641.5531/14: Telegram

The Chargé in the United Kingdom (Matthews) to the Secretary of State

1362. Department’s telegram 1094, March 16, 8 p.m. I elicited the following information at the Foreign Office this morning with reference to the status of Anglo-Belgian economic negotiations affecting the Belgian Congo. It appears that ever since the expiration of the agreement last August negotiations for its renewal have dragged on in rather desultory fashion and subject to frequent interruptions. Following the death of the Belgian official engaged in the discussions much delay was due to the difficulty in finding a qualified successor. The latter arrived here some 2 months ago. Since then further difficulties appear to have arisen over differences in purchase prices which the British appear willing to pay for Belgian Congo products and those which the Belgians are asking. My informant remarked that this was due in part to the higher prices which the Belgians said they were offered by American buyers. Furthermore, the powerful trading interests in the Congo area were placing obstacles in the way of the negotiations pending receipt of higher prices.

On the other side of the picture while the Belgians have expressed urgent desire to obtain certain British products in return and are particularly interested in such things as mining machinery, they have never formulated the general programme of their total requirements that the British have requested.

In the light of developments in the Far East, my informant said, the need for a number of Belgian Congo products is naturally more urgent. The British are anxious to coordinate their policy with ours and have accordingly within the last few days despatched several telegrams to Washington to discuss the question with our interested Government organizations.

The Foreign Office has offered to keep us informed here as to the progress of their talks with the Belgians. There are, however, apparently no “negotiations” in the usual sense of the word in progress at this stage, but merely occasional calls at the Foreign Office by the Belgian official to discuss some specific item or aspect of the situation with the interested Foreign Office official (Makins).2 The latter has offered to send me a memorandum on the subject, and in view of the recent Foreign Office telegrams to Washington mentioned above, I perceive no advantage for the present in participating in these occasional talks.

[Page 3]

I shall telegraph a summary of the memorandum as soon as it is received.

Matthews
  1. Roger M. Makins, Acting Counsellor in the British Foreign Office.