840.48/4988: Telegram
The Acting Secretary of State to the Ambassador in the United Kingdom (Winant)
2703. Your 2887, July 7. Careful thought has been given to (a) the letter from Mr. Eden; (b) the proposed draft note to the “allied” Governments; and (c) the draft resolution.
The question of dealing with the problem of commodity surpluses, actual and potential, has been a subject of discussion in letters exchanged between Leith-Ross and officials of the Department and more recently of some discussion with Keynes. As stated in this correspondence, this Government shares the view that the subject distinctly merits attention as one of great interest to the economies of all countries. In conformity with this belief, it has been maintaining initiative [Page 101] in regard to said prospective surplus problems as illustrated by the discussions on wheat now in progress in Washington.
This question is, of course, very broad in character and steps taken to deal with it, as the effort is carried along, must inevitably involve consideration of production, of export controls, tariff and trade policies of different countries as well as financial policies. All steps taken in this field are, therefore, of interest and significance to the United States.
It is recognized that the matter of provisioning the occupied countries, when and as they may be free of occupation, and ultimately all countries of Europe with foodstuffs and raw materials does to a certain extent, in the immediate present and future, connect with the surplus situation, while by no means being identical with it. Various commodities, for one thing, likely to be desired then are now in short supply rather than the contrary. Any plans worked out and any agreements reached may be of importance to us for any or all of the following reasons: (a) steps taken towards the accumulation of supplies now or in the immediate future may affect the availability of supplies in the American and British defense effort; (b) according to their form or character, they may potentially affect future commercial relations; (c) again, according to their form and character, they might even affect plans for post-war settlements; (d) both currently and in the future, the shipping arrangements may likewise affect all of the foregoing matters.
These are the guiding thoughts and considerations in mind in connection with the following reply which it is suggested the American Embassy make to Mr. Eden.
“I immediately transmitted to Washington your letter of July 4 in regard to the proposed inter-allied meeting to discuss the supply of food and raw materials to European countries when they are free from German occupation. My Government joins in the view that this undertaking is of great prospective usefulness. It understands that the discussions at this stage will be of an exploratory nature and stands ready at the appropriate time to consider in what respects it can cooperate in accomplishing the aims in view.
It has asked me to point out that while this matter is, in some of its aspects, connected with that of present and prospective commodity surpluses, it, of course, has many differentiating elements, among which attention may be called particularly to the following: first, that any steps taken to acquire supplies in the immediate future might affect both the American and British defense effort and should, therefore, be coordinated with them; second, that the form of arrangement which may be executed may affect both commercial policies and relationships; third, it is even possible that the measures which might be undertaken, and the form and manner in which they are undertaken, would affect both the economic and political arrangements of the postwar period. It is quite possible, for instance, that at some stage of [Page 102] the deliberations the question will present itself as to whether the plans worked out should be restricted to the supplying of the needs of the seven countries, or whether there should also be some plant for the provisioning of the whole of Europe. For all these reasons, my Government requests that it be fully and currently advised, either through this Embassy in London or through the British Embassy in Washington, as to (1) the course of discussions at this meeting, (2) of the work of the Bureau which the United Kingdom contemplates establishing, and that it be consulted regarding any plans that emerge from these exploratory discussions before they are decided upon.
In the opinion of this Government the declaration in paragraph 5 of the draft resolution is too categorical. The reprovisioning of Europe will require the most efficient employment of the shipping resources controlled by each government and of allied resources as a whole and it is desirable that plans to this end be worked out. But such plans would obviously have to be coordinated with other demands upon shipping at the time which cannot now be foreseen nor the degree of their urgency appraised.
In regard to your inquiry as to whether the United States Government would be prepared to allow anything to be said on their behalf at the meeting, my Government suggests that the British representative might make the following brief statement if it is agreeable to the British Government:
‘The Government of the United States has been advised of the purpose of this meeting and acquainted with the terms of the draft note which has been distributed and of the draft resolution which is to be presented for consideration. It has requested my Government to state to this meeting its opinion that the undertaking is of great prospective usefulness. It understands that the present discussions will be of an exploratory nature and states that it stands ready at the appropriate time to consider in what respects it can cooperate in accomplishing the aims in view.
It has pointed out that any plans that may be worked out are of great potential interest to the United States for various reasons. They might affect the current American defense effort. According to their substance, form and method they might also affect commercial policies and relationships and even broader postwar arrangements. For these reasons it makes the request that it be kept fully advised regarding the course of these exploratory discussions and that it be consulted regarding any plans that might emerge therefrom.’”
The Department would appreciate your views as to the advisability and adequacy of all of the foregoing before you communicate a reply to Eden.