends which
both Governments have in mind.
