611.4131/2523
The Secretary of State to President Roosevelt 35
My Dear Mr. President: The British mission which is now in the United States investigating means of maintaining British exports [Page 113] to this country has suggested the negotiation of a supplementary trade agreement with the United Kingdom.
At the present time, when our domestic production of commodities likely to be included in such an agreement is at an abnormally high rate, the British are finding it more and more difficult to maintain even the present level of their exports to the United States, owing to the increased British cost of production and other factors.
The supplementary trade agreement envisaged would provide reductions in our duties terminable on short notice at the end of the war, and terminable or adjustable during the war, if unforeseen developments resulted in material harm to any industry affected by the proposed agreement.
Concessions by the British Government, as required under the Trade Agreements Act,36 might take the form of a guarantee of some specific minimum imports of American agricultural products during the war, and reductions of Imperial duty-preferences which would not become fully effective until the end of the war. Such concessions would not impair the value of our duty reductions as a means of helping the British finance their wartime purchases in this country.
I believe that such an agreement would help to implement the general policy of economic assistance to the United Kingdom and also constitute another significant step tending towards the liberalization of world trade.
It would be appreciated if you would inform me as soon as possible whether you approve of our going forward with conversations with the British Government looking towards the immediate negotiation of an agreement along the lines indicated.
Faithfully yours,