611.4131/2560

The Secretary of State to the British Ambassador ( Halifax )

My Dear Mr. Ambassador: I refer to your note of May 16, 1941, regarding the possibility of negotiating a supplementary trade agreement between our two countries. I share your view that a series of agreements between the United States and various British Empire Governments, on the lines proposed, would make a contribution of vital significance not only to the solution of some of the difficulties created by the war but also to the reconstruction of world trade on a sound and liberal basis. Furthermore, I feel strongly that, if world trade is to be reconstructed on a sound basis, the fundamental problems must be attacked now while circumstances are perhaps uniquely favorable for a reasonable solution.

While it would not be feasible to enter into simultaneous negotiations with all the Governments of the British Empire, the United States Government would be prepared to commence immediately confidential exploratory conversations with the Governments of Australia, New Zealand and the Union of South Africa. I propose therefore to communicate in the very near future with those Governments suggesting that they designate officials to explore in detail with American representatives the feasibility of undertaking the negotiations of the suggested trade agreements.

I have no doubt your Government will agree with me that it is very important that confidential exploratory conversations should precede any formal negotiations. Under present circumstances, it would be particularly undesirable to commence formal negotiations without the maximum possible assurance that such negotiations would be concluded successfully in the shortest possible time. I thus concur in the view that exploratory talks between our two Government[s] should be continued most actively.

As regards the desire of your Government to transmit to the various British Empire Governments copies of your note to me of May 16, 1941, I have, of course, no objections to such procedure.

I am [etc.]

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