611.47H31/119a
The Secretary of State to the British Ambassador ( Halifax )
My Dear Mr. Ambassador: I refer to your note of April 4, 194144 transmitting a communication which you received from the Prime Minister of New Zealand relative to the possibility of increasing the outlet in the United States for export products of New Zealand. Reference is made also to your note of May 16, 1941 regarding the possibility of negotiating a supplementary trade agreement between the United States and the United Kingdom, a copy of which, it is understood, has been transmitted to the Government of New Zealand.
I would appreciate it if you would inform the Government of New Zealand that it appears that the negotiation of a trade agreement between the United States and New Zealand would be the best practical manner of increasing the export of New Zealand products to the United States. As I have previously informed you, in reply to your note of May 16, 1941, 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. 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. Furthermore, it is believed a trade agreement between the United States and New Zealand could, in itself, provide important benefits to both countries.
This Government envisages discussions between the United States and the various British Empire Governments along the lines of those which culminated in 1938 in trade agreements between the United States and the United Kingdom and between the United States and Canada. It appears, however, that it would be inadvisable to undertake formal negotiations for a trade agreement between the United States and New Zealand prior to a detailed confidential examination of questions bearing on the practical feasibility of successful negotiations. [Page 124] Under present circumstances, it would be particularly undesirable to commence definitive negotiations without the maximum possible assurance that such negotiations would be concluded successfully in the shortest possible time. I should also mention that United States trade-agreement procedure requires that public notice be given of intention to negotiate and that an opportunity be given all interested parties to express their views in writing and at public hearings prior to the undertaking of any formal negotiations or any definitive commitments. While exploratory talks would naturally have to be on an ad referendum basis so as to insure that the highest quarters in both Governments are in agreement with the possible contents of a trade agreement, and also in order to conform with procedure required in the United States, I feel certain that both Governments would be in a better position to judge the situation after exploratory talks had reduced the generalities involved into comparatively definite terms.
This Government has already begun the necessary statistical and other work in preparation for such detailed exploratory discussions and hopes that the Government of New Zealand, if it is favorably inclined toward the general project, will initiate without delay such similar preparatory work as it considers necessary. It is hoped that at the appropriate time the Government of New Zealand will find it convenient to designate officials to carry on the proposed exploratory discussions at Washington.
For your information, notes similar to this are being sent at once to the Governments of Australia and the Union of South Africa.
Sincerely yours,
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