841.24/1093b: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
5790. The Department’s 5789 of December 9, 7 p.m., outlines the importance which we attach to prompt agreement on the basis of our new draft. You may show a paraphrase to them. The following discussion is for your guidance in rebutting possible arguments which they may raise:
The first sentence of Article VII is self-explanatory in its statement of purpose, to find terms that will not burden commerce between the two nations but rather promote mutually advantageous economic relations between them and between other nations. The balance of the Article provides assurance (1) that the final settlement will be reached by negotiation, and (2) that it will be of such a nature that other nations can join in it as a forward step toward world-wide reconstruction.
On the negative side the Article provides that the final settlement shall not be an incubus upon relations between the British and ourselves but will be an instrument for improving our mutual relations [Page 48] and our relations with other nations. On the positive side it starts out by recognizing the primary importance of increased economic activity, both national and international, in production, employment and the exchange and consumption of goods. It is against this background and in conjunction with it that the objectives of eliminating discriminatory treatment, reducing tariffs and achieving the other objectives of the Atlantic Charter are added. The Article recognizes explicitly that the liberalizing of commercial policy is a matter requiring action by all participants and that to succeed it requires high standards of productivity and consumption. The Article does not lay down self-executing substantive provisions but points a broad course and commits the two nations to collaborate in making headway along that course. The Governments in collaboration will recognize the governing economic conditions in seeking the best means of making the goals obtainable. There is no attempt whatever to impose a formula which will itself be the touchstone to solve all problems but rather to provide that they shall be solved by consultation and agreement. It is obvious that the problems confronting the two nations, as well as those confronting other nations, will be different. The Article imposes no uniform solution but does provide for common counsel and agreed action rather than the principle that at the end of the war each nation will attempt to carve out a position for itself.
British preoccupations with their current and post-war problems, as imparted to us on numerous occasions, have been prominently in mind in the preparation of this draft. They have been met by providing (1) that whatever is determined under Article VII shall be determined by agreement reached after the conversations provided for; (2) that the determinations shall be reached in the light of governing economic conditions, so that if, for instance, the removal of discriminations and reduction of trade barriers should in fact be found impracticable except by gradual stages, there is nothing in this agreement to prevent adjusting the action to such findings; and (3) that the field of matters to be considered and included in the final settlement shall not be limited to matters of commercial policy only, but shall embrace all measures for promoting increased production, employment, exchange, and consumption of goods. There is thus no ground for the argument that the proposed conversations and the scope of the final settlement would ignore or prejudice the problems of the British post-war position. On the contrary, the agreement furnishes the best possible method of solving them.
The draft is not only moderate in that it confines itself to a statement of objectives, but the objectives themselves are reasonable from the British standpoint. We ask no unilateral commitment from Britain but impose identical obligations on ourselves. Nor do we ask [Page 49] Britain to join with us in seeking the attainment of objectives which would be beneficial to us but harmful to Britain. On the contrary, what is sought is the creation of conditions in the post-war period which would operate not merely to our advantage but to their advantage and that of all peoples. Indeed it might be argued that since the prosperity of Britain depends to an even larger degree on the condition of international trade than does that of the United States they are even more vitally concerned in the conditions we are seeking. The objectives laid down are those set forth in point 4 of the Atlantic declaration to which the Prime Minister subscribed undoubtedly because he considered them in the best interest of the British as well as of others.
With respect to the provision concerning discrimination, all that we ask is that the British sit down with us to work out the problems which lie ahead so that we may avoid substituting trade warfare in peacetime for the present wartime cooperation.
Article VII lays down a broad program around which all liberal forces in both countries can gather and which, if developed with sufficient vigor, can inspire hope for the future in the British, American, and other peoples.
The points raised in this telegram and also Department’s 5789 are the main considerations we wish you to have in mind when you present the American angle to the British authorities.