855A.24/50: Airgram
The Secretary of State to the Ambassador to the Belgian Government in Exile (Biddle), at London
A–17. Your despatch no. 36, July 14. Department desires to make following comments upon matters discussed your meeting July 14.
There is no objection to clause in tripartite agreement permitting revision of agreement before December 31, 1943 if Belgian territory should meanwhile be liberated.
Department desires a list of those prices which have been agreed upon between the Belgian and British Governments in their agreement [Page 17] of June 4th, as a basis for considering the prices to be established in the pending tripartite agreement.
The United Kingdom-Belgian Finance and Purchase Agreement of January 21, 1941 would appear to take care of the question of foreign exchange. In considering this question, however, care should be taken that adequate incentive is offered to secure maximum production. With respect to Article IV, it seems doubtful whether we should pay for and take title to unshipped balance of commodities where they lie in the Congo in December, 1943. It would seem more reasonable to pay for and take title to such commodities at least against warehouse receipts, if possible, at the respective export points for each commodity.
It is out of the question that there be an article in the agreement specifically assuring Belgian Government of necessary shipping. Mr. Makins’ remark that since all shipping is pooled, including that of the United States, there would seem no reason to transfer this question from the authorities which should deal with it, is approved.
Department has no objection in principle to the lapsing of any uncompleted transactions in the old agreement and their assimilation to the provisions of the new agreement. Specific information desired, however, as to these transactions.
In addition to above comments with regard to discussion at your meeting, Department desires to advance following suggestions.
Articles I and II of proposed agreement should state not only that Congo products should be made available according to the quantities enumerated in the first schedule of the agreement, but that United Kingdom and United States should have an option on entire output of all products enumerated.
Effort should be made to secure inclusion of a further article providing for development work in the Congo. A report, for example, from our Consul at Leopoldville dated April 23, 194218 stated that pyrethrum, for which we have urgent need, will be produced in 1942 in the maximum amount of 539 long tons. The Consul further reports, however, that the maximum possible production in 1943 is 1470 tons. The proposed article might be drafted along the following lines:
“It is recognized by the contracting parties that it may become desirable to undertake active development work for the purpose of increasing supplies of Congo products. Such development work might involve the sending of governmental organizations to the Congo, or perhaps encouraging private firms to engage in procurement of materials or cultivation of forest projects. It is agreed that the Belgium Government will facilitate such activity if it should become desirable and will place no restrictions upon such activity.”
Have received following telegram from Day:19
“Expect to forward by August 10 complete list of commodities including manufactured goods agreed to by local government as suitable basis for negotiations contemplated agreement covering Belgian Congo civilian consumption requirements. Complete survey of annual quantities and our final will require an additional 6 weeks. Will cable next few days preliminary report on automotive requirements. Gray’s section of report expected by August 15 and Frasché’s by end of August.”20